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Sonic the Hedge Fund

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Everything posted by Sonic the Hedge Fund

  1. Ten times annual rent is a common rule of thumb, used by 'professional' LL (not newbie BTLs) I make that £78K
  2. It appears that mortgage rates are set by the market, not the government Link NW are one of the UK's best funded lenders, so if NW are calling a floor then others will probably soon be forced to follow
  3. Germany is [email protected]; their huge industrial base will strugle to stay solvent while this plays out because their markets are evaporating pushing them towards a monumental capacity surplus For example due to the previous spike in oil prices there is now a masive global overhang of unsold oil-fired power generation equipment (i.e. large deisel generators) such plant is currently trading at up to 50% below production cost. And what has happened to demand for vehicle production equipment, shipbuilding, steel, aluminium, glass etc? Manufacturers simply cannot compete when the market gets flooded with distressed assets So I am starting to wonder if the lack in UK production capacity may ultimatley turn out to be an asset.
  4. The total cost of imports of low priced tat is statisticaly insignificant to UK balance of payments because down the chain the producers only receive perhaps 10% of the already small price of each unit Cost wise 2008 UK imports from Germany were more than double those from China.
  5. HAM - cheers, nail, head etc. thank f**k somone finaly 'gets it'! The inflation debate on HPC is getting rather tiresome, because it seems to focus entirely on tangiables, imports and exports etc. thus avoiding the inconveinent fact that UK debt is 2.4 times GDP, and a good chunk of that debt is owed in curency other than GBP. I dont know the exact answer to your question (BoE stats might be a good place to look) but I do know that A&L mortgage securitisation book was about 30% EUR in 2007 - perhaps that's why they were taken over by Santader. I geuse this is probably fairly typical - banking is a global business and funding mortgage books using carry trade on IR differential was simply too lucrative to ignore in a very aggresive competive market. The size of that foriegn debt is going to have quite a pull on policy response. So I think you have discovered the real reason why Brown is arguing for coordinated devaluation. You can't inflate away foriegn debts by debasing your own currency in isolation. The effect of domestic debt destuction would simply be canceled out by apreceiation of foreign debt.
  6. Pay review deferred for 3 months and no bonus But extremely secure, if I do loose my job I am confident that by then it will be the least of our worries
  7. It's all about power IMO, Orwell summed it up with the 'two minuite hate' - No need to take personal resposibility; we will always find somone for you to blame. Politicains and journos dont like people to be resposible for their own action, because resposible people are able to learn by their mistakes, so they can see right through journo-political Bu115hit Our TV is brimming with 'experts' telling us we need to let our kids stand on their own two feet, but adults are not alowed to do the same!
  8. WTF? A toy for the rich, funded by the tax payer! IMO Concord is THE prime example of why governments should keep their nose out of business. A whole industry bankrupted by nationalistic arrogance
  9. Wouldn't work. cos the house will be 5K cheaper in a couple of months anyway......
  10. What I realy notice is how shabby the BTL houses look compared to the offerings of 'forced landlords' The later are nearly always in much beter shape, as they have been done up to sell, most with brand new batrooms/kitchens/carpets etc. Tenants are spoilt for choice, BTL does not stand a chance
  11. Maybe it has already happened to BTL, but of course all these 'pwaperdee' investors are not going to shout about it, as they have to maintian their illusion of wealth, besides no one would care - the media would probably turn it into a 'BTL fools shafted yet again' type story Come to think of it IIRC there was a load about this very subject on Swinging Pig....I will take a look
  12. Offsets have been around for well over a decade, I think that the idea came from Australia in the mid to late 90s IIRC Yorkshire bank were the first in the UK, Virgin One Account not long after The principal benfit is Tax, because you effectively forgoe taxable interest on savings in return for lower mortgage interest (which is not tax deductable) Also IRs are higher on mortagages than savings. I found One Account very usefull when i was self employed in the late 90s, as athough my income was plenty to cover the mortgage my receipts were irregular, and I was able to reduce the interest by banking my tax money through the year.
  13. Have to say I am liking this thread too, reminds me of the good old days on HPC.....
  14. WTF???!!!! The Fed are not controlling inflation, the economy is deflating without any CB assistance, the key component being Bank recapitalization due to the rapid unwinding of securitisation. I can't see securitisation recovering any time soon, so this trend is unlikely to reverse So IMO it's more the case that the Fed are attempting to control deflation, without much success
  15. Zero LTV, otherwise known as a cash sale! Surely that's the last thing banks want, folks buying houses without 'assistance' from a bank?
  16. I disagree, IMO Thatcher was a 'market socialist' The effect of council house sales was to hand out social mobility on a plate, to a generation who had not earned it. It should come as no suprise that the consequence is an 'entitlement culture'
  17. Canaries isles are empty, flights from UK have been cut by half It's a good point BL, and perhaps one reason why GBP has not weakened further against EUR - IIRC Tourism is responsible for a net loss to UK trade of £13Bn or thererabouts
  18. When indebted ship 'owners' go bust, what happens to their ships? They will be purchased at firesale prices by cash-holding vultures, who can then undercut their overleveraged competitors out of business. This is exactly what has happened in Telcoms for the last 7-8 years, after all the hubris of the late 90s. Vultures in the sector have been selling services below cost, because the networks and datacentres were built with somone elses bad investment. Expect the same to happen in BTL (it already is) Right now is possibly the worst time in history to be holding highly leveraged assets
  19. I dissagree Many goverments have tried, and failed, to control the internet.
  20. Mr Bovey counted on support in assuming that the banks were too big to fail - and got that wrong too
  21. Personaly I am saying that LG officers are incompetent, and LG directors are paid too much. Simple answer, sack all the directors and pay officers more to attract better staff who are capable of making their own decisions! IMO LG directors exist only to instigate politicaly driven changes. If they stopped f**ing around pi55ing money up the wall with constant changes and put more resources into delivering basic services, we wouldn't have such a big a problem. So as ever, the problem is politics.
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