Formguide: "all those paper gains evaporating every month"
and for many investors that are close to or in negative equity, while also lacking the investing experience and mental strength to deal with falling prices...
NO. WAY. OUT.
that's right. i remember how hard it was to take my first losses. "if i just...hold...on, i might get my money back" i said.
glad i learnt my lessons on 5k parcels of spec stocks, not leveraged 500k mortgages in an illiquid market soon to be rampant with negative sentiment and crowd psychology.
these guys are going to sit there and watch their gains disappear and their losses mount. they won't be able to bring themselves to sell and prove themselves fools. that's assuming they get the choice, because we all know that property, like credit markets (lets face it, property at present IS a derivative of the credit market), can quickly become very illiquid.
