Dopamine Posted April 5, 2008 Share Posted April 5, 2008 Usual desperate ramping from the Times - sealed bids my ar5e. Surely Murdoch is rich enough not to have to worry about losing a few hundred K on a dodgy BTL 'Portfolio'? http://business.timesonline.co.uk/tol/busi...icle3689815.ece Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted April 6, 2008 Share Posted April 6, 2008 For some people the falls mean actual losses, not just smaller gains than they might have expected. Janie Dix, from Manchester, was lured into the buy-to-let market and bought two apartments in Leeds three years ago for £300,000. When the rent failed to cover her borrowings, she had to sell. Lured? Lured? Makes it sound like some kind of police entrapment. "I request that this bankruptcy order be thrown out as my client was lured into buying these 2 flats in a carefully orchestrated "sting". Last month the flats went for just £250,000. “I keep asking myself, ‘How could I have been such a moron?’,” she said. We've been asking that same question of BTL'ers over the past couple of years. Quote Link to comment Share on other sites More sharing options...
red Posted April 6, 2008 Share Posted April 6, 2008 Doom & gloom...blah..blah...only one in ten landlords intend to bail out....blah...blah... If one in 10 landlords REMAIN after the carnage we're going through, I'd be surprised. I have sent a comment for what it's worth. And this from Dave's own site: http://www.economicsuk.com/blog/000682.html#more Interest rates should be cutThe Bank of England's monetary policy committee has pursued a cautious line on rate cuts, steering between slowing growth and higher inflation. That has been right so far, but there is now a case for more aggressive action. The problem is the renewed rise in money-market rates, with three-month Libor (London interbank offered rate) at nearly 6% and lenders increasing their rates when the trend for official rates is down. The Bank should cut and, if necessary, cut again, until rates across the economy are falling. So bugger inflation, cut till we get everything back on track. House prices must not fall. God forbid people should be able to afford a house. Interesting that he's removed the comments section from his site... Quote Link to comment Share on other sites More sharing options...
game over Posted April 6, 2008 Share Posted April 6, 2008 He got rid of the comments because he didn't want anyone reminding him about his 'predictions' According to his greatness: 1. Oil at $40 2. House price falls MUST be preceeded by recessions. House price bubbles bursting cannot create a recession Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted April 6, 2008 Share Posted April 6, 2008 There is an element of psychology at work: with gloom about the market all-pervasive, every weak morsel of information is seized upon. 'Mortgage approvals down 40% on 2007' Mortgage approvals aren't mentioned in the article. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 6, 2008 Share Posted April 6, 2008 'Mortgage approvals down 40% on 2007'Mortgage approvals aren't mentioned in the article. I gather a good proportion of the approved ones are withdrawn at the eleventh hour too. Quote Link to comment Share on other sites More sharing options...
Bearfacts Posted April 6, 2008 Share Posted April 6, 2008 You can always e-mail him @ david.smith@sunday-times.co.uk I did some months ago and to my surprise he replied, for a while we had a bit of a dialogue going. Using data from this site's archives( from the Times rather amusingly ) I was able to demonstrate to him that in the 90s crash house prices started falling 2 years before the recession kicked in and unemployment picked up thus destroying his main belief/theory that prices only fall when a recession kicks in and unemployment picks up. He replied by saying that I shouldnt believe everything I read - I have since taken him at his word - I now dont believe a word he writes - he clearly has his own agenda ( an investment property in Stratford I believe ) and has generally been wrong when making forecasts. Having said all of that he did at least take the trouble to reply and was quite polite. Go on e-mail him -you'll feel better for it. Quote Link to comment Share on other sites More sharing options...
Meerkat Posted April 6, 2008 Share Posted April 6, 2008 Everyone who is cheer-leading the property market these days 'forgets' to take into account a tiny issue: credit crunch. What is beyond me: if they aren't stupid, why such a flawed approach to explaining the property market dynamics? Nobody has ever managed to escape the invisible hand of the free market. Quote Link to comment Share on other sites More sharing options...
Ked Posted April 7, 2008 Share Posted April 7, 2008 My respect for David Smith has all but evaporated over the past year. I believe his discussion forum still accepts new posters: http://www.economicsuk.com/discussion/view...60ea24178a75f24 Quote Link to comment Share on other sites More sharing options...
Guest Posted April 7, 2008 Share Posted April 7, 2008 (edited) Just read Mish: http://globaleconomicanalysis.blogspot.com/ At least (a) he's a bear who actually knows what's going on, and ( b ) the things he says are going to go tits-up actually go tits-up. MF. Edited April 7, 2008 by megaflop Quote Link to comment Share on other sites More sharing options...
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