A slow process

Friday 13th March 2009, 3:00PM GMT.

THE global economy is going through a ‘balance sheet recession’ — and it could take a long time to recover, a visiting economist said this week.

John Greenwood, chief economist at Invesco, said that sub-prime mortgages had taken the blame for the credit crunch, but the real cause was too much debt, particularly in households and the private sector.

Mr Greenwood, speaking at a seminar on Wednesday, said that no matter how low the interest rates, people were reluctant to borrow because they were still trying to pay back their debts. Mr Greenwood said that the debt problem was worse in the UK than in the United States.

‘Balance sheet repair is a very slow process,’ he said.

Pictured: John Greenwood, Mike Allo of Invesco’s Jersey office and Bob Yerbury at the seminar

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1
Suzie Orman

March 13, 2009 at 5:25 pm

Another huge advantage land investing has is,that your buyers can pay you cash and don’t have to qualify for loans. When buying a home there is going to be a loan. There is also going to be an appraisal and probably an inspection and those costs money. Something else worth mentioning is,that your market opens up with buyers, because there is no need to qualify for a loan.

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2
Mike R

March 16, 2009 at 11:12 am

Suzie – I couldn’t agree more, your points absolutely impact on the price of fish, as outlined in this article.

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