Tuesday, Oct 23, 2007
More doom and gloom from the States - No end in sight yet!
Bloomberg: Chicago-Area Homebuilder Will File for Bankruptcy After Default
Neumann Homes Inc. will file for bankruptcy, becoming the second-largest homebuilder to seek Chapter 11 protection from its creditors as the U.S. housing recession enters its third year.
Posted by tyrellcorporation @ 09:27 PM (435 views) Add Comment
5 Comments
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1. tyrellcorporation said...
I still do find it amazing that the US is going into it's third year of HPC and yet we seem to be immune - any theories on why we're still holding up?
2. pecker said...
Yeah the collective will of every idiot BTLer in the country is holding it up!! Have you seen the B&B push the advertising on BTLs... thought theyd have enough worries already without going there! Their slogan "Get someone else to pay your mortgage" they truely are brainless irresponsible twerps that deserve to go bust, which they surely will! The paragon/northern rock problem must be something that happens to other companies... Short the shares in B&B if you want to make money!
3. harold said...
"...any theories on why we're still holding up?"
I guess there are a number of possible factors, but one that springs to mind is that the fed floored IRs to 1% for an extended period after the dot-com bust, whilst in the UK the BoE didn't lower IRs so much. Easy money was therefore available in the States to a far greater degree than even here in the UK, resulting in a much more aggressive boom and bust cycle. Fear not, however, debt levels in the UK are at least as bad as in the States (not to mention salary multiples), so the UK bust is all but inevitable.
4. sold 2 rent 1 said...
"...any theories on why we're still holding up?"
That's easy peasy.
30 years of statistics history shows that Europe's housing market is 2 years behind the US.
A research report was posted here about this fact last January...ish.
Europe is about to enter its first year of decline.
5. inbreda said...
given reports of 40% drops in value on flats in some areas I'd say we are already there.