Adverse credit loans are still taking the blame for the problems with the economy and it appears that the latest data indicates that the problem is getting worse. More adverse credit loans are going into default and pulling down bank profitability. As a result, adverse credit loans are even harder to get and this may be the case for a few years. Until things turn around, banks are looking to limit risks as much as possible.
“Today’s data continued to paint a picture of an economy rapidly losing momentum,” Lehman Brothers economist Matthew Smith said. “Our forecast is for the U.K. to enter recession and for the Bank of England to start cutting rates in November as oil prices ease back.”
“This is more very disturbing mortgage data that heighten concerns over the potential depth and length of the housing market correction,” Global Insight economist Howard Archer said.
“The CBI’s July survey of retailers fell off the proverbial cliff,” J.P. Morgan economist Malcolm Barr said. “Many will take the CBI data as indicative of the trend in overall spending, while the official data are showing massive volatility, and the message on that basis could hardly be weaker.”
Related reading: Adverse Credit Loan
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