Wednesday, May 05, 2010
Greek crooks don't need a mortgage
Bloomberg: Wealthy Greeks Turn to London Property as Safe Haven in Crisis
The U.K. has a record budget deficit, weak economic growth and may soon face a hung parliament. For wealthy Greeks, it’s a safe haven.
Posted by alan @ 09:26 PM (1225 views) Add Comment
8 Comments
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1. wiltshire said...
Every cloud aye?
2. titaniccaptain said...
The impact of the London housing market on the rest of the country is immeasurable so if outside investors have been eyeing up prime property in London and investing then the knock on effect is obvious. London as a financial centre has been isolated from the rest of the economy through the bailout of its primary function, this has distorted the real property market to the extent that surrounding areas and any are desirable to city folk is still in boom mode.
UK bonds are still highly regarded in the rest of the world so we are NOT in the same boat as Greece.....providing whoever gets into power honours our national debt.......but if they don't impress the bond markets then we are surely in the Brown stuff.....however I feel there is a conspiracy of silence when it comes to our national debt by the major parties before the electon.
I did not expect this current housing market scenario to play out for so long but everything including the kitchen sink has been thrown into propping up the housing market via the financial institutions securities.
One chap who writes for us really does have some good perspective on our situation did a cracking article....and trust me he is someone who has great insight into the mechanics of our predicament.....i will not say why ;-)
Britain may be better placed than we think..............but its like reading tea leaves.
The article is a few days old but worth a read.
http://www.economicvoice.com/its-the-sun-wot-got-it-wrong/5009592#axzz0n67OuikQ
You may disagree........
3. quiet guy said...
I hope you're right TitanicCaptain. I'd rather not have to emigrate to escape; I'm lazy.
4. nickb said...
@titanic,
If the UK is not in the same predicament (our debt is better regarded and debt stock relatively lower) why are we being told by all three major parties that we have to pursue slash and burn, 1930s style economic policies in the near future? If Cameron and his City Boy chums gets in tomorrow, the most enthusiastic wielders of the chain saw, will the last person to leave please turn off the lights?
N
5. titaniccaptain said...
Hi Nick I think its not so much the debt level as the ability and willingness to pay it back which sets us apart from Greece.
6. uncle tom said...
The thing that sets the UK apart from Greece, Portugal, Spain etc.. is that we have retained control over our currency, and can inflate our way out of trouble if the other remedies to our colossal deficit prove too onerous.
All we need is a government that is not in denial about the scale of the problem - it is not enough to halve the structural deficit; it needs to be reduced to zero and beyond; we can no longer presume to have economic growth without greater efficiency and productivity.
The remedies are going to be difficult, painful for some, and there will doubtless be plenty of unhelpful carping from people who have no better ideas.
But if the next government can be honest and transparent, get the best brains on the case, keep an open mind on all financial issues; and not make endless promises to spend money it hasn't got; then the process of getting out of this mess will be a lot easier.
7. jack c said...
Greek debt is having to be constantly rolled over whereas UK debt isnt payable for years to come.
8. uncle tom said...
Jack c,
We have a fair amount of long debt, but there's also an awful lot of short dated gilts..
http://www.dmo.gov.uk/reportView.aspx?rptCode=D1A&rptName=63079552&reportpage=D1A
..and in addition, over £60bn of ultra short treasury bills..
..we're not that immune!