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gruffydd

Subprime Crisis Past Halfway - Light On The Horizon Says S&p

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What interesting timing :rolleyes:

Isn't it just?

You don't think the stock market will rise do you? As some (well one or two) have been saying - to much ridicule and animosity - recently.

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Isn't it just?

You don't think the stock market will rise do you? As some (well one or two) have been saying - to much ridicule and animosity - recently.

It's a ballsy move to stake your reputation on something you have no control over. But good luck with it, I fear you may need it!

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Genuine question : Was S & P one of the rating agencies that (allegedly) knowingly rated junk debt as high quality?

If that is true, then given what they have been responsible for, why should we believe them now?

Edited by nmarks

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IMO about 10% of the poison has come to light so far. In the immortal words of recent polticians: "Let me be clear about this...." The global housing bubble is about $10 trillions worth. The write downs so far are still short of a $1 trillion which means another $9 trillion has to hatch out somewhere.

How much of it belongs to the Miracle economy? Well, according to the ONS' recent report, UK Plc was valued at around 9 trillion pounds of which 40% was house "values." If house prices are going to drop by at least 50% that is not far off 2 trilion pounds that will vanish into the mists of Hedge funds, CDOs, creative loans and subprime muck. 2 trillion pounds gone and someone has to pay for it as Merv said as much (debt is real).

We ain't seen nuthin yet.

Edited by Realistbear

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It's been a very strange week for the global financial system as the laws and landscape of the financial universe have moved in a very unsettling manner.

I think the move by the fed to accept MBS as collateral on loans is a sad day for capitalism.

Basically it has proven many things I have said over the years to be incorrect. I am forced to cave to the numerous sceptics, who I always considered short sighted and pessimistic.

I thought Warren Buffet's generosity proved that Capitalsim had come full circle to deliver real social aid to those most needy and most vulnerable.

Instead what we have seen over the past week has shown that smart people hold disproportionate magnitudes of power.

If you can command enough labour, to exert system wide ripples, you are in a bracket that must behave as a collective, for if you do, you cannot fail without taking down the very system on which we all depend.

Of course the system cannot be allowed to fail, no matter what the cost. As the alternative is to lose everything.

I am afraid the investment houses of the USA came to this same conclusion earlier this year. Their losses have been socialised to allow the system to stand. The alternative of allowing them to fail, although much fairer, was far too hard to take.

The USA has gone Japanese.

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Yes released when Gold hit $1,000 per ounce. Amazing that the market reacts to utter lies like this.

I'm with RB and the International Forecaster on this one. About 10% down the road we are. Suppose Goldman isn't fully out of stocks yet, so market can't crash......or is it to do with an election year.

Isn't it amazing. 12 months ago v few people had heard of sub-prime, Gold, recession etc,. Wonder what things will be like in 2009?? :blink::blink:

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IMO about 10% of the poison has come to light so far. In the immortal words of recent polticians: "Let me be clear about this...." The global housing bubble is about $10 trillions worth. The write downs so far are still short of a $1 trillion which means another $9 trillion has to hatch out somewhere.

How much of it belongs to the Miracle economy? Well, according to the ONS' recent report, UK Plc was valued at around 9 trillion pounds of which 40% was house "values." If house prices are going to drop by at least 50% that is not far off 2 trilion pounds that will vanish into the mists of Hedge funds, CDOs, creative loans and subprime muck. 2 trillion pounds gone and someone has to pay for it as Merv said as much (debt is real).

We ain't seen nuthin yet.

RB, I really do like some of your posts.

It's the dry humour that gets me!

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Isn't it amazing. 12 months ago v few people had heard of sub-prime, Gold, recession etc,. Wonder what things will be like in 2009?? :blink::blink:

I was listening to Radio 4 as I was making dinner for Mrs Alert and myself this evening. They were discussing the price of gold and how it was now attractive to some 'retail investors'; they even mentioned that some people were going for a small physical holding...! This is not something that would have been on the minds of the middle classes 12 months ago.

Edited by redalert

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Oh OK. Now we can get started on the Alt-A, Option-ARM, prime writedowns, credit card, student loan and car loan writeoffs for good measure. But subprime's nearly done, so it's all ok matey. :wacko:

Edited by RajD

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Guest tenant super
It's a ballsy move to stake your reputation on something you have no control over. But good luck with it, I fear you may need it!

Hang on, that's a bit previous. Financial Planners reputation is pretty elevated in these parts, I for one think you are a bit cheeky picking up his chips and sticking them in the middle of the table like that sunshine!

<_<

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Hang on, that's a bit previous. Financial Planners reputation is pretty elevated in these parts, I for one think you are a bit cheeky picking up his chips and sticking them in the middle of the table like that sunshine!

I know his reputation, and how he earns his living. That's why I was politely reminding him that making claims about stocks rising or falling on a public website was incompatible with both.

I have every respect for the man and his contribution to HPC, but a man has got to know his limitations.

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I was listening to Radio 4 as I was making dinner for Mrs Alert and myself this evening. They were discussing the price of gold and how it was now attractive to some 'retail investors'; they even mentioned that some people were going for a small physical holding...! This is not something that would have been on the minds of the middle classes 12 months ago.

Yes I caught that to, didn't they have a noisy chink of coins at a pawnbrokers as a backdrop? :lol: If it goes mainstream then that 'holy grail' price of 2K an ounce cold be realised, after all it's why it could go the same way as property :unsure: sure I read that once somewhere :rolleyes:

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It's been a very strange week for the global financial system as the laws and landscape of the financial universe have moved in a very unsettling manner.

I think the move by the fed to accept MBS as collateral on loans is a sad day for capitalism.

Basically it has proven many things I have said over the years to be incorrect. I am forced to cave to the numerous sceptics, who I always considered short sighted and pessimistic.

I thought Warren Buffet's generosity proved that Capitalsim had come full circle to deliver real social aid to those most needy and most vulnerable.

Instead what we have seen over the past week has shown that smart people hold disproportionate magnitudes of power.

If you can command enough labour, to exert system wide ripples, you are in a bracket that must behave as a collective, for if you do, you cannot fail without taking down the very system on which we all depend.

Of course the system cannot be allowed to fail, no matter what the cost. As the alternative is to lose everything.

I am afraid the investment houses of the USA came to this same conclusion earlier this year. Their losses have been socialised to allow the system to stand. The alternative of allowing them to fail, although much fairer, was far too hard to take.

The USA has gone Japanese.

With respect (and I always enjoy your posts) why did it take you so long to figure this?

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It's a ballsy move to stake your reputation on something you have no control over. But good luck with it, I fear you may need it!

I would say that many here have already done just that.

all the STRs.

all the people telling friends for years that housing would crash, even when all the neews was sunshine and roses etc.

I do have my doubts about a major stock market rise though.

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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