Jump to content
House Price Crash Forum
Sign in to follow this  
Guest

China Fooled The World

Recommended Posts

nope, the commodity story is still there.

it's just a reversion to more normal P/E ratio's.

if you thought the DOW was overvalued at 29* p/e(which should incur about a 30% drop to come), shanghai index was worse...something like 100* at peak, and now down to about 50.

..to get back into a normal trading band, prices should go down another 30-50%.

our index is a bit more sensible at something like 16*, but the regulatory environment is still rather hostile.

our property market on the other hand, has also been the recipient of this extra "money" and as such is about 30-40% too expensive.

Share this post


Link to post
Share on other sites

He writes good succinct articles does Paul Hodges. Didn't know he wrote the beyondbrics blog in the FT.

As we head into this maelstrom, I wonder if RBS managed to get all its cr@p off its books (no doubt it is up to its eyeballs in energy and commodity related debts). Certainly George has shown indecent haste in recent times to pawn it off onto the public.

And, as for HSBC, I hope they realise we're not big enough to bail them out.

Rather a shame HSBC didn't push off out of London when it said it would.

Share this post


Link to post
Share on other sites

He writes good succinct articles does Paul Hodges. Didn't know he wrote the beyondbrics blog in the FT.

As we head into this maelstrom, I wonder if RBS managed to get all its cr@p off its books (no doubt it is up to its eyeballs in energy and commodity related debts). Certainly George has shown indecent haste in recent times to pawn it off onto the public.

And, as for HSBC, I hope they realise we're not big enough to bail them out.

Interesting observation about Gidiot's motives. I simpy assumed he was looking for fast cash to keep his extravagant spending up.

Share this post


Link to post
Share on other sites

Rather a shame HSBC didn't push off out of London when it said it would.

As if! Nothing comes close to the UK for regulatory laxity and accommodation.

Share this post


Link to post
Share on other sites

I like this bit:

Buying on margin is a very dangerous game, as high levels of margin debt create a vicious circle when prices fall. As we have seen in recent days, this means speculators are forced to sell into weakness to meet margin calls from their brokers. Those who have chased London house prices into the stratosphere may come to learn a similar lesson, as the Chinese buyers who have powered demand for new-build houses in the city centre exit their positions.

:wub:

Edited by JustAnotherProle

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   94 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.