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redprince

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Everything posted by redprince

  1. So now were moving on from banks runs to crop shortages. Maybe you could spend less time hypothesising on things that may never happen (and probably wont) and go and do sth useful!.
  2. And if you had read my previous posts you would have seen that i was not sneering at being precautionary and indeed have taken steps to preserve my purchasing power however my original point re scaremongering stands.The original point of this thread was what i was getting at - its the usual alarmist stuff with little or no substance purely for the sake of it.
  3. Yes it is shaky but the fact is that is it not the case that any bank, even a good one could be brought down by people mindlessly panicing and withdrawing their money?Without the people`s money they cannot do business.Therefore to keep talking of such events merely encourages irresponsibility. Its pointless.
  4. No i didn`t say you shouldn`t spread your wealth around - its prudent to do that in some form or fashion if only to protect your purchasing power against a falling currency in times like these. I was simply stating the case against unfounded scaremongering on websites.If everyone started to think like that you would create a bank run based on irrational fear.
  5. I have presented the case for why it is extremely unlikely to happen despite the state the banks are in.I have given my reasons for saying this.You chose to ignore them but dont make out you weren`t given the argument for no bank run.
  6. As i said the only place that that a bank run will happen is in the heads of those who have too much time on their hands and spend too much of it on here.
  7. If we have a bank run then your cash isnt going to cut it. There is NO DANGER of a bank run leading to bank collapse - only in the heads of some people on this website who have too much free time on their handS!
  8. While i can understand your concerns you have to see that there is hardly any risk of a bank failing and you losing your cash. They simply could not let that happen otherwise there would be a run on every bank and that would be it - over. Fact is that they will put as much money into the banks as they need to- its what will your money be worth long term, that is imo the real question. However like most here, we are all looking at our money`s purchasing power relative to one asset - property. Fwiw- i have topped up on a lovely little gold prospector company! GL anyway.
  9. I don`t know why you wrote the above.Houseprices in my area are not yet imo good value but are getting there.I intend to buy in the near future. While stupidly high hp`s have caused immemnse dmamge to the economy and people`s lives it really boils down to keeping a level head.I didn`t buy years ago because they were too expensive.I am waiting and wont necessarily wait for the "bottom" as i want to get on with my life. UK has got social issues for sure, but so does many other places.People will learn to be grateful for what work they can find and our benefits sytem will be overhauled as neit
  10. My understanding of QE is the BOE buys mortgage debt from banks in exchange for electronic credits to the banks` balance sheets. The banks are meant to repurchase this mortgage debt later on - so my question is are they doing this or is this just becoming another credit cycle after credit cycle?
  11. My understanding of QE is the BOE buys mortgage debt from banks in exchange for electronic credits to the banks` balance sheets. The banks are meant to repurchase this mortgage debt later on - so my question is are they doing this or is this just becoming another credit cycle after credit cycle?
  12. Guys - just wanted to update you on the above.As far as i was concerned the above scenario was a done deal and even though it never added up to me, that inside two weeks of my offer (the only one they had) someone came in £30k higher.Funnily enough the house reappeared on propertynews.com this week again!! Seems my EA had received another one of those "offers" that, well you know didn`t have the moolah to support it! Oh well my original offer doesn`t stand now anyway - and good job too from my perspective.Not so good from the EA`s perspective.
  13. The executive have two main parties who have largely been elected on tribal grounds - they are all completely unwilling to face reality because once the truth comes out they are going to face such a backlash fron Joe Public that will force them to take some personal pain and actually take paycuts themselves.Every month that they can delay the unavoidable day of trth is another month of full salary and expenses. NI is frankly facing a kicking in terms of us having to reduce our public sector wagebill and the Stormont executive do not have the experience to deal with this.Almost every public c
  14. THE way to play this is to find a good junior miner/explorer.That way you have the potential of a leveraged play on the metal ie they firm up a resource and you get the gain.
  15. Not so sure - biggest public sector cuts in living memory and you think that will have no impact to sentiment?!?! Also you stated about no falls for 5 years - you need to factor in the cost of 5 years renting (assuming you are renting). I have been renting for last two years and i am glad i haven`t bought yet.Prices round my way are about 30-40% too high based on long term lending multiples.As a consequence they are only selling the smal terraced ones. We need vendors and EA`s to get into new mindset of where hp`s are going and away from where they have been!
  16. Spot on.That is the key to potential ir rises - what exactly would cause the bond holders to walk or demand higher ir`s to compensate them for perceived higher risk? Ultimately it is the perception of how "safe" our economy is.We know the US is sitting on a timebomb and short of a miracle will receive further downgrades.Question is how will that effect us?How will public sector cuts affect our economy?Do we face another bailout in near future if a bank goes bust?Do they press on with more QE programmes and if so do they increase them?How much inflation will that cause? I think that inflation
  17. Yes - exactly, what the shorters are trying to say is -"Oh look we can help the market be even more efficient than by leaving it alone to find its natural equilibrium by creating fancy and fraudulent trading instruments". No i dont buy it.
  18. Shorting is borrowing to sell into the market - thereby creating a temporrary supply of shares.This is distorting the natural supply side of the market as the seller has to replace said shares before closing his short. That clearly creates an unnatural kink to the natural demand and supply dynamics of the market. The hidden vagaries i refer to are financial instruments like shorts that help to unsettle the natural mkt price and fool investors.
  19. No it doesn`t - it helps to perpetuate the distortion.A natural market price doesn`t need any help in establishing itself.It fulfils no market function whatsoever other than allowing moneymen to profit from hidden vagaries of the market.
  20. No i disagree.Ownership should be singular ownership of an asset.Once you allow shorting you have dual and temporary ownership. By doing that you have fraud and you have also distorted the markets natural equilibrium.Shorting exists for two reasons: 1.To provide liquidity to the futures market 2.To allow fund holders and etf managers to make money from things that other people own.
  21. Not the same thing at all.There are not two ownership claims on same thing.Anytime you have that you have fraud and an artificial price/market.
  22. Nonsense. Lets look at the silver market.Shorters open a fresh batch of short contracts thereby driving the price down and trigger off many traders stop losses causing further falls in price.Shorters then reenter the market at a the new lower price and replace their shorts. Natural price - no. Clearly if you a have enough shorts on a partiucular stock it will create at the very least an overhang in the stock. Again two claims on one asset is FRAUDULENT.
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