National Homebuyers: 'The great depression of 2008?'
Millions of people around the world face financial difficulties after huge stock market falls across the globe.
[UKPRwire, Mon Jan 28 2008] It comes as a result of a slowdown in the US economy following the sub-prime mortgage crisis and the eventual housing market slump.
The FTSE 100 fell 5.5 per cent on January 21st, the largest single-day drop since September 11th 2001 when the World Trade Centre towers were attacked by terrorists.
Huge losses were also seen in Asia, Australia, Europe and South America, with the US markets escaping for the time being as they were closed for a national holiday.
Commenting on the falls, Martin Hennecke, a senior manager at Tyche financial advisors, told Channel Four that many face financial difficulties as we enter into a recession.
"What investors need to understand is it's not just about sub-prime and mortgages it's really a big crisis of depth on all levels, even government depth, hitting the rest now and that's very significant," he warned.
"It's just getting started and it will really develop into a very, very severe recession, maybe a real depression of the style we saw in 1929," added Mr Hennecke.
Julian King of National Homebuyers says that some are exaggerating the situation, but concurs that things will be difficult for many thousands. "Property prices will fall and interest rates will remain high but that does not mean a collapse of the economy.
"Consumers need to be practical. Borrowing money should be avoided for the short to medium term and those with equity in their property are encouraged to release it quickly.
"Homeowners are advised to consider a quick property sale to avoid becoming a repossessions statistic".
Mr King is a director of National Homebuyers, the UK's leading quick property sale company. National Homebuyers guarantees to make an offer on any property in the UK, regardless of its condition. The company also provides mortgage rescue solutions such as Sell and Rent Back when the homeowner can sell their property, but rent back for an agreed period of time and rental fee.