Wednesday, Jul 23, 2008
Throwing Money away?
Mortgage Introducer: Checkmate launch proves market is turning
"The announcement by Checkmate Mortgages that it has obtained sufficient investment to launch in 2009 is a sign the market is turning, according to John Charcol."
Posted by renting2 @ 11:07 AM (1147 views) Add Comment
20 Comments
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1. layers said...
Hmm and John Charcol have no VI in their comments?! Maybe we're entering the really dangerous phase where there appears to be normality returning to the market and house prices stage a short rally to sucker many in, before the market corrects another 40%+ downwards. Who knows, but the market fundamentals still look horrible with no light at the end of the tunnel yet (unless it's a train!). I'll wait and see thanks.
2. montesquieu said...
Makes sense. There's still money to be made provided they get the risk profile sorted out. Mid-2009 may very well see the bottom (or close to the bottom) for house prices at maybe 30% nominal drop from the peak selling price in mid-2007.
This is assuming things unwind reasonably predictably of course. A lot could happen between now and then, from an Iran war to a full-scale global banking crash ....
3. little professor said...
Ooh, backed by "the Rothschilds family interests."
This ought to get the NWO-heads crawling out of the woodwork...
4. paul said...
Setting up new initiatives won't kickstart the housing market, although I'm sure they are hoping this announcement will.
Show us the money, show us the results.
5. Fjcruiser said...
have thr rotschilds got the crystal ball then?
6. paul said...
Hey maybe this is another example of bad advice from a mortgage broker like in the other mortgageintroducer article.
7. icarus said...
Market turning? And how big is Checkmate compared with, say, HBOS, or Wachovia or Fanny & Freddie? Rothschilds made their fortune by getting the timing right? Wonder how they managed to do that? (That's not an NWO-head comment either.)
8. icarus said...
make that 'Fannie'
9. last_days_of_disco said...
Aren't the Rothschilds OWO (Old World Order) though. I am getting confused. Or perhaps its more of the SWO (same world order).
:-D
10. icarus said...
last_days - it's probably SWO. Not sure why a NWO is needed. What else do they need if they already have everything the NWO people say they have? (Rhetorical question, not designed to set off another 60 blogs with ten of them pulled.)
11. drewster said...
According to the article, "The Rothschilds built their fortune by getting their timing right". Personally I think 2009 is still far to early to step back into the game, but those guys are one of the world's richest families so what would I know...
12. icarus said...
drewster - yes, but how much are they investing? Toe in the water?
13. layers said...
And no doubt a lovely family too. Still maybe their timing isn't all that good - well if you believe their publicly stated aims at any rate (hopefully not too conspiratorial for ya LP ;-) :
Rothschild to pull out of gold market after 200 years
By James Moore
Last Updated: 12:00pm BST 22/09/2005
The investment bank that has chaired the London meetings setting the world gold price since 1919 is quitting the market.
NM Rothschild will withdraw from all its commodity trading activities, which also include an oil trading business set up less than two years ago, as part of a strategic review.
The move brings to an end nearly 200 years of tradition. NM Rothschild was founded in London in 1810 by Nathan Mayer Rothschild, who helped finance the Duke of Wellington's army in the Napoleonic wars through gold trading.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2004/04/15/cngold15.xml
Wow, what bad timing with hindsight? Wonder how that got that decision sooo wrong?! Fool me once, blah, blah...
14. icarus said...
layers - I believe another part of the family (NM's brother Jacob from Paris) funded Napoleon.
15. drewster said...
layers,
Nice find! The fundamental flaw with capitalism is that the people with money get richer and richer while those without get poorer and poorer.
icarus,
I suppose if they launch in late 2009 and just get the operational side of things set up by then, then they'll be well-positioned for the next boom. Seems like it would be easier to just buy up a distressed company like Paragon Mortgages rather than try to set up everything from scratch.
16. icarus said...
drewster - exactly what I was thinking. So the question is why not buy a company with a customer base, info, relationships etc. Would the cost of acquisition reflect the company's liabilities, or would those liabilities be regarded as a hole of unknown size?
The point about timing occurred to me too - opening for business in 2009 doesn't mean anybody thinks the market will turn in 2009. It will take a while to get up and running, so by 2011 you have a newly established company with no debt hangover from the slump - and there's no need to incur losses in the first two years if lending is conservative.
17. Ah-so said...
The Rothschilds are not part of the New World Order. Baron de Rothschild confirmed this to me at the Illumintati summer bash held at the Vatican last week.
18. inbreda said...
All banks - in order to compete - have relaxed their lending criteria. If anything this article suggests that house prices are going to drop so far that no existing mortgage lenders will be in any way viable businesses. Because all existing banks have been caught up in this, they will ALL soon have a number of defaulting/repo/nequity customers that make them worth very little. If you start in 2009 as a contrarian and keep lending rules strict you will be able to wipe out a lot of the competition.
Like I say - suggests to me that banks are not worth buying. Or for that matter, worth keeping your hard earned savings in.
19. icarus said...
inbreda - exactly. We've come full circle - from Ray Boulger's claim that this new lender indicates confidence to our claim that it indicates no confidence.
20. layers said...
14 - Icarus: Yup I believe you're right on that - their family history is very interesting indeed, particularly of funding 2 opposing sides.
17 - Imbreda: Interesting that this could be a contrarian play - we should keep a very close eye on this company and its business strategy over the coming years. Temporary good news and a small interest rate cut here, could increase bank lending and therefore, wipe 'em out even more during '09 for a reflation of credit in '10 or '11.
Nice try Boulger but I think it's a little early to call confidence returning, particularly as there's nothing to back it up with.
And what about the company's name - Checkmate! Indeed it may just be...