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breakingviews.com
UK property lending -  Nasty hangover

Why are UK banks still lending to property? The most recent figures indicate commercial property prices in the UK have now fallen almost 20% from last summer, with more to come. Lloyds, one of the few UK banks not to raise new capital in the first half, has continued to expand its portfolio and its relatively small loan-book has grown by 30% over the last year. - Lire

Lehman -  Sleeping ugly

Potential bidders must be salivating at the prospect of taking a stake in Lehman Brothers’ investment management business. They’re likely to drive a hard bargain considering the Wall Street firm’s woes – notably its likely need to raise additional capital to cover more losses on its $65bn-odd commercial and residential real estate holdings. - Lire

Analyst research -  Please remain seated

Crises supposedly bring out the best in people. Sadly, the credit crunch hasn’t done so with most Wall Street stock analysts. - Lire

BOE/Inflation -  Mean, median, mode

Has the market got the wrong end of the stick on UK inflation? Investors seized on last week’s Bank of England inflation report which showed that the Monetary Policy Committee’s central projection is that growth in consumer prices will fall back to the 2% target by 2010. That was enough to raise hopes of future interest rate cuts and trigger a steep slide in sterling. - Lire

Fed/inflation -  Constitution Avenue heresy

One of the US Federal Reserve’s prime jobs is to maintain price stability. So it seems heretical to suggest Ben Bernanke might be willing to countenance a bit of inflation. - Lire

US municipal bankruptcy -  Municipal deadbeats

The near-bankruptcy of Alabama’s Jefferson County stems from foolish financing choices. There are plenty of those among other municipalities, too. - Lire

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