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right_freds_dead

Busted Flush Property Developer Sell £800 Fridge For £100

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i went with me partner to buy a used smeg fridge off ebay and the guy was a busted property developer. he was pretty open and suprisingly a nice guy, youngish around age 35-40, but his turn of events was the 'banks didnt have any money so people couldnt buy his what i suspect were his 200k flats' and the bank was only giving him 60k per unit on what i gathered was a 17 mill new development. the banks called the loans in, and he didnt have it. BUSTED.

he blamed it on the banks not lending money, but he didnt seem to realise they didnt have it. i think he thought they issued these loans from held deposits. his grasp of the financial side of things was very limited and he went from having a helicopter and a mclaren (whatever that is) to being bankrupted and having to sell his quality goods on ebay for cash to get by. he almost grabbed the £100 from my partner. he was selling what he could before leaving the mansion and renting a 'farm house' for now.

BUT - he wasnt so bothered as he had another plan. he was going to get the whole bankruptcy thing done and dusted. clean slate etc, and then was going into property again. this story is 100% true. sounds crazy, but we were there. in his (formerly his) - (which he only ever had a loan on anyway) £3.7 million former 16 century mansion. loading his smeg into my van, looking around at what he thought he had and thinking, so this is where all the money went.

he didnt know about QE or inflation, currencies or wealth storage. he only knew one thing. buy property - it goes up.!!

he had no idea about economics. he had lost touch with what real people earned and could afford to the point that he thought new build phlats in leeds were worth 200k. yet he was a self made (failure) born only 6 miles from the proposed city professionals. in leeds !! yet he though people like him would be ok borrowing 200k while earning 18-20k average.

talk about accidentally finding some gold and calling yourself an alchemist.

his jaw fell open when i told him in october 08 they were 3 hours from closing all the uk cash machines and 3 hours from meltdown and chaos. until they printed money to temp close the emergency gap (with massive inflation to follow later, but at least controlled).

Edited by right_freds_dead

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his jaw fell open when i told him in october 08 they were 3 hours from closing all the uk cash machines and 3 hours from meltdown and chaos. until they printed money to temp close the emergency gap (with massive inflation to follow later, but at least controlled).

Was it just 3 hours?

I knew it was close but assumed it was 24 or 48 hours. Just 3?

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Was it just 3 hours?

I knew it was close but assumed it was 24 or 48 hours. Just 3?

yes. it was admitted by darling they were 3 hours away. people would have turned up at cash machines to fnd a queue of disgruntled punters. gone to another cash machine and found the same. in the morning all banks would be closed and emergency food supply measures put into action with the bbc issuing instructions. 3 HOURS AWAY !!!

anyway. my partner has put him on her favourite sellers list of ebay !!!

so have many others i guess. there was even an old chapel in the grounds.

nice guy though. totally naive. i kept repeating to myself - why didnt he cash up in 2006.

he had been at it since 98, so started well without the provocation of many BTL'rs.

he just had no idea about economics. if he thinks this is bad, wait until he cant afford to rent the 'farm house'

he thinks this is just a dip....

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Is there a link for that little gem? ;)

there was something on the bbc website a while ago and quoted on many recent financial documentaries so much so, it was hard to miss. if you type darling 3 hours from closing banks into goolgle, i am sure you will find some links.

Edited by right_freds_dead

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Feck, we would have looked a basket case?

Was this just the UK or the rest of the EU/US as well?

I still think it is all being covered up and that there is much worse going on. I actually think that we and the US are bankrupt but we are just pretending that everything is sorted and hoping no one will realise.

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Is there a link for that little gem? ;)

Well, here's a starter point to investigate further from: http://www.dailymail.co.uk/news/article-1127278/Revealed-Day-banks-just-hours-collapse.html

Britain was just three hours away from going bust last year after a secret run on the banks, one of Gordon Brown's Ministers has revealed.

City Minister Paul Myners disclosed that on Friday, October 10, the country was 'very close' to a complete banking collapse after 'major depositors' attempted to withdraw their money en masse.

The Mail on Sunday has been told that the Treasury was preparing for the banks to shut their doors to all customers, terminate electronic transfers and even block hole-in-the-wall cash withdrawals.

Only frantic behind-the-scenes efforts averted financial meltdown.

If the moves had failed, Mr Brown would have been forced to announce that the Government was nationalising the entire financial system and guaranteeing all deposits.

But 60-year-old Lord Myners was accused last night of being 'completely irresponsible' for admitting the scale of the crisis while the recession was still deepening and major institutions such as Barclays remain under intense pressure.

The build-up to 'Black Friday' started on Monday, October 6, when the FTSE 100 dropped by nearly eight per cent as bad news on the economy started to multiply.

The following day, Chancellor Alistair Darling began all-night talks ahead of an announcement on the Wednesday that billions of pounds of taxpayers' money would be used to pour liquidity into the system.

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Someone joked that Brown's grand plan is in effect: "keep spending to keep up appearances". The West is like a man who cheerily leaves for work every morning dressed in his suit. He has not told his wife that he lost his job, and spends the day feeding ducks in the park. Unawares, she spends money as normal, and the debts build up.

All because: "It's the right thing to do." :lol:

hes like one of my friends who is also in financial trouble.

hes gone all mental cos he cant deal with it. crazy talk. ignoring. carrying on.

they still havent dealt with it. neither has my mate, not because they dont want to. its because they cant. at some point the final wall will give and they will be living in the conditions that would have been medium, but with the added debt will be squalid. and they cant deal with it. a squalid country or a squalid lifestyle. one because a squalid country will not get him re-elected. the other a squalid lifestyle wont get him laid.

its coming though.

the money they printed which we are withdrawing from ALL cash machines today, right now is a loan. THINK for every pound you withdraw from a cash machine is in fact £1 more to the loan deficit. the real money is simply not there.

this will result in unimaginable inflation in the next 5 years.

Edited by right_freds_dead

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I recall Branson rang up Darling to tell him all the Virgin airline money was in HBOS and if they did not rescue HBOS he would have to pull the money out... but as HBOS did not have the cash Virgin would go bust within a day... or something like that.

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The West is like a man who cheerily leaves for work every morning dressed in his suit. He has not told his wife that he lost his job, and spends the day feeding ducks in the park. Unawares, she spends money as normal, and the debts build up.

True story - I know someone who had to hide in the bedroom all day when he lost his job on his wife's insistence to 'keep up appearances'

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BUT - he wasnt so bothered as he had another plan

yeah it's funny how many "millionaire" biographies contain a "made a million lost a million" story in their past. People who are hungry enough will find a way, personally I'm not so sure being "rich" is all what it's cracked up to be, but I'd like to find that out for myself hehe!

Congrats on the new smeg.

True story - I know someone who had to hide in the bedroom all day when he lost his job on his wife's insistence to 'keep up appearances'

Why didn't he say he had some extra "holiday" to use up. He'd been working so hard he had built up some flexitime. Or perhaps a good old fashioned medical issue. Man no wonder he lost his job!

Edited by Orbital

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Is there a link for that little gem? ;)

there was something on the bbc website a while ago and quoted on many recent financial documentaries so much so, it was hard to miss. if you type darling 3 hours from closing banks into goolgle, i am sure you will find some links.

clicky link

I remember just how many posters on this site laughed at us when we were saying things like this last year, rigth at that time on those days. The worrying thing is a lot of the same idiots are now spounting similar rhetoric.

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yeah it's funny how many "millionaire" biographies contain a "made a million lost a million" story in their past. People who are hungry enough will find a way, personally I'm not so sure being "rich" is all what it's cracked up to be, but I'd like to find that out for myself hehe!

Congrats on the new smeg.

thats what he said too.

he added that the money didnt make him happier and he still had his wife and 2 kids (i think) and was ok with the best things in life. he said his kids only wanted to go in the helicopter once and he was missing out on the basics, which are the best anyway id say. he was a nice chap in a horrible business. and he got burned in the end. i could not have the vile i feel for the wilsons against this man. he was pre boom builder gone mad financial. i just wish he could have banked something, but i think he thought he had the golden touch or something.

the wilsons are another thing. i wouldnt buy even a used fridge from them. id rather they went hungry.

at least this guy MADE flats, not just jumped in with BTL loans before the locals could.

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clicky link

I remember just how many posters on this site laughed at us when we were saying things like this last year, rigth at that time on those days. The worrying thing is a lot of the same idiots are now spounting similar rhetoric.

im more than prepared now, but this makes me wonder why bother.

if our tin foil hats have to come out how bad will the life quality be ?

its like wishing for more poverty and robbery.

still, people did warn people a long time ago, but they just love to step on heads and spend more and more.

a full blown 60% house price crash cannot happen without collapsing the whole economy. as people said.

"the government wont let it happen"

so i think at best we will be in for a whole big heap of stagflation as private rents collapse pretty quickly.

old forum hag, time to raise the rents, will change to 'time to file for bankruptcy'

i may never own a modest house, ive come to accept that, but whats unpalletable is the BTL sector staying alive. i will fight on until the wilsons are floating in the thames on a double suicide pact and every BTL landlord pay back every penny they ever leeched off tenants in personal debt. which with any luck will take them a lifetime to pay down.

on another good note, that cronic nasty little new build flat near me has now been on sale now for almost 4 years for 120k.!!

thats surely another guy thinking its just a blip an pretty soon it will be worth the £160k he was probably expecting before the music stopped. sad thing is, its never been let out. its a flipper gone turtle. i know this 'investment' must be eating this guys pension, but he deserves it. i wish i could meet this guy on an ebay sale.

also, i recently went time wasting landlords with viewings in a half hearted effort to move vs test the market, and i looked at 2. both vastly overpriced private lets. one guy has three he boasted, though he seemed to give off the air of desperation to his rennovated terrace at above market price in another grim northern monkey town. the other was a crammed in house built between two detached houses. we offered less, they refused, they called back a few days later to see if we were still interested in the high price. like we were stupid.!! the other i never heard back from, but i passed by a week ago. blinds closed. no let sign, but also no furniture. dont know whats gone on there. maybe he rented it and the punters have yet to move in.

also while in france this year there were a lot of ex pat homes for sale on this caravan park we frequent. we hammered one down to half its value. very desperate seller. then we pulled out. if its there next year we will make a lower offer. its a laugh. you got to laugh.

Edited by right_freds_dead

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yeah it's funny how many "millionaire" biographies contain a "made a million lost a million" story in their past. People who are hungry enough will find a way, personally I'm not so sure being "rich" is all what it's cracked up to be, but I'd like to find that out for myself hehe!

I came very close to bankruptcy in the nineties recession. So close I actually went to court but got it adjourned on a technicality that bought me enough time. At that point it was for a £50k backrent bill I couldn't settle. Eighteen months later I was flying high again and no-one would have had any idea what had happened.

People conflate business bankruptucy/administration with consumers who're indebted from too many foreign holidays. They're not the same, a business might have onerous lease commitments that are pulling it under. In these cases bankruptcy/administration can be a strategic step forward that means they end up as one of the strongest.

This could well be the case with retailers who've done pre-pack administrations to rid themselves of underperformng stores early on. Landlords will moan about shirking on responsibilties etc. but it's all nonsense, the directors have done the right thing to ensure the survival of the company and the bullk of the employees.

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Was it just 3 hours?

I knew it was close but assumed it was 24 or 48 hours. Just 3?

The HBOS thing took place midweek, rather than 8am Monday morning as is more usual for banks. I'm guessing that means they couldn't wait for the weekend.

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[....]

This could well be the case with retailers who've done pre-pack administrations to rid themselves of underperformng stores early on. Landlords will moan about shirking on responsibilties etc. but it's all nonsense, the directors have done the right thing to ensure the survival of the company and the bullk of the employees.

Somehow I expect you wouldn't be saying that if a major customer of yours went under owing you money and then popped back up after a pre-pack <_<

(I appreciate this doesnt apply to a retail business mostly - maybe shoplifting or employee thheft is an appropriate analogy?)

Please don't be a hypocrite (sp?) - it isn't pretty <_<

Edited by Neverland

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that's the exact problem with the UK and it's fixation with property investment.it's been accepted for many years that LL's can build a store,sit back,do f*** all and then reap more than the retailer grafting in the building with zero risk to their capital.

Thats unfair, the property owners were taking a huge risk, they just weren't building it into their investment models

Its a bit like picking coins up from the ground in front of an approaching steam roller

When the value of an asset doubles in 3 years which way is it most likely to go next - up or down?

D'oh <_<

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Somehow I expect you wouldn't be saying that if a major customer of yours went under owing you money and then popped back up after a pre-pack <_<

(I appreciate this doesnt apply to a retail business mostly - maybe shoplifting or employee thheft is an appropriate analogy?)

Please don't be a hypocrite (sp?) - it isn't pretty <_<

I've written off substantial sums to trade buyer's who've gone under in the last twelve months or so. If I've gone uninsured on someone then it's my stupid fault. Whether the company has been dismantled and the assets sold with the director's homes repossessed or they're still running the business exactly the same post pre-pack, it doesn't matter. Either way I won't get paid so I don't really care - schadenfraude currently has no monetary value.

Thats unfair, the property owners were taking a huge risk, they just weren't building it into their investment models

Its a bit like picking coins up from the ground in front of an approaching steam roller

When the value of an asset doubles in 3 years which way is it most likely to go next - up or down?

D'oh <_<

They're not taking a risk though. Most are protected by a LTD company or LLP shell and are speculating with the bank's money.

Edited by Soon Not a Chain Retailer

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sounds to me like the bank lost out bigtime, they were the true mugs and should not have extended the credit

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Guest CrashTestDummy

Congrats on the new smeg.

Cheers. Lovin' it!

My jaw nearly dropped when I turned up at such and such 'Lodge'. What a place! That's why he's on my favourties list. My eyes kept roving over all the goodies coming up for auction....... :lol:

But, have to add, he was a down to earth chap and even HE said being rich isn't all it's cracked up to be. Toys. Who'd want to be rattling around in that enormous 800 year old house, with its millions of keys and huge running costs? Not I.

Assett rich, cash poor.

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I remember just how many posters on this site laughed at us when we were saying things like this last year, rigth at that time on those days.

Yep-I'm still getting grief for my 'end of the world' food supply secreted under the stairs :lol:

I'm also encountering severe probelms with pilfering- a tin of salmon disapeared only last week- I suspect the cat. :ph34r:

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