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ingermany

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Everything posted by ingermany

  1. The government seem to have forgotten that the housing market is actually supposed to be a market. For each repossessed property there will be a lucky (homeless) first-time buyer who gets somewhere to live at an affordable price. By attempting to rig the market in favour of the "haves" aaginst the "have-nots" (and getting the have-nots to bear the cost) the government is creating injustice, wasting taxpayers' money and paralysing the market. The government is effectively the only buyer in the housing market now, and it is obvious they can only keep prices artificially elevated for so long before they become insolvent and have to let the market drop. Knowing this, no private buyers will commit themselves. Everything they try to do will make matters worse and create perverse incentives for people to act irresponsibly.
  2. NHF: booming house prices Is this why the housing associations' mouthpiece, NHF has been shamelessly ramping property prices with their desperate (and totally un-evidenced) press releases??? They are just another vested interest that relies on rising prices. If they go bust they should not be rescued. They are part of the problem.
  3. Just underlines the fact that there is housing over-supply, just like America. The big builders must be teetering on the brink. The government has already tried paying the builders to make houses and then selling/giving them away to Joe Public, but that just brings on the house price crash. So instead the govt will find alternative projects for builders that can be paid for by taxpayers without the creation of yet more housing over-supply. They want to keep the builders from going bust, but they don't want them to be building houses. This means Mssrs Barratt and Wimpey will be chucking up lots of low quality public buildings at our expense. I guess that because it will be a "long term capital investment" it won't be added to current borrowing figures. The plan could be more subtle and cunning than it appears.
  4. Good point. I can't think of many situations where missing a target by 250% would be considered a success. Perhaps the London Olympics budget qualifies as another.
  5. Could have been worse. They could have combined it with another of their "win a house" raffle promotions.
  6. But they will never end up in the poo because the governement has given an unlimited guarantee to underwrite bank lending (and defaults). So perhaps lending at 2007 intensity really is an option, because there are now no consequences for losing money and no punishment for failure (in fact I think Gordon has decreed that the f word no longer exists). The free market has been suspended. Effectively, everything (that borrows money) is nationalised. It's not a bail-out, it's a command economy, and the new 5 year plan says the banks can lend money as fast as it can be printed. Defaults on loans will be paid by HM Treasury. No one needs to pay off credit card or mortgage debts. Everyone can drive a 4x4.
  7. It's not all bad news. Some of the lost money was waiting to be used by councils to buy up unwanted new builds and bail homeowners out of negative equity (Brown's last Big Idea a distant memory now). At least we can thank the Icelanders for saving us from that pile of steaming [email protected] In my opinion the money can do less harm if Iceland holds onto it.
  8. Sales of 4x4s are also at an all time low. Does that mean the prices can't really be going down? Hope so cos I'm trading in my 12 month old X5 in November
  9. I started the week with 2 accounts, 1 in Germany, 1 in UK. I now have 5 UK and 2 German accounts. I didn't expect any thankyous, but was a bit surprised by the attitude of a German bank this week. I went there to open an account explaining that I had 90K euros in Commerzbank and was worried that, as the compensation ceiling was 20K I needed to spread the risk. The manager reacted like I had maligned his mother and said he would NOT let me open an acount if that was my reason. I had sit there until I had thought of a less treasonous rationale. The manager said that Chancellor Merkel had told us our money is safe, and that is all I need to know.
  10. Housing Benefit I know this is so NOT news to this forum, but coming on the tails of the latest attempts for force house prices higher, here is a reminder of how the government has been doing it so far. 1. Import people from all over the world into UK 2. Give them free housing in the most expensive areas of the country. 3. Pay the landlords around 150K per year in rent per property. 4. This allows the landlord to up the "value" his house at over 1 million pounds. 5. Massive house price inflation is funded by the working population through their taxes. How long will our 50billion last?
  11. What happened to the 12 billion they just raised? Their assets and balance sheet must be worth more than that implied by this share price. Looks like the shareholders are screwed. Depositors will be indemnified by UK PLC.
  12. Have just visited my local bank here in Germany to transfer money into a deposit account. The girl opening the account was a trainee who explained in her best English that she had no one to help her because "many staff are off sick because they are so frightened". I made my excuses and left. I had been about to deposit 80k euros, but I'm not going to give it to someone who is too scared to come to work. Now I'm s***ting myself. Merkl doesn't reassure me much either. She says no German will lose money because of bank failure. I assume just a careless use of words, but not good for ex pats to hear. And this is in a country with no history of a property bubble, loads of personal savings, a positive balance of payments and basically sound financial policy.
  13. STOP PRESS: HOUSE PRICES ARE GOING UP While we're being treated to repeats of old news stories, here's another from earlier this year. I love Stuart Law's pithy, though with hindsight, slightly over optimistic prediction. Stuart Law, chief executive of property investment firm Assetz, said: “Confidence is returning to the market. This latest rise in prices should fuel further optimism among both buyers and sellers. I expect to see further house price rises this spring, but the Bank of England can’t afford to take its foot off the pedal." He was right about the last bit though, the government and BoE have ploughed about 300 billion of our money into attempts to shore up the market since this was written.
  14. But we've just had "the longest period of economic stability and sustained growth in our country's history". The man who said that must be either an incompetent charlatan or a bare-faced lying b**tard. Or perhaps has an unexpectedly acute sense of humour (though this alone surely did not make him suited for high public office).
  15. 40's, doctor, living in nice 4 bedroom house, Germany, rent and all bills paid by employer. Most of income (earned in £) is paid in euros (employer still thinks 1 euro=68p ). Sold UK property a few years ago. Waiting for HPs to bottom out before buying again for cash probably back in UK. Main worry was escalating UK house prices. Main worry now is losing savings if banks go bust. Savings split between equities , cash in european banks and cash in UK I keep remembering George Best's quote "I spent half my money on cars, booze and women.........the rest of it I just wasted" Now that's wisdom.
  16. You just reminded me of this headline that got my hopes up very briefly until I read the small print. PM Minutes From Death
  17. Going to be acquired by another bank, with government guarantees for some of the assets. crunch speak for completely bolloxed.
  18. Interesting. People keep saying that owners will stay put rather than lower the asking price to get a sale. However, 600,000 people die in the UK every year, and many of these sad events result in the property being sold, at a realistic market price (instead of it being on the market unsold for 18 months at an unrealistic price). The real price is determined by the houses that are sold, not the prices dreamt up by vendors and agents. There is a 20-30% drop already with more to come.
  19. With so much UK personal debt now owed to the governemnet rather than banks, is there not a high chance that this debt will just be written off? I know the government has a record of failure to collect revenues (never from me I have to say). I do wonder if this 1.2 trillion in personal debt might not just "disappear", which would represent a massive gift to certain people and a hugely inflationary stimulus to the economy. These debts have moved from the business/banking sphere into the hands of politicians. It's just a short step now to see them being swept under the carpet.
  20. Cobined with the 2k+ on Northern Rock, I now have more negative equity than in 1992, and this time I don't even have a mortgage.
  21. So we all get to share £40 billion of buy to let negative equity. I don't mind paying taxes for schools and hospitals I don't use, but I object to paying a massive amount to shore up the finances of BTL landlords, who I see are now being described as "victims" and "casualties" of the credit crunch. The language implies that these people deserve sympathy and support (money). As soon as they're in the black again they'lll tell us to sod off, while they boast of their property developing profits. We'll never see this money again. It's a disgraceful abuse of power. The other thing that scares me is that the government now seems to directly own a very high proportion of the UK mortgage debt, through liquidity schemes, NR and B and B, and ? secret deals over HBOS. Does anyone have a guess about how much of the UK £1.2 trillion in personal debt is now directly owed to the government? Won't this totally distort the way the governemnt deals with the financial crisis? It has a vested interest in allowing high inflation/rising prices to dilute the debt??
  22. We'll only nationalise the crappy bits. B&B get to sell the decent bits. No doubt senior management will get their share of the bonuses and will be laughing all the way to the bank (not the one they just trashed of course). Government by the criminals for the criminals.
  23. And about 600,000 people die every year, with an increasing proportion of these owning property. Also the ageing population, having strokes, cancer, and heart attacks, and dementia, will dump its property on the market. Not all of it will go to offspring who want to run a BTL portfolio. It will be sold, for the best price it can get, which will be a lot lower than last year.
  24. It has to be a raffle then. I quite fancy winning a bank. I might buy 2 tickets.
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