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Richard Branson Ditched His Shares Portfolio

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Just a quickie interview by phone on BBC News 24.

Richard Branson just said he'd sold his shares (I presumed he meant shares he's personally bought on the market) 3 weeks ago because of all the stories/rumours he heard about bad debt coming to bite.

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Yep, and he probably did what thousands of people with stocks and shares ISAs are doing right now - cashing them in and thinking about going into BTL. A small stock market crash will do us no favours.

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Yep, and he probably did what thousands of people with stocks and shares ISAs are doing right now - cashing them in and thinking about going into BTL. A small stock market crash will do us no favours.

Yep, thats the feeling I'm getting. Isn't that the reason the house prices increased so much in the first place?

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Yep, and he probably did what thousands of people with stocks and shares ISAs are doing right now - cashing them in and thinking about going into BTL. A small stock market crash will do us no favours.

If they cash in it means there more money out there, yes people might buy BTL however it will start again, but then again after this it might be hard to get a mortgage, and rates might go up. to recall that extra money.

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Yep, and he probably did what thousands of people with stocks and shares ISAs are doing right now - cashing them in and thinking about going into BTL. A small stock market crash will do us no favours.

no.

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Yep, thats the feeling I'm getting. Isn't that the reason the house prices increased so much in the first place?

No, that's not correct. It's a complete misconception that there's this big pile of money held by investors, who, if they see stock market declines move all the money into property (so property goes up), and if they see property decline then they move the money equities (and shares go up). This might be the logic of the "CBeebies Finance Hour", but it doesn't was here.

Property went up because low interest rates and lax lending policies allowed massive amount of borrowed money to be speculated on property, causing more rises, allowing investors to gear ever further, and creating a huge bubble. The money, on the whole, was not real - in the sense that many of the debts that were written were not repayable. You had home-owners borrowing sums of money that they could not repay (either when they came off teaser into-rate, or when base rates rose, or simply because they had not been honest with themselves or the lenders). You have BTL investors whose whole business model was effectivly based on margin-trading on the impossible assumption that prices would continue to rise and/or borrow costs would remain low (or even fall).

These un-repayable debt was sliced, diced and packaged up into collatoralised debtor obligations (CDOs) and sold off to institutional investors (like your pension fund) as high grade (i.e. low risk) investments, when in-fact much of it was valueless. Recent events have started to unravel this mess, and now, predicably, the deeper people dig the more rot they are finding below the surface. We are still in the early stages of this. More and more debts will be uncovered for what they really are, and the true inflationary effects of the increased money supply created by the dubious lending will continue to bite in hugely higher levels of real inflaction and rates of interest.

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No, that's not correct. It's a complete misconception that there's this big pile of money held by investors, who, if they see stock market declines move all the money into property (so property goes up), and if they see property decline then they move the money equities (and shares go up). This might be the logic of the "CBeebies Finance Hour", but it doesn't was here.

Property went up because low interest rates and lax lending policies allowed massive amount of borrowed money to be speculated on property, causing more rises, allowing investors to gear ever further, and creating a huge bubble. The money, on the whole, was not real - in the sense that many of the debts that were written were not repayable. You had home-owners borrowing sums of money that they could not repay (either when they came off teaser into-rate, or when base rates rose, or simply because they had not been honest with themselves or the lenders). You have BTL investors whose whole business model was effectivly based on margin-trading on the impossible assumption that prices would continue to rise and/or borrow costs would remain low (or even fall).

These un-repayable debt was sliced, diced and packaged up into collatoralised debtor obligations (CDOs) and sold off to institutional investors (like your pension fund) as high grade (i.e. low risk) investments, when in-fact much of it was valueless. Recent events have started to unravel this mess, and now, predicably, the deeper people dig the more rot they are finding below the surface. We are still in the early stages of this. More and more debts will be uncovered for what they really are, and the true inflationary effects of the increased money supply created by the dubious lending will continue to bite in hugely higher levels of real inflaction and rates of interest.

'Good stuff!!! Really good. Mortgage Fraud has played a huge role in all this...... and it's going to whip back and cause serious heartache: The idea that there's no "sub-prime" problem here in the UK is farcical. I reckon the average mortgage broker in the UK has helped at least 70% of borrowers to lie-to-buy in the last few years...... this is going to hurt badly.

http://news.bbc.co.uk/1/hi/business/3222053.stm ---- Click on "Watch and listen" top right -- and watch the Mortgage "brokers" commit fraud....... This has been endemic for years. "No sub-prime in the UK": :lol::lol::lol: Laughable.

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No, that's not correct. It's a complete misconception that there's this big pile of money held by investors, who, if they see stock market declines move all the money into property (so property goes up), and if they see property decline then they move the money equities (and shares go up). This might be the logic of the "CBeebies Finance Hour", but it doesn't was here.

Property went up because low interest rates and lax lending policies allowed massive amount of borrowed money to be speculated on property, causing more rises, allowing investors to gear ever further, and creating a huge bubble. The money, on the whole, was not real - in the sense that many of the debts that were written were not repayable. You had home-owners borrowing sums of money that they could not repay (either when they came off teaser into-rate, or when base rates rose, or simply because they had not been honest with themselves or the lenders). You have BTL investors whose whole business model was effectivly based on margin-trading on the impossible assumption that prices would continue to rise and/or borrow costs would remain low (or even fall).

These un-repayable debt was sliced, diced and packaged up into collatoralised debtor obligations (CDOs) and sold off to institutional investors (like your pension fund) as high grade (i.e. low risk) investments, when in-fact much of it was valueless. Recent events have started to unravel this mess, and now, predicably, the deeper people dig the more rot they are finding below the surface. We are still in the early stages of this. More and more debts will be uncovered for what they really are, and the true inflationary effects of the increased money supply created by the dubious lending will continue to bite in hugely higher levels of real inflaction and rates of interest.

In short, the boom of last X years has been nothing but BS.

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Yep, and he probably did what thousands of people with stocks and shares ISAs are doing right now - cashing them in and thinking about going into BTL. A small stock market crash will do us no favours.

Do you think any body with half a business brain would go into buy to let now!!!

THE FIGURES DO NOT WORK ANYMORE!!!!!!!! :o

Edited by tackle2004

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In short, the boom of last X years has been nothing but BS.

Yep. Wealth-creating industries decimated to be replaced by borrowing and junk investments.

It's going to be great when I'm going round telling people "I told you so". ;)

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Yep. Wealth-creating industries decimated to be replaced by borrowing and junk investments.

It's going to be great when I'm going round telling people "I told you so". ;)

Not that great. In 1929 you may well have been telling the people around you "I told you so" while queueing for food handouts... and the financial mess we have built this time is bigger than that of 1929.

There are still too many people on the site who sincerely believe that the forthcoming depression is going to enable them to buy a cheap house.

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Yep, and he probably did what thousands of people with stocks and shares ISAs are doing right now - cashing them in and thinking about going into BTL. A small stock market crash will do us no favours.

Especially as todays Economist is predicting a rate cut. They say that it is already priced in by the markets (via bonds etc).

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Do you think any body with half a business brain would go into buy to let now!!!

THE FIGURES DO NOT WORK ANYMORE!!!!!!!! :o

What proportion of the population do you think has half or more of a business brain?

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Well, anyone who listens to CW Radio,

knows that Tim Nuding and I wre talking about a repeat of 1987- sharp falls in stocks

in the second half.

I still think we will see that

I do too but I think there will be another rally before the sharp fall.

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Just a quickie interview by phone on BBC News 24.

Richard Branson just said he'd sold his shares (I presumed he meant shares he's personally bought on the market) 3 weeks ago because of all the stories/rumours he heard about bad debt coming to bite.

looking after themselfs,sell first tell the masses afterwards theres trouble to come ,nothing new

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Just a quickie interview by phone on BBC News 24.

Richard Branson just said he'd sold his shares (I presumed he meant shares he's personally bought on the market) 3 weeks ago because of all the stories/rumours he heard about bad debt coming to bite.

Sold up about three weeks ago, eh? Are you sure he didn't sell them to pay for flood repairs to his home? :huh:

Tycoon's home flooded
6:22pm Sunday 22nd July 2007

http://www.thisisoxfordshire.co.uk/display.var.1563715.0.tycoons_home_flooded.php' rel="external nofollow">
Even multi-millionaires didn't escape the floods as Sir Richard Branson's house was submerged in Kidlington.
The Virgin boss was one of an unlucky few whose houses in Mill End were not protected by the flood defences alongside the River Cherwell.
Village county councillor Maurice Billington said: "Richard Branson has been flooded. I think it's about a foot of water.

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There are still too many people on the site who sincerely believe that the forthcoming depression is going to enable them to buy a cheap house.

oh great. just as I thought things were getting good. now I'm even more fooked

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looking after themselfs,sell first tell the masses afterwards theres trouble to come ,nothing new

Has anybody read Bower's biography of Branson? He sounds very driven (because of his critical. pushy mom) but not that bright - he's practically monosyllabic in a lot of his interviews. A debt junkie with a short attention span, most of his companies lose money apart from the monopolies. Remember when his bid to run to the lottery was unexpectedly ditched?- I think someone must have tipped the Tories off at the time.

Edited by dinsdale

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Yep, and he probably did what thousands of people with stocks and shares ISAs are doing right now - cashing them in and thinking about going into BTL. A small stock market crash will do us no favours.

People will lose some of that notional profit in a 'correction' so there will be less money for a start.

Yep, thats the feeling I'm getting. Isn't that the reason the house prices increased so much in the first place?

Yes and no - the cheap rates were a major factor.

Besides a lot of peoples share ownership is tied up in pensions they have no control over.

If there is a 'credit crunch', unless you have the full value of a property in your portfolio, you will still need to borrow money to buy property and that will be much, much more difficult.

In fact the lack of credit in the early 1990s was one of the reasons for undervalued property in the first place.

At the moment we have inflated asset prices and decreasing liquidity to pay for them.

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