July 2008 Archive

Wednesday, July 30, 2008

APPROVALS to build private homes in NSW have plunged to their lowest level in nearly half a century, new figures show.

smh: Building slump swings to the '60s

That interest rate relief could come sooner than expected.

Posted by big chris @ 11:02 PM 0 Comments

Boom turns to dust

creditman: Europe's Housing Markets Come To Rue High Indebtedness As Boom Turns To Bust, Says Report

The risks posed by high levels of household indebtedness among European economies are thrown into sharp relief by the collapse in the U.K., Spanish, and Irish housing markets, says a research report titled "European Economic Forecast: Boom Turns To Bust In Exposed Housing Markets," published today by Standard & Poor's.

Posted by ash4781 @ 10:39 PM 1 Comments

Some losses to make the Lloyds TSB writedown look like chicken feed

Reuters: Global writedowns & credit losses

A breakdown of an estimated $341 billion of credit-related writedowns and losses recorded by major institutions since the credit crunch hit in the third quarter of 2007.

Posted by redgoody @ 07:30 PM 2 Comments

Said is said!

FT letters: No transfer, no need for scheme

Sir, You report that the government is considering an extension of the scheme whereby the Bank of England swaps mortgage-backed securities for gilts (Darling looks at new mortgage plan, July 28). Treasury aides are quoted as saying that the risk would remain with lenders, not taxpayers. If there were no transfer of risk from private lenders, there would be no need for the scheme as the mortgage-backed securities would be marketable without the Bank's help. John Whittaker, Economics Department, Lancaster University, NB - John W is also a UKIP MEP for the Northwest Region.

Posted by mark wadsworth @ 06:49 PM 5 Comments

Off topic. Is it just me or is this man an arrogant, self serving, pontificating, condescending tw@t?

BBC: Miliband denies 'leadership' bid

David Miliband has insisted he is not "campaigning" for the Labour leadership - despite writing about the party's future with no mention of Gordon Brown. He said he was prompted to write his Guardian article because of the sense of "fatalism" in the party after its defeat in the Glasgow East by-election.

Posted by cheekie charlie @ 06:35 PM 17 Comments

And it made print!

BBC: English home prices 'set to rise'

Average house prices in England are set to rise by 25% by 2013, a National Housing Federation report claims. It sees prices falling 4.4% in 2008, 2.1% lower in 2009, recovering by 2010 and rising at over 9% in 2012 and 2013.

Posted by cheekie charlie @ 06:28 PM 6 Comments

Socio-economic mood will worsen considerably if this is true

Telegraph Online: 1.7m UK homeowners to fall into negative equity, warns S&P

About 1.7m homeowners - or one in seven - may fall into negative equity over the next year as the UK housing market deteriorates further, the world's leading ratings agency has warned. According to a report today from Standard & Poor's, house prices across Britain could fall as much as 26pc before the market bottoms out next year, which will see 14pc of homeowners with outstanding mortgages slip into negative equity.

Posted by inthedelhi @ 05:36 PM 0 Comments

How MEW helps you lose your house in a downturn

Yahoo News: 'Extreme Makeover' house faces foreclosure

Not strictly MEWing, they took out a loan against a house they fully owned. Don't borrow more against your house than you can afford, if it goes down in value and you can't afford the loan.... After the Harper family used the two-story home as collateral for a $450,000 loan, it's set to go to auction on the steps of the Clayton County Courthouse Aug 5.

Posted by beartil2010 @ 05:34 PM 1 Comments

Britain has outstanding mortgage debt equal to more than 50 percent of GDP

Reuters: House prices have further to fall

S&P said the average cost of a house would revert to about 4.4 times average annual earnings -- near back to where it was in 2000 -- if prices fell by 25 percent overall.

Posted by peter_2008 @ 05:30 PM 3 Comments

35% increase

times online: British Gas raises energy bills by 35%

Centrica, the owner of British Gas, said today that it is raising gas prices by 35 per cent and electricity by 9 per cent after profits at its residential business fell by 69 per cent in the first half. The move is in response to a rise of 2 billion in market commodity prices.

Posted by sold out @ 05:27 PM 3 Comments

1300 to lose their jobs at Northern Crock.

BBC News: Northern Rock unveils job losses

A few more for the dole queue.

Posted by mytimeisnigh @ 05:16 PM 25 Comments

Another 10% off please

Times: County-by-county: completion prices as a percentage of asking prices

Asking prices down, completion prices - another 10% off.

Posted by bobed @ 04:35 PM 0 Comments

Is anyone, anywhere, and any bank safe?

Telegraph: Lloyds TSB warns of house price misery after posting 70pc profit slump

High street bank Lloyds TSB today warned of a slowing economy and a 10pc-15pc tumble in house prices this year after reporting a 70pc slump in first half profits on the back of further credit market writedowns and volatility in its insurance business.

Posted by whostolemyendowment @ 01:11 PM 5 Comments

1.7m borrowers are facing the prospect of negative equity

FT Alphaville: S&P estimate on Negative Equity

Negative equity based on a conservative estimate of a further 17% decline. "We have researched the risk of negative equity under various house price scenarios, and estimate that: The average U.K. mortgage has a loan-to-value (LTV) ratio of only around 54%. Nevertheless, around 70,000 or 0.6% of U.K. borrowers are currently in negative equity. A further house price decline of 17% would raise this number to around 1.7 million (14%). Borrowers in the buy-to-let and nonconforming sectors are more exposed to negative equity under this house price decline assumption." I will post the report as a comment here because it is buried halfway down the FT Alphaville piece and I can't find the original S&P report online.

Posted by mountain goat @ 01:05 PM 7 Comments

Inflation problems solved!

BBC: Zimbabwe introduces new currency

Zimbabwe's central bank has said it will introduce a new currency on 1 August as part of efforts to fight the effects of hyperinflation. The bank's governor has announced that ten zeros will be lopped off the Zimbabwe dollar, making 10bn dollars one dollar. Zimbabe's inflation is running at over 9,000,000% So far this year, Zimbabwe has been forced to print Z$100m, Z$250m and Z$500m notes in rapid succession, now mostly worthless. The new Z$100Bn note introduced last week is not enough to buy a loaf of bread.

Posted by little professor @ 12:59 PM 7 Comments

The end of lending from the Swiss

BBC Website: Bank Losses shame disgruntled Swiss

When banks were offering 125% six times salary mortgages the great mystery was where the money was coming from. Now the tap has been turned off we find out a major source was the Swiss. However I doubt if they will be doing it again in a hurry.

Posted by tenyearstogetmymoneyback @ 11:44 AM 1 Comments

If you can get enough people to buy a home for no money down, you can buy their country for no money down.

SOTT: Mortgage Market Musing

Normally moving money out of a government in excess of the total taxes that year would be hard to do. However, I could use securities fraud. I could issue a lot more government securities and government agency (like mortgage agencies) securities than I recorded on the government books and sell them abroad. I would have to make sure not to publish audited financial statements as that would increase the liabilities of engaging in this kind of fraud. It would help a lot if I could pool mortgages and sell government agency securities to finance those mortgages in a process where the same mortgage could be sold many times into the same pool. Investors would not notice or care because the securities were government guaranteed.

Posted by malct @ 11:41 AM 2 Comments

Don't do it Mr Brooon

Times Online: They mustn't mortgage fairness to buy votes

You can see the temptation so clearly. Government in the doldrums; poll ratings tumbling with the economy; housing market frozen (frozen my assets - it's just collapsing); and - hey, what's this? - a plan to kickstart the Government's fortunes by kickstarting the housing market by underwriting mortgage lending.

Posted by nooneo @ 11:35 AM 11 Comments

70% of Landlords surveyed see house prices falling in 2008 (but rising rental yields and a long term view make it a good time to buy)

mortgagestrategy: 70% of B2L investors to expand portfolio this year

In the face of falling house prices and fears of a recession 70% of property investors are planning to grow their portfolios this year, reports the Property Investor Show. The event surveyed UK buy-to-let investors and found that the majority are looking to take advantage of rising rental yields.Landlords are not unaware however of the struggling economy as 65% of respondents believe the UK is heading for a recession and 70% see house prices falling in 2008.

Posted by jack c @ 11:22 AM 11 Comments

Grim Picture Leading to the Grim Reaper

Wall Street Journal: U.K. Retail, Mortgage Data Paint A Grim Picture of Economy

LONDON -- The U.K. economy's outlook darkened further as retail-sales growth and home-mortgage activity slowed sharply. The Confederation of British Industry, a business group, reported Tuesday that its measure of July retail-sales volume tumbled to its lowest in 25 years. Bank of England figures showed mortgage approvals in June slumped to their lowest since the data series began in 1999. The central bank also reported sharp drops in consumer and mortgage lending.

Posted by yt1 @ 11:13 AM 0 Comments

Sir James circumspect about bail out for lenders

Telegraph: Homeowners face call to act responsibly

"Sir James Crosby, the former HBOS chief executive who is leading a review into wholesale mortgage finance for the Treasury, may propose a regime of "tough love" for Britain's cash-strapped homeowners."

Posted by letthemfall @ 10:19 AM 19 Comments

Precipitating further price falls?

FT: UK Mortgage Market

In summary there is a stand off between buyers and sellers and at some point soon sellers will capitulate and we'll see some proper price falls. As if they aren't underway already..

Posted by cash is always king @ 09:19 AM 7 Comments

Globalisation was a con anyway

The Telegraph: Doha world trade talks collapse in blow to globalisation

The Doha round of world trade talks has collapsed in what one former trade chief called the biggest blow to globalisation since the end of the Cold War

Posted by sold 2 rent 1 @ 08:52 AM 11 Comments

Food prices rising fastest in UK

This Is London: News Article

"Supermarkets in Europe do a better job of sheilding shoppers from price rises than supermarkets in in UK"........Inflation is the fault of greedy supermarkets and petrol companies. nothing to do with the 20% devaluation in sterling then? That's lucky because we want to print another 90 billion pound notes.

Posted by ingermany @ 07:37 AM 9 Comments

Italy is sliding into a deep structural crisis and risks being forced out of Europe's monetary union as the region's economic downturn gathers pace, according to a new report by Capital Economics.

telegraph: Growth slump may force Italy out of eurozone

Italy can at least take some comfort that other euro members are feeling the strain too, reducing the risk of EMU break-up. France's Insee consumer confidence plunged to a 21-year low in July.The epicentre of the unfolding crisis is Spain, where the number of houses built this year is expected to collapse by half from the 760,000 constructed in 2007 at the peak of the bubble. Spanish unemployment is rising by almost 70,000 a month, touching 10.6pc at the end of the fourth quarter. However, Spain has a much small public debt than Italy.

Posted by big chris @ 12:31 AM 9 Comments

It is now clear that the Antipodes are tipping into a serious downturn. Australia's NAB business confidence index fell to its lowest level in seventeen years in June. New Zealand's central bank began to cut interest rates last week on fears that the econo

telegraph: Australia faces worse crisis than America

The world's financial storm has swept through Australia and New Zealand this week amid mounting signs of contagion across the Pacific region. . Housing starts slumped 20pc in June to the lowest since 1986. Both the Australian and New Zealand dollars have fallen hard in recent days and now appear to be breaking down through key technical support against major currencies, including the US dollar. "The Aussie is going down, big time," said Mr Redeker.

Posted by big chris @ 12:06 AM 4 Comments

Tuesday, July 29, 2008

Crazy, but it might just work ...

FT: Labour MP tells premier to resign for sake of party

Not the PM resigning bit, this bit: "Another Labour MP, Rob Marris [Wolverhampton South West], called on Mr Brown to consider imposing one-off taxes on oil companies and on banks, as part of setting a "clear direction"."

Posted by mark wadsworth @ 08:46 PM 15 Comments

Canada's national net worth reached $4.5 trillion by the end of 2005, or roughly $137,300 per person, Statistics Canada said Friday.

Canadian Broadcasting Corporation (CBC): Canadians worth $137,300 each: Statistics Canada

I got this article, from Alan Watt's website. His response to it: "Since I'm losing out here and sure others are too, and since the government's claim we are each worth $137,300, then I figure the government must have my $137,250.12 and I'd like it back please. Like minded people should do the same." We wouldn't need mortgages at all if we did!! Check out Alan's excellent podcast to really understand what's going on in the world, on http://www.cuttingthroughthematrix.com/audio.html

Posted by planning4acrash @ 08:04 PM 5 Comments

Socialism recieves a massive bail out.

Asia Times: Bailout cure worse than disease

With President George W Bush no longer threatening a veto, the subprime mortgage and Fannie and Freddie "bailout" bill was able to sail through the US Congress. In anticipation of its enactment, congress had the foresight to raise the national debt limit to US$10.6 trillion. Who says that politicians don't plan ahead? - Why are they doing this? And increasing national debt in the process? Its because the government can't stand the thought of the useless eaters being able to buy a house on one salary. They can't stand the thought of less being dependent on social housing and benefits, of more being in a position to home school. Of more being able to juggle family life and running a business. So, mortgage company's will be bailed out to ensure that house prices are high enough to enslave us.

Posted by planning4acrash @ 06:39 PM 20 Comments

A bit old blog, but quite entertaining

The Tragic Column: Phil and Kirsty Couldn't Have Done It Better...

Quote - "Im waiting for the day Kirsty turns round and asks if theyve tried swallowing."

Posted by peter_2008 @ 05:21 PM 0 Comments

Reality is finally biting

Cantos: Property deal volumes slump 50%

Liam Bailey at Knight Frank considers if any parts of the UK market are proving immune to the current downturn. "...the reality is for most people now if you want to sell your house people are accepting they have to take 10 per cent less than they would have got last October." "...In a sense you could argue what we have now is actually a normal mortgage market. I mean certainly 10 or 15 years ago this was normal." "...when do prices stop falling and then begin to rise, and probably that's 2010"

Posted by doomwatch @ 05:15 PM 5 Comments

American Proffessionals Contemplate Engineered Reposession

BBC: America's house price time bomb

As Bush contemplates massive intervention in the US mortgage market a little known quirk of US law threatens to drive down house prices even faster.

Posted by enuii @ 05:14 PM 17 Comments

What now, Kaletsky?

Guardian: US house prices fall at fastest rate on record

US house prices plummeted at their fastest pace on record in the year to May. Standard & Poor's Case Shiller home price index fell 0.9% in May from April and 15.8% from a year ago. This is the biggest annual decline since the series began in 2000. The sharpest declines in the index were in Las Vegas and Miami, where prices fell 28% on the year.

Posted by little professor @ 04:57 PM 1 Comments

Vicious circle .. er ... noose tightens

Daily Telegraph: IMF: US housing slump at centre of financial crisis

The world economy is now trapped in a "vicious circle" as the financial crisis is worsened by slumping housing markets on both sides of the Atlantic, the International Monetary Fund has warned. It said the greatly-feared "negative feedback loop" it warned of in previous reports had now materialised. It also cautioned that it remains far too early to call a bottom to the housing slump in the United States, which lies at the centre of the recent crisis.

Posted by mark wadsworth @ 02:02 PM 0 Comments

'Maximum pessimism' is the time to buy. But have we reached it?

MoneyWeek: 'Maximum pessimism' is the time to buy. But have we reached it?

Markets bottom out when investors are at their gloomiest and all hope seems lost. But how do you tell when that is? John Stepek sheds a little light and tips the best sector to invest in now.

Posted by damien @ 02:00 PM 7 Comments

My area would probably show up bright red

Telegraph: Crime maps to show offences for every street

Crime maps giving details of offences that have taken place in every street in the country are to be published for the first time. Residents are to be given access to Google-style internet maps of actual streets identifying assaults, muggings and burglaries in towns and villages across England and Wales, under Home Office plans. There are concerns that publishing details of neighbourhood crime could affect house prices or that the information could be abused by criminals

Posted by landedgentry @ 01:54 PM 5 Comments

More destruction coming up

Daily Paul: The Silent Crash is Starting to Make Noise

This is the Dow priced in real money - gold. It is down 73% to date from its peak. If Congress, the Fed and the Treasury had not been colluding to inflate the our currency and destroy the dollar, this is what the nominal Dow would look like, too. And according to his analysis, it soon will

Posted by sold 2 rent 1 @ 10:00 AM 20 Comments

Mortgage lending hits a new low

BBC News: Mortgage lending slowdown goes on

Official figures have underlined the slowdown in the UK mortgage market. The number of new mortgages approved for house purchases fell to 36,000 in June, down from 41,000 in May, according to the Bank of England.

Posted by jason @ 09:54 AM 1 Comments

Ex-property developer and securities underwriter blows the lid of world events

Google Video: George Green (The Big Picture-An economic forecast for coming times)

What Is Going On With The Housing Market, The Price Of Dollar & Gold, The Coming Financial Situation, & The Solutions

Posted by sold 2 rent 1 @ 09:04 AM 40 Comments

Bailing out the banks - why?

BBC: Treasury's mortgage rescue plan

The Treasury may give a taxpayer guarantee to billions of pounds of bonds known as mortgage-backed securities created by banks out of high quality mortgages, in a radical attempt to revive Britain's rapidly shrinking mortgage market. Officials from the Treasury are examining such an ambitious and controversial scheme in response to a dire assessment of the outlook for mortgage finance to be published at 10am today by Sir James Crosby. This would be pretty controversial, as it would be seen as taxpayers underwriting a huge slug of the mortgage market. Some would argue that our entire mortgage industry would be nationalised, although that would probably be overstating it.

Posted by little professor @ 08:41 AM 16 Comments

Mismanagement on a grand scale....

BBC News: Plan to revive mortgage lending

''...Sir James Crosby's - the deputy chairman of the City watchdog, the Financial Services Authority - assessment of the health of the British mortgage market is about as gloomy as it's possible to be....This former banker blames a collapse in demand for mortgage-backed securities, or investments created out of mortgages and sold to banks and big investors...''

Posted by hpwatcher @ 08:09 AM 8 Comments

Back to the 1790's

Times online: Britian's 10 worst recessions ever

If the media's constant talk of "recession", "credit crunch" and "downturn" is depressing you, bear in mind that our ancestors have had it much worse. Here Times Money looks at ten of the grimmest decades in British history when economic troubles often coincided with bloodshed and famine...

Posted by sold out @ 06:58 AM 3 Comments

But will Darling listen?

Times: Sir James Crosby [ex-chairman of HBOS] tells Alistair Darling to reject US idea

"Sir James Crosby is expected to reject any suggestion that the Government set up a mortgage agency similar to Fannie Mae and Freddie Mac, the two troubled American companies that nearly collapsed recently. It seems unlikely that it would be right to tackle Britain's problems with last century's solution, particularly given the time that it would take to create any such agency. When the review was launched in April, Sir James said that he wanted to find market solutions to the problem." HERE'S A SIMPLE market solution: house prices are too high, let them fall and everything will be fine again. Luckily we can trust politicians to delay making a decision for long enough!

Posted by drewster @ 01:30 AM 0 Comments

Merrill's mortgage CDOs fell 78% from $30.6bn to $6.7bn!

Times: Merrill Lynch forced to take emergency action ahead of writedown

Another day, another bank, another billion: "Merrill Lynch sought to bolster its balance sheet and reduce its risk last night as it announced moves to raise $8.5 billion and the sale of $11.1 billion worth of high-risk mortgage-backed securities. The group said it would record a $4.4 billion writedown in its third-quarter from the sale of the CDOs. Merrill has been particularly hard hit by the US housing crisis. Merrill Lynch acquired the CDOs that it sold yesterday for $30.6 billion. By the end of Q2 this year they had declined in value to an estimated $11.1 billion and Merrill agreed yesterday to sell them to Lone Star, the private equity fund, for $6.7 billion."

Posted by drewster @ 01:24 AM 0 Comments

No end insight.

BBC News: Merrill warns of further losses

Merrill Lynch has said it expects to write off another $5.7bn (2.9bn) in the current three-month period because of mortgage-related losses.

Posted by peter_2008 @ 12:13 AM 0 Comments

Monday, July 28, 2008

Oh No Not the 'N' Word

BBC Newsnight: Now somebody's saying the banks will be nationalised!

Banking analyst Bruce Packard of Pali International believes that Nationalisation is on the agenda for UK banks. We have looked at the Nordic banking crises of the early 1990s for potential lessons that might be applied to UK banks and a worrying measure is that UK indebtedness (loans/GDP 150%) is currently much higher than in the Nordic countries during the Nordic banking crises (less than 100%).

Posted by enuii @ 11:30 PM 2 Comments

One of the biggest Australian sellers on eBay has gone bust and its owner has fled to China, leaving hundreds of buyers out of pocket an estimated hundreds of thousands of dollars

smh: Hundreds out of pocket as eBay trader goes bust

In the past three months ebusiness-supplies sold over $1 million worth of goods. It is the seventh biggest Australian eBay user in terms of the number of items sold. eBay was made aware of complaints about the seller weeks ago but did not disable the user account

Posted by big chris @ 11:18 PM 0 Comments

If you can't screw the buyer, screw the seller!

Independent: House prices plunge again as estate agents raise their fees

Many of Britain's biggest estate agents are raising their prices in a desperate bid to increase their earnings from the ever-dwindling number of homes they are now able to sell.

Posted by quiet guy @ 09:33 PM 10 Comments

IMF predicts more housing-related pain

The Times: Business News Article

The IMF predicts more housing-related pain and sounds a warning that financial strains remain and persistent stresses in global financial markets leading to still mounting losses for banks on both sides of the Atlantic and threatening to aggravate the worldwide economic downturn. This is fuelling the dangers to world economic prospects.

Posted by orwell @ 09:04 PM 0 Comments

Foreclosures in the US continued to climb in the second quarter of 2008

wsws: US housing slump without precedent: foreclosures up 121 percent over 2007

Foreclosures in the US continued to climb in the second quarter of 2008, experts acknowledge that the current housing slump is without precedent in the modern era, and the resulting stress is taking both an economic and emotional toll: a 53-year-old Massachusetts woman committed suicide July 22 only hours before her familys home was to be put up for auction. In the three-month period April through June, some 740,000 foreclosure filings were recorded in the US, an increase of 14 percent over the first quarter and 121 percent over the same period in 2007. According to RealtyTrac, one in every 171 US households received a filing, which includes notices of default, auction sale notices and bank repossessions

Posted by malct @ 08:50 PM 0 Comments

London leads the way down

evening standard: Biggest fall this year for house prices in London

Statistics from the Government's Land Registry show that prices in the capital are falling faster than anywhere else in the country. The average London home sold last month cost 345,136 - nearly 10,000 less than in May

Posted by sold out @ 08:49 PM 0 Comments

It clearly shows how disgusting and ridiculous the system of government we live under is.

sott: Signs Economic Commentary for 28 July 2008

Driven by a sour economy and skittish consumers, U.S. business bankruptcies saw their sharpest quarterly rise in two years, jumping 17 percent in the second quarter of 2008, according to an analysis by McClatchy. Commercial filings for the first half of 2008 are up 45 percent from last year, as the national climate for commerce continues to deteriorate amid rising energy and food costs, mounting job losses, tighter credit and a reticence among consumers to part with discretionary income.

Posted by malct @ 08:48 PM 0 Comments

It May Be Wise To Assume A Sustained Crash

CNNMoney.com: Stocks tumble amid ongoing jitters

NEW YORK (CNNMoney.com) -- Stocks plunged Monday, with the Dow losing nearly 200 points, amid renewed fears about the financial sector and a lack of economic news. With about two and a half hours left in the session, the Dow Jones industrial average (INDU) fell 1.6%. The broader Standard & Poor's 500 index (SPX) fell 1.1%, while theNasdaq composite index (COMP) sank 1.3%. For Those who know what they are doing and haven't already done so,it would be wise to review your portfolios. The correction is going to be long and sustained.

Posted by plato @ 07:43 PM 0 Comments

An interesting article for our techie's

Naked Capitalism: Has Deleveraging Even Begun? (Not For the Fainthearted)

It no doubt seems absurd to question the idea that deleveraging in underway. We've had three heroic central bank interventions, starting in August 2007, to reverse seize-ups in the money markets. The asset backed commercial paper market has been almost in run-off mode. Leveraged buyout loans have been scarce to non-existent. Banks have cut home equity credit lines and credit card borrowing limits. Commercial and industrial loans have fallen. The private mortgage securitization market is a shadow of its former self.

Posted by stevie dee @ 07:33 PM 0 Comments

UK House Prices to Rise by 25%

The Market Oracle: UK House Prices to Rise by 25% States National Housing Federation

The National Housing Federation (NHF) is forecasting that UK house prices will rise by 25% by 2013, that will take house prices upto an estimated 274,000 by 2013 from their current levels of approx 180,000 based on the Halifax House Price data.

Posted by nadeem walayat @ 05:42 PM 0 Comments

That's not an Iceberg!

Bloomberg: IMF Says U.S. Housing Slump End `Not Visible,' Credit to Worsen

The International Monetary Fund said there's no end in sight to the U.S. housing recession and warned that deteriorating credit conditions for consumers and banks may prolong a period of slow economic growth. ``At the moment, a bottom for the housing market is not visible,'' the IMF said in its Global Financial Stability Report, released today in Washington. ``Stemming the decline in the U.S. housing market is necessary for market stabilization as this would help both households and financial institutions to recover.''

Posted by stevie dee @ 05:33 PM 0 Comments

Ten predictions for 2008

Credit Writedowns: Ten predictions for 2008

With 2008 now half over, it's obvious that the global economy has lurched to the downside. While many have remained unrealistically optimistic about the workout of the present credit crisis, downside risks have been the determining factors in keeping things soft. Where are we headed? See what I say as far as the UK is concerned as well as for other economies.

Posted by edwardnh @ 05:27 PM 0 Comments

Bush administration: 2009 deficit will approach $490 billion, record driven by economy sag

AP - Yahoo: Bush administration projects record 2009 deficit

The next president will inherit a record budget deficit approaching $490 billion, according to a new Bush administration estimate. The official said the deficit was being driven to an all-time high by the sagging economy and the stimulus payments being made to 130 million households in an effort to keep the country from falling into a deep recession. A deficit approaching $490 billion would easily surpass the record deficit of $413 billion set in 2004.

Posted by stevie dee @ 05:07 PM 0 Comments

Will the next PM also face a record deficit?

BBC Business: Record deficit for next president

The next US president is expected to face a record federal budget deficit of almost half a trillion dollars. The White House is tipped to lift its deficit forecast for 2009 to $490bn (246bn) up from $407bn. The budget deficit measures how much more the government is spending than it is raising through taxes. The slowing economy is reducing the tax take and the government has launched a stimulus plan by making payments to 130 million households to boost spending.

Posted by jack c @ 04:29 PM 0 Comments

Firstly, why is the personal finance correspondent reporting on this, secondly what happened to the Halifax figures released today?

Telegraph: House prices fall for tenth month, says Land Registry

House prices have fallen for the tenth month in a row as the rate of growth hit a record low, new figures show.

Posted by paul @ 03:37 PM 8 Comments

Bring on the destruction

Google Video: The Crash -- Coming Financial Collapse of America

A very scary and possibly real situation that could unfold very shortly.

Posted by sold 2 rent 1 @ 03:29 PM 21 Comments

Southern Slump

The Times: Southern slump drags house prices down 1%

"Prices in the South West are 5.2 per cent lower than a year ago, while those in Greater London and the South East have fallen by 5.1 per cent and 4.6 per cent respectively."

Posted by doomwatch @ 02:52 PM 5 Comments

Is it time to pass the parcel (aka Poison Chalice)?

Times Online: John Prescott: Forget about replacing Gordon Brown. None of you lot is up to the job

"John Prescott led a backlash against Cabinet plotters yesterday, saying that none had the skills or experience to rival Gordon Brown, while the Prime Ministers allies gave warning that he would sack disloyal ministers." ... "In a statement the Justice Secretary (Jack Straw) said it would be a big mistake for the party to ditch Mr Brown. I am absolutely convinced that Gordon Brown is the right man to be leading the Labour Party, he said. He added: It would be a big mistake for the Labour Party to now turn in on itself and indulge in a summer of introspection." What a lot of hot air, looks like they all say one thing to your face and another behind your back. Just make a 1% cut in Tax this will give a 2% boost to the economy without affecting the housing crash ...

Posted by fahrenheit451 @ 01:45 PM 14 Comments

FT's expert view

FT: Rebuilding the housing market

One of the Ask the Expert series from the FT. An antidote to some of the rubbish appearing in the other papers. Quite long but worth a read, for instance this quote on unemployment: "I would therefore argue that any bounce back will take time to re-assert itself and that we are still in the very early days of the correction. It is worth noting that unemployment actually only began to rise from May 1990 with housing acting as a lead indicator."

Posted by letthemfall @ 01:41 PM 1 Comments

"House prices will rise 25%" said Vested Interest

Sky News: House Prices will soar 25% in the next 5 fives

House prices fell for the 10th month in a row during July - but there are claims the property market will bounce back stronger than ever. (Advertisement) Homes in England and Wales lost a further 1.2% of their value during the past four weeks, new figures show. The average cost of a home has now slumped by 4.4% during the past year. That is the fastest annual rate of decline since property intelligence group Hometrack first launched its index in 2001. But separate research carried out for the National Housing Federation predicted that the house prices in England will rise by 25% during the coming five years. DENIAL IS UGLY

Posted by sortofsilver @ 12:55 PM 7 Comments

The bailouts will continue until the robbery is complete

The Telegraph: Fannie Mae and Freddie Mac: Congress backs rescue package

World markets are poised for a major relief rally today after the US Congress met in a rare weekend session to pass the most far-reaching rescue package for America's financial system since Franklin Roosevelt's New Deal.

Posted by sold 2 rent 1 @ 12:37 PM 23 Comments

Cornwall is a microcosm of what we're seeing nationally because of the credit crunch, but it's exaggerated by the earning to house price ratio

The Independent: Cornwall: A land of haves, and have nots

Cornwall was at the bottom of the table of wealth in a recent EU survey, level with former eastern bloc countries such as Slovakia and Slovenia. As the only county in England to qualify for emergency EU funding, it is actually one of the poorest parts of Europe. A world away from the catamarans of its Kensington holidaymakers, the area is on the front line of the global credit crunch.

Posted by kernow @ 12:32 PM 0 Comments

Falling mortgage rates won't stop the housing bust

MoneyWeek: Falling mortgage rates won't stop the housing bust

House prices are dropping, but now's not the time to stake your future on a buy-to-let 'bargain'. Hoard cash for a rainy day, hope you don't use it and have a nice pile to invest when the storms clear.

Posted by damien @ 12:22 PM 0 Comments

A solvent professional struggles to get a mortgage from high street lenders

pw.com: Can we get a mortgage?

Just how hard is it to get on the housing ladder? As first time-buyer Justin Wood discovers, even a 10% deposit no longer guarantees a mortgage.

Posted by peter whelp @ 12:07 PM 9 Comments

Hometrack - House Prices 1.2% Lower in July. Biggest Annual Fall on Record !!

Reuters: House prices fall in July

House prices fell for a 10th straight month in July to stand 4.4 percent lower on the year, a survey by property consultants Hometrack showed on Monday. That was the biggest annual fall since the survey began in 2001. Prices were 1.2 percent lower on the month.

Posted by scoobydooby@yahoo.co.uk @ 11:59 AM 3 Comments

David Smith: renting is not dead money after all

Times Online: Is homeownership still an aspiration?

Article from David Smith in the Times suggesting that the younger generation are just not interested in buying a home any more as they have student debts, more pressing costs or just prefer to save their money. Of course he doesn't conclude with the obvious corollary that if young people aren't buying anymore then demand must fall, which means..... house prices will be permanently lower..

Posted by an bearin bui @ 11:36 AM 0 Comments

London not immune to a house price crash after all then

Firstrung: London house prices crash by 2.4 percent in the single month of June

The June data shows a monthly price change of -1.0 per cent and an annual increase of 0.1 per cent. Accounting for seasonal adjustments, the data for June marks the tenth consecutive decrease in annual price change in England and Wales. This is sustained evidence of the weakening in annual growth rates that began approximately ten months ago. The average house price in England and Wales stands at 180,781, which is a decrease from last month.This month's 2.5 per cent fall in London house prices is greater than the average for the country as a whole. London's positive annual change of 2.4 per cent is being sustained due to higher monthly increases at the start of the previous twelve months.

Posted by converted lurker @ 11:35 AM 6 Comments

Biggest monthly drop yet

Land Registry: June Land Registry Report

June LR figures out show the biggest monthly drop yet -1.0%. More to follow as this indictor lags 3 months.

Posted by growler @ 11:35 AM 3 Comments

Land Registry not yet yoy negative

BBC News: House prices 'dropped 1% in June'

House prices in England and Wales fell by 1% in June leading to a tiny rise of 0.1% over the year, according to the Land Registry.

Posted by driver @ 11:30 AM 0 Comments

The 25% house price rise NHF report in all its glory....

Firstrung: Despite fears of a housing market crash house price in England will rise by 25 per cent over the next five years - NHF

The average house prices in England will rise by 25 per cent over the next five years to reach 274,700, despite fears of a housing market crash - according to a new report published today by the National Housing Federation. The document - researched by independent economists Oxford Economics - forecasts that house prices will fall in 2009, start to recover in 2010, and then rapidly increase from 2011... The paper, entitled Home Truths 2008, says that house prices will increase by: 5.2 per cent in 2011 9.2 per cent in 2012, and 9.3 per cent in 2013 - with the typical price at the end of the period being well above the average in 2007 of 222,600.

Posted by converted lurker @ 10:51 AM 7 Comments

House prices 'up by 25% by 2013' - BBC

BBC: House prices 'up by 25% by 2013'

Average house prices in England are set to rise by 25% by 2013, a National Housing Federation report says. It sees prices falling 4.4% in 2008, 2.1% lower in 2009, recovering by 2010 and rising at over 9% in 2012 and 2013.

Posted by luckyjim @ 09:49 AM 13 Comments

House prices now back to October 2006 levels

Firstrung: UK house prices now 4% lower than July 2007 as London prices begin to crash - Hometrack

House prices in England and Wales have fallen for the 10th consecutive month during July, losing a further 1.2% of their value, figures released by Hometrack today have shown.The latest annual rate is the lowest since the survey began in 2001 and sets a new record for the most months showing consecutive house price falls. Hometrack also reported that the falls were heaviest in southern England, particularly London...

Posted by converted lurker @ 09:27 AM 12 Comments

The Screw Tightens on the People

BBC NEWS: MPs warn of energy price impact

"Rises in gas and electricity bills in the near future will have serious consequences for millions of households, an MPs' committee has said."

Posted by renting2 @ 09:22 AM 2 Comments

Another two US Banks go bust.

TimesOnline: Two more US banks collapse as defaults soar

So another two banks in the US go bust this week, it should now only be another two months before the CDS fiasco failures start to occur in the UK. Its appears that Financial authorities in Washington spent last week securing a rescue deal for two insolvent mortgage lenders in Nevada and California amid the latest signs that America's banking crisis is deepening. The collapse of the two banks - which had combined assets of about $3.6 billion (1.8 billion) - came as a senior financial regulator told The Times that there was no end in sight for the crisis gripping the banking industry.

Posted by scoobydooby @ 08:31 AM 2 Comments

You love it!

Express: http://www.express.co.uk/posts/view/54301/House-prices-to-rise-by-25-

HOUSE prices will soar by nearly a quarter over the next five years, it was predicted yesterday. A report published by the National Housing Federation shows that demand is growing but the supply of new housing has fallen dramatically. As a result, the impact of the credit crunch with lenders reducing the supply of mortgages will be out-stripped by the increasing demand for homes. The average house price is set to reach 275,000 by 2013.

Posted by little professor @ 01:00 AM 57 Comments

Sunday, July 27, 2008

"Petrol's gone up 50p, so let's buy a 500,000 house"

Times: Top ten places to buy property on the coast

More rubbish from the Times' property section: "Because of rising air fares and the strong euro, holiday homes in Britain are looking increasingly attractive. Prices havent collapsed as some predicted, but you can negotiate a bargain if youre breaking into the market. Houses are likely to be cheaper than last year and cheaper than in two years time. While Salcombe is holding up well, more people are releasing property in cheaper locations nearby, such as Dartmouth, that they perhaps shouldnt have bought in the first place. In Whitstable, it is difficult to buy a beachside house for less than 500,000. Its a good bet for investment over the next five to 10 years", says a local estate agent. Broadstairs will benefit from faster rail services using the high-speed track to St Pancras."

Posted by drewster @ 11:57 PM 1 Comments

Fraud! - Everyone is doing it.

Scotsman: City watchdog sinks teeth into mortgage fraudsters

Decent article from the Scotsman with the ever robust and tell it strait comments from the readership that reveals some rather alarming trends that the Scotsman would never dare print in its main article!

Posted by enuii @ 11:28 PM 1 Comments

It's carnage - big falls across the board

Halifax: Quarterly report out now

London down 4.3% on the quarter, 16.1% annualized. South East down 6.4% QoQ, 23.3% annualized. East Midlands down 7.2% QoQ, 25.9% annualized. The North down 9.3% QoQ, 32.4% annualized. Northern Ireland down 14.6% QoQ, 46.9% annualized. But hey, the Isle of Man is still rising!

Posted by little professor @ 10:50 PM 8 Comments

Kaletsky bear-baiting again

Times: Pessimists are basing their gloom on old news

My view is that this episode is likely to be remembered as one of those extremes of panic in financial markets, which tend to reoccur once or twice every decade, then turn out to be simply wrong. In making this argument, I have been accused of ignoring market realities and being blindly contrarian. The true contrarians at present are the bankers and headline-writers who keep predicting economic Armageddon. The markets are taking heart from the government guarantees offered to Freddie Mac and Fannie Mae - hence the 40% rise in financial shares this week. And US house prices, which almost everyone believes to be in freefall, have actually been going up for the past four months, according to the National Association of Realtors.

Posted by little professor @ 10:34 PM 5 Comments

Manufacturers like Johnson & Johnson and Hasbro raise prices, pressuring retailers to do same

AP - Yahoo: As costs rise, inflation's next front is retailers

Coming to a store near you: Even higher prices. Most inflation this year has come from food and fuel, as retailers resisted passing along to strapped consumers the higher prices manufacturers charged them, but coming increases from companies such as Johnson & Johnson and Hasbro Inc. may leave them with no choice.

Posted by stevie dee @ 06:56 PM 4 Comments

Halifax Q2 London - down 4.3% qoq, 7.3% yoy

Halifax: Quarterly Regional Comments

The bigger they are, the harder they fall...

Posted by jr @ 06:37 PM 4 Comments

House price optimism in high at HPC, they are going down at long last!

This is money.co.uk: House price optimism in short supply

The web is full of chatter about house prices and where they are heading. In one chatroom, a miserable vendor begs advice. One reader's guidance is blunt, but practical. 'Drop the price. Drop it again. And keep dropping it until you get an offer.'

Posted by housebear @ 03:17 PM 1 Comments

Gathering pace

ThisIsMoney: House prices to plunge a third by 2010

In a report released today, leading accountancy firm Deloitte says: 'We now expect UK house prices to fall by about a third by the end of 2010 with severe adverse effects on household spending and investment.' Roger Bootle, economic adviser to Deloitte and Touche, predicts that interest rates will have to be slashed to 3.5 per cent by the end of next year to tackle rapidly weakening growth.

Posted by little professor @ 11:52 AM 11 Comments

Many interesting similarities to the problems we face now

Liberal Manifesto: October 1974: Why Britain Needs Liberal Government

I came across this little gem whilst surfing this morning. I was amazed at how similar some issues were in 1974 to those we face today. In ten years the price of an average new house has risen three times, the cost of a mortgage has risen five times whilst the proportion of an average family's income spent on mortgage repayments has increased from 25 per cent. to 50 per cent. The average price of a new house at over 10,900 is well beyond the reach of over half the population and unless steps are taken soon to alleviate the situation, home ownership will become a thing of the past.

Posted by wdbeast @ 10:41 AM 9 Comments

You can get a good reduction now - but unless you can negotiate at least 40% off the asking price, why bother?

Telegraph: Summer sale: mortgage rates set to fall

The next 18 months will, without a doubt, be even harder for many families: house prices will plummet much further, the squeeze on families' incomes will intensify and hundreds of thousands will lose their jobs. With every period of economic gloom comes an excellent buying opportunity for those who can afford it. As the late investor Sir John Templeton said, the best time to invest is at the moment of "maximum pessimism". There is every indication that that moment will arrive over the next year and a half.

Posted by mytimeisnigh @ 10:40 AM 1 Comments

Taxpayers to the rescue!

Telegraph: Treasury plan to rescue mortgage lenders

The Treasury is preparing a radical rescue plan for the housing market which may involve pumping billions of pounds into the stricken mortgage markets. Alistair Darling, the Chancellor, has asked his leading advisers to investigate a plan to provide government support for lenders until the financial crisis has abated. The proposal is being investigated ahead of the completion of Sir James Crosby's report into the funding struggles faced by UK banks.

Posted by quiet guy @ 10:35 AM 28 Comments

Britain: A land of haves, and have nots

The Independant: Cornwall: A land of haves, and have nots

A microcosm of the social division that rampant hpi has brought to Britain under New Labour.

Posted by baudot @ 09:56 AM 3 Comments

Hutton feels the pain

Guardian: A week that taught me home truths about the housing crisis

In today's housing market, you don't argue with a potential buyer. Selling our house required us to exchange and complete in seven days and of course we agreed. The house price surveys don't convey the scale of the crisis in the market or the price falls.

Posted by quiet guy @ 09:31 AM 12 Comments

US government finally gets to socialize banking losses

AFP: US Senate approves sweeping housing bill

"President Bush will sign this bill when he receives it, despite our concerns with some provisions, including nearly four billion (dollars) to help lenders, not the homeowners this legislation is intended to serve". "As more homes are dumped on the market, home prices fall further, driving further mortgages underwater, leading to further foreclosures, further homes dumped on the market, and further home price declines," said economist Richard Kelly at TD Bank.

Posted by paul @ 09:22 AM 2 Comments

14% of mortgages are unaffordable...?

Ipsos MORI: Fear, Uncertainty, Doubt Survey

14% said 'certain, very likely or fairly likely' in response to Q5) "You will not be able to keep up with your mortgage payments"

Posted by mark wadsworth @ 12:29 AM 5 Comments

Saturday, July 26, 2008

More requests for a Bank of England bailout

Guardian: Credit crunch: Call for extra underpinning to support new mortgages

The government will face fresh pressure from lenders next week to ease funding conditions in the mortgage market when it publishes an interim report into the cash-strapped sector by the former HBOS chief executive Sir James Crosby.

Posted by quiet guy @ 11:54 PM 2 Comments

We need to bring in a License for BTL landlords

CNBC: Congress Approves Housing Market Rescue Bill

The Congress approved a massive housing market rescue bill on Saturday, offering emergency financing to Fannie Mae and Freddie Mac creating a new regulator for the mortgage titans and setting up a $300 billion fund to help troubled homeowners. It amazes me that you need a license for fishing, your tv, alcohol, taxi driver, street performer, but f**k all to be a landlord.

Posted by stevie dee @ 11:45 PM 0 Comments

David Smith talking sense?

Times: Is home ownership still an aspiration

Young adults did not think much of the idea of home ownership. Why tie yourself to a big mortgage when there are better ways to spend your money? Why get lumbered with years of housing maintenance and having nothing more exciting to do than getting the windows done? The old argument that paying rent is dead money left them unconvinced. Only 44% of 18-to 25-year-olds favour home ownership. For some people, renting is indeed the best option.

Posted by little professor @ 10:08 PM 10 Comments

NAB's other $13 billion of similar derivative exposures, as well as the billions of dollars of exposure the other banks have to these risky instruments.

australian: NATIONAL Australia Bank's write-down of $830 million has put the spotlight on the dangerous risks the banks have taken with customers' deposits.1per cent defaulted, it would wipe out Australia's banking system.

According to the latest Reserve Bank Bulletin, the Australian banking sector's exposure to derivatives was $9.8 trillion at March 31, compared with almost $13 trillion three months earlier. While most of this isn't risky, if 1per cent defaulted, it would wipe out Australia's banking system.

Posted by big chris @ 09:55 PM 0 Comments

Citigroup banking research reckons ANZ and NAB are the leading candidates. ANZ heads the list with a $23 billion exposure to credit default swaps (CDS) and NAB with its conduits (off-balance-sheet dumping grounds for things you can't sell).

smh: NAB's ugly surprise

As a consequence, local councils all around the country who were sold CDOs by investment banks for their lovely yield, their safety and their credit rating are now sitting on hundreds of millions of dollars of dud securities.

Posted by big chris @ 09:51 PM 0 Comments

Major banks like Wachovia, Chase and Bank of America are tottering and no one is lending money to anyone anymore.

TBR News via ts: Voice of the White House July 25, 2008

Congress has rushed through a Band-Aid bill to : help home owners but it is far too little and far too late to do any good. Major banks like Wachovia, Chase and Bank of America are tottering and no one is lending money to anyone anymore. Credit is drying up, evictions rise, along with gas and food prices and unemployment is just behind all of them but rising. Some of this collapse is the result of overextension, some the result of greed and much more the ineptness of the Bush administration but the fact is, we are teetering on the edge of the quarry cliff and what is coming is slow disintegration

Posted by malct @ 03:27 PM 0 Comments

The difference between credit-default swaps on Fannie Mae and Freddie Mac subordinated and senior debt widened.

Bloomberg: Fannie, Freddie Subordinated Debt May Be Cut by S&P (Update4)

July 25 (Bloomberg) -- Standard & Poor's may downgrade the subordinated bonds of Fannie Mae and Freddie Mac, surprising investors who had anticipated the securities would be supported by any Treasury rescue plan The potential downgrade of the preferred stock isn't as surprising, Jackson said. ``The fact that they lumped the sub debt in there seems questionable,'' Jackson said. ``If we are talking about equity capital being contributed by the government, by any measure that we can come up with, that should protect the subordinated debt.''

Posted by malct @ 03:23 PM 0 Comments

Could this be the money model for a world economy to replace the dysfunctional financial system now in crisis?

Comer: Money in Trouble

The Chinese government does not seem to carry a national debt and sells Chinese Treasury bonds to cool its economy not to finance it! With so much mind boggling infrastructure construction pouring yuan into circulation, some cooling seems necessary. This May China increased the commercial bank reserve requirement again to now 16% reducing the quantity of loans they can make to a maximum of 6X their reserves. This is an alternate way to reduce bank money creation rarely used in the USA in preference to the one blunt tool of increasing interest rates which bankers like! Could this be the money model, a Chinese model, for a world economy to replace the dysfunctional financial system now in crisis? The Committee on Monetary and Economic Reform

Posted by malct @ 03:19 PM 0 Comments

Throw your charts away - We simply cannot calculate the negative repercussions of this.

Mr Mortgage: Time to Get Political FolksMassive Bailouts Front and Center

They are on the move guys. I have always kept my political affiliations and actions a private matter, but what is going on with the Fannie/Freddie, housing, mortgage, Treasury, Fed, Wall St, Washington, rich investor and foreign Govt bailout plan could turn out to be nothing short of the largest fraud ever perpetrated on the American people. At least in my lifetime. I feel compelled to use whatever soapbox I have here to get this message out to as many as I can.

Posted by malct @ 03:04 PM 0 Comments

BIG PROBLEM - This more micro look at the housing market is coming up with massive house price losses

Mortgage Lender: Massive House Price Losses in Non Conforming Areas

"Fitch Ratings, arguably the only rater with their act together other than Egan-Jones, just finished with its ResiLogic enhancements. Its new mortgage loss model will be released today. In it, its new National, State and MSA-level economic and house price forecasting will make their modeling far more predictive and forward-looking. That is a nice way to put it." BIG PROBLEM - This more micro look at the housing market in the 25 MSAs that in the past have contained the most non-conforming (Jumbo) lending, is coming up with massive house price losses in key areas with San Diego dropping as much as 47% over the next 5-years! San Francisco is looking at an additional 33%. These are your heavy Alt-A areas.

Posted by malct @ 03:01 PM 0 Comments

These fast-approaching events will not go unnoticed.

bankimplode: The Crisis Is Upon Us by Ron Paul

"I have, for the past 35 years, expressed my grave concern for the future of America. The course we have taken over the past century has threatened our liberties, security and prosperity. In spite of these long-held concerns, I have days growing more frequent all the time when I'm convinced the time is now upon us that some Big Events are about to occur. These fast-approaching events will not go unnoticed. They will affect all of us. They will not be limited to just some areas of our country. The world economy and political system will share in the chaos about to be unleashed."

Posted by malct @ 02:56 PM 0 Comments

if borrowers do not repay, the government will

financial sense: Congress Taps Paulson's Helmet

With President Bush no longer threatening a veto, the subprime mortgage and Fannie and Freddie bailout bill is now sailing through Congress. In anticipation of its enactment, Congress had the foresight to raise the national debt limit to $10.6 trillion. Who says that politicians dont plan ahead? Once signed into law, the budget busting legislation will hand the Administration a blank check to prop up the ailing home lenders. The ultimate cost is anybodys guess. I believe that the price tag will be higher than just about anyone imagines.

Posted by malct @ 02:53 PM 0 Comments

Gordon Brown has just accelerated the degree to which Labour is seen as being out of touch

Market Oracle: Britain in Freefall as Economy, Housing Market and Labour Votes Crash

Gordon Browns Labour party is in crisis mode, time has effectively run out for Gordon Brown as the time for action to arrest the decline in Labour's electoral fortunes was more than 6 months ago, the same old offerings at press conferences no longer cuts it not only with the voters but also with Labour MP's who can clearly see that their jobs are now on the line. There now exists a high probability of a challenge to Gordon Browns premiership most probably at Septembers party conference. This also confirms the view that Labour will hang on for as long as possible into the deadline for a UK general election of May 2010.

Posted by malct @ 02:50 PM 0 Comments

Fannie Mae and Freddie Mac are expected to report losses again in the third quarter. So are WaMu and regional bank National City

Money CNN: Banks brace for more pain

Cooling credit fears Heading into this earnings season, banks were dogged by the twin investor fears of credit and capital. Analysts were betting that banks would once again have to beef up their loan loss reserves as the housing market deteriorated further and as the U.S. economy continued to sputter. Banks did just that. At the same time, nonperforming assets and net charge-offs, or loans banks don't think are collectable, continued to rise.

Posted by malct @ 02:44 PM 0 Comments

A worldwide recession is coming. China, India, Brazil, and third world economies simply cannot pick up the slack for the US, UK, EU, and now New Zealand.

globaleconomicanalysis: Worldwide Hard Landing Is Coming

Alan Bollard, governor of the Reserve Bank of New Zealand, cut the rate from 8.25 per cent to 8 per cent - still the highest in the industrialised world after Iceland - despite rising inflation, forecast to peak at 5 per cent by September. The move surprised many as it contradicts the Reserve Bank's mandate, which states that achieving and maintaining price stability are the sole objectives of monetary policy. The central bank's stated inflation target band is 1 to 3 per cent.

Posted by malct @ 02:39 PM 0 Comments

News To Me How come I Didn't Know?


"Capital must protect itself in every way, through combination and through legislation. Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law, applied by the central power of wealth, under control of leading financiers. Remember, it's not a question of "if" the economy will collapse, but "when". And if they can't "steal" your property with the above described scheme, they will take it via sequestration by "conservation easements" and expropriate it to international organizations, corporations and associations at "the extinction of the State" through "concessional" lending. Sustainable Development 1934

Posted by malct @ 02:27 PM 0 Comments

The financial system will collapse before "zero-hour" actually occurs.

321gold: It's Always Darkest Before the Dawn... of a Depression

I think we are seeing signs of it in the desperate measures being employed to nationalize companies which trade on market exchanges as private enterprises. There is simply no way to defend the SEC's decision to selectively enforce the prohibition of naked short selling for 17 'fragile' financial companies and to not enforce it for the over 5000 other companies which trade on US stock market exchanges. And plans to rescue Fannie Mae and Freddie Mac breathe of a sort of corporate nationalism.

Posted by malct @ 01:43 PM 0 Comments

The housing decline is not yet done, because we will need another year to unwind foreclosures in the pipeline.

321gold: Where Is the Economy Going

The underlying problems have not been fixed with this massive bailout. But the much bigger implication is that the Fed is busy pouring more gasoline on the fire by fighting the collapsing housing bubble, a housing bubble created by excess liquidity, with yet more liquidity. That is the key point that should be taken from this mess. The dollar is now firmly on an even steeper slope to its ultimate demise. Other currencies will be sliding down the same slope, so another paper currency is not the answer.

Posted by malct @ 01:32 PM 0 Comments

Lamb to the slaughter

ThisIsMoney: Buy-to-let: The housewife developer

When Emma Wright's husband handed her 1m and asked her to invest it in property, she vowed to try to double the money within three years. Emma plans to purchase up to 30 houses near her home in Wadhurst, East Sussex. Emma has embarked on her buy-to-let portfolio with a two-bedroom mid-terrace house at the end of her road in Wadhurst for 200,000 in cash. She is currently spending 3,000 on redecoration and will be letting it to her housekeeper and gardener for 660 a month. That works out at just 4% yield, but Emma expects that figure to rise in future as prices fall.(?????) 'We haven't really seen a big drop in prices in this area yet,' she says. 'It's a very desirable place in hot demand and easily commutable from London.

Posted by little professor @ 11:24 AM 21 Comments

Rates are "improving" by just 0.15% points and only with large deposits

FT: Mortgage rate cuts signal improving market conditions

Northern Rock, HBOS and Royal Bank of Scotland yesterday became the latest lenders to cut mortgage rates, in a further sign that the market is improving for borrowers. Northern Rock, which is actively trying to shrink its mortgage book, is now offering some of the best two-year deals on the market. The bank reduced its cheapest two-year fixed rates by 15 basis points, to 6.24 per cent for house purchases and 6.34 per cent for remortgages. These rates are available to borrowers with deposits of 25 per cent, whereas previously the best rates were only offered to those with 30 per cent in cash. However, most companies are only cutting the rates on low loan-to-value deals, and still require deposits of at least 10 per cent.

Posted by drewster @ 10:58 AM 1 Comments

European banks lend to UK landlords - why?!

FT: Rich look abroad for buy-to-let loans

Wealthy buy-to-let property investors are bypassing mainstream UK lenders to take advantage of the more favourable terms provided by some foreign banks. European banks, including Germanys Kleinwort Benson, Swedens Handelsbanken and Switzerlands EFG Bank, are willing to make multi-million-pound loans, and often at better rates with flexible terms. Some European lenders are offering lower arrangement fees, higher loan-to-values and less stringent rental requirements. Its great news for UK borrowers that some foreign banks with strong balance sheets are aggressively competing for high-quality assets, said a mortgage broker. They are taking advantage of the highest pricing levels and most conservative lending terms in the UK market for many years.

Posted by drewster @ 10:51 AM 5 Comments

What Price a House in Scotland?

Mail Online: Could Mr Brown be the last Prime Minister of Great Britain?

"However, the feverish discussions of Gordon Brown's political health which have dominated the airwaves over the past 24 hours have obscured a matter of much more enduring significance: whether or not the United Kingdom itself can survive beyond the next General Election." To prevent this a lot of money would have to be diverted North of the border, via tax. And would Scotland then take the Euro by default? All this confusion when house prices possibly reach a trough.

Posted by renting2 @ 10:43 AM 4 Comments

More grim reporting.

Independent: Mortgage approvals plunge by 66% in a year

Predictions for the future of the housing market remain bleak, with some ananalysts even suggesting that new mortgages could well have dried up entirely before the end of the year.

Posted by mytimeisnigh @ 10:00 AM 2 Comments

Another two American banks fail

Guardian: U.S. regulators seize two more banks

First National Bank of Nevada and First Heritage Bank of California. No details as to why they failed yet.

Posted by jonb @ 05:20 AM 9 Comments

Last roll of the dice? For Barratt, HBOS and BTL?

Barratt holds joint venture talks in funding bid: Daily Telegraph

Struggling housebuilder Barratt has held preliminary talks with major UK banks, such as HBOS, about creating joint ventures to own and rent out new homes it is struggling to sell. The plan envisages a joint venture vehicle created between the housebuilder and a financial backer. The joint venture would then buy the houses at near cost price and rent them out to the private market. Uhm would be interesting to see how much a 400,000quid executive detached desirable much sought after home really cost to build. I suspect about 100,000 quid!

Posted by who stole my pension? @ 05:10 AM 12 Comments

I got you in to this mess so I am the right man to get you out! Keep digging boys!!

Daily Telegraph: Gordon Brown's future uncertain as Cabinet ministers plot after Glasgow East debacle

The Labour Party has no option but to replace him as leader or face certain defeat at the next general election, said one. "We cannot go any lower," Err isn't that what they keep saying about the housing market? "We are at rock bottom". Nope I still think house prices have a long way to fall and so does Gordon's reputation for economic matters! "There is only one thing that can be done, and it's a change of leader." Nope it's the economy stupid not the leader! Economic figures revealed that Britain was facing recession, with economic growth falling in May and June.

Posted by who stole my pension? @ 04:58 AM 12 Comments

Friday, July 25, 2008

Brown finds new way to finance the economy

More Zero's than a Zimbabwean Banknote

Yahoo Finance - CNBC: 'Stealth' Housing Bailout: It's Bigger Than You Think

With Congress on the eve of passing a historic bill that would give the Treasury a blank check to lend money to Fannie Mae and Freddie Mac, its worth looking at how much money the government has already pumped into the system during the housing crisis.

Posted by stevie dee @ 09:34 PM 4 Comments

BBC reports on Inside Track five years too late

BBC Face The Facts (audio): Bye Buy-to-Let

Face the Facts investigates a buy-to-let property company many claim has left them out of pocket.

Posted by mken @ 08:01 PM 0 Comments

The R Word

Telegraph: Britain's economy shrank in May and June

A number of economists changed their forecasts following today's statistics to reflect the likelihood that Britain suffers a technical recession - where GDP shrinks in two successive quarters. Capital Economics said: "An outright recession is now our central scenario. With industrial production having fallen in both the first and second quarters, industry is already in recession. "Interest rates will eventually need to fall... but this will be too late to prevent a recession".

Posted by pendulum @ 06:56 PM 7 Comments

Comedy Club - Weekend entertainment - Stuatz Law

mortgagesolutions: Average house price down 4375: Assetz

Property investment advice firm Assetz has said buyers with mortgages are being forced to haggle over house prices because they were getting a raw deal from lenders. Law said profiteering must stop to create a fairer deal for homebuyers, who were unfairly paying for the excesses and errors in the investment banking sector over the last few years..............

Posted by jack c @ 06:38 PM 5 Comments

600 Billion Barrels of Oil in Alaska (Reserves)

CNBC: Oil in the Arctic

Well if some of us didn't know already. We know now! Great little clip, like the sarcasm of the journalist.

Posted by stevie dee @ 05:31 PM 14 Comments

They the junkie another fix.......and now they think he is cured!!!!!!!!

CNBC: Consumer Confidence Rebounds in July

U.S. consumer sentiment recovered unexpectedly from early 1980s lows in July as Americans received government tax rebate checks but remained pressured by high gasoline prices and falling home values.

Posted by royston @ 05:25 PM 0 Comments

Details of the US Housing Bill Provisions - No Mercy for Liar Loans

NY Times: Housing Bill Has Something for Nearly Everyone

This is a good rundown of the provisions in the new US Housing Bill - not as bad as it seems as it is aimed largely at ordinary homeowners. Anyone applying for help has to have taken out their mortgage before January 2008 and has to verify their income. Second homes and investment properties are also excluded from the provisions. So anyone who lied to buy or engaged in property flipping will be left to crash and burn. Wouldn't be surprised to see a carbon copy, adjusted only for British-English spelling, to appear before the House of Commons very soon!!

Posted by an bearin bui @ 03:22 PM 3 Comments

What to do if you're trapped in Spanish property gloom

MoneyWeek: What to do if you're trapped in Spanish property gloom

For increasing numbers of Brits, the dream of owning a trouble-free place in the sun is rapidly turning sour. So, if you are planning a move to Spain, in spite of an increasingly fragile economy and soaring living costs, then rent don't buy.

Posted by damien @ 02:31 PM 11 Comments

What took them so long?

BBC News: Buy-to-let firm faces questions

The Beeb have finally woken up to the fact that Inside Track and their sister company IAP were nothing more than a bunch of shysters..

Posted by uncle tom @ 02:28 PM 5 Comments

more writedowns soon then...

CNN: Foreclosure filings up 120%

As foreclosures continue to soar, 220,000 homes were lost to bank repossessions in the second quarter, according to a housing market report Friday issued by RealtyTrac. That's nearly triple the number from the same period in 2007.

Posted by mark @ 01:39 PM 0 Comments

Arsetz predicts the earth is also FLAT !!!

your mortgage.com: Assetz predicts house price plateau

It showed the five major house price indices recorded an average house price fall of 1.5% since June 2007. However, Assetz believes this is a temporary correction in the market rather than a crash, and prices will begin to level off in the autumn before starting to climb again in the second half of 2009.

Posted by housebear @ 12:16 PM 20 Comments

But Gordon, we don't want you to get on with the job. We want you OUT!!

BBC News: I'll get on with job, says Brown

''...Gordon Brown has promised to "get on with the job" of dealing with the economy, following Labour's defeat in the Glasgow East by-election. He told the BBC the government had to "listen and hear people's concerns" over rising food and energy costs. ...''

Posted by hpwatcher @ 11:16 AM 18 Comments

Grim reality overtakes the markets once again

MoneyWeek: Grim reality overtakes the markets once again

Like it or not, the UK's economy is built on houses. And with more bad news for property on the way, now is the time to take cover and wait for the carnage to pass.

Posted by damien @ 11:02 AM 1 Comments

Recession here we come.....

BBC News: UK economic growth slows sharply

''...The UK economy grew 0.2% in the second quarter of the year, as the credit crunch took its toll on housing and consumer spending. The figure is the lowest quarter-on-quarter growth for three years...''

Posted by hpwatcher @ 10:23 AM 2 Comments

comparing 1907 with 2008

You tube: The Great Panic of 2008

Interesting video comparing the Panic of 1907 with the Credit Crunch of 2008. As many know the panic of 1907 was engineered to pave the way for the creation of the Federal Reserve. After the big crash this autumn will we see more calls for a single world currency?

Posted by sold 2 rent 1 @ 09:45 AM 21 Comments

They own Yorkshire Bank....

Yorkshire Post: National Australia Bank takes hit from US debt

NATIONAL Australia Bank (NAB), has booked another $830 million (400m) in losses from its exposure to US mortgages, sending its shares down as much as 15 per cent.

Posted by whostolemyendowment @ 09:31 AM 0 Comments

The unavoidable conclusion: it was the debt what dunnit

Daily telegraph: Labour has only itself to blame if the unions hold it, and us, hostage

A very hard hitting and honest article that people know is true. We've had a party, now we've got a hangover. No getting away with it.

Posted by growler @ 09:27 AM 6 Comments

research from Yorkshire Building Society

myfinances.co.uk: http://www.myfinances.co.uk/news/savings/online-savings-account/britain-52-days-from-financial-ruin-$1233270.htm

A lack of savings is putting Brits as risk of financial peril. Shockingly, over a third (36 per cent) would only be able to last 11 days, with less than 500 in accessible savings.

Posted by sold 2 rent 1 @ 08:29 AM 25 Comments

Much worse could follow as the consumer crunch deepens

The Times: Fears of recession grow as Britons stop spending and sales slump

"With families already burdened by soaring costs of living, rising mortgage bills, slumping house prices and modest pay deals, Britons are set to abandon their past high-spending habits, said the National Institute for Economic and Social Research. A continuing slide in house prices until 2010 was one key factor set to take a further toll on consumer spending and confidence, it cautioned. Based on the value of homes dropping by 10 per cent, it calculated that this would reduce households total wealth by 357 billion"

Posted by growler @ 07:31 AM 6 Comments

"Goodnight" Gordon .....

BBC News: SNP Stuns Labour in Glasgow East

The SNP pulls off a stunning victory, winning one of Labour's safest seats by just a few hundred votes. That should wipe that dam smirk off his face.

Posted by it_is_going_with_a_bang @ 06:59 AM 15 Comments

Going, going gone?

Reuters: JP Morgan leads possible HBOS break-up

JP Morgan, the US banking giant that rescued Bear Stearns earlier this year, has held talks with several interested parties about forming a consortium to break up HBOS, the UK's biggest mortgage lender which includes the Halifax brand. HBOS's shares have been buffeted by the credit crunch and by fears about its 4bn rights issue. Speculation about a takeover of HBOS has been growing following the dramatic fall in its share price. They added that a consortium has not yet been formed and the talks could fall through. A break-up bid for HBOS might meet opposition from the Financial Services Authority, which would not want one of Britain's biggest banks to be destabilised.

Posted by who stole my pension? @ 06:36 AM 1 Comments

Thursday, July 24, 2008

How to get a job in the city?

Wizard of Id: 29 June 2008

I hope you'll forgive me for this light-hearted froth posting but it makes a change from the usual gloom and doom.

Posted by quiet guy @ 09:15 PM 2 Comments

Ex-Foxtons boss recommends to sell

London Evening Standard: My property predictions by Foxtons 370m guru

"What must it be like - to collect 370 million, personally, for selling your business? More pertinently, try to imagine how it feels to know that when you sold was right at the very peak of the market - another few weeks later and it crashed."

Posted by doomwatch @ 08:25 PM 7 Comments

Congress repealed the law against usury. It was done in 1980 by a Democratic Congress, Democratic President.

alternet: Nightmare on Wall Street: Washington Can't Bail out the Sea of Red Ink

Moyers: Usury? Greider: Usury, to be clear about it, is rich people taking advantage of poor people by lending them money on terms that are sure to make them fail. All three of the great religions, Judaism, Christianity, Islam, had a moral prohibition against usury because they recognized that society can't function like that. People of great wealth and their institutions like banks naturally have the power to overwhelm people of lesser means. And you can't allow that in a decent society. It won't survive. Moyers: Where were the gatekeepers? Where were the watchdogs? Why did it take the Fed so long to put an end to predatory practices? Greider: To make the story overly crude, Congress repealed the law against usury.

Posted by malct @ 07:38 PM 6 Comments

summer washout?

Bloomberg.com: U.K. Homebuilding Rally `Overdone,' Cazenove Says

July 24 (Bloomberg) -- A recent rally in U.K. homebuilder shares has been ``overdone'' and the stocks may fall back during the summer amidst further negative housing data and possible land writedowns, analysts at JPMorgan Cazenove Ltd. said.

Posted by ash4781 @ 07:29 PM 0 Comments

Dow plummets more than 150 points as dour housing and employment reports

CNN: Wall Street tumbles on economic jitters

"Investors are concerned over the weaker economic data that's coming through Thursday," said Stone. "With more jobless claims, people can't pay their bills, which means more write-offs for companies."

Posted by mark @ 06:54 PM 4 Comments

Almost half of those households are considered to be in severe mortgage stress - that is, struggling to manage their level of debt and meet home loan repayments - the report says.

the age: Mortgage stress tipped to hit 1m by Xmas Higher interest rates are tipped to force more than a million Australian households into a state of mortgage stress by the end of the year, a new report says.

The government launched its National Rental Affordability Scheme which aims to increase the supply of affordable rental dwellings by 50,000, and possibly 100,000 by 2012.

Posted by big chris @ 06:33 PM 1 Comments

Details of todays housing bill by Dr. Ron Paul:

goldseek.com: Ron Paul on the Housing Bill 7/23/08 - "The Mother of All Bailouts"

$2.5B line of credit to the Treasury (Fannie & Freddie F & F) is now open-ended National Debt Ceiling Moved up $800 BILLION (buried in the bill) Treasuries have replaced gold and silver to back US Dollar

Posted by sold out @ 06:15 PM 0 Comments

Keeping secrets, telling lies

UK bubble: More post-NRK bad ideas from the FSA

The FSA want to keep us from knowing who its secretly funded. In fact, it is a poorly conceived idea with some seriously perverse incentives.

Posted by inflationwatch @ 06:07 PM 2 Comments

If you did not know it before, you do now. The entire US banking system is insolvent.

321gold: You Know The Banking System Is Unsound When...

Mike "Mish" Shedlock Jul 24, 2008 1. Paulson appears on Face The Nation and says "Our banking system is a safe and a sound one." If the banking system was safe and sound, everyone would know it (or at least think it). There would be no need to say it. 2. Paulson says the list of troubled banks "is a very manageable situation". The reality is there are 90 banks on the list of problem banks. Indymac was not one of them until a month before it collapsed. How many other banks will magically appear on the list a month before they collapse?

Posted by malct @ 05:13 PM 2 Comments

Comedy Club - Peter Bolton King returns with a string of outrageous one liners

mortgagestrategy: NAEA says government should learn from US mistakes

The National Association of Estate Agents has urged the government to learn from the US government's mistakes and act now over the UK housing market slump. Peter Bolton King, chief executive of the NAEA, says "the housing market is the pillar of the UK economy" and that it will require creative thinking to ease pressures and ensure the downturn does not worsen. Bolton King says: The first thing the government could do is introduce a tax break, such as abolishing Stamp Duty for first -time buyers and moving the thresholds up to ease pressure throughout the whole housing market giving people a reason and incentive to come back.

Posted by jack c @ 04:54 PM 10 Comments

surely this is people just making money??? lol

CNN: Government uncovers oil price manipulation

You just couldnt make it up.... could you? next we will be told the last 10 years was just a dream.. and wake up to find Jordon is PM

Posted by mark @ 04:42 PM 9 Comments

Wot? Sales only down 15 per cent y-o-y?

ABC News: Existing Home Sales Fall 2.6 Percent in June

And prices are only down 6.1 per cent? C'mon guys, you're not even trying!

Posted by mark wadsworth @ 03:54 PM 0 Comments

If my house is no longer my pension, how about the stockmarket? Oh...

Telegraph: Shares gloom leaves pension funds with 30bn deficit

Slightly off-topic. In recent years more and more people have claimed that "their house is their pension", intending to use lifetime mortgages or equity release to live a happy retirement. Now that the housing crash is wrecking those dreams, attention is focusing back on traditional stockmarket-linked pensions. Sadly they aren't doing so well either. Where does this leave the generation who are retiring in the next few years?

Posted by drewster @ 03:03 PM 18 Comments

Another reason we won't go back to "normal"...

IFA Online: FSA removes compliance officer at disgraced mortgage firm

All the young 20 and 30 somethings with the memory of a goldfish waiting for lending conditions to return to "normal" - ie what they were pre-crunch, have got a long wait. I doubt we'll see a bubble like that again in our lifetime. Apart from the burnt fingers - the FSA won't let it happen again. Looks like they are finally getting around to properly enforcing their "suitability" regime to the mortgage market. Another nail in the coffin.

Posted by jackas @ 02:03 PM 8 Comments

US house price crash already half finished?

Reuters: It won't end until housing bits bottom

"If prices were to moderate back to where they were relative to income in the mid and late 1990s, the S&P/Case-Shiller 20 City index would have to decline 35.1 percent in total compared with its 17.5 percent fall thus far."

Posted by mark wadsworth @ 01:52 PM 1 Comments

A Tale of Two Economies

Bloomberg: Optimists Buy IPhones While Pessimists Hoard Gold

1. You see a line of badly dressed people snaking along the sidewalk, seemingly oblivious to the wind and rain. A guy with a beard is pouring himself a steaming cup of something from a thermos. You conclude that they are: (a) outside a bank, desperately trying to get their savings out, (b) outside an Apple store, desperately trying to get their hands on a 3G iPhone. 2. The mortgage-backed bond market is dead, murdered by lax lending standards that destroyed investor faith in the quality of home loans. (a) We need rules to ban introductory teaser rates that reset two years later, (b) We need rules to stop unqualified home buyers lying about their incomes, (c) How are my Wall Street pals supposed to generate bonus-boosting fees without an asset-backed bond market to play in?

Posted by drewster @ 01:41 PM 0 Comments

The bail-out voices cross the Atlantic....

Independent: Jeremy Warner's Outlook: Ministers may have to consider radical action as mortgage famine intensifies

"A possible halfway house would be to extend the scope of the Bank of England's "special liquidity scheme" to new mortgages, so that for a price lenders would be able to swap new mortgages for more liquid government bonds. Yet Mr King would be vigorously opposed to any such extension and, in a falling-out that would make the present strained relationship between the Bank and the Treasury look like a vicar's tea party by comparison, would fight any such notion tooth and nail. What is clear beyond doubt is that something has to be done. The debate as to what is about to get very heated indeed." This is a fight Merv has to win...

Posted by rednose @ 01:20 PM 3 Comments

"Worst fall for x years" - and "x" keeps growing

The Times: Retail sales dive 3.9% in worst fall for 22 years

The economics of volatility on the high street. If you were in retail (or any sector), would you think of moving house?

Posted by growler @ 12:56 PM 8 Comments

Automaker said it lost $8.7 billion in second quarter

CNN: Ford reports massive loss

As production winds down, Ford has been slashing production of SUVs and large trucks to meet the reduced demand and offering buyouts to its 54,000-strong workforce. Ford set a goal of cutting 15% of its work force by Aug. 1. But so far this year, only 4,200 workers have accepted the buyout offers. ------------------------------------------------------------------ how many ford workers will go in EU and UK? what about parts makers etc

Posted by mark @ 12:46 PM 8 Comments

Bush states, Wall street got drunk, has a hangover, and flippantly asks, when will it sober up?

Miya Shay: In Forbidden Video, Bush Claims Wall Street Got Drunk

In this unauthorised video of Bush, we see what politicians really think of our predicament. They take it for a joke!! You won't see this on CNN. We are now the media. We all need to take over press events and get news story's out on the web. As seen in Truth Rising. Just think of this response when you hear him and other politicians trying to sound sincere on the mainstream media.

Posted by planning4acrash @ 12:40 PM 10 Comments

More of this to come...

Sydney Morning Herald: owner-shoots-herself-after-foreclosure

Woman commits suicide as buyers descend on forclosed home.

Posted by boz @ 12:27 PM 5 Comments

this bill only helps bankers, read the small print

CNN: House OKs mortgage rescue

if you were about to lose you house could you afford the fees they want? And they want a cut of profit too!! BIG SCAM by the FED ------------------------------------------------------------------------ "Borrowers must agree to pay an annual premium to the FHA equal to 1.5% of their new loan balance. They must also agree to share with the government any profit they realize from selling or refinancing."

Posted by mark @ 12:25 PM 1 Comments

Price cut to 2,500 pounds (not from, to!) and house still won't sell

Bloomberg: Fannie Mae Unsold $5 Billion Homes Bring Peril to Shareholders

Fannie Mae, the largest U.S. mortgage finance company, couldn't find a buyer who would pay $6,900 for the three-bedroom house at 1916 Prospect St. in Flint, Michigan. So broker Raymond Megie, who is handling the foreclosure sale, advised cutting the price to $5,000. Megie still couldn't sell it. ``There's oversupply,'' he said. The home sold in 2005 for $110,000.

Posted by richc @ 12:03 PM 17 Comments

The FSA is open to consultation until September 30. It wants to hear your views.

The Renegade Economist: FSA Secrecy

Privileged treatment of the financial sector lends weight to some peoples suspicions that bankers are part of a conspiracy to put money in their pockets at our expense. An example of how conspiracy theories are fuelled is offered by the plan to protect reckless bankers in Britain from paying the price of their own misdeeds.

Posted by neo-serf @ 11:46 AM 2 Comments

Can't pay your mortgage?

BBC: Can't pay your mortgage?

Words fail me on this one. "... dependants such as adult children, you could ask them to contribute .."

Posted by doomwatch @ 10:47 AM 9 Comments

Why your bank manager may be about to turn nasty

MoneyWeek: Why your bank manager may be about to turn nasty

The credit crunch may be a year old, but in reality it's only just started. Banks will have to rein in lending even more - meaning a brutal recession, lower profits and many more job losses.

Posted by damien @ 10:32 AM 4 Comments

Volatile stock markets and a lack of confidence in the UK banking system has boosted demand for gold bars and coins from private investors to levels not seen for 25 years.

telegraph: Investors buy gold bars in record numbers

Tony Baird of Baird & Co, one the UK's biggest gold bullion dealers, said business was getting busier and busier with punters investing 1,500 to 150,000 in gold bars and coins. Baird, who has been in the gold business for 40 years, claimed that demand was on a par with the late 1970s.

Posted by malct @ 10:06 AM 5 Comments

John Parker, we salute you!

Metro: Property for sale dropping 1,000 per week

This chap has finally got the message! I hope we find out the result of his Dutch auction.

Posted by mark wadsworth @ 10:03 AM 12 Comments

Less people go shopping - UK econmy suffers

BBC: UK retail sales fall 3.9% in June

Retail sales in the UK fell 3.9% in June, after they had shown a sudden and unexpected 3.6% record surge in May

Posted by holding out @ 09:47 AM 3 Comments

Tormented, no......delusioned, yes.

Mortgage Introducer: Mortgage market tormented

Capital Economics believes the mortgage market continues to be tormented by a combination of weak buyer confidence, the faltering economy and the credit squeeze.

Posted by whostolemyendowment @ 09:23 AM 0 Comments

Yes...but are any selling?

Suffolk and Essex online: Suffolk house prices now 12 times salary

Urgent action was called for last night after it emerged property prices in some parts of Suffolk are 12 times the average wage. { Big drops on Property Snake see http://propertysnake.co.uk/site/location/1169 }

Posted by whostolemyendowment @ 09:19 AM 0 Comments

40% of those that still attempt to enter the fray....fail.

Telegraph: More than 40pc of UK house sales are collapsing

Four in ten house sales are collapsing in some areas as buyers back out or fail to get a mortgage, the Bank of England has disclosed.....And this in an already slow market.....

Posted by whostolemyendowment @ 09:11 AM 2 Comments

USA to raise minimum wage 24% in a year

Market Watch: Federal minimum wage rises 70 cents Thursday

An estimated 13 million workers, 10% of the work force, will receive an hourly wage increase when the minimum wage is raised next year, according to the Economic Policy Institute.

Posted by yoyo1 @ 09:11 AM 7 Comments

Distressed sales to increase at a rapid rate!

BBC News: New challenges with remortgaging

If they are forced onto a standard variable rate, they may see payments rocket by up to 64%. Even if they are offered the best two year fixed rate, they will face a deal 35% more expensive than the one they are currently on.

Posted by martin @ 09:08 AM 1 Comments

No mortgages=no sales

Telegraph: Over 40% of house sales are collapsing

Four in ten house sales are collapsing in some areas as buyers back out or fail to get a mortgage, the Bank of England has disclosed. The new figure is yet another sign of the pain being endured by the housing market as the effects of the credit crunch work their way through. Large numbers of buyers were having to retreat from deals after having mortgage offers withdrawn by lenders. Other would-be buyers simply pulled out through fear that house prices could plunge even further than they have done recently, with some analysts predicting a fall of up to 35 per cent in the next two years. Property prices are falling at a rate not seen since the early 1950s.

Posted by little professor @ 08:59 AM 0 Comments

Make them pay ALL the unpaid income tax

BBC website: Are mortgages as safe as houses

The article suggests that people being given fraudulent mortagages are "vunerable" and victims. In my opinion the real victim is Honest Joe who having got a well paid job is Priced Out or Gazumped by these criminals. For a long time I have suggested that all salary declarations on mortgage applications should be cross checked by the Inland Revenue to ensure that the correct amount of income tax has been paid.

Posted by ten years to get my money back @ 08:44 AM 3 Comments

Professor Miles touts new "discovery"

Bank of England has room for interest rate relief: Telegraph

Is this an attempt to rig the interest rate? They way the word "discovery" is used in the article describe an academic paper by Prof Miles on the new "natural interest rate" to my mind smacks of Victorian quackery. "Ladies and Gentleman, roll up, roll up, Professor Miles is today, and this day alone selling his new restorative remedy for 1 shilling and 6." The punters never find out it is made from old soapy water and cat urine.

Posted by mikelivingstone @ 07:04 AM 7 Comments

They keep pumping but there still a hole in that there bucket

BBC: US lawmakers pass housing rescue

The US House of Representatives has passed a massive (3,900,000,000 dollars )housing rescue bill that could help struggling homeowners get cheaper loans. More than a million Americans have lost their homes in the worst housing crisis since the Great Depression. Under the rescue plan, hundreds of thousands of homeowners trapped in mortgages they cannot afford on homes that have fallen in value would be able to refinance their mortgages with more affordable, fixed-rate loans backed by the Federal Housing Administration. It also includes a tax break of as much as $7,500 for first time home buyers, as well as help for troubled mortgage finance providers Fannie Mae and Freddie Mac. Many Republicans are angry about the legislation, which they say bails out irresponsible homeowners and lenders

Posted by who stole my pension? @ 06:20 AM 7 Comments

Hi Fannie fans - let me introduce you to Sallie.

The Street.com: Sallie Mae Profits Slide 72%

Sallie Mae's profit plummeted 72% in the second quarter, as the student lender reported funding costs have been "extraordinarily high" this year amid a deteriorating credit market.

Posted by gardeniadotnet @ 12:14 AM 0 Comments

Wednesday, July 23, 2008

EU allows bent cucumbers

yahoo news: Bent cucumbers? With prices up, EU won't bin them

BRUSSELS (Reuters) - Twisted carrots, warped leeks and bent cucumbers may soon appear -- officially -- on EU shop shelves as Europe's farm chief overrides opposition from leading producer countries to her marketing simplification plan. (Advertisement) One of the most popular jibes about EU over-regulation, where zealous Brussels bureaucrats are portrayed as wanting to set permitted sizes, lengths -- and "bendiness" -- for household fruit and vegetables, has come back to haunt the European Union. But this time, Brussels wants to cut the red tape and get rid of what it calls "unnecessary marketing standards" -- in part because of the rising price of food.

Posted by malct @ 10:52 PM 5 Comments

Strong rise in UK banking shares

BBC: Strong rise in UK banking shares

Shares in some of the UK's leading banks have risen strongly on the back of takeover rumours and hopes of a recovery in the financial sector. HBOS, the UK's biggest mortgage lender, jumped 16.9% on talk that it could be a takeover target for Spanish bank BBVA.

Posted by edwardnh @ 09:36 PM 7 Comments

Wall Street got drunk, so says Bush

Credit Writedowns: Quote of the day: 23 Jul 2008 - George W. Bush

"There is no question about it. Wall Street got drunk.... Thats one reason I asked you to turn off your TV cameras....[Wall Street] got drunk and now it's got a hangover......The question is, how long will it [take to] sober up and not try to do all these fancy financial instruments?" See the video. All the rage at Youtube.

Posted by edwardnh @ 08:02 PM 9 Comments

Fed Up USA

Fed Up USA: Fed Up USA

I am not sure if anyone in HPC is aware of this US site. It looks like some americans have started to organize themselves to protest against the bail-outs.

Posted by rushmore @ 07:01 PM 5 Comments

Tapping your pension with a debit card?

Credit Writedowns: Tapping the 401K and unrealized gains

This is an appalling new trend in America: tapping your pension at the cashpoint. I just picked up on a MarketWatch article about 401(k) debit cards through Tim Iacono's blog. It marks a pretty astounding trend in financial innovation. Debit cards are straightforward. You use them for purchases and money is deducted from your bank account. But when the debited account is your 401(k) retirement plan, critics angrily line up to take a swipe at that piece of plastic. It's not hard to see why. The 401(k) debit card lets you borrow from retirement savings and pay yourself back with interest over time, much as you would with a typical 401(k) loan. Only the card makes it much easier to crack your retirement nest egg; all you do is shop, swipe and sign.

Posted by edwardnh @ 06:43 PM 1 Comments

This will have an influence on UK mortgage rates

BBC Business: US mortgage rates increase again

The cost of taking out a mortgage in the US has climbed again due to fears over the fate of two huge lenders, according to The New York Times. The interest rate on an average 30-year fixed rate mortgage rose to 6.71% from 6.44% on Friday, HSH Associates says. And rates on loans of $729,750 or more hit 7.8%, the most since December 2000. The rate rises come as the US is trying to secure the future of troubled government backed lenders Fannie Mae and Freddie Mac.

Posted by jack c @ 04:58 PM 5 Comments

Second homes under the spotlight

Telegraph: Second home owners could be forced to live in country properties all year

Second home owners could be forced to live in their country properties year-round or rent them out permanently to tenants under radical proposals outlined in a countryside review commissioned by Gordon Brown.

Posted by holding out @ 04:05 PM 25 Comments

Inflation! What Inflation? surely not

Yahoo: Fuller, Smith & Turner concerned about inflation

"The inflationary impact on our costs has increased and, despite our solid trading performance, there are many signs that the UK consumer is also feeling the squeeze,"

Posted by mark @ 03:24 PM 1 Comments

the pigs trough is empty, time to find another commodity to rape

bbc: Why have oil prices been falling?

Oil prices have risen to record levels in recent weeks, with traders in London and New York paying more than $147 a barrel for crude oil at its peak on 11 July........................this article claims that the recent falls are just a "correction" and that demand for oil is still high in China. I don't buy it. Oil is on its way down.. and just wait until the north Alaskan oilfields start to produce.. now lets see this "correction" cascade down to the petrol pumps.

Posted by george monsoon @ 03:01 PM 10 Comments

Great graphs

Market Oracle: United States Unfolding Financial and Economic Nightmare

The rally you saw last week was little more than a normal, bear-market bounce predicated on the myth of government omnipotence ... spurred by the blind faith in fiat money ... and triggered by the official attacks on short-sellers

Posted by sold 2 rent 1 @ 12:52 PM 59 Comments

Oil is so yesterday

Guardian: Solar Power from Saharan Sun could provide Europe's electricity

Plans to build an enormous solar power station. Quick - buy a bit of desert.

Posted by cyril @ 12:47 PM 15 Comments

Mortgage advisers 'are failing'

BBC: Mortgage advisers 'are failing'

Many mortgage advisers give poor advice to customers, according to research by the consumers' association Which?.

Posted by doomwatch @ 12:38 PM 2 Comments

They don't like it up 'em.

MoneyWeek: Why the credit crunch will hammer stocks as well as property

Why are investors fleeing hedge funds? Perhaps to cover bills elsewhere, or perhaps simply because theyre panicking. And as we all know, the golden rule when panicking, is to panic first. But this rush for the exits is taking its toll on stocks that have nothing to do with the credit crunch

Posted by gardeniadotnet @ 12:35 PM 0 Comments

Commercial demand down down down down

mortgageintroducer: Commercial demand down

In the survey, 50% more chartered surveyors reported a fall than a rise in demand compared to 31% in Q1 2008

Posted by mark @ 12:23 PM 0 Comments

Guess who voted for a cut?

Times: BoE minutes show three-way split over interest rate decision

The Bank of England's Monetary Policy Committee (MPC) was divided over its decision to keep the interest rate on hold at 5 per cent in July but hinted that borrowing costs could rise next month. Minutes from the MPC's interest rate meeting in July revealed that while seven members voted to hold rates, Tim Besley opted to raise borrowing costs to 5.25 per cent while arch-dove David Blanchflower voted for a cut. The minutes also reveal that while members believed a rate rise this month may dent confidence, they did not rule out an increase in August.

Posted by little professor @ 11:44 AM 13 Comments

Throwing Money away?

Mortgage Introducer: Checkmate launch proves market is turning

"The announcement by Checkmate Mortgages that it has obtained sufficient investment to launch in 2009 is a sign the market is turning, according to John Charcol."

Posted by renting2 @ 11:07 AM 20 Comments

Surprised Anyone?

Mortgage Introducer: Advisers failing their clients

"Some mortgage advisers give poor advice to their clients, according to research by the consumers' association Which?." Advice today should be - Don't Buy!!

Posted by renting2 @ 11:02 AM 0 Comments

Print out this article and show it to your builder

Telegraph: House Prices: Home improvements are a waste of money

Falling house prices means that home improvements such as a new kitchen or a loft conversion are a waste of money. Declining house prices mean that other, previously profitable improvements, such as extensions and new kitchens are now expected to result in negative "net value added" of between minus 13,806 and minus 20,232.

Posted by landedgentry @ 10:52 AM 0 Comments

Economic gloom and financial worries have permeated the public consciousness.

Citywire: The Daily Interview: Parts of UK in recession says Cartesian's Kelly

The weakest areas of the UK economy banks and house builders - are already in a recession, Andrew Kelly of the Cartesian UK Opportunities fund has said. Speaking after the HBOS rights issue flopped and with the monthly total of construction layoffs above 5,000, Kelly said it was now just a question of who would follow. Sectors of the UK economy are already clearly in recession, it is really now a question of when the sectors under pressure will recover, said Kelly.

Posted by jack c @ 10:36 AM 0 Comments

Real Diversification More Important Now than Ever

Money Week: Why gold and silver are table-thumping buys

Comprehensive article looking at the ramifications of house price crashes in many western countries, global stagflation and unprecedented credit, solvency and systemic risk. Risk aversion and a flight to safety look set to see gold and silver embark on the second stage of a secular bull market.

Posted by gold silver @ 10:35 AM 0 Comments

More hard evidence that the crash is in full swing

BBC Business: Mortgage approvals hit fresh low

The number of new mortgages approved by the major banks fell another 23% in June to a new record low. The British Bankers' Association (BBA) said its members approved just 21,118 new home loans in June, down from 27,499 in May. The figures were also 66% lower than in June last year. The collapse in sales, and the current sharp fall in prices, has been caused by the mortgage drought, due to the credit crunch in the banking system.

Posted by jack c @ 10:12 AM 19 Comments

Housing Market Meltdown - their words, not mine

Daily Mail: House sales drop by half in a year as repossessions soar

The number of homes sold has halved in a year, according to official figures issued yesterday. Coming alongside evidence of the soaring number of repossessions, the news lays bare the extent of the meltdown in the housing market. In June last year, 140,000 homes were sold for 40,000 or more. This was before the Northern Rock debacle began and the words 'credit crunch' were bandied about. Twelve months later, figures from HM Revenue and Customs show that just 77,000 homes were sold in June, the lowest number since records began in 2005.

Posted by uncle chris @ 08:47 AM 41 Comments

Hooray! It's all over

The Sun: The Sun Says

Apparently all of the unpleasantness in the economy is done and dusted. Everyone back home for tea and buns. Depressingly, I once saw Sir Bernard Ingham (Thatcher's press secretary) give a talk and he said that the first piece of advice he always gave a new minister was to read The Sun every day - "You don't sell that many papers every day without reflecting the views of the man in the street". Is this *really* what people are thinking?

Posted by tastingstars @ 08:45 AM 0 Comments

You've Got Jingle Mail

Yahoo: Roubini: More Than $1 Trillion Needed to Solve Housing Crisis

To think we are seen as pessimists. In the US they have a site called walkawayplan.com

Posted by sosoon @ 07:39 AM 3 Comments

Tongue firmly in cheek.

Telegraph: But honey, I'm doing it all for you

They push themselves to the limit for their families - and what thanks do they get? Jessica Fellowes meets the City's high earners who are tired of being taken for granted. TIPS FOR STANDING BY YOUR WORKING MAN (FEMINISTS, LOOK AWAY NOW

Posted by gardeniadotnet @ 06:48 AM 4 Comments

World leader talks Economics

hills blog: Bush on Economy: 'Wall Street Got Drunk'

"There's no question about it," Bush said. "Wall Street got drunk, that's one of the reasons I asked you to turn off the TV cameras. It got drunk and now it's got a hangover. The question is how long will it sober up and not try to do all these fancy financial instruments."

Posted by sold out @ 06:45 AM 7 Comments

Eco Towns, a solution, or distraction?

The Australian: No smoking hot spot : Dr David Evans was a consultant to the Australian Greenhouse Office from 1999 to 2005

Being a planner. I am concerned about whether planning policy is appropriate and appropriately evidence based. Unfortunately, the green movement is often based on the precautionary principle. This is a United Nations and EU principle that basically means, fear can be a substitute for evidence. Therefore, the risk that there may be a risk from greenhouse gases is enough to bring on eco towns upon viable farmland and to install carbon tax. So, here is another example of a scientist who has moved from the fighting global warming to being a sceptic. His story comes from his personal scientific experience. So, in our drive to solve the "housing crisis", which is infact a currency crisis (banks printed money, ploughed into mortgage securities, inflating prices), are ecotowns a distraction?

Posted by planning4acrash @ 01:02 AM 20 Comments

Pretty maps of house price changes across Europe

FT: European house price guide

Nice pictures, nothing we don't already know. Germany has barely grown; Austria, Switzerland, and Portugal had fairly low growth too. Estonia, Northern Ireland, and Poland stand out as the worst excesses - no wonder the Poles are heading back home, they want to get on the ladder before it's too late ;-) Hungary is the odd one out, it actually registered house price falls in 2006. Any ideas why?

Posted by drewster @ 12:49 AM 1 Comments

Not such good news for builders, plumbers, window fitters, kitchen fitters, ....

Telegraph: House Prices: Home improvements are a waste of money

Not sure if this has posted before ... Falling house prices means that home improvements such as a new kitchen or a loft conversion are a waste of money. Declining house prices mean that other, previously profitable improvements, such as extensions and new kitchens are now expected to result in negative "net value added" of between minus 13,806 and minus 20,232.

Posted by it_is_going_with_a_bang @ 12:03 AM 5 Comments

Tuesday, July 22, 2008

Fourth largest US bank stops wholesale mortgages

BBC News on line: Wachovia ends wholesale mortgages

Wachovia , the 4th largest US Bank has stopped offering mortgages via brokers.This is a clear sign that the world wide mortgage drought is continuing in the same month some US house prices fell 4.5%. The UK will soon follow too.

Posted by mikelivingstone @ 09:13 PM 1 Comments

building societies not immune

Reuters: Fitch warns on outlook for UK mutual lenders

LONDON, July 22 (Reuters) - Rating agency Fitch warned on Tuesday of rising arrears for British building societies, especially for lenders exposed to specialist, higher-risk mortgages amid a deteriorating economy.

Posted by ash4781 @ 08:45 PM 1 Comments

Small ways to save

Telegraph: 50 ways to profit from the economic gloom

"Now is a great time to buy used cars... Savings accounts available up to 7.17%... Airlines are knocking down prices... Builders & plumbers are chasing work so get one in cheaply... Furniture up to 60% off... The cost of beach huts is falling back to earth... Weakness of the dollar means America and the Caribbean are terrific value... Snap up a property bargain by buying a newbuild which has been repossessed... Lower-priced properties across the country also being reduced... Shop at Lidl and Aldi..."

Posted by drewster @ 07:26 PM 16 Comments

Hey- It's cheap, stop moaning!

Bloomberg: Fannie, Freddie Rescue May Cost $25 Billion, CBO Says

Fannie Mae and Freddie Mac would cost taxpayers an estimated $25 billion over two years under the Bush administration's rescue plan, the Congressional Budget Office said

Posted by alan @ 06:55 PM 1 Comments

Bearish article-

thisislondon.co.uk: House price growth falls to seven-year low as economy continues to slow down

that nevertheless claims that London prices rose in May.

Posted by rave @ 06:18 PM 3 Comments

How will this affect the UK? Answers on a postcard addressed to Gordon Brown

bbc: Inflation 'to hit Asian growth'

Inflation has been rising in countries across the region, where half of family expenditure is on food and fuel. To tackle inflation fiscal authorities have been tightening credit recently.

Posted by mark @ 06:05 PM 0 Comments

what cars? the picture is all trucks

bbc: Motoring 'cheaper than in 1988

roads are full of trucks, foreign ones drain our economy of 55 million quid....each year... if motoring is cheaper, then why are people poorer? Must be because we have a stable economy with no inflation and affordable houses!!!

Posted by mark @ 06:01 PM 4 Comments

From the TV channel that brought you property porn.....

Channel 4: Home sales hit new low

The number of homes changing hands has nearly halved during the past year to hit a new low, Government figures show. Just 77,000 homes costing more than 40,000 were sold during June, 45% fewer than during the same month of 2007, according to HM Revenue & Customs

Posted by whostolemyendowment @ 05:09 PM 1 Comments

Bleak outlook for Estate Agents

mortgagestrategy: FTBs returning to housing market

The National Association of Estate Agents has claimed first-time buyers are making a gradual return to the market.The NAEA makes the claim based on its report of a rise in average first-time buyer sales for June. The latest NAEA figures show that the average percentage share of first-time buyer sales in June has crept up to 11.8%, compared to 10.6% in May and up significantly from the 9.8% seen this time last year. But the data is not all positive.......................................

Posted by jack c @ 04:42 PM 16 Comments

Basket case Britain

Bedlam asset management: The Perfect Storm

Bedlam often produce the most insightful research - read on why Britain is the sick man of Europe

Posted by mrminsky @ 04:30 PM 4 Comments

More collateral damage....

Times Online: Alchemy's Floors-2-Go calls in the administrators

The sliding housing market and a slump in do-it-yourself home improvements has forced Floors-2-Go, the wood and laminates flooring retailer, to collapse into administration with the loss of almost 100 jobs.

Posted by whostolemyendowment @ 03:47 PM 1 Comments

Morgan Stanley was able to make massive trades on the basis of privileged information

Citywire: Banks enjoy the fruits of their own recklessness

It is a glorious testament to the power and influence money can buy. Having almost single-handedly plunged the developed world into its worst financial crisis for more than half a century, one might reasonably expect the banks to be subject to some serious sanctions and rule-tightening from governments and regulators.But no. Nearly a year on from the start of the current crisis, senior bankers continue to enjoy the financial fruits of their misdeeds, safe in the knowledge they will never be called to account for their actions. Indeed, more evidence emerges today that the banks have been able to persuade regulators to loosen the rules even further, to allow them to make even bigger profits at our expense in the future.

Posted by jack c @ 03:06 PM 5 Comments

Sharks, shisters, and just plain crooks....

Channel 4: 17 mortgage brokers banned

The Financial Services Authority (FSA) has banned 17 mortgage brokers so far this year, three times as many as it took action against during the whole of 2007.

Posted by whostolemyendowment @ 02:58 PM 7 Comments

Time to invest in banks?

NYT: Posting Huge Loss, Wachovia Tries to Purge Lending Woes

Wachovia reported a second-quarter loss of $8.9 billion, including a $6.1 billion write-off that is tied to overpaying for several deals. The bank set aside another $9.8 billion to cover current and future losses. It also cut its quarterly dividend by 87 percent, to 5 cents a share, in order to conserve about $2.8 billion a year.

Posted by quokka @ 02:46 PM 0 Comments

Is Zimbabwe the new model for the U.S.?

Foz Business via TS: Eleven Reasons Why America is the New Top Socialist Economy

3. Fed and U.S. Treasury adopted Enron accounting tricks Bad news: Enron failed several years ago because of its off-balance-sheet accounting scam. The Fed's doing the same thing: Dumping Bear's $30 billion liabilities onto the taxpayer's "balance sheet." Next Treasury proposes adding $5.3 trillion more from Fannie Mae and Freddie Mac. Unfortunately clever accounting tricks by Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke aren't going to fool foreign lenders analyzing America's creditworthiness. Worse-case scenario: U.S. Treasury bills with less than a triple-A rating.

Posted by malct @ 02:26 PM 1 Comments

UK House Price Crash of Summer 2008

The Market Oracle: UK House Price Crash of Summer 2008

"The housing market is in full panic selling mode, as property owners slashing prices are met with silence from potential home buyers."

Posted by housebear @ 02:25 PM 9 Comments

Poxtons minis lay idle

London Evening Standard: It's a Mini crisis... estate agents' runarounds lay idle

It is either the starting grid for the inaugural estate agents' championship rally or a very sorry comment on the state of the housing market. Here, parked up in a layby near Hampstead Heath, are no fewer than seven cars belonging to the agent Foxtons.

Posted by doomwatch @ 01:53 PM 6 Comments

Wachovia reports $9 billion loss

CNN: Wachovia reports $9 billion loss

Nation's No. 4 bank misses analysts' forecasts and cuts dividend, but insists it is adequately capitalized. bit like B&B and NR did? they are all liars.....

Posted by mark @ 01:44 PM 2 Comments

The pain spreads

Bloomberg: Wachovia Has Record $8.9 Billion Loss, exits wholesale mortgage business

Wachovia, America's fourth largest bank chain, has announced a record quarterly loss of $8.9 billion and slashed its dividend by 87%. Yesterday Wachovia announced its intention to exit the wholesale mortgage business altogether. The company has suffering big losses from its 2006 acquisition of Golden West Financial Corp, which pioneered the "pick a payment" negative amortisation loans, which allowed a borrower to make payments lower than the interest due on the loan. The fallout cost former CEO Kennedy Thompson his job after eight years.. Wachovia shares are down 75% from their peak last year.

Posted by little professor @ 01:44 PM 0 Comments

UK House Price Crash of Summer 2008

The Market Oracle: UK House Price Crash of Summer 2008

The latest UK house price data as released by Rightmove shows that the UK housing market crash continues to accelerate by registering a fall of 1.8% for July 08. The rate of decent on an annualised basis now extends to -11% and on a quarterly basis to -6.7%, far above the originally forecast crash rate of 5% per quarter as per analysis of November 2007 for the quarter April to June 08, which came in at -5.8%. The housing market is in full panic selling mode, as property owners slashing prices are met with silence from potential home buyers.

Posted by nadeem walayat @ 12:58 PM 9 Comments

Credit crunch abating?

Ft Adviser: Nexcastle BS considers return to 95% mortgage market

Newcastle Building Society said discussions had taken place recently about offering a new product up to 95 per cent LTV for house purchase and remortgaging. Their current maximum LTV is 85%. The news followed last weeks announcement by Scarborough BS that it was launching a two-year fixed rate 95 per cent LTV product that would be available through its nine branches. However other lenders, including Yorkshire Building Society, Bank of Ireland, C&G, Woolwich and Co-op have all said they are not re-entering the 95% market anytime soon. Halifax, Nationwide and Abbey still offer 95% mortgages, but have no plans to expand their ranges.

Posted by little professor @ 12:51 PM 10 Comments

Why Brown's rule-breaking is great news for trade unions

MoneyWeek: Why Brown's rule-breaking is great news for trade unions

Gordon's Golden Rule always more of a guideline is to be 'revised' and the unions expect the extra cash to come their way in higher pay. That's good news for them, but very bad for the rest of us...

Posted by damien @ 12:09 PM 6 Comments

wonder if any more pubs will close?

reuters: Enterprise Inns warns earnings under pressure

"In a normal year, there would be exceptional circumstances where we would be helping a handful of licensees. The reality now is that we have several hundred who, through no fault of their own, require some help," "Consumer confidence is low and the rising costs of food, fuel, mortgage costs, and TAXES have put increasing pressures on disposable income and discretionary spend," said Tuppen.

Posted by mark @ 12:08 PM 0 Comments

down 4p a litre - should be 10p!!!

BEEB: Supermarkets reduce petrol prices

UK drivers are set to benefit after a number of supermarkets said they would lower the price of petrol.

Posted by george monsoon @ 12:04 PM 6 Comments

More jobs go???????

reuters: Jump in firms in critical condition

said 4,258 companies faced critical problems, including moves to wind them up, in the three months to June 30, compared with 542 the same time last year.

Posted by mark @ 11:57 AM 0 Comments

this is like the Great Depression. We havent seen this kind of travail in the financial markets since the 1930s, he said.

New York Times: Uncomfortable Answers to Questions on the Economy

More than two years ago, Nouriel Roubini, an economist at the Stern School of Business at New York University, said that the housing bubble would give way to a financial crisis and a recession. He was widely dismissed as an attention-seeking Chicken Little. Now, Mr. Roubini says the worst is yet to come, because the account-squaring has so far been confined mostly to bad mortgages, leaving other areas remaining credit cards, auto loans, corporate and municipal debt. Mr. Roubini says the cost of the financial systems losses could reach $2 trillion. Even if its closer to $1 trillion, he adds, were not even a third of the way there.

Posted by malct @ 11:55 AM 6 Comments

"There are no good options."

international herald tribune: Is America too big to fail?

The central banks of China and Japan are on the hook for hundreds of billions of dollars worth of Fannie's and Freddie's bonds - debts they took on assuming that the two companies enjoyed the backing of the American government, argues Brad Setser, an economist at the Council on Foreign Relations. Commercial banks from South Korea to Sweden hold investments linked to American mortgages. Their losses would mount if American homeowners suddenly couldn't borrow. The global financial system could find itself short of capital and paralyzed by fear, hobbling economic growth in many lands.

Posted by malct @ 11:34 AM 3 Comments

Past-due loans spike at the financial services giant as even more affluent U.S. consumers start to show signs of economic distress.

CNN: American Express feels consumers' pain

American Express (AXP, Fortune 500) delivered some ugly news after the market closed Monday, posting a smaller-than-expected second-quarter profit and withdrawing its 2008 earnings guidance, saying the economic environment "has weakened significantly" since it offered up its financial projections back in January.

Posted by mark @ 10:10 AM 0 Comments

The nation's fourth-largest bank will no longer offer mortgages through brokers starting July 25.

CNN: Wachovia to exit wholesale mortgage business

could this be the next bank to go down????? Wachovia didn't disclose how many jobs will be cut as a result of the change. More details are expected Tuesday when the Charlotte, N.C.-based bank releases its second-quarter earnings.

Posted by mark @ 10:08 AM 3 Comments

We all knew it but it's still utterly depressing!

Telegraph: Confirmed: the lunatics are running the asylum

We were anticipating a raft of scheduled news announcements that looked like being decisive. We were not disappointed. Sitting here reflecting on the week's events, it seems to me the future is clearer. The deterioration in the UK economy revealed by the week's events is at a pace and on a scale that suggests a recession is unavoidable. This situation will be compounded by public finances in disarray and which cannot come to our rescue, even if there was the political will to do so.

Posted by tyrellcorporation @ 08:40 AM 17 Comments

A pretty desperate way to run a business.

BBC News: 'Take cash and leave' says lender

A former sub-prime mortgage lender is offering an 8% discount to its borrowers if they redeem their loans. A spokesman admitted the idea sounded "bizarre" but it was cheaper than selling the loans in any other fashion.

Posted by gardeniadotnet @ 07:24 AM 6 Comments

Debtors in arrears can expect no sympathy from HBOS

Telegraph: HBOS boy wonder must now turn into Scrooge

After the worst rights issue in U.K. history. Hornby must become the Ebenezer Scrooge of UK banking. He must be as tightfisted on costs as Scrooge and as much of a kill-joy on all but the most cautious of growth plans, just as the cold-hearted Scrooge would be. Debtors in arrears can expect no sympathy and will be dealt with ruthlessly. HBOS is focused on lending to UK house buyers and corporates that has left the bank looking particularly vulnerable as far as investors are concerned. Morgan Stanley and Dresdner Kleinwort, which underwrote HBOS's 4bn rights issue, will own approaching 10pc of the banking group after investors shunned the capital raising. They now have 2.8billion invested in HBOS. Morgan Stanley also disclosed it had shorted 2.3pc of HBOS's stock on Friday afternoon!!!!

Posted by who stole my pension? @ 05:57 AM 3 Comments

With William Still & Patrick S. J. Carmack

Alex Jones Show: The Alex Jones Show - L I V E - July 21st - Economy special

Alex talks with the minds behind the classic 1995 documentary The Money Masters, Patrick S. J. Carmack and William T. Still. Topics covered include the private, run for profit Federal Reserve and why it needs to be repealed, the necessity to eliminate the evil of fractional reserve banking and allow government to print money to help pay off the national debt, as well as real solutions to allow us to escape from the manufactured cycles of boom and bust.

Posted by planning4acrash @ 01:51 AM 60 Comments

Monday, July 21, 2008

Surprise? Well not really

Bloomberg: American Card Holder defaults up by 37%

Record defaults on USA's biggest card lender by value. One would have hoped all those fat cheques from the FED would have gone some where useful.

Posted by yoss @ 10:48 PM 0 Comments

So what happens to Morgan Stanley and Dresdner Kleinwort profits outlook now?

Times Online: HBOS offer flop leaves underwriters with 2.5bn

Morgan Stanley and Dresdner Kleinwort now face taking 2.5 billion worth of HBOS shares onto their own balance sheets. On Friday, rival bank Barclays said just 19 per cent of its 4.5 billion placing and open offer had been subscribed for by investors.

Posted by paul @ 10:45 PM 1 Comments

Official - get yer flares out

The Times: The Seventies are back, with less good cheer

A nice little article with a good conclusion. The comments are very interesting!

Posted by tara747 @ 10:34 PM 0 Comments

A few who predicted this mess tell us what they see coming next.

New York Times: They Told Us So

I'd like to see an article with those who got it wrong and what they see coming next that won't happen! The most disturbing is from Ron Paul, IMHO. Now, I had assumed we were 1/4 through the crisis. He says that we are only 10%!

Posted by planning4acrash @ 10:22 PM 2 Comments

House prices are destroying all UK life

Guardian: House prices 'destroying village life'

"David Orr, chief executive of the federation, called for a new target to build 9,000 social homes in the countryside a year, " Mr Orr has got the wrong end of the stick. What we need is to regulate against reckless lending. We need cheaper house, houses less attractive to investors. Houses that are CHEAP for people to buy and LIVE IN.

Posted by voiceofreason @ 09:14 PM 5 Comments

Blanchflower laying the ground for an IR cut

Morgaging the Future.

International Herald Tribune: Is America too big to fail?

So the government offers its rescue of the mortgage companies, and foreigners keep stocking the government's coffers. "They don't want the U.S. to go into the worst downturn since the Depression," Tilton says. But all the while, the debt mounts along with the costs of an ultimate day of reckoning. Debate grows about the wisdom of leaning on foreign credit, and about how much longer Americans will retain the privilege of spending and investing money that isn't really theirs. Bailouts amount to mortgaging the future to stave off the wolf howling at the door. The likelihood of a painful reckoning is diminished, while the costs of a reckoning - should one come - are increased.

Posted by sold out @ 05:55 PM 6 Comments

The IndyMac failure will take a chunk out of the fund the FDIC has to insure deposits. But bank experts aren't worried about it running out of money.

CNN: Most banks are safe ... so is the FDIC

How bad will it get? The widespread failures of hundreds of thrifts during the savings and loan crisis of the late 1980s and early 1990s ended up costing taxpayers about $250 billion in today's dollars, according to some estimates. That's because an FDIC-like fund in place to insure thrift deposits was overwhelmed at the time. Richard Bove, an influential banking analyst with Ladenburg Thalmann, wrote in a note last week that Washington Mutual (WM, Fortune 500), the nation's largest thrift with assets of $320 billion, is on the edge of the "danger zone."

Posted by mark @ 04:53 PM 1 Comments

Bellway further trouble? Anyone heard anything?

afxnews, etc...: Bellway to issue fresh trading update on Aug 14

UK housebuilder Bellway Plc. said it will issue a further trading statement on Aug. 14 due to the "current difficulties in the housing market". also see www.moneyam.com/action/news/showArticle?id=3112056 & www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1906067&source=RNS

Posted by whostolemyendowment @ 03:50 PM 1 Comments

Citigroup chairman: UK house prices to fall further

BBC: Leading Questions: Sir Win Bischoff

Sir Win expects the credit crunch to continue through 2009 and warns that house prices in the UK and the US are likely to fall for another two years.

Posted by doomwatch @ 03:44 PM 1 Comments

Interesting outlook on how things are going.

Daily Kos: 8,500 U.S. banks; many will die soon

If you look down from a very high level what you see is this: There is $75 trillion in global real estate, $50 trillion in annual global GDP, and $675 trillion in derivatives - synthetic financial instruments loosely associated with the real world that, when inspected, prove to be worth a small fraction of their face value. Nine years ago Weathervane McCains chief economic adviser, Phil Gramm, got the Glass Steagall Act largely repealed. Investment houses engaged in an orgy of what can only be described as private money printing, taking real assets, puffing them up, marking them up, passing them around, and they kept at it until there were five or six dollars of funny money for every real dollar of stuff. Ssshhh, dont anyone tell the pension funds...

Posted by nopensionnohouse @ 03:24 PM 16 Comments

Tips from so called experts.....emphasis on the EX

Times Online: 25 tips to sell your home in a downturn

To help struggling vendors, Times Money has spoken to five celebrity property experts to build a list of hints and tips to ensure homeowners snag that elusive sale. From new taps to laptops, here are 25 tips to help you sell your home. ******Oh, do stop - my sides can't take anymore......ha ha ha

Posted by whostolemyendowment @ 01:44 PM 26 Comments

Who'd Have Thought It??

Mortgage Introducer: FSA fines in July

The FSA has been incredibly busy with fines this month and were only half way through it.

Posted by renting2 @ 01:39 PM 0 Comments

Unemployment and the Housing Market

Inside Housing: Housing Blog

The likely effect of unemployment on the housing market.

Posted by still-waiting @ 01:20 PM 0 Comments

Well, it keeps the mileage down before you sell them....

Mail On Sunday: Its a Mini crisis... estate agents runarounds lay idle

It is either the starting grid for the inaugural estate agents championship rally or a very sorry comment on the state of the housing market.....A spokeswoman for Foxtons {read as Doris who bothered to answer the phone...} denied business was slow and said the cars were parked while estate agents were in the office preparing for viewings.

Posted by whostolemyendowment @ 12:07 PM 21 Comments

Nothing safer than bricks and mortar....?

Introducer Today: Homeowners urged not to over rely on property

Falling house prices are a reminder to homeowners not to over rely on their property to provide a nest egg, it has been claimed

Posted by whostolemyendowment @ 11:34 AM 1 Comments

UK's Economic 'Horror Film Plot'

Sky News: Yes... that should do it. Problem solved.

The report said: "As with any horror movie, there is an escape route but it is not an easy one. "It is imperative that wage increases remain restrained, despite the tremendous pressure from food and energy cost inflation."

Posted by gardeniadotnet @ 11:26 AM 7 Comments

Isn't this where US lenders were about a year ago?

Guardian: HBOS rights issue flops

Underwriters to HBOS's 4bn rights issue have been left with almost 3.8bn of shares after investors shunned its cash call in one of the biggest fund-raising flops in UK history.

Posted by paul @ 11:08 AM 0 Comments

Why rents won't rise enough to save buy-to-let landlords

MoneyWeek: Why rents won't rise enough to save buy-to-let landlords

The UK's buy to let and commercial property bubbles popped some time ago. And while there are still some bulls who insist on looking on the bright side, they are very much mistaken.

Posted by damien @ 10:45 AM 5 Comments

Excellent article from the weekend FT

FT: Crashes, bangs and wallops

Each separate panic has had its own distinctive features, but all have resembled each other in occurring immediately after a period of apparent prosperity, the hollowness of which it has exposed. So uniform is this sequence, that whenever we find ourselves under circumstances that enable the acquisition of rapid fortunes, otherwise than by the road of plodding industry, we may almost be justified in auguring that the time for panic is at hand.

Posted by james @ 10:27 AM 3 Comments

Full report [pdf]

Rightmove: House Prices down 1.8% MoM, 2% YoY

Average asking price down over 4,000 in the past month. following a 3,000 drop the previous month. Unsold stock reaches record level. Rightmove index goes YoY negative for the first time ever. Mortgage famine wipes out 'spring bounce'. Average time spent on the market jumps to 87 days. This is getting tasty!.

Posted by little professor @ 10:00 AM 18 Comments

Mainstream apocalyptic (thats normal) stuff from Ambrose

Telegraph: The global economy is at the point of maximum danger

It feels like the summer of 1931. The world's two biggest financial institutions have had a heart attack. The global currency system is breaking down. The policy doctrines that got us into this mess are bankrupt. No world leader seems able to discern the problem, let alone forge a solution.

Posted by holding out @ 09:42 AM 15 Comments

it's going to get worse...

Times: Average home asking price down 4,000 on a year ago

''...Homeowners are resorting to increasingly aggressive price cuts in an effort to sell their properties, with asking prices across England and Wales an average 4,000 less than they were a year ago as a new realism sets in across the housing market. The average price is now 235,219, 2 per cent less than last July, according to the Rightmove website...''

Posted by hpwatcher @ 09:06 AM 5 Comments

Change cannot happen with the same incumbents who have approved the fleecing of we the people as well as all the other unconstitutional legislation coming out of CON-gress for decades.

News With Views: Freddie & Fannie Unconstitutional Bail Out Using What?

Tragically, the majority of people have zero knowledge of our monetary and banking systems. The upside is that millions do know and understand how we came to this point.

Posted by planning4acrash @ 09:06 AM 6 Comments

A picture used to be worth 1,000 words, but with inflation the way it is, it's got to be up closer to 100,000 these days!

Hmm... that's quite a high percentage

The Times: HBOS rights issue snubbed by 92% of investors

HBOS has this morning announced one of the most disastrous rights issue in City history, with just 8.29 per cent of the bank's 4 billion cash raising taken on by its shareholders. The bank was upbeat this morning. "The bottom line is, we've raised 4 billion of capital," said a spokesman. "Just like ships need more ballast in heavy seas, banks need more capital in tougher times."

Posted by gardeniadotnet @ 08:28 AM 27 Comments

Save Rightmove by lowering prices and easing credit.

guardian: House sellers forced to cut asking prices as pool of buyers dries up

People selling their homes have cut the asking price by an average of more than 4,300 in the past month to catch the eye of a dwindling number of buyers, according to a report published today. Shipside, "commercial director" at Rightmove, blames unrealistic prices and banks' credit clampdown for breaking his "business model"

Posted by mken @ 07:22 AM 6 Comments

Brickor Mortis? Try The 'Kiss of Life'

MailOnline: House prices plunge 18,000 in just two months ... but experts warn worse is to come

The biggest losers are homeowners in the South East. The average asking price there was 316,521 in May, but fell sharply to 298,692, a drop of 17,829 or nearly 6 per cent in two months.

Posted by yoyo1 @ 07:18 AM 7 Comments

Sunday, July 20, 2008

It's Monday anyone fancy a punt on HBOS shares

Times: Banks try to offload 3.6bn of HBOS shares

Two City banks will try to offload as much as 3.6 billion of unwanted HBOS shares today on to a highly nervous London stock market in one of the biggest tests of sentiment towards the banking sector.

Posted by enuii @ 11:26 PM 2 Comments

Cash does not Crash

Wall St Journal: Don't be in Denial about a Bear Market

"This is worse than the usual bear market". "Conserve your capital".

Posted by alan @ 10:10 PM 0 Comments

Estate agents' future

FT: UK Estate Agents

Walking down an average town centre high street in the UK, it seems like every second window is an estate agency. But the industry is showing severe signs of strain. Not just branches, but whole businesses are closing down, while shares in the few listed estate agents like Savills, or Rightmove, the property website, have plummeted.

Posted by ceanothus @ 08:11 PM 0 Comments

Freddie Mac & Fannie May own or insurer of OVER HALF of US mortgages

Toxic Waste Offerings to Offset Big Losses: International Forecaster Weekly

Freddie Mac new Issue quickly approved by SEC, New offerings to absorb big losses, Gold escapes general pounding in the market, home builders sentiment index is at record low, depression is a real threat still. Note how the timing of this announcement, which came after markets closed on Friday as just noted above, was the same time frame used for the news about the IndyMac Bank closure. note how much US government and Freddie officials obviously believe Freddie to be undercapitalized after claiming outright only days ago that both Freddie and Fannie were and are adequately capitalized. Gold is resiliant. The CPI and PPI are at 26 and 27-year highs. Hedge funds are on the edge of oblivion. Bonds are producing negative rates. Credit markets are frozen. The greatest depression of all time.

Posted by planning4acrash @ 07:38 PM 6 Comments

Credit crunch leaves glut of unsold hom

times: times

http://scotlandonsunday.scotsman.com/scotland/Credit-crunch-leaves-glut-of.4306242.jp http://property.timesonline.co.uk/tol/life_and_style/property/article4352937.ece?openComment=true

Posted by andy @ 06:55 PM 2 Comments

With all this additional headache - who'd want to be a landlord?

Shropshire star: Landlords face 500 million EPC bill

Compulsory energy performance certificates (EPC) from Oct 1st - more costs for landlords - I bet Rigsby is turning in his grave.

Posted by whostolemyendowment @ 04:17 PM 0 Comments

For how Long?

Financial Times: Halifax cuts cost of home loan deals

Halifax, the UK's largest lender, yesterday brought momentum to the trend of falling mortgage rates as it cut the cost of a number of deals for the second time in a week. The bank reduced its two- and five-year fixed rates by up to 15 basis points. Other brands within the HBOS group - BM Solutions, Bank of Scotland (BoS) and Intelligent Finance - also cut a number of rates, including on some buy-to-let and self-certification loans.

Posted by herrbbiiee @ 12:48 PM 18 Comments

Keeping up with the Van Der Jones's

The Business Channel (Sky 547): Tulipmania

If you've read about Tulipmania around these blogs, but are not sure what it was all about. Spend an hour with Sky (Channel 547) @ 14:00 and 19:00 today. A bubble that was 6 years in the making, but took only 6 days to pop. A bit off topic, but well worth a watch (especially the bit where a sailor eats an onion, only to find it was a Tulip bulb valuable enough to buy the ship he sailed on).

Posted by angonamo @ 12:01 PM 3 Comments

i like the one about petrol, ignore the one about housing..lol

CNN: Scary economy, real solutions

There's a lot to fear in the economy these days, but that doesn't mean you should hit the panic button. These simple steps can protect you from looming dangers.

Posted by mark @ 11:30 AM 1 Comments

THE global economy is facing the toughest conditions in 25 years, federal Treasurer Wayne Swan has warned.

The Age (Australia): More doom for global economy

Mr Swans comments came as the International Monetary Fund released its latest economic outlook, which described the world economy as being in a tough spot, and said that the slowdown would be longer and deeper than forecast three months ago.

Posted by planning4acrash @ 09:45 AM 1 Comments

Nice article exposing Darling as having to clean up Gordons Financial Mess

Guardian/Observer: Don't blame Alistair Darling. He's just the brush and bucket

Darling used to joke that he was spending his time hunting around Great George Street 'trying to find out where Gordon has hidden the money'. Having rummaged down the back of all the Treasury's sofas, Mr Darling discovered that there was no hidden money. It had all gone

Posted by enuii @ 09:31 AM 11 Comments

Northern Rock spends tax-payers' money pursuing whistle-blower.

Mail Online: Northern Rock drives 'whistle blower' to brink of suicide with 130,000 legal action

A former Northern Rock employee says he has been driven to the brink of suicide after the failed bank accused him of blowing the whistle on its fat cat culture.

Posted by steerpike @ 07:47 AM 7 Comments

Treasure ex HBOS chief executive, to publish an assessment of the situation this week. Oh what an expert!

Times: Housing market action held back to autumn

Don't panic, don't panic - I know what I am doing. Just look at my former company HBOS!!!!!!!!! THE Treasury is ready to come forward with a package of measures to stabilise the housing market, but no action is expected until the autumn. A Treasury-commissioned report by Sir James Crosby, the former HBOS chief executive, is set to be published this week but officials have indicated that it will be only an assessment of the situation. Treasury officials have indicated their willingness to consider a range of options to deal with the crisis, including a stamp-duty holiday and action to help kickstart the market in new mortgage-backed securities. Stamp duty is always a factor when people buy houses. Have they been taking advice from that silly girl?

Posted by who stole my pension? @ 06:36 AM 7 Comments

Morgan Stanley and Dresdner, will have to place 3.6 billion of shares over the course of Monday or Tuesday!

Times: High-street bank HBOS faces rights issue disaster

HBOS will tomorrow admit to one of the most disastrous rights issues in corporate history when it concedes that as few as 10% of its investors took up its 4 billion share offer. Barclays said on Friday that only 19% of its investors took part in its 4.5 billion placing. When HBOS originally announced its rights issue two and a half months ago, it was seen as being heavily discounted against a share price that was then standing at 500p now it's 282p! But the knowledge that a large percentage will have to be sold on the market could see them drift beneath the rights price.

Posted by who stole my pension? @ 06:28 AM 4 Comments

Title says it all

Times: UK economy heads for horror movie

BRITAIN is facing an economic horror movie because of a toxic mixture of a moribund credit market and volatile oil prices, according to a leading forecasting group. The Ernst & Young Item club, which uses the Treasurys economic model, will argue in a report tomorrow that the economy will struggle to avoid recession. The dreaded R word appears again! Peter Spencer, chief economist at the Item club, said: Both on the high street and in the housing market it is going to get a great deal worse before it gets better. Begbies Traynor monitors the number of firms reporting critical problems - those facing winding-up petitions or more than 5,000 in county-court judgments against them. The figure ballooned in the second quarter to 4,258, nearly seven times more than in the same period.

Posted by who stole my pension? @ 06:24 AM 1 Comments

Darling may borrow to save banking system from collapse

Telegraph: Golden rule changes 'designed to save banks'

The Treasury may be planning to raise the limit on public borrowing in an effort to give it "room for manoeuvre" for a potential rescue operation for the banking system, a leading expert has suggested. It comes amid growing disquiet about the funding position of Britain's biggest mortgage lenders, with banking groups urging the Treasury or Bank of England to extend its mortgage support scheme to cover home loans issued since the start of the year. Spencer warned Darling may have to increase the debt limit to 50 per cent of GDP or beyond if he intends to accommodate a possible support scheme for embattled lenders. "The Treasury knows the situation facing the mortgage lenders is pretty dire. I suspect that they may now be considering looking at gilt-edged funded long-term lending."

Posted by who stole my pension? @ 05:59 AM 7 Comments

Saturday, July 19, 2008

Now! That's What I Call Inflation 70!

MSN: Zimbabwe to introduce $100 bln dollar bank note

Zimbabwe's central bank will introduce new higher-value 100 billion Zimbabwe dollar notes on Monday as part of a desperate fight against spiralling hyperinflation, the bank said. Zimbabweans are suffering chronic shortages of meat, maize, fuel and other basic commodities due to the collapse of the once prosperous economy, which critics blame on President Robert Mugabe's policies, including his violent seizure of white-owned farms.

Posted by gardeniadotnet @ 11:19 PM 7 Comments

Essential reading

Wall Street Journal: Why no outrage?

America's 21st-century financial victims make no protest against the Federal Reserve's policy of showering dollars on the people who would seem to need them least. It wasn't the nation's small savers who brought down Bear Stearns, or tried to fob off subprime mortgages as "triple-A." Yet it's the savers who took a pay cut. To facilitate the rescue of that system, the Fed has sacrificed the quality of its own balance sheet. In June 2007, Treasury securities constituted 92% of the Fed's earning assets. Nowadays, they amount to just 54%. In their place are loans to the nation's banks and brokerage firms, the very institutions whose share prices have been in a tailspin. A currency draws its strength from the balance sheet of the central bank that issues it.

Posted by little professor @ 10:43 PM 6 Comments

Uncomfortable Answers to Questions on the Economy

NY Times: Uncomfortable Answers to Questions on the Economy

Is this a recession? How bad is housing? When will banks revive? Is my job safe? Are consumers done? Whos to blame? QUESTIONS QUESTIONS...

Posted by rushmore @ 08:37 PM 0 Comments

Articles and videos about americans sinking in debt

NY Times: The Debt Trap

Articles and videos about americans sinking in debt

Posted by rushmore @ 07:27 PM 6 Comments

10 min interview with Bob Chapman on the state of the world economy

Prisonplanet: Global hyperinflationary depression is inevitable now within three, possibly two years

Bob Chapman was the world's largest gold trader in the world for a time. He says in this piece that our economic situation is so dire that a plunge is inevitable now in the next few years. OPEC says that oil will go to unlimited prices, $500 conservatively, meaning $20/gallon minimum at the pump. Meaning implosion of the EU and US economy's. Largest bank run since Great Depression at Indymac. Reporters refusing to report devaluation of the dollar causing 70% of oil inflation. 25% of the increase is speculators dumping the dollar (and sterling) looking for safe havens. AAA rating of US treasury bonds at risk if there is a hard and fast split between EU and US interests caused by a situation like how EU banks have been left with much of the costs of US subprime. Unemployment could reach 35%.

Posted by planning4acrash @ 07:25 PM 6 Comments

Developer money games for the desperate or dim

Guardian Newspaper money section: Three Quarters of the Answer

Three-quarters of the answer In their desperation to sell you a home, property developers have come up with a new wheeze: they'll front up 25% of the asking price.

Posted by hardlianotion @ 07:01 PM 8 Comments

When there's no hope it's time to jump ship

Telegraph.co.uk: Alistair Darling and Gordon Brown heading for break-up

The strange relationship between Gordon Brown and his Chancellor is one of the most intriguing features of contemporary UK politics. They are long-standing friends but Darling's demeanor is now that of a man who has had enough of being pushed around. Whether he'll stand up to Brown on specifics, we shall see. But rumours swirl of rows, it is said. Some mysterious person spent all the money in good times and left Darling, and by extension the rest of us, in this dire position. Once again, his name begins with G and ends in N.

Posted by plato @ 05:43 PM 9 Comments

Business owners face a cost spike next week, when minimum wage rises to $6.55 per hour.

CNN: Businesses brace for minimum wage hike

With commodity, fuel and insurance costs hitting record highs, small-business owners are anxious about next week's federal minimum wage hike, which will require employers in 26 states and the District of Columbia to raise their base to at least $6.55. ****Crunch goes the USA***

Posted by mark @ 05:33 PM 2 Comments

The chips are down and greedy bush plays his ace, 1 last turn on the screw should just about kill the economy

CNN: Why the gas tax could go up

Now, lawmakers quietly are talking about raising fuel taxes by a dime from the current 18.4 cents a gallon on gasoline and 24.3 cents on diesel fuel.

Posted by mark @ 05:30 PM 0 Comments

This sums it all up..........

CNN: Freddie chief's jackpot

The mortgage giant steps closer to a big capital-raising move that could help its CEO keep his healthy paycheck. Syron made $10.6 million last year, according to Freddie Mac's latest report with the Securities and Exchange Commission.

Posted by mark @ 05:27 PM 2 Comments

Deflation apparent in some sectors

FT: Luxury market feels the pinch

Deflation was notable in some of the indexs items, including cars and watches. A Panerai Luminor Submersible watch is now almost 17 per cent cheaper than last year at 4,500, and an Aston Martin DBS is down 15 per cent from 188,000 to 160,000.

Posted by gardeniadotnet @ 09:05 AM 27 Comments

I'd like to apply for a loan...

davies.lohudblogs.com: Topical cartoon of the week

Speaks for its self...

Posted by nopensionnohouse @ 08:30 AM 4 Comments

No ramping in the Times today!! It's all doom and gloom!!

Times: House prices tipped to fall 20% in two years

The value of homes in Britain could slump by a further 20 per cent in the next two years as the number of buyers continues to fall, experts predicted yesterday. Property values have already dropped by 10 per cent since prices peaked in August last year, wiping 20,000 off the price of an average home, figures from Halifax show. But Howard Archer, of Global Insight, the economic consultancy, said prices would plummet by a further 20 per cent, or 40,000 on average, before the market begins to recover. Continued falls in house prices are expected until the first half of 2010, taking the average house price to 140,104, down from 199,600 in August last year, he said. Three quarters of potential first-time buyers are abandoning plans to get on to the property ladder.

Posted by who stole my pension? @ 07:26 AM 14 Comments

Darling to cut spending, but still increase borrowing!

Times: Taxpayer can bear no more, admits Alistair Darling

Taxpayers are at the limit of what they are willing to pay to fund public services says Darling. Darling warned that the downturn was far more profound than he had thought and could last for years rather than months. He told Cabinet ministers this week that there would be no more money for schools, hospitals, defence, transport or policing. Tax receipts are falling but unemployment costs are on the up! He confirmed that the Treasury was revising its rules to allow more borrowing. His disclosure came as figures showed that public borrowing rose by 9.2 billion last month, well above City forecasts of 7 billion and the highest for June since 1993, when monthly records began. He said Britain could still be suffering by the next election, expected in 2010.

Posted by who stole my pension? @ 07:21 AM 9 Comments

House prices 'will keep falling'

BBC "News": House prices 'will keep falling'

House prices in the UK and the US are likely to fall for another two years, the chairman of one of the world's most powerful banks has warned. ...This kind of makes the chumps at the Daily Express look like the bunch of deluded VI Spivs that they seem to be.

Posted by eyes_wide_open @ 07:10 AM 1 Comments

And again


BRITAIN has ridden out the worst of the global credit crunch, leading world economists said last night. After months of gloomy financial forecasts, the International Monetary Fund predicts the economy will bounce back and enjoy sustained growth.

Posted by little professor @ 04:35 AM 18 Comments

Relentless ramping from the Scotsman

Scotsman: There's nothing like the first time

First-time buyers do have one thing going for them falling house prices. For buyers with deposits, this is great news, according to Scott Brown, of Warners estate agents. "As long as you can afford the asking price, it makes sense to buy just now," said Brown. "There is less competition for properties, you have a wider choice and there is a chance to negotiate with sellers. But the upturn in prices will be quick, so if you sit and wait for mortgage rates to improve you will miss your chance." Here are the options: BANK OF MUM AND DAD GUARANTOR MORTGAGE MULTIPLE APPLICANTS SHARED OWNERSHIP

Posted by little professor @ 04:23 AM 0 Comments

Ron Paul takes his gloves off

infowars.net: Ron Paul:

Texas Congressman Ron Paul has warned the House that he is convinced the time is now upon us that some Big Events are about to occur. that will cause liberty to go into deep hibernation. Paul told the House: Paul outlined the history of the current economic crisis and alluded to key events such as the inception of the Federal Reserve System, the creation of the Bretton-Woods Monetary System and the creation of a "dollar bubble". "This bubble is different and bigger for another reason." Paul argued. "The central banks of the world secretly collude to centrally plan the world economy. I'm convinced that agreements among central banks to monetize U.S. debt these past 15 years have existed, although secretly and out of the reach of any oversight of anyone--especially the U.S. Congress"

Posted by planning4acrash @ 02:16 AM 0 Comments

Friday, July 18, 2008

No Quick Fix

Economist: The spectre of stagflation: things can only get worse

FIVE years ago Mervyn King, the newly appointed governor of the Bank of England, gave warning that the nice decade would be followed by something less wholesome. Now starting his second term of office this month, Britains leading central banker looks more prescient than ever. But even he surely did not expect that the non-inflationary consistently expansionary era would turn quite this sour.

Posted by becksmycat @ 10:23 PM 0 Comments

Oh dear.

FT: Barclays and HBOS cash calls shunned

Barclays said on Friday that shareholders accounting for just 19 per cent of the UKs third-largest bank had decided to participate in the 4.5bn offering.

Posted by gardeniadotnet @ 10:21 PM 4 Comments

London real estate's falling down

CNN: London real estate's falling down

interesting video

Posted by mark @ 06:09 PM 0 Comments

Knight Frank agent predicts new boom and sealed bids by September

The Rat and Mouse: Knight Frank's Feelgood Factors

The Rat and Mouse has been passed a remarkable document that's apparently dropping through London front-doors, purportedly courtesy of Knight Frank estate agency. Here's why Knight Frank agents greet you with a smile.

Posted by max @ 05:50 PM 1 Comments

wonder if fannie will sell anything?

CNN: Freddie Mac mulling stock sale

Who gave these firms their names!!...lol Battered U.S. mortgage finance giant Freddie Mac is mulling a plan to raise capital by selling up to $10 billion in new shares, according to a published report.

Posted by mark @ 03:06 PM 10 Comments

Gulf states scramble to address the downside of rising oil profits.

CSMonitor: Soaring inflation undermines sustainability of Persian Gulf region

Just as Persian Gulf cities such as Dubai and Abu Dhabi were becoming synonymous with excess and success, the Gulf boom is in danger of going bust. Instead of conjuring images of towering skyscrapers and indoor ski slopes, they are struggling with soaring inflation rates. Indeed, the Gulf region may want to position itself at the center of global capitalism, but it will first have to contend with the impact that skyrocketing energy costs and a cooling global economy are having on the local economy and the impoverished migrant labor force that bears the brunt of rising oil and food costs.

Posted by malct @ 01:45 PM 2 Comments

Jim Willie's latest observations

financialsense.com: Nationalization, Fiasco, USDollar, Gold

A grotesque grandiose nationalization initiative is gradually being forced upon the USEconomy, US financial system, US political system, and the hapless US citizenry. Its crucible for construction comes from the desperate situation unfolding for the banks, the mortgage holders, and homeowners. Rising costs, falling incomes, failing banks, declining home values, eroding mortgage bonds, interfered financial markets, corruption in Congress, endless war, destructive economic counsel, an unconstitutional USDollar without gold backing, these factors all contribute toward a crisis without remedy.

Posted by the spaniard @ 01:21 PM 3 Comments

Can you say 'mindless optimism'

BBC News: Five reasons to be cheerful amid the gloom

Feel the gloom. With more bad news on the economy this week, is there no comfort, no end to pessimism? Yes! The Magazine challenged statistical sleuths Michael Blastland and Andrew Dilnot to scour the data - and find us five reasons to be cheerful.

Posted by dom @ 01:20 PM 24 Comments

Law Firms Gear Up -- and Wait --For Anticipated Bankruptcies

Dollarcollapse: The Wall Street Journal Senses That Something is Wrong

A subscription to the Wall Street Journal costs several hundred dollars a year, so most people out there dont get it and DollarCollapse.com rarely posts links to its articles. But everybody should see today's edition, which probably sets the modern-day record for disturbing headlines. Here's a sampling of what subscribers read this(sorry wednesday) morning: Real-Estate Financier's Death Hints At Trouble for Lenders Flamboyant real-estate financier Scott Coles penned a farewell letter, put on a tuxedo and climbed into bed, where he was later found dead in what police believe was a suicide. a collection of articles from WSJ

Posted by malct @ 01:06 PM 18 Comments

All grist to the mill

BBC: Mortgage squeeze tightens further

The MSM seem to be coming over to The Dark Side - it's all doom and gloom nowadays.

Posted by mark wadsworth @ 12:50 PM 0 Comments

The nightmare scenario for U.S. economic authorities is here:

reuters: As faith in bank bailouts dims, losses set to deepen

confidence in their ability to rescue the country from a housing-led financial panic is now at its lowest level since the crisis began. "You see a massive potential for financial meltdown on a global scale," said T.J. Marta, fixed-income strategist at RBC Capital Markets. At the forefront of investor worries is the collapse of California-based mortgage lender IndyMac. Regulators seized the company on Friday after a bank run in which customers panicked over the firm's survival withdrew $1.3 billion over 11 business days. This was one of the largest bank failures in U.S. history. The scariest thing about it is that things seem to be getting worse rather than better. Gerard Cassidy, another RBC analyst, estimates that more than 300 U.S. banks could close their doors in the next three year

Posted by malct @ 12:36 PM 3 Comments

Three scientists explain why markets crash

Money Week: Three scientists explain why markets crash

If you ever worry that you dont know anything about how economics or finance really work, then the latest issue of New Scientist should reassure you somewhat. Because it shows that the experts know nothing either. The magazine reports that some econophysicists and other scientist-types think theyve made some bold new discoveries about the financial markets.

Posted by housebear @ 12:09 PM 5 Comments

Globalisation - actually means the rest of the globe owns us!

FT: Qatar becomes Barclays biggest shareholder

The Qatar Investment Authority has become Barclays largest investor after less than a fifth of the banks existing shareholders participated in its 4.5bn capital-raising issue.

Posted by whostolemyendowment @ 12:07 PM 4 Comments

What the VI's say

First Rung.co.uk: What The Experts Say

Middle Britain homeowners face a peak-to-trough crash in house prices as some 40,000 is wiped off the value of their homes before the year is out Middle Britain homeowners face a 'peak-to-trough' crash in house prices over the next six months as some 40,000 is wiped off the value of their homes before the year is out, according to a new report published today... The forecast from AXA Financial Taskforce shows that property prices in Middle Britain will fall as much as 18.3 per cent by the end of the year as the economic downturn takes its toll on one of major pillars of the UK consumer economy.

Posted by housebear @ 12:07 PM 0 Comments

Goldman's Saching Of America

Market Oracle: Parasitic Bankers Achieve the End of Capitalism and the Sacking of America

Communism was a public relations gift to the bankers. By diverting the dialogue to controlled versus free markets it obscured the bankers' real intentto insert debt into every aspect of free markets. The bankers' overwhelming success however would destroy both the bankers and the free markets on which they preyed

Posted by sold 2 rent 1 @ 11:56 AM 0 Comments

Persimmon & Pessimism !

Wiltshire Times: Doubts over 1,300 homes

LARGE housing developments planned for the east of Trowbridge and Melksham are unlikely to go ahead for years due to the slump in the housing market, according to a local councillor.

Posted by whostolemyendowment @ 11:37 AM 0 Comments

Crisis, what crisis?

Times: Darling under pressure as debt hits record high

''...UK public sector borrowing has soared to the highest level since the end of the Second World War, increasing pressure on the UK Government to change its self-imposed rules to borrow its way out of the current economic problems. Public borrowing in the first three months of the fiscal year rose to 24.4 billion, the highest level since 1946, and during June, it reached a nine-year high of 15.5 billion. ...''

Posted by hpwatcher @ 10:18 AM 25 Comments

Mortgage lending collapses

Firstrung: Gross mortgage lending falls by 32% year on year

Gross mortgage lending declined to an estimated 23.8 billion in June, down 3% from May and 32% from June 2007, according to the Council of Mortgage Lenders...The decline between the first and second quarter was a marginal 1%. However, an increase would typically be expected in spring. The year-on-year decline has gathered pace in recent months; lending in the first quarter of 2008 was down 11% on 12 months earlier, while the second quarter was down 21%.

Posted by converted lurker @ 10:09 AM 1 Comments

Oil crash starts

Market Oracle: Crude Oil Breaks Below Major Support as Forecast

Crude Oil confirmed its forecast downtrend by decidedly breaking below support of $135. The Market Oracle forecast as of 4th of July 2008 and at a price of $146, has been for an initial downtrend to support of $135, on break of which crude oil would target a trend towards major support at $110.

Posted by sold 2 rent 1 @ 09:51 AM 21 Comments

less orders = fewer jobs = higher unemployment

Building.co.uk: Industry hits 18-year low as prices rise and demand cools

The credit crunch, combined with the rising cost of raw materials and energy, has led to the sharpest fall in construction activity in 18 years. Market forecaster Experians index of national construction activity fell to 40 during May, its lowest level since June 1991. Meanwhile, the orders index slipped below 50 for the first time in more than a decade, indicating a big decline in orders.

Posted by debtfree @ 09:48 AM 0 Comments

More gloom and doom for construction

Reuters: Construction group Kier to cut 350 jobs

Kier said its order book to end-June was down 45 percent on the previous year and home completions for the year are down almost 19 percent to 1,438 homes.

Posted by debtfree @ 09:40 AM 0 Comments

Bit more Brown bashing from JR

Telegraph: Millions of decent taxpayers will foot the bill for institutional idiocy

Well, blow me down. Who would have believed it? Ministers, best known for squandering public resources, have discovered a commodity with which they prefer to be economical - the truth

Posted by holding out @ 09:20 AM 2 Comments

More debt taking over many more lives

Thisismoney: House price agony hits middle classes

It warns that on average almost 40,000, or more than 100 a day, will be wiped off the value of these homes this year. A typical Middle Britain property will fall 18 per cent between January and December, says the insurance firm AXA and the Centre for Economics and Business Research. Debt advice centres in its 'heartlands' have seen inquiries rise by up to 500%. Those on salaries as high as 70,000, nearly three times the national average, are seeking help.

Posted by debtfree @ 09:18 AM 1 Comments

you've guessed it!

Mail Online: Revealed: Middle Britain will be hardest hit by falling house prices

''...Middle Britain will be hit harder by falling house prices than the rest of the country, research shows. It warns that on average almost 40,000, or more than 100 a day, will be wiped off the value of these homes this year. A typical Middle Britain property will fall 18 per cent between January and December, according to the insurance firm AXA and the Centre for Economics and Business Research...''

Posted by hpwatcher @ 09:15 AM 5 Comments

Sales fall but apparently price rises 4%

The Press and Journal: Property sales fall by 21% as confidence slides

However, there was a GLIMMER of hope for property owners, as the average house price in the Aberdeen Housing Market Area (AHMA) rose 4% to 210,364 compared with the first three months of 2008. The figure is very close to the average price at the same point last year (210,536). Since the second quarter of 2007, the average house price in the AHMA, which takes in commuter towns such as Ellon, Stonehaven and Westhill, has dipped slightly but recovered to virtually the same level.

Posted by debtfree @ 09:04 AM 9 Comments

More from Gordon Boom.....


''...GORDON Brown was last night accused of betraying Britain with a grubbysurrender to Brussels. Under a cloak of secrecy, the Government finally ratified the Lisbon Treaty earlier this week and committed the country to a new deluge of European meddling...''

Posted by hpwatcher @ 09:00 AM 7 Comments

Krustie fights back (repost by request)

Times: Don't blame me for the property crash

n recent weeks I've been described as a property porn queen in the New Statesman, sniped at on the pages of The Guardian and lambasted by Panorama for excessively inflating house prices. I only wish that the show I present was as influential as some have been claiming. It's plain silly to point the finger at these programmes for puffing up the property market, forcing people into taking out massive mortgages or into negative equity. Some of the recent gloomy headlines make me suspect that all the journalists in the country have sold up and are doing everything in their power to cause a property house price crash so that they can buy at rock bottom.

Posted by little professor @ 08:50 AM 30 Comments

Last ditch attempt to ramp oil/gas bubble to FAIL

The Telegraph: Gas bills could rise 70 per cent to more than 1,000, analysts warn

Oil is 130 - down from 147. The mass media are desperately trying to ramp it up one more time. There power has gone though. Watch oil correct down to 100 and below over the next 3-6 months.

Posted by sold 2 rent 1 @ 08:34 AM 12 Comments

karachi chop

ft.com: karachi chop!

I am waiting for some direct action here in the uk.....I feel people with multiple buy to lets may just feel like climbing on to vi rooftops..why not?its the biggest financial scandal ever seen

Posted by taffee @ 08:26 AM 3 Comments

The final stages of wealth robbery are here

The Telegraph: Gordon Brown to ditch strict borrowing rules

Officials would almost certainly argue that the 40 per cent rule, introduced by Mr Brown in 1997 at the start of his 10-year term as Chancellor, was relevant during the economic cycle, which was characterised by a benign economic outlook, and that the new cycle ushered in by the credit crunch requires a fresh look at the rules, principally to avoid raising taxes by increasing borrowing.

Posted by sold 2 rent 1 @ 08:23 AM 9 Comments

Ethics evolving.

The Brad Blog: Nine House Republicans Vote for Impeachment Hearing

Bush's administration has been the main instigator for the fiscal crazyness of the credit crunch and the rediculously costly middle east wars, without which America could afford to solve its financial problems domestically, letting the rest of the world recover. So, his impeachment is extremely important. There will be a hearing related to Rep. Dennis Kucinichs Article of Impeachment against George Bush in the House Judiciary Committee. That was assured by a vote of 238 to 180 on Tuesday. Denis put forward 35 articles of impeachment a month ago and was shot down, threatened to put forward 60 articles, but decided to focus on one this time. He has plenty of cannon fodder. Watch the historic statement on http://kucinich.us/

Posted by planning4acrash @ 08:01 AM 1 Comments

A 'running mate' for Ron Paul

Wall Street Journal: Bunning: The Fed, GSEs and Socialism

The Fed is asking for more power. But the Fed has proven they can not be trusted with the power they have. They get it wrong, do not use it, or stretch it further than it was ever supposed to go. Their monetary policy is a leading cause of the mess we are in

Posted by gardeniadotnet @ 07:50 AM 8 Comments

Brown to operate scorched earth economic policy to make it difficult for an upcoming Conservative administration

Daily Telegraph: Gordon Brown to ditch strict borrowing rules

Gordon Brown's strict fiscal rules on borrowing are likely to be ditched as a result of the credit crisis, the Treasury confirmed. The Conservatives accused the Prime Minister of abandoning his reputation for economic competence, after officials said that the requirement for public sector borrowing to be kept below 40 per cent of the economy was being re-examined. Critics however accused the Government of planning a "scorched earth" assault on the economy to make it difficult for an upcoming Conservative administration.

Posted by who stole my pension? @ 05:38 AM 7 Comments

Middle Britain will be hit harder by falling house prices than the rest of the country, research shows. warned that the fall in prices could be worse than the Great Depression.

mail: Middle classes worst hit by housing slump

Middle Britain will be hit harder by falling house prices than the rest of the country, research shows. It warns that on average almost 40,000, or more than 100 a day, will be wiped off the value of these homes this year. typical Middle Britain property will fall 18 per cent between January and December, according to the insurance firm AXA and the Centre for Economics and Business Research. The research comes as Michael Saunders, economist at the investment bank Citigroup, warned that the fall in prices could be worse than the Great Depression.

Posted by big chris @ 04:15 AM 2 Comments

Thursday, July 17, 2008

Q: How long does it take for a penny to drop?

BusinessWeek: How Bad Will It Get?

Now the damage is spreading. How far? Simplified, for every dollar of bank wealth lost, government-regulated commercial banks must eliminate some $10 of lending; for investment banks, the figure can be $30. The extent of the credit contraction to come will depend on the banks' initial lossesan elusive figure, to be sure, and one that keeps growing. The latest loss tally is $400 billion across the credit markets, but the International Monetary Fund says the total could swell to $1 trillion. Ray at Gardeniadotnet is quoted as saying, "$1 trillion? ....and the rest!"

Posted by gardeniadotnet @ 11:59 PM 0 Comments

Latest re-shuffling of the deckchairs on the Titanic

FT: Treasury to reform Browns fiscal rules

Treasury officials are working privately on plans to reform Gordons Browns fiscal rules on spending and debt with a new framework that would initially allow for increased borrowing. Details will not be finalised until the Treasury knows the outcome of the huge revisions to the national accounts, planned by the Office for National Statistics for the end of September, but the autumn pre-Budget report is seen as the right time to announce the change.With the government on course to break the rule limiting net public sector debt to 40 per cent of national income, a new framework would initially be looser.

Posted by jack c @ 11:42 PM 6 Comments

Krustie fights back!!!

Times: Don't blame me for the property crash

In recent weeks I've been described as a property porn queen in the New Statesman, sniped at on the pages of The Guardian and lambasted by Panorama for excessively inflating house prices. I only wish that the show I present was as influential as some have been claiming. It's plain silly to point the finger at these programmes for puffing up the property market, forcing people into taking out massive mortgages or into negative equity. Blaming such shows and their presenters for the present uncertain state of the property market is akin to blaming TV chefs for the great bulge in obesity.

Posted by little professor @ 10:34 PM 17 Comments

How much more regulatory power will be given to the Federal Reserve system?

Campaignforliberty: Dr. Paul on Bernankes Testimony

Here's a new video from Dr. Paul, telling us about Ben Bernanke's testimony. How much more interesting Congress is thanks to Ron Paul, the one truth teller. Without him, it'd be a lot of bootlicking questions and waving of incense before the sacred Ben. (And P.S.: Dr. Paul's book The Revolution: A Manifesto, which explains all these issues in layman's terms, will move up on the New York Times bestseller list from #23 this Sunday to #17 on the list for July 27.)

Posted by planning4acrash @ 10:11 PM 6 Comments

Hold on to your hats

International forecaster: A Complete And Systemic Breakdown

Second largest bank failure in US history has been duly noted, with a repeat bailout like Bear Stearns, paying down debts still the better plan, PPT supplies another miracle rally for the Dow, but we fear they only delay the inevitable, Fannie and Freddie collateral now Toxic Waste, liquidity drains now wide open, watch for the downward spiral. What you are witnessing is the acceleration of a complete systemic breakdown of the US and world financial systems and economies. All world stock markets are now in Bear Market Territory. The FTSE 100 finally caved in, and now all major stock exchanges are off by more than 20% from their highs. This is just the beginning of woes. Like the dollar, stocks worldwide will continue their downward spirals, abbreviated by dead cat bounces.

Posted by planning4acrash @ 09:58 PM 8 Comments


google video: Alex Jones & Bob Chapman on the Economy & Depression 6-26-08

Bob Chapman was the biggest gold dealer in the world. Here, he is interviewed by Alex Jones, discussing the coming economic depression.

Posted by planning4acrash @ 09:48 PM 0 Comments

A 70% increase in gas prices will be too much for some.

Channel 4 News: Centrica report warns UK gas prices could soar by 70 per cent.

Centrica report warns UK gas prices could soar by 70 per cent. An independent report commissioned by Centrica, which owns British Gas, warns that prices are likely to soar far higher than energy companies have admitted in public. And it says the increases are not just a spike - which would give the government a problem in managing the social and economic impact.

Posted by jj @ 09:39 PM 0 Comments

Read - Russian buys USA bolt hole....

Thisislondon: Donald trumps the housing slump by selling his mansion for 50million 4yrs after he bought it for 20 million

The housing market might be slumping, but not for Donald Trump {he of the famous comb-over}, who sold a Palm Beach mansion for 50 million to a Russian billionaire. If your a 'Russion' billionaire (sorry - mafia boss) I guess 50 mil is small change.

Posted by whostolemyendowment @ 08:01 PM 0 Comments

who is to blame

CNN: Blame game: Who's behind the Fannie, Freddie mess

roll up roll up freak show....

Posted by mark @ 07:07 PM 0 Comments

Some better news

BBC: Nationwide Reduce Mortgage Rates

"With one of the country's leading lenders taking this welcome step, this should be a sign of things to come," .

Posted by basil bell @ 05:59 PM 0 Comments

Putting on a brave face - but will any shareholders actually take B&B up on the offer?

Telegraph: Bradford & Bingley gets cash call go-ahead

B&B has 930,000 small shareholders in total and faced pressure from the handful of those who attended the meeting. Just 56 shareholders attended the early morning meeting at the Sheffield Arena, which has the capacity to hold over 12,000 people. Standard Life, one of the major shareholders backing the new rights issue, told the meeting it was "clearly disappointing" that shareholders had been called in to help the bank.

Posted by paul @ 05:09 PM 3 Comments

Getting Away with It: Bradford & Bingley

aboutproperty.co.uk: Bradford & BIingley wins approval for rights issue

Troubled mortgage lender Bradford & Bingley has won the support of its shareholders for its proposed rights issue. After struggling through the last few months, B&B seems to have saved itself at the last gasp!

Posted by james vanderslice @ 03:51 PM 0 Comments

Link to Independent Article

Newstin: FSA is accused of maladministration over collapse of Equitable Li

Ombudsman reverses decision of five years ago and calls for compensation for insurer's victims By James Daley, Personal Finance Editor The Financial Services Authority will be dealt yet another hefty blow to its credibility today, as the Parliamentary Ombudsman, Ann Abraham, reverses her decision of five years ago and accuses it of maladministration for its role in the collapse of Equit-able Life eight years ago. The FSA is one of four institutions along with the Department of Trade & Industry (DTI), Government Actuary Department (GAD) and HM Treasury which are accused by Ms Abraham of presiding over a "decade of regulatory failure", which culminated in the insurer's collapse in December 2000. Go careful this time nooneo

Posted by malct @ 03:07 PM 18 Comments

With the economic news of the week of July 14the continuing crisis among mortgage lenders, the onset of bank failures, the announced downsizing of General Motors, the slide of the Dow-Jones below 11,000we are seeing the ongoing collapse of the U.S. econ

Gobalresearch.ca: Status Report on the Collapse of the U.S. Economy

Richard C. Cook is a former U.S. federal government analyst, whose career included service with the U.S. Civil Service Commission, the Food and Drug Administration, the Carter White House, NASA, and the U.S. Treasury Department. - He explains here about how the US economy is heading towards a fall, and that there are people behind the viel who are pulling the strings.

Posted by planning4acrash @ 02:04 PM 57 Comments

Someone told them prices only ever go up...

BBC News Website: Protest over Pakistan share slump

Angry investors have attacked the Karachi Stock Exchange (KSE) in protest at plunging Pakistani share prices. More than 200 people took part in the demonstration at the country's main stock exchange in the southern city. A number of windows were broken and at least two people injured, Reuters news agency reports. The protesters demanded a temporary closure of the KSE to stop further slides. It is down 14% since Monday and reached an 18-month low this week.

Posted by being patient @ 11:40 AM 17 Comments

"At least it is still sunny in sunny Spain."

The Telegraph: Spain drops reassuring gloss as crisis deepens

"Thank Gordon we don't have an economy that is based around ever increasing house prices. It would be an absolute disaster if we did."

Posted by cheekie charlie @ 11:22 AM 9 Comments

The next victim of the credit crunch football

MoneyWeek: The next victim of the credit crunch football

At last, it seems, one of the last bastions of economic unreality is about to get a cold shower. If ever you needed proof that the 'crunch' is going to bite a lot harder, this is it and surely not before time

Posted by damien @ 11:16 AM 26 Comments

Amy Goodman: Food, fuel, housing, climate change - talk about these crises. First, start with oil.

Signs of the Times: Naomi Klein Reexamines "The Shock Doctrine"

As the country and the world reel from crises ranging from skyrocketing oil prices and global food shortages to housing and climate change, how best to understand the government policies being pushed through? President Bush has lifted an almost two-decade-old executive order banning offshore and natural gas drilling. With prices at the pump over $4 a gallon, Bush has been pushing to allow more drilling in the Outer Continental Shelf and the Arctic Wildlife National Refuge, amidst strong opposition from environmentalists.

Posted by malct @ 11:13 AM 14 Comments

LAW trying to overcome POWER

Bloomberg: Lawmakers Balk at Paulson's Fannie, Freddie Plan

Lawmakers balked at giving Treasury Secretary Henry Paulson unprecedented power to use government funds to rescue Fannie Mae and Freddie Mac, the U.S. mortgage- finance companies grappling with a collapse of confidence.

Posted by sold 2 rent 1 @ 10:04 AM 4 Comments

The bailouts will continue until the robbery is complete

Safe Haven: Contact Your Senator: Say No To Fannie Bailout

Shelby: "I've never known Congress" to give "an open-ended blank check for somebody to fill in." Shelby again: "When you're dealing with the taxpayer's money I don't think ambiguity has a place...We are potentially layering taxpayer resources on top of massive systemic risk."

Posted by sold 2 rent 1 @ 10:01 AM 2 Comments

Would like to be a fly on the wall at that one....

LDP Business: B&B shareholders meet for fundraising vote

Shareholders will gather in Sheffield Arena for what could be an uncomfortable meeting for the banks board, after the two previous fundraising schemes collapsed.

Posted by whostolemyendowment @ 09:51 AM 0 Comments

Turning the corner or a false dawn?

BBC News: Banking rally boosts US markets

"US stock markets have rebounded strongly after better-than-expected results from a leading bank and further sharp falls in the price of oil. The Dow Jones index closed up 2.5% after its strongest daily performance in three months, driven by demand for leading bank stocks. Citigroup, Bank of America and JP Morgan all rose sharply after Wells Fargo boosted its shareholder dividend. Oil, meanwhile, fell more than $4 to close below $135 a barrel." Thought i'd post this to stimulate some discussion. Are things really as bad as we thought, or is this a rally before the crash?

Posted by shipbuilder @ 09:46 AM 10 Comments

Embattled HBOS cuts jobs as rights issue humiliation looms

Scotsman: Embattled HBOS cuts jobs as rights issue humiliation looms

SCOTTISH banking giant HBOS announced plans to cut 650 jobs yesterday, as its share price crashed to a new low only hours before its 4 billion rights issue closes.

Posted by gordonbrown @ 09:17 AM 2 Comments

Capitulation is near

Safe Haven: CNBC Europe - Bill McLaren

Good graphs comparing S&P500 with 2002 bear. Capitulation is 2-6 days away according to Bill McLaren He also thinks that the final capitulation of this bear trend will come in September/October

Posted by sold 2 rent 1 @ 08:54 AM 24 Comments

A bit late now

Reuters: FBI investigating IndyMac for mortgage fraud

Failed bank IndyMac is under investigation by the FBI for possible fraud involving its mortgage lending, unnamed law enforcement officials said on Wednesday. U.S. banking regulators seized mortgage lender IndyMac on Friday after withdrawals by panicked depositors led to the third-largest banking failure in U.S. history. Shortly after the FDIC took over operations, Barr said most depositors were given immediate access to up to $100,000 in their accounts and 50 percent of any money beyond that. Faced with a cratering housing market, the FBI has opened a wide-ranging probe of companies across the financial services industry, from mortgage lenders to investment banks that bundle home loans into securities.

Posted by little professor @ 08:52 AM 0 Comments

Monetarism is making a comeback

UK house bubble: waiting in vain for deflation

Some old-style monetarism from Alice Cook. US monetary growth is still surprisingly high, despite the credit crunch.

Posted by inflationwatch @ 02:56 AM 1 Comments

Builders and EAs forced into letting business

The Scotsman: 'Desperate' builders turn to renting as house prices fall

'To let' signs replace 'for sale' boards as the housing market switches focus after the credit crunch. SCOTLAND'S faltering housing market is forcing estate agents and builders to move into letting properties instead of selling them.

Posted by quiet guy @ 01:14 AM 5 Comments

Anatole explains his position in more depth

Times: The real reason why bankers feel so gloomy

Continuing his it's-all-fine-really theme, Kaletsky says: "Consider the following: In the past few weeks, US industrial production, consumer spending and trade figures have all come in much stronger than expected." --- So he's relying on government statistics to tell the whole truth and not be revised downwards later in the year? Anatole can also explain the pessimism: "The main people suffering pay cuts and job losses in the present crisis are bankers, rather than industrial workers as in previous slowdowns. Not surprisingly, this gives financiers a jaundiced view of the world." --- Wrong, Anatole, it's not just bankers. It's housebuilders, estate agents, furniture companies, builders, travel agents, airlines, JCB, Reuters, Siemens, etc. Come pay a visit to the real world some time.

Posted by drewster @ 12:44 AM 9 Comments

Wednesday, July 16, 2008

The crisis has sent shock waves through an already troubled real estate industry and heightened fears that other property and construction companies could also fai

telegraph: Britons face losing everything as Spanish construction industry goes into meltdown

Britons face losing everything as Spanish construction industry goes into meltdown Those buyers who have made down-payments on properties that they have not yet taken possession of could find themselves losing everything, analysts have said. The warning came as Spain's largest property developer Martinsa-Fadesa filed for bankruptcy after failing to secure a loan as part of a 4 billion euros refinancing package. The crisis has sent shock waves through an already troubled real estate industry and heightened fears that other property and construction companies could also fail. www.telegraph.co.uk/news/worldnews/europe/spain/2304401/Britons-face-losing-everything-as-Spanish-construction-industry-goes-into-meltdown.html"

Posted by big chris @ 11:24 PM 0 Comments

MSN tries to spin inflation as a good thing for BTL

MSN Money: Why inflation is great news for buy-to-let landlords

Inflation is apparently good news for buy to let investors as rents increase rapidly. Except that they aren't. If anything they are falling. Repair costs and mortgage costs are increasing rapidly though.

Posted by jonb @ 10:48 PM 11 Comments

How debt-based, commercially issued money has ruined the USA

financialsense.com: The Sacking of America

Parasitoidism is the relationship between a host and parasite where the host is ultimately killed by the parasite. This is what is happening to the US. Once the most powerful and productive economy in the world, the US, indebted by bankers and government spending beyond its ability to repay, is headed towards sovereign bankruptcy.

Posted by the spaniard @ 09:10 PM 5 Comments

Commercial property hits the front page

Credit Writedowns: Commercial property hits the front page

Stories of commercial real estate distress in the US are mounting. As the residential real estate fallout takes form, commercial real estate has come under pressure as well. The Wall Street Journal has a front-page story out today that highlights the situation in the Sun Belt. We should see the distress in commercial property in bank writedowns very soon.

Posted by edwardnh @ 06:56 PM 3 Comments

Elliots in Norfolk - another EA shuts up shop

EDP24: Estate agent ceases trading

Elliots, which had branches in Norwich city centre, Eaton, Wymondham, Brundall and Thorpe, has gone into liquidation. All eight staff have been made redundant and were told of the news yesterday.

Posted by whostolemyendowment @ 05:00 PM 14 Comments

Oil crash has started

Bloomberg: Oil Falls After Report Shows Unexpected Increase in Supplies

Crude oil futures fell more than $5 a barrel in New York after a U.S. Energy Department report showed an unexpected increase in inventories

Posted by sold 2 rent 1 @ 04:19 PM 42 Comments

Get ready to batten down the hatches.....

Bloomberg: Britain Is in No Shape to Cope With a Recession

The early 90's recession was nothing....

Posted by rubberneck @ 03:42 PM 13 Comments

Drop in property prices leaves millionaire criminal facing an extra EIGHT years in jail

Mail Online: Drop in property prices leaves millionaire criminal facing an extra EIGHT years in jail

A millionaire criminal has been hit by the credit crunch over the sale of his luxury mansion - and it could cost him an extra eight years in prison. John Gizzi, 36, was jailed for five years for crimes of violence and fraud which earned him almost 7million. A judge ordered him to pay back 2.6million of his ill-gotten gains or face an extra eight years behind bars. But the property price crash has seen the price tag of his country estate cut from 1,750,00 to just 900,000 - and it still has not sold.

Posted by housebear @ 03:34 PM 1 Comments

Fed in a hole

BBC: US inflation rate at 26-year high

US inflation accelerated at the fastest rate in 26 years during June, pushed higher by surging energy prices, official figures have shown.

Posted by holding out @ 02:04 PM 7 Comments

Or making offers based on anticipated price drops ...

Daily Mail: Sharks move in as house sales hit new low

From yesterday - surprised no one posted this one ...?

Posted by rex @ 01:50 PM 2 Comments

More sound fundamentals

BBC: UK jobless level increases again

Unemployment in the UK rose by 12,000 to 1.62 million in the three months to May, the Office for National Statistics (ONS) has said.

Posted by doomwatch @ 01:16 PM 2 Comments

Spain is now spiralling into the worst crisis since the Franco dictatorship

The Telegraph: European recession looms as Spain crumbles

The eurozone is tipping into a deeper downturn than America itself despite the tremors in the US mortgage industry, and may already be in full recession for the first time since the launch of the single currency.

Posted by sold 2 rent 1 @ 01:12 PM 5 Comments

Fiddle - Nero - Burns - Rome

BBC news: 'Rent now buy later' housing plan

They've let this one creep out, are they embarrased? A brilliant system where you start renting a property whose value is falling month on month and eventually buy it for more than it's worth. "They would have an option to buy 25% or more of the property at any time under the scheme, called Rent to Home Buy." Not sure how this system works during a House Price Crash, probably doesn't, was designed when property was always going to go up. "The government hopes that this scheme - only available in England - alongside others will help 75,000 first-time buyer households on to the property ladder." Alongside others? Great journalism BBC, just how many people is this system supposed to help?

Posted by nooneo @ 11:59 AM 29 Comments

Relatively sensible Times article...

Times Online: Why the lenders will win in this housing slump

...and at least the writer confesses her VI status! Has anyone considered what would happen if all mortgage lending was made illegal? It might just work. I would rather be able to buy a house for the price of a year's savings/ holiday/ decent night out than slave for 25 years paying some usurer for the privilege of living there. Such a measure would most probably have to be accompanied by tight restrictions on the multiple ownership of properties, to prevent the cash-rich from buying up all the houses and becoming Dickensian slum landlords.

Posted by sceneclub68 @ 11:38 AM 3 Comments

Another politician changes his tune

LA Times: Obamba's website's opposition to surge gets deleted

The integrity of politicians (or lack of it) is one of the themes of this site so I thought it was worth sharing this. Apparently Bush's 'surge' has had more success than Obama said it would have, so Obama has deleted his earlier negative references to it from his website. His people say this is part of an 'update' to 'reflect changes in current events' and the video shows Obama's statement in 2007 and his spokesman's recent denial that Obama ever said what he said in the video. He practises the politician's modus operandi: airbrush history and say that you were going with the flow all along.

Posted by icarus @ 11:27 AM 6 Comments

The root of this financial crisis, and why you must buy gold now

MoneyWeek: The root of this financial crisis, and why you must buy gold now

'...As Winston Churchill put it: "All previous attempts to base money solely on intangibles such as credit or government edict or fiat have ended in inflationary panic and disaster." Sound familiar? The greatest credit expansion in history was only made possible under this post-1971 system of currency by government decree. But now it's unravelling.'

Posted by damien @ 11:27 AM 19 Comments

It might be wrong to do this, purely as a result of a lack of understanding of how the euro is supported by the combined strength of the Eurozone members, but crowd mentality is a powerful force and if people think they are at risk of losing all their mon

moneyweek: Who will pull out of the euro first?

It may seem unusual to still think of the euro as a combination of different currencies but the same approach is applied to the government bonds issued by each Eurozone country. For instance, 10-year bonds issued by the Italian government are yielding 5.034%, compared to 4.422% for German 10-year bonds. French bonds are offering just 4.636%, compared to 5.089% for Greek bonds. It is the financial strength of these countries that effectively combines to underpin the stability of the euro currency but there are clearly some variations in

Posted by big chris @ 11:05 AM 2 Comments

Globalisation isn't working

Google Video: Global Imbalance - An imminent Dollar Crisis

Lecture by CA M.R. Venkatesh, Chennai Part of INDIA RE-DISCOVERED A Seminar on Global Economy By SWADESHI JAGARAN MANCH and VISION INDIA TRUST

Posted by sold 2 rent 1 @ 11:05 AM 2 Comments

does this video remind you of another bank? lol

reuters: IndyMac customers line up for cash

this will be a common site soon...

Posted by mark @ 10:55 AM 1 Comments

and 2010, maybe 2011 any bets on 2016?

reuters: Morgan Stanley sees credit crisis extending into 2009

said the world's largest brokerage will need to raise $4 billion more in capital through the year-end.

Posted by mark @ 10:50 AM 0 Comments

Cutbacks continue, will this affect UK? yes!!!

CNN: Bankruptcies loom for airlines - report

As part of an effort to trim 6,800 jobs, or 8% of its work force, American Airlines announced Tuesday it is cutting 200 pilot jobs to cope with higher costs for jet fuel. "Any pilot reductions are regrettable, but the current economic environment is forcing us to make adjustments throughout the company," said the airline in a statement. "This proposal will help mitigate the unfortunate effects of a reduction in force." Midwest Airlines (MEH), announced Monday it will cut 1,200 jobs, or 40% of staff, and it will ground 12 planes by this fall.

Posted by mark @ 10:42 AM 0 Comments

76% of Brits wouldn't buy property even if they had the cash ready.

Zoomf Blog: Gumtree rental report...

According to the study, half of us (51%) believe the national obsession with getting on the property ladder is old fashioned and needs to change. Over two thirds of 25-44 year-old renters (71%) are not planning to take a mortgage at all and will invest their money in other ways, and three-quarters of Brits (76%) wouldnt buy property now even if they had the cash burning a hole in their pocket. Four in five renters (81%) cant currently afford to buy, but they are content and want to continue renting for the foreseeable future.

Posted by kitteh @ 10:40 AM 0 Comments

Gobsmacked when I read this.....

Guardian: Millennium Dome: Property crash endangering Greenwich project

Large swaths of land around the O2 arena could be left derelict for decades if there is a sustained property crash, due to the small print in a deal signed by the government with the developers who took over the former Millennium Dome

Posted by whostolemyendowment @ 10:36 AM 0 Comments

something we have put up with for years, is just starting in the USA

CNN: Pricey gas: Fewer cops, more potholes

********And they think they are hard done to in the states, god only knows what state our roads will be in if we get any cutbacks***** In what seems to be a perverse reaction to high gas prices, some cities are cutting back on public transit - at a time when their citizens need it most. Due to skyrocketing fuel costs local governments are being forced to trim all sorts of services - not only busses - but police departments and road repair crews too.

Posted by mark @ 10:36 AM 2 Comments

$300? Get ready to wheel out your bike,.

Reuters via Infowars: Venezuelas Chavez says oil could reach $300

Holy Moley, we thought that Iran was the only problem. This thing is going to the Moon, tonto style. Combine this with Iran? Those concrete barriers outside Parliament are to keep you out when you finally get it into your thick head that they have totally screwed you over.

Posted by planning4acrash @ 10:35 AM 5 Comments

Is it time to think the unthinkable? With banks shares in free-fall, lending collapsing and bad debts rising by the hour, what can we do? Now that the slowdown has spread well beyond houses and construction -- evidenced by falling retail sales, rapidly ri

independent.: If all else fails, then maybe it's time to ditch the euro

What we are talking about here is pulling out of the euro. It might never happen, but it is worth considering how and why this might come to pass

Posted by big chris @ 10:33 AM 0 Comments

What is a government for, if not to save us from the impending disaster that its own policies have produced? Thank heavens for the government!

Infowars: Notes on the Fannie Mae/Freddie Mac Bailout

"Because the Fed itself is the lender, the loan will take the form of newly created moneythat is, the loan will be pure inflation, a hidden tax on all assets denominated in dollar units, including dollar balances themselves"

Posted by planning4acrash @ 10:29 AM 0 Comments

Classic Jim Rogers video clip - Fannie & Freddie 'an unmitigated disaster'

Bloomberg: Rogers calls Fannie, Freddie Rescue Plan a 'Disaster'.

Its an unmitigated disaster. I dont know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae. I mean, what is this? If that is what they are doing with our tax money, why dont they ask us? I didnt say, take my money, my tax money, and buy Fannie Mae. Give it back to us if thats what they are going to do with it. And what are they doing guaranteeing their debt? The people who bought debt in Fannie Mae and Freddie Mac can read a prospectus. They can read it. It says it is not guaranteed by the government. Anybody who can read a balance sheet knew that both of those companies were a sham and they had problems.......

Posted by katalan1 @ 10:27 AM 0 Comments

more strain on the economy

Yahoo: Unemployment Benefit Claims Soar

he number of people on unemployment benefit has made its sharpest monthly rise in more than 15 years, according to official figures.

Posted by mark @ 10:26 AM 0 Comments

Yer naat from round ere, ar ya?

Times online: Three cheers for second-home owners

I remember very well the day that I moved to London in 1989. Nobody suggested to me, a country boy, that I had no right to live there, or complained that I was depriving a native East Ender of a home. It was accepted that young urban incomers like myself migrated to the capital city to seek employment. Do we really want the English countryside to return to introspection and inbreeding? If you think English villages have died as communities, you should go and visit the East German countryside or the more crumbling parts of rural France. There is no problem with incomers there, but not much in the way of civilisation either.

Posted by housebear @ 09:52 AM 16 Comments

Another prop is going

UK jobless level increases again: BBC

Unemployment in the UK rose by 12,000 to 1.62 million in the three months to May, the Office for National Statistics (ONS) has said.

Posted by holding out @ 09:48 AM 0 Comments

You shouldnt be waiting until inflation has gone down to cut it (interest rates), it should be before it starts, he said.

australian: Interest rates may be cut before inflation falls: RBA

The Reserve Bank of Australia is forecasting that inflation will fall to the top of the 2-3 per cent annual inflation band by mid 2010. You shouldnt be waiting until inflation has gone down to cut it (interest rates), it should be before it starts, he said. The RBA chief was also more confident that tighter monetary policy was helping to slow domestic demand and curb inflation

Posted by big chris @ 09:37 AM 0 Comments

The US Treasury may have just days to act before foreign patience snaps

The Telegraph: US faces global funding crisis, warns Merrill Lynch

Merrill Lynch has warned that the United States could face a foreign "financing crisis" within months as the full consequences of the Fannie Mae and Freddie Mac mortgage debacle spread through the world.

Posted by sold 2 rent 1 @ 09:16 AM 13 Comments

The Royal Bank of Scotland "A very nasty period is soon to be upon us - be prepared."

321gold: The Financial Tsunami: The Next Big Wave is Breaking

As with the Tsunami which devastated Asia in wave after terrifying wave in December 2004, the financial Tsunami we are witnessing is a low-amplitude, long-wave phenomenon of trillions of dollars of financial securities being unwound, defaulted on, dumped on the market. But the scale of the latest wave to hit, the collapse of confidence in the two Government-Sponsored Entities, Freddie Mac and Fannie Mae, is a harbinger of worse to come in what will be the most devastating financial and economic catastrophe in United States history. The impact will be felt globally.

Posted by malct @ 08:54 AM 54 Comments

Mainstream starts to grasp scale of problem

The Times: Its worse than we feared and theres more pain to come

The spectacle of customers queueing outside a small California bank on Monday to withdraw their deposits was unsettling enough for an American public already traumatised by a year-long financial crisis.

Posted by gardeniadotnet @ 08:04 AM 1 Comments

Inflate your way out of trouble - like the UK

Irish Independent: If all else fails, maybe it's time to ditch the Euro

With banks shares in free-fall, lending collapsing and bad debts rising by the hour, what can we do? The hollow platitudes of the "soft landing" merchants and the various paid PR men who rabbitted on about our "fundamentals" have been exposed. What we are talking about here is pulling out of the euro. Look at what is happening in the UK and the US. Both countries find themselves in the same bind as we do. Once this ponzi scheme was revealed, they let their currency fall. This allows them to recharge their exporting sector, making it more competitive and, more significantly, it gives them the opportunity to inflate their debts away. Ireland, in contrast, is trying to fight its way out of a recession without any macroeconomic policy.

Posted by little professor @ 07:42 AM 9 Comments

Pay Restraint!

Sky: Council Workers Strike Over Pay

Hundreds of thousands of council workers and civil servants are striking over pay, with schools and rubbish collection among the services expected to be badly disrupted.

Posted by pendulum @ 07:37 AM 21 Comments

Oil prices: George Soros warns that speculators could trigger stock market crash

.guardian.co.u: He believes that the doubling in the price over the last year is partly due to investment institutions, such as pension funds, who are pumping money into indexes that track the cost of crude.

He compares it with the stock market crash of 1987, which was partly caused by a sudden rush of money into portfolio insurance which institutions used to protect themselves against a fall in share prices.

Posted by big chris @ 05:08 AM 1 Comments

Meet our panel of families charting how the squeeze on family incomes is affecting them.

bbc: The squeeze family panel

We will be checking back with the families every month to see what they are doing to make the most of their money and if they are making any changes to their spending habits.

Posted by big chris @ 04:49 AM 0 Comments

The rise reported yesterday means inflation has more than doubled since Labour came to power in May 1997, when it was 1.6 per cent.

mail: Global economy facing 'perfect storm' as inflation hits 16-year high - and the worst is yet to come

The Consumer Price Index, the Government's preferred measure of inflation, shows that 'essential' items, are rising the fastest. Over the last year, the cost of eggs has risen 37.1 per cent, butter 31.5 per cent, beef 17.6 per cent and bread 16.8 per cent. In June, the average price of four pints of milk rose 10p. The Office for National Statistics, which compiled

Posted by big chris @ 03:19 AM 0 Comments

There are fresh forecasts of a further slow down in the Australian economy this year and into 2009.

abc: Slowing economy kills need for rate rises: Westpac

The Westpac-Melbourne Institute leading index of economic activity has registered an annualised growth rate of 2.1 per cent for May, and indicates a growth rate substantially below trend for the next three to nine months. The fall in the leading index over the past six months is the sharpest decline since early 2001. Westpac says the index implies a substantial easing in spending and demonstrates that there is no further need for official interest rate rises.

Posted by big chris @ 03:05 AM 0 Comments

It is not impossible that the euro zone will dip into recession while the U.S. manages to skirt it Now the risk is that Europe could face a shrinking economy this summer,"

iht: Europe looks no longer immune to U.S. economic stormEurope finds itself on a precipice similar to that in the United States

Europe looks no longer immune to U.S. economic storm: It is not impossible that the euro zone will dip into recession while the U.S. manages to skirt it - Holger Schmieding, the chief European economist at Bank of America - "Now the risk is that Europe could face a shrinking economy this summer," argues The International Herald Tribune. "In that sense, Europe finds itself on a precipice similar to that in the United States, which is already in or verging on a serious slump. But given the historic resilience of the U.S. economy, some economists give the Americans slightly better odds of avoiding a classically defined recession - in which economic growth shrinks for two quarters in a row - than the Europeans."

Posted by big chris @ 02:05 AM 0 Comments

Santander A&L deal turning sour?

Herald: Alliance & Leicester loses allure as UK banking fears weigh

Shares in Alliance & Leicester sank by 3% yesterday, the day after it received a 1.3bn all-share takeover offer from Abbey's Spanish owner Santander, as investors digested the chances of a rival suitor making a move for the former building society. This seems increasingly unlikely, as the perceived lack of growth in the UK market would mean only a bank with an established UK presence is likely to consider a bid to reap economies of scale.

Posted by paul @ 12:11 AM 8 Comments

Tuesday, July 15, 2008

Darling can go and Whistle

Times: Alistair Darling calls for pay restraint as prices rise

Whether you are in the private sector or the public sector, whether you are sitting in the boardroom or working on the shopfloor, we cannot allow inflationary wage increases. The inflation is already here and it's not Joe Public's doing, the blame lies firmly at the door of the UK Government and lax regulation of Mortgage Lenders.

Posted by enuii @ 11:29 PM 9 Comments

Cameron proposes bankruptcy protection

Telegraph: UK economy needs 'full-blown' plan for recovery

A "full-blown plan for recovery" is needed to protect Britain's families and businesses from the "pain" being caused by the credit crisis, according to David Cameron, who said that the Government was failing to act on several fronts and only his party were suggesting solutions to the problems caused by the economic downturn. Speaking ahead of his announcement that a Conservative Government would introduce US-style protection for companies at risk of bankruptcy, Mr Cameron laid out key areas in which the Conservatives propose alternatives to Government economic policy - "Take the housing market - we could now be cutting stamp duty for 9 out of 10 first-time buyers".

Posted by alan @ 10:52 PM 7 Comments

Banks bore the brunt of the slide with Fortis the session's biggest loser.

yahoo news: Stocks slip as financial worries persist

Fears about the world banking system overwhelmed lingering support in equity markets for a U.S. government plan to rescue mortgage finance companies Fannie Mae and Freddie Mac, sending the dollar to a fresh record low against the euro. Investors also bid up the price of safe-haven government debt and gold. "The U.S. housing crisis is getting worse and it has now spread from the 'subprime' segment to the 'prime' segment, with regional banks getting hit now," she added.

Posted by malct @ 10:21 PM 0 Comments

Ghost towns?

BBC: Half-built homes as firm closes

New home owners have been left living next to half-completed houses after a builder developing two estates in south Wales called in administrators

Posted by aquarianx @ 10:20 PM 0 Comments

Worth a second look after a couple of intervening months

Youtube: Politics Show - Kirstie Allsopp talks houses (11.05.08)

Pwoperty sexpert Krusty.....blah blah blah....

Posted by whostolemyendowment @ 06:08 PM 18 Comments

Council of Mortgage Lenders wants the Bank of England to guarantee a market in mortgage-backed securities and covered bonds

BBC: Plans to lift UK mortgage lending

Unbelievable, the CML want over-extended people to continue buying overpriced property with the Bank of England essentially offering a form of secured lending in order to persuade investors to buy mortgage-backed securities.

Posted by enuii @ 05:47 PM 32 Comments

Falling houseprices is a good thing

Times: How to buy property in the credit crunch

An article about someone who dropped the price on the house they were selling, got a similar drop on the house they were buying, and because both houses fell in price by a similar amount, they were able to trade up to a bigger house than they would have been able to do previously, and saved money on stamp duty.

Posted by jonb @ 05:31 PM 3 Comments

And we're off again

CML: Plans to lift mortgage lending

A welcome lift supported by Jonathan Davis.

Posted by basil bell @ 05:07 PM 2 Comments

Spanish property group folds....

FT: Martinsa Fadesa to file for administration

Spanish property group Martinsa Fadesa on Tuesday filed for creditor protection with debts of more than 5bn, adding impetus to a stock market sell-off and forcing banks to announce an initial 350m in writedowns related to the company.

Posted by whostolemyendowment @ 04:39 PM 0 Comments

Last one out turn off the lights......

Wales Online: Estate agency reveals branch closures

THERE are more signs of a slowing housing market in Wales after leading estate agency Darlows announced it is closing two of its branches

Posted by whostolemyendowment @ 04:31 PM 0 Comments


BBC News: Plans to lift UK mortgage lending

This sounds like starting the whole proccess again from scratch, only this time its the government carrying the risks.

Posted by another s2r @ 03:58 PM 0 Comments

US House price crash - "still in the early phase"

Market Oracle: The Next Financial Tsunami is Breaking Fannie Mae, Freddie Mac and US Mortgage Debt

"The United States economy is in the early phase of its worst housing price collapse since the 1930's. No end is in sight." If this is just the early phase, how bad is it gonna get??

Posted by katalan1 @ 03:23 PM 0 Comments

they own, saab, vauxhalls, etc jobs cuts in UK soon??

CNN: GM to cut jobs, suspend dividend

General Motors Corp. said Tuesday it will suspend its dividend, sell off $4 billion to $7 billion worth of assets and cut 20% worth of salaried cash costs in an overall plan to save billions of dollars.

Posted by mark @ 03:00 PM 2 Comments

Santander really different?

FT Alphaville: "In Praise Of Santander"

The author is painting a very rosy picture of Santander, not sure I'd be that positive about any bank. Is Santander really that much stronger than its peers? When it comes to the Financial sector relative strength is a strength but it's far too early to say whether this bank in particular will emerge as a winner...

Posted by trough2010 @ 02:00 PM 2 Comments

HPC reaches accross the pond.

International Herald Tribune: Turns out U.K. sites predicting a property crash were clairvoyant

At the height of the housing boom in the U.K., several contrarian Web sites emerged, warning that the bubble was sure to burst. But as prices continued to soar, many openly scoffed at the pessimism of forums like housepricecrash.co.uk, pricedout.org.uk and glbalhousepriccrash.com, including a 2006 article in The Independent which labeled the sites doomsters and Jeremiahs. Two years later the doomsters are looking like soothsayers and the sites have turned into lively forums on the woes of the property market. It is not a happy feeling that we have been proved right, given the issue, said Jonathan Davis, who serves as spokesman for housepricecrash.co.uk. There are going to be huge numbers repossessed, unemployed, bankrupt, etc by the end of it. I do wish more had listened to u

Posted by housebear @ 01:53 PM 48 Comments

Boris sees the light... sort of

Boris Johnson: Housing in our age

"If you want housing that is beautiful as well as affordable, if you object to the clap-clinic air of some modern blocks, then join me now and build the movement." (Also published in the Daily Telegraph.) Comment is Superfluous.

Posted by brian t @ 01:12 PM 6 Comments

FTSE down 2.5pc

BBC News: US concerns prompt market falls

Global shares have fallen sharply with London's FTSE 100 index heading towards its lowest close since October 2005.

Posted by sold 2 rent 1 @ 12:27 PM 2 Comments

Do I hear 5000?


FTSE taking a hammering

Posted by mken @ 12:26 PM 56 Comments

UK PLC finally skewered on the kebab stick of Debt!

Telegraph: Red alert as overdrafts hit record rate

Even people who are savvy about credit card rates often don't have a clue how much they are paying for their overdraft. A big mistake, writes Kara Gammell, when the downturn is putting pressure on our wallets Cash-strapped Britons are turning to their overdrafts to help them through the economic crisis - yet rates are at their highest for 11 years. New data from the Bank of England shows that the average authorised overdraft rate on a current account leapt from 17.4 per cent to 17.9 per cent during June - despite the Bank keeping base rates on hold.

Posted by tyrellcorporation @ 12:15 PM 3 Comments

Country house prices in a bit of a blur

Zoomf Blog: Country house prices in a bit of a blur

Even country bumpkins are suffering from declining prices according to the latest KnightFrank stats.

Posted by gordo @ 12:08 PM 0 Comments

Buy Your Home At An Auction!


As the grip of the credit crunch tightens, many home owners, particularly in the USA and UK are now being forced to put their properties on the market. However as property prices start to drop there is the real danger that in the not too distant future the property market might become flooded with too many properties for sale at any one time. When this happens many sellers often turn to property auctions.

Posted by kitkat @ 11:24 AM 2 Comments

How the US banking crisis will strangle the mortgage market

MoneyWeek: How the US banking crisis will strangle the mortgage market

The US government may have deemed Fannie and Freddie too big to fail, but as for the rest of the banking system, it's dog eat dog. And there are plenty more banks that won't be so lucky.

Posted by damien @ 11:07 AM 0 Comments

Full details of today's RICS press release including EA comments

RICS: Full June survey

Best survey of the month - the EA comments are always a treat

Posted by pelethar @ 10:16 AM 22 Comments

DOWN, Down, down...

Mail: House prices falling at fastest rate since records began 50 years ago

''...House prices are falling at a rate not witnessed since records began in the 1950s, according to the latest report from banking giant Halifax. Its figures show the price of the average home in Britain has plunged by 17,000 since January....''

Posted by hpwatcher @ 10:15 AM 3 Comments

Hard times for EAs

Telegraph: Housing transactions slump to lowest in 30 years, says RICS

"According to RICS, 88pc more surveyors thought house prices fell during June compared with those who saw a rise, although this was an improvement from the 92.2pc more who saw falls in April." Smoke RICS. Gives you just that little bit more.

Posted by letthemfall @ 09:54 AM 2 Comments

Prepare for bank failures

FT: The Short View: Too big to fail

John Authers makes pertinent observations on the Fannie and Freddie bail out. Given that things are bad enough to need that Fed support, banks small enough to fail may well do so. Another point, made on Newsnight last night, is the sums are so large, the US may need to print money, which as we know means inflation. Wither deflation now.

Posted by letthemfall @ 09:47 AM 2 Comments

CPI up 0.5%, RPI up 0.3% to 4.6

BBC: Inflation climbs to 3.8% in June

The UK inflation rate was 3.8% in June, pushed higher by rising food and fuel costs, official figures have shown

Posted by holding out @ 09:38 AM 29 Comments

Property Shows refuse to die - or - The VI/BBC property ramping continues in another form!

BBC: Open House, Homefront, To Buy Or Not To Buy: How property shows fight the crunch

As the housing crisis starts hitting home, Serena Davies reports on how TV's property programmes are getting their own makeovers. "We're hoping to get people such as BBC Breakfast's business correspondent Declan Curry involved from the financial side, as well as our usual tranche of property experts." Added to that, BBC daytime has three more property shows in development or production. Buy It, Sell It, Bank It, also slated for the autumn, will provide financial information on development opportunities for houses bought at auction.

Posted by tyrellcorporation @ 08:58 AM 16 Comments

A nice graph

BBC News: Numbers moving home at record low

I wouldn't have bothered posting this expect for the house price year change% graph. Ahww ... isnt that nice :) Let's see a VI spin that. Can you spot the trend?

Posted by quiet guy @ 01:28 AM 16 Comments

RICS June report

Bloomberg: House price drops close to most widespread since 1978

U.K. house-price declines in June stayed close to the most widespread since RICS started measuring the property market in 1978, pushing the country closer to a recession. The number of residential property agents and surveyors saying prices fell exceeded those reporting gains by 88 percentage points, the London-based group said today. That compares with 92.2 percent the previous month, and 94.2 in April. The number of transactions has reached an all-time record low. Jeremy Leaf, a spokesman for Rics, said: "With demand so low, would-be buyers are negotiating from a position of strength."

Posted by little professor @ 12:44 AM 1 Comments

Privatize profits, socialize losses

Daily Mail: Why do the bankers never have to suffer?

There are bound to be those who are appalled at the sight of greedy bankers and lenders, their big bonuses safely tucked away, yet again being saved from ignominy by government or a white knight from overseas. Where is the help for would-be first-time buyers or families squeezed by ever-higher mortgage rates and charges? Very few of the City bankers who brought us this mess have been sacked or had the grace to step down. Yet taxpayers face an ever-bigger bill, thanks to one of the most foolish episodes of poor lending practice in the history of banking.

Posted by little professor @ 12:22 AM 7 Comments

What has his got to do with HPC ???

BBC: Bush lifts offshore drilling ban

President George W Bush has lifted an executive ban on drilling for oil in most US coastal waters, and has urged lawmakers to follow suit. He wants Congress to end its separate ban on drilling, in order to reduce US dependence on oil imports.

Posted by gardeniadotnet @ 12:07 AM 30 Comments

Monday, July 14, 2008

Disguating! How can they even think of pay rises of this size!

Telegraph: Bank of England's Mervyn King turned down 110,000 pay rise

So you are in charge of the BOE and can not stop INFLATION. Hello - what is the point of the bank then, infact why bother with the letters? This is now getting so silly I am not sure whether to laugh or cry. So he turns down a 50% pay rise but ASKS us to be patient and not get any more money for 10% inflation. He is on over 250K FOR DOING NOTHING! Rant Over.

Posted by waitingfor hpc @ 10:23 PM 8 Comments

Downgrade to your car

afp: California town creates parking havens for homeless

SANTA BARBARA, California - Every night at dusk in this wealthy California coastal town, Barbara Harvey puts down food for her golden retrievers, Phoebe and Ranger, and watches as they go for their evening walk. Not long afterwards, the 66-year-old mother-of-three clambers into the back of her white Honda CR-V, pulls up a blanket, and beds down for the night, snuggling next to her beloved dogs for comfort. "For the most part I sleep okay," says Harvey. "But it is very cramped. And my dogs are big. The CR-V wasn't designed for people to sleep in.

Posted by mken @ 09:52 PM 2 Comments

Stuatz: Buy to let prospering and providing a valuable service

Assetz: Rental value soars

Has anyone else noticed the way the VIs all quote each other to back themselves up? Here, Stuatz produces a quote from Arla which is, even by Assetz standards, completely ridiculous: "It was as a result of the appalling effects on young owner occupiers last time that Arla took the initiative and launched buy to let...to mitigate the dreadful social consequences of housing boom and bust." So there we have it. Buy to let is a kind of "social initiative" designed to protect poor FTBs from boom and bust.

Posted by keeprenting @ 09:16 PM 6 Comments

Another Nail in the coffin of Gordon's Economyth

FT.com: UK factory gate inflation surges

"Economists said the year-on-year increase of 10 per cent in the prices charged by manufacturers increased the risk of a knock-on effect on consumer price inflation, the measure the Bank uses to decide monetary policy." Sound fundamentals - what an economy, what a myth.

Posted by renting2 @ 08:41 PM 2 Comments

Don't Get Carried Away With A&L

CNNMoney.com: Bad week ahead for banks

Analysts expect more writedowns from Citi and Merrill. The IndyMac failure and problems with Fannie and Freddie could further darken the outlook for banks. NEW YORK (CNNMoney.com) -- If this weekend's news about Fannie Mae and Freddie Mac and Friday's IndyMac failure weren't scary enough, now Wall Street will have to contend with what is likely to be dismal quarterly results from many top financial firms. Two more weeks of writedowns coming up. Stocks are looking more and more fragile.

Posted by plato @ 08:19 PM 1 Comments

Clouds are now forming over China's economy," warned Stephen Green, chief economist at Standard Chartered Bank in Shanghai.

china post: Hard landing feared after end of Olympics

Inflation is on the rise, and rapid growth is threatening to overheat the economy

Posted by big chris @ 07:43 PM 0 Comments

HPC Collateral Damage hits Construction Equipment Market

BBC: JCB axes 500 manufacturing jobs

Fallout from the debt financed construction sector hits top UK manufacturer who do not expect to see any signs of a recovery until late 2009 at the earliest.

Posted by enuii @ 06:19 PM 2 Comments

Must be cr@p odds

Findaproperty: Betters Predict -25 Per Cent House Price Fall

Betters on The Cantor Spreadfair index have become more pessimistic about the trajectory of house prices over the next two-and-a-half years.

Posted by whostolemyendowment @ 06:12 PM 0 Comments

Buy a flat........see a psychiatrist!

Reuters: Buy a flat; get a free Range Rover

If you fancy a new flat in the South and are looking for a new car, then this could be what you're looking for.

Posted by whostolemyendowment @ 06:05 PM 0 Comments

America's finest news source tells it like it is

The Onion: Recession-Plagued Nation Demands New Bubble To Invest In

"What America needs right now is not more talk and long-term strategy, but a concrete way to create more imaginary wealth in the very immediate future," said Thomas Jenkins, CFO of the Boston-area Jenkins Financial Group, a bubble-based investment firm. "We are in a crisis, and that crisis demands an unviable short-term solution."

Posted by vest interest @ 05:52 PM 0 Comments

The MPC have abandoned the wheel, and jumped from the car

Guardian: Bank of England can do little about inflation in current climate, King says

June's CPI will be published tomorrow, and analysts believe that it will have risen to 3.6%. The British Retail Consortium said last week that food prices were 7% higher in June than a year earlier, the highest annual food price inflation since the series began. The MPC's role is to keep inflation - as measured by their consumer prices index - at 2%.

Posted by paul @ 05:38 PM 18 Comments

Why A&L holders should cash in on the bid

MoneyWeek: Why A&L holders should cash in on the bid

"It never ceases to amaze me how companies end up paying the wrong price for buying up their competitors. But people piling afresh into UK mortgage debt right now must need their collective heads examining."

Posted by damien @ 05:16 PM 2 Comments

Hot money poses risks to Chinas stability

ft.com: In 2006 China shocked the world by adding $247bn to what was already the largest hoard of foreign currency reserves. In 2007, if correctly counted, China took in more than twice that amount. So far this year it is on track to double yet again.

hot money is indeed increasing as quickly as the various proxies suggest, it indicates that not only is Chinese reserve accumulation going through a large quantitative change as it doubles yet again, it is going through an even more important qualitative change.

Posted by big chris @ 04:59 PM 0 Comments

Fed Votes Unanimously To Ban Liar Loans

NY Times: Horse, barn door

Snippet of information from Paul Krugman's blog that the Fed has moved to ban lenders from making high-interest, non-verified loans. It's only 5 years too late but they couldn't have interefered with that lovely bubble that brought so much paper wealth to so many, now could they? "Regarding higher-priced loans, the Feds new rules also prohibit lenders from: relying on income or assets that it does not verify to determine repayment ability"

Posted by an bearin bui @ 04:45 PM 5 Comments

transferring wealth up the pyramid:

signs of the times: Signs Economic Commentary for 14 July 2008

What does "state-backed financial capitalism" mean? Socialism for the banks and the rich and cut-throat capitalism for the rest of us. And we pay. Looking at it that way, it may not contradict the real ideology of neoliberalism, transferring wealth up the pyramid:

Posted by malct @ 04:27 PM 1 Comments

Millions died in the 1930's depression, when 90% lived in the country and many had family farms. Not much hope in the cities.

Prisonplanet: Mortgage Giants Collapse Could Herald 1930s Style Depression

Veteran London Times journalist William Rees-Mogg predicts that the collapse of U.S. mortgage giants Fannie Mae and Freddie Mac could herald a downturn into a 1930s style depression that threatens to sweep away democratic governments. Rees-Mogg served as editor of The Times, Britains oldest surviving newspaper, from 1967 to 1981, and currently sits in the House of Lords.

Posted by planning4acrash @ 03:53 PM 11 Comments

Mixed Thoughts About Dubai


Dubai heralded as one of the hot property investment spots for the future has plenty of speculators, highlighting the advantages of long term capital growth and good rental yields. However for some it is a property bubble waiting to burst.

Posted by kitkat @ 12:24 PM 16 Comments

They're having a laugh !!!

Diversified Property: Land Investment, Bucharest, Romania

You know that company that buys agricultural land in UK and then pretends that it'll be worth Millions "as soon as they get Planning permission". Well it's the same scam all over the world. So what you are buying land that hasn't got a PUZ, and when ( if ? ) it does you will (maybe ?) get a 50% increase in your investment ?

Posted by fahrenheit451 @ 12:19 PM 4 Comments

Hot off the press!

BBC: Santander 'agrees' to A&L takeover

I wonder if this will go the way of the TPG/B&B takeover?

Posted by mark wadsworth @ 11:58 AM 12 Comments

Only in my home county could this be true..!!!

Telegraph: Ribble Valley house prices up 17.1%

I found this article after chatting with two estate agents (one a very good friend) over the weekend. Although the rest of the country is now in a downturn, for some reason the Ribble Valley has escaped the carnage. I have known my friend for over 15 years and asside from his chosen profession, he is an honest bloke. Sales in the Ribble valley have actually increased since January and asking prices/sale prices are still rising. Something to talk about me thinks..

Posted by george monsoon @ 11:52 AM 21 Comments

Why the Fannie and Freddie bail-out means the dollar is doomed

MoneyWeek: Why the Fannie and Freddie bail-out means the dollar is doomed

The US government has been working on a bail-out for the companies all weekend, which it finally unveiled last night. But as usual, the government intervention is just storing up bigger problems for the future

Posted by damien @ 11:40 AM 17 Comments

Slow admittal of falls

Home.co.uk: Market Sentiment Deteriorates Further

"Year on year growth in asking proces for England and Wales has entered negative territory for the first time since December 2006 and stands at -0.2% in July 2008". But look at the trend line on page three! Where is this going? More evidence to show a severe downturn is unfolding.

Posted by growler @ 11:36 AM 2 Comments

Credit Crunch hits 'lender of first resort'.......

Firstrung: First time buyers may find 'Bank of Mum and Dad' closed

Teenagers looking forward to six weeks of summer fun funded by their parents could be in for a big shock. New research from AXA reveals that The Bank of Mum and Dad has been forced to cut back spending on children and in some cases ditch free hand-outs altogether...

Posted by whostolemyendowment @ 10:51 AM 0 Comments

The debate is over: recession is already here

guardian.co.uk: The debate is over: recession is already here

We're going into recession. That's all you need to know. Actually, not quite all you need to know. It may be worse than that - we may already be in one. The turn in the economy, although it has been lurking out there for some time, has come swiftly and sharply in the past few weeks, as is often the case with recessions. When the economic history books are written, they will almost certainly say the late-noughties recession began in earnest in the late spring of 2008

Posted by housebear @ 09:29 AM 3 Comments

Just another $300 BILLION !!!!!

New York Times: Treasury Acts to Save Mortgage Giants

An official said that the Feds decision to permit the companies to borrow from its so-called discount window was approved at the request of the Treasury but that it was temporary and would probably end once Congress approved Treasurys plan. Some officials briefed on the plan said Congress could be asked to extend the total line of credit to the institutions to $300 billion.

Posted by waitingfor hpc @ 09:02 AM 13 Comments

The British economy is braced for further turbulence this week as the fallout from the second largest bank failure in US history spreads across the Atlantic.

Guardian: UK braced for US banking backlash

Last weeks extraordinary decision by the US Federal Reserve to take over the Californian bank, Indymac, comes as the Bush administration attempts to quash speculation that Americas two largest mortgage lenders, Fannie May and Freddie Mac, also face nationalisation.

Posted by planning4acrash @ 08:40 AM 11 Comments

Bootle called the top too early, but he was right in the end

Telegraph: House prices could fall back a long way after their excessive rises

Roger Bootle writes: "Many British people seem to believe that it is somehow inevitable that house prices rise by 10pc, 15pc or 20pc every year, thereby squirting money around for all who have been lucky or canny enough to position themselves under the shower. You cannot shake off this sort of collective delusion without a painful adjustment. I saw a bubble blowing up in housing a few years ago but I seriously underestimated how much longer it would inflate. I therefore gave my warnings of the market's demise too early. In my defence, if you are a forecaster, being early ought to be a forgivable fault. It is certainly much better than being late - like all those postcasters who are now jumping up and down and telling us the housing market is weak."

Posted by drewster @ 02:46 AM 42 Comments

William Rees-Mogg: sharpest mind at the Times

Times: This recession could easily tip into a depression

"I was born in 1928; I remember the later stages of the Depression. This recession is producing a series of nasty surprises. Things are always proving to be worse than anyone had expected. Fannie Mae and Freddie Mac, created by President Roosevelt in 1938, are far bigger than Bear Stearns and Northern Rock put together. The debt crisis, the banking crisis, the property crisis, the oil crisis, the shift to Asia, the bear market in stocks, are huge global adjustments that have all come together at the same time. There is now a momentum of negative events sweeping away financial flood defences; in the 1930s that force overturned democratic governments as easily as it overturned banks. Before we get back to balance, we may see dramatic changes in politics, as well as in business and finance."

Posted by drewster @ 02:01 AM 17 Comments

Anatole Kaletsky: more wrong than David Smith?

Times: We have financial, not economic, problems

"Sometimes markets make spectacular blunders, completely losing touch with the real economy. While Wall Street has gone into meltdown since the beginning of June, conditions in the real economy have been unambiguously improving. The latest employment figures confirmed that economic conditions had stabilised after their sharp deterioration in the winter, while purchasing managers' surveys, the most reliable indicator of very recent economic trends, suggested a continuation of the modest but clear improvement that began in April. It is time for regulators and governments to recognise that market prices are sometimes plain wrong."

Posted by drewster @ 01:47 AM 9 Comments

Sunday, July 13, 2008

Bail out for Freddie Mac and Fannie Mae

BBC: US announces support for lenders

No details yet as to what the bail out plans are.

Posted by jonb @ 11:47 PM 5 Comments

What we all know to be the truth

Daily Mail: The REAL rate of inflation is 10%, says ex-PM John Major as he warns cost of living is going up faster than official figures

Families are being hit by a real rate of inflation as high as 10 ten per cent as Britain edges closer to recession, Sir John Major has claimed. The former Tory PM and Chancellor, in a rare intervention into domestic politics, warned the Government's official inflation figures could not be trusted. He also expressed 'human sympathy' for Gordon Brown's plight and said he regretted some of the personal attacks being made on him. But he insisted Mr Brown was partly to blame for helping to fuel the economic downturn.

Posted by uncle chris @ 10:46 PM 14 Comments

It won't be long.

The West Australian: House price slide sparks fears in U.K

The realisation is dawning here in Oz that we are not immune despite the wealth of iron ore especially here in W. Australia

Posted by barb777 @ 10:42 PM 0 Comments

Fannie and Freddie Explained

One Magazine: When Mortgages Buy the Farm

An article, written back at the start of the credit bust, with an accessible explantion of what Fannie Mae and Freddie Mac do, and why they matter.

Posted by fofp @ 07:59 PM 5 Comments

US Treasury gets the jitters about Freddie Mac

Guardian: US officials check on Freddie Mac securities sale

"The Post said Treasury Department officials on Saturday spoke by telephone with major banks that normally purchase such securities to ensure that these firms still plan to place bids, and they were optimistic the sale would be a success." A sensible precaution but also a sign of how nervous the US is.

Posted by quiet guy @ 03:51 PM 8 Comments

JD (FP) gives a spot on warning last year

Sky News: 16.09.97

Yes when it wasnt popular when the VIs were saying the rate of increase will fall, JDs predicts a all. Interestingly a 10% fall this year (2008) was his prediction which he - correct me if i am wrong - has now increased. In terms of the term of the falls he now is less inclined to completely rule out a japanese type fall. At the beginning of a Grand Supercycle correction? I wonder if FH believes the falls will still conform to the general time period of the cycle.

Posted by techieman @ 03:29 PM 8 Comments

Anyone want to buy a "Sandcastle?"

BBC News: Sharp rise in UK profit warnings

"The credit crunch, declining consumer confidence and squeezed discretionary income have come together to create the perfect storm for house builders and, as the rain falls, and the floods rise, investors are waiting nervously to see who has built their house upon the sand," the report said.

Posted by ian hills @ 03:21 PM 0 Comments

It's the debt of course

Observer: Over-inflated, overstretched and over here

A sensible article which points out that the reason we are in a mess is because we have done several years' spending in advance and paid far more for houses than they are worth. Sounds a bit complicated to me. Quick, pay a banker for some wisdom.

Posted by letthemfall @ 01:00 PM 2 Comments

We're at the "tackle boom-bust cycle" stage of the boom-bust cycle

Observer: Call to tackle boom-bust housing cycle

An unconvincing short piece on how to stop boom and bust. About as convincing as Mr Brown's assurances.

Posted by letthemfall @ 12:30 PM 10 Comments

The writing was on the wall

Guardian Unlimited: This can't go on forwever - so it wont!

The article basically pridicted that the party should have end in 2005 and every one nurse their hang-over. But some dim wits decided to keep the party going until the hang-over becomes alcohol posioning.

Posted by wayne @ 12:10 PM 1 Comments

BTL squeezed out the market by the Builders. Whod of thought?

Scotland on Sunday: Builders turn to rental market as sales fall

HOUSEBUILDERS are turning to the rental sector in a bid to generate income from new properties they cannot sell.

Posted by sosoon @ 11:57 AM 10 Comments

How long can the global downturn last?

MoneyWeek: How long can the global downturn last?

"It is already clear that this is not going to be a short and mild recession, but we cannot yet be sure for lack of evidence whether it will be medium or long and severe."

Posted by damien @ 11:23 AM 1 Comments

Take two asprin, go to bed and wait for 18 months - seriously it'll all be OK soon

The Indie: Hamish Macrae - Crashes aren't good but the bottom isn't far away

'But once house prices have clearly bottomed out, perhaps by the end of next year, confidence could come back quite fast. ' Wishful thinking twaddle from a guy who ought to know better. Cheer up lads, screw the fundamentals, it'll all be fine soon.

Posted by montesquieu @ 11:09 AM 5 Comments

Collapse, such a descriptive word.

Independent: World's largest mortgage providers teeter on the brink of collapse

America's regulators were last night shoring up the country's financial defences, after one of the biggest bank failures in US history sparked fears about the viability of the world's largest mortgage providers.

Posted by sosoon @ 10:42 AM 2 Comments

Looks like it's going down again

Independent: World markets braced for more falls after US mortgage collapse

Fears of a meltdown in the US mortgage market are likely to stoke further falls in the value of equities this week, with billions of pounds expected to be wiped from company values around the world.

Posted by sosoon @ 10:39 AM 0 Comments

There is more.

Mail Online: US mortgage giants' crisis sparks fear for British banks

Emergency talks were being held this weekend to rescue Americas two biggest mortgage companies amid fears their collapse could hit UK markets.

Posted by sosoon @ 10:30 AM 0 Comments

Key US mortgage lender collapses

BBC: Indymac-out of business

One of the largest US mortgage lenders, the California-based IndyMac Bank, has collapsed amid a growing credit crisis.

Posted by wiseman @ 10:07 AM 0 Comments

The topic will be the declining share prices of American flagship companies like GM and Berkshire Hathaway. Hope everyone can tune in!

Fox news via CFL: 30 Responses to Dr. Paul on FOX Business tonight

Gary Says: July 2nd, 2008 at 4:59 pm I strongly believe that since the banks just created the money out of thin air to issue us mortgages, the least they could do would be to forgive a minimum of 25% of the principle of all mortgages. They didnt earn the money in the first place, they just punched the keys on a computer and created a loan, and then charge us interest on this loan. Hmmm, maybe 25% it on the low side Marilyn in Lake Jackson Says: July 2nd, 2008 at 5:15 pm Its good that Dr. Paul is going to be on, but why do they always have to put him on a channel that nobody gets?

Posted by malct @ 09:00 AM 0 Comments

Now even NewsCorp reports signs of a crash

Australian: Property values plummet across nation

PLUMMETING property values have prompted warnings Australia is heading for a one in a 100 year slump.

Posted by mken @ 08:49 AM 0 Comments

Attempt to buy votes?

Guardian: Credit crunch: Emergency scheme to help cash-strapped homeowners

Homeowners struggling to meet their mortgage payments would be able to sell their homes to the local authority and rent them back as tenants under radical proposals being considered by the government to prevent the misery of repossession.

Posted by quiet guy @ 08:12 AM 18 Comments

"Malicious rumours" blame EAs for crash


"DISGRUNTLED house buyers are trying to put estate agents out of business with a series of smear campaigns. Police believe the culprits are people who have been left with huge debts after buying a property just before the slump in prices"

Posted by alan @ 03:28 AM 25 Comments

Credit Crisis Losses Pass $1.6 Trillion as Credit Contraction Ensures Recession

The Market Oracle: Credit Crisis Losses Pass $1.6 Trillion as Credit Contraction Ensures Recession

It seems that with each passing month the estimates for losses in the international banking system keep rising. This time last summer the largest estimates (from credible sources), if memory serves me correct, were around $400 billion, give or take a few months. By the end of the year it was in the neighborhood of twice that. Then last quarter we saw estimates approaching $1 trillion. Last week, the number being broached was $1.6 trillion, by Bridgewater Associates, one of the top, and more credible, analytical firms in the world.

Posted by nadeem walayat @ 12:08 AM 0 Comments

Indymac Bank Goes Bust - The US Northern Rock

The Market Oracle: Indymac America 's Northern Rock Goes Bust as US Housing Market Implodes

One of America 's biggest savings and loans mortgage banks, Indymac goes bust as regulators stepped in to seize the banks assets on Friday. The bank saw panicking savers withdraw more then $1.3 billion in deposits in one day alone as the bank teetered on the brink of collapse under the weight of mortgage defaults as result of the meltdown in the US housing market in similar style to Britains Northern Rock bank run during September 2007.

Posted by nadeem walayat @ 12:03 AM 0 Comments

Saturday, July 12, 2008

Insurers Blacklist Builders, Estate Agents and City Types

Sunday Times: Five tips on protecting your family in a recession

Insurers have started to blacklist people who work for Housebuilders, City Firms and Estate Agents on some protection policies as job losses start to bite. Those working for building firms including Barratt, Taylor Wimpey and Persimmon may be refused cover altogether, even if they have survived the latest cull in jobs.

Posted by enuii @ 10:15 PM 8 Comments

Undue influence?

New York Times: Protected by Washington, Freddie and Fannie grew

The dominant role Fannie and Freddie play today is no accident. The companies, Wall Street, mortgage bankers, real estate agents and Washington lawmakers have built up an unusual and mutually beneficial co-dependency, helped along by robust lobbying efforts and campaign contributions. In Washington, Fannie and Freddies sprawling lobbying machine hired family and friends of politicians in their efforts to quickly sideline any regulations that might slow their growth or invite greater oversight of their business practices. Indeed, their rapid expansion was, at least in part, the result of such artful lobbying over the years

Posted by nemo @ 08:50 PM 0 Comments

Ah the experts!

Times: How London property is surviving the slump

Managing sellers' expectations in the past few months has been much easier than in the beginning of the year, when we were shunned in disgust at our recommendations. Now you can see the same property still on the market for less. If you really want to sell, then that means at a 20 per cent price reduction since the peak of last year in a number of areas in London. Savills say.

Posted by confused76 @ 06:13 PM 0 Comments

How will China & others react if Fannie and Freddie default on their bonds?

FreedomWorks: Chinese Government is Top Foreign Holder of Fannie Mae, Freddie Mac Bonds

"If the US bails out Fannie Mae bonds, who is the biggest beneficiary? The top five foreign holders of Freddie and Fannie long-term debt are China, Japan, the Cayman Islands, Luxembourg, and Belgium. In total foreign investors hold over $1.3 trillion in these agency bonds. The prospectus for every GSE bond clearly states that it is not backed by the United States government. That's why investors holding agency bonds already receive a significant risk premium over Treasuries. A bailout of GSE bondholders would be perhaps the greatest taxpayer rip-off in American history. It is bad economics and you can be sure it is terrible politics."

Posted by drewster @ 06:09 PM 8 Comments

The response to the premise that speculation and short selling in particular is Evil

Ft.com: Why the world needs more speculators

A articulate and reasoned piece. IF you dont understand something just admit you dont understand. Dont send a stupid and worthless petition to No. 10 saying that short selling or speculation should be abolished...... and dont pick and chose when its the speculators fault. Read the article before making off the cuff and daft remarks. "More short-sellers in the dotcom bubble of the late 1990s, and the housing bubbles of the past few years, would have added a welcome dose of stability and sanity. Alas, there were not enough short-sellers and given the amount of money they were losing at the time, the only people complaining about them were their impoverished families."

Posted by techieman @ 06:08 PM 9 Comments

the 3Ps

Right Move: June House Price Index: Sellers make house prices more attractive in June

Based on circa 90% of newly marketed property, the House Price Index is the leading indicator of residential property prices in England and Wales...

Posted by fjcruiser @ 02:22 PM 5 Comments

"The biggest culprits are bouncing off their lows. It amounts to throwing a deck chair off the Titanic obviously

marketwatch: U.S. stock indexes tank as crude touches new high

NEW YORK (MarketWatch) -- U.S. stocks on Friday lapsed back into the cellar to close with weekly losses after a late-day burst into positive turf that followed reports that Federal Reserve Chairman Ben Bernanke offered the central bank's discount window to battered mortgage lenders Fannie Mae and Freddie Mac.

Posted by malct @ 12:21 PM 0 Comments

The massaging of the USA debt mountain - now doomed.

Times online: President Bush moves in as Fannie Mae and Freddie Mac lose value

President Bush was forced yesterday to wade into the turmoil surrounding the Federal National Mortgage Association (Fannie Mae) and the Federal Home Mortgage Corporation (Freddie Mac) which underpin Americas entire debt infrastructure

Posted by whostolemyendowment @ 12:00 PM 0 Comments

With a serial bankrupt in the Whitehouse what was to be expected...

FT: Lex - Fannie & Freddie

......the already dreadful US housing market would implode if the two government- sponsored enterprises went under. That is why fears of outright failure are misplaced Washington could not let it happen.

Posted by whostolemyendowment @ 11:54 AM 1 Comments

Fancy a cheap mortgage?

Fallstreet: Fed can lend to just about anyone

The fact is, even your Aunt Mabel could get an emergency loan from the Fed. Typically, the Fed has acted as a lender of last resort only for commercial banks. But the Fed has authority to lend to almost anyone, if the Fed Board of Governors agrees that conditions are dire enough. Under Fed regulations, regional Fed banks can offer loans to any "individual, partnership, or corporation" under "unusual and exigent circumstances" but only "if, in the judgment of the Federal Reserve Bank, credit is not available from other sources and failure to obtain such credit would adversely affect the economy."

Posted by malct @ 11:52 AM 0 Comments

Thats a bummer, but you could tell the writing was on the wall

Mortgage Lender: Lehman Brothers SBF - Small-cap Commercial

We have confirmed with a number of sources that Lehman Brothers has closed their Small Business Finance (SBF) unit announcing they would cease accepting any new applications on 2008-07-02. The Lake Forest, CA based commercial real estate division laid off 200+ people according to an email sent by one AE. They had 52 sales representatives scattered nationwide according to their web site.

Posted by malct @ 11:41 AM 0 Comments

Last orders please ?

Digital Spy: Corrie star reveals financial woes

Coronation Street star Bev Callard has admitted that she is in a financial crisis. The actress, who plays Liz McDonald on the ITV1 soap, revealed that she fears for the future of her two pub businesses after being hit by the credit crunch."If only running a real pub was half as easy as it looks on Coronation Street," Bev told the News of the World. "The way we run The Rovers on telly is in the realms of make-believe. If it was in the real world it would have shut down years ago."

Posted by handle_it @ 11:33 AM 5 Comments

I can't believe this is for real

FSA finally remembers that one of it's roles is to educate poeple

HM Treasury: New help for people managing money worries

Provided this intiative does not become a white wash then it might be good.

Posted by who stole my pension? @ 08:06 AM 3 Comments

Ouch!! That's Gotta Hurt

BBC News: Key US mortgage lender goes bust

One of the largest US mortgage lenders, the California-based IndyMac Bank, has collapsed amid a growing credit crisis.

Posted by renting2 @ 07:41 AM 12 Comments

Rule of thumb; 1 house = 1 job

Guardian: Housing slump puts 250,000 jobs at risk

Roger Humber, strategic policy adviser to the House Builders Association, said: "We have always said one house equals one job, in that all the components - like the plumber doing half a day and the electrician - add up to one person per house. This year we have about 80,000 homes coming in rather than 180,000 last year, so that is 100,000 jobs lost. It is the crudest rule of thumb we can apply."

Posted by who stole my pension? @ 07:38 AM 23 Comments

Ouch the BTL have been buying over priced rubbish

Daily Telegraph: Housing market crash: Is there a silver lining?

The flats were attractive to investors who, tellingly, rarely intended to live in them. Many were bought by people who couldn't point to their properties on a map. As those investors have faded away, the builders have been left with a high amount of stock that no one wants at any price. This might seem like a disaster yet the new-build meltdown may turn out to be one of the few silver linings in this sorry saga of conjecture gone awry. "Builders are going to have to look at established residential areas more closely, and at the quality of what they are building. They need to be thinking about building for owner-occupiers rather than selling to landlords, because that product wasn't always of the best quality." In future we may get homes of better quality that meets our needs.

Posted by who stole my pension? @ 07:34 AM 1 Comments

Sheeple behaviour explained - and it's not pretty!

The Indie: 'What would Homer do?' (That would be H Simpson, not the Greek guy)

''Backed up a clutch of Nobel Prize-winners, and a coterie of academic chancers, the current 'big idea' of the policy world would stretch easily across Homer's T-shirt. In short, it's this: people are dumber than they think they are.''

Posted by montesquieu @ 02:14 AM 1 Comments

But I thought inflation was only 3%?

Independent: Cost of a shopping basket soars in the 'phoney' supermarket price war

British retailers have introduced massive price hikes over the past year, shattering the myth of a so-called supermarket price war. On a sample of 17 staple products, Sainsbury's has hiked prices by 31.6%, Tesco by 27.5% and Asda by 21.6% in the year to July 2008. These figures dwarf the estimates of the British Retail Consortium, which this week said that food cost 7 per cent more than last year.

Posted by little professor @ 01:49 AM 3 Comments

HPC-denier still desperately clinging on

Scotsman: Price crash is pure scaremongering but there are constraints

It's hard to avoid the headlines screaming about house-price crashes but that doesn't mean there will be one. I am not suggesting that house prices in Scotland are likely to rise this year as they have done in previous years a fall is entirely possible, although increasingly unlikely. A slowing market represents the best opportunity a buyer has of buying well, especially in a market with long-term over-demand/supply constraint problems.

Posted by little professor @ 01:41 AM 10 Comments

Friday, July 11, 2008

After years of obscene profits, the *ankers have the begging bowl out again

Telegraph: Bankers want more help from Bank of England

Senior figures from the UK's biggest banks will today lobby the Bank of England to widen the terms of the special funding scheme launched in April to bring liquidity back to the financial sector. The bankers will argue that the Special Liquidity Scheme (SLS) has not done enough to restore confidence among banks, leading to them to remain cautious about lending money to each other and to customers. As a result, Libor - the main lending rate between banks - has remained high, as have mortgage rates charged to home buyers.

Posted by uncle chris @ 09:40 PM 3 Comments

The National Australia Bank says it may have to increase its provisions for exposure to $1 billion in subprime assets or collateralised debt obligations (CDOs).

abc: Freddie Mac, Fannie Mae hurting in subprime fallout

Freddie Mac and Fannie Mae are American household names and were created decades ago to foster affordability and stability in the US housing market

Posted by big chris @ 07:57 PM 0 Comments

"Mr Rudd's got to put the blowtorch on them to do this, explain to Australians why, with such huge profits, are they further increasing interest rates."

australian: Justify interest rate hikes, Swan tells banks

We've had two official rates rises from the Reserve Bank of Australia ... but the banks are increasing their interest rates under Mr Rudd but I don't remember them doing that under (former treasurer Peter) Costello," Dr Nelson told reporters in Launceston, Tasmania

Posted by big chris @ 07:53 PM 0 Comments

NAB is estimated to have about $15 billion worth of conduit assets, with about $10 billion originated by the bank. Conduit assets are a type of structured investment that sits within the commercial paper market.

australian: Deutsche Bank analyst Ross Brown told clients: "NAB stated that given economic deterioration since March 31, additional provisioning may be required on its $US1.1 billion CDO portfolio, but the amount has not been determined.

THE worsening global credit crisis threatens to shake Australia's banking sector after National Australia Bank yesterday warned its bad debt provisions on sub-prime US financial securities could widen.

Posted by big chris @ 07:52 PM 0 Comments

Roger Bootle from Capital Economics said Britain could be facing a "real economic crisis and a financial collapse. The MPC does not have the luxury of waiting until all is absolutely crystal clear. By that time the bird will have flown."

telegraph: The money supply data from the US, Britain, and now Europe, has begun to flash warning signals of a potential crunch. Monetarists are increasingly worried that the entire economic system of the North Atlantic could tip into debt deflation over the next tw

The money supply data from the US, Britain, and now Europe, has begun to flash warning signals of a potential crunch. Monetarists are increasingly worried that the entire economic system of the North Atlantic could tip into debt deflation over the next two years if the authorities misjudge the risk.

Posted by big chris @ 07:49 PM 1 Comments

Telling it like it is - Ouch!

Shelter Offshore: Browns Determination To Stay Fuels UK Mass Exodus!

A harsh and damning article about how successive governments have ripped the soul out of the UK and why so many are leaving.

Posted by richard stanton @ 07:02 PM 0 Comments


FT: The Short View: Fannie and Freddie

John Authers gives his view on the situation. Fannie and Freddie caught well and truly in a liquidity trap.

Posted by letthemfall @ 05:18 PM 1 Comments

If you go down to the woods today

BBC News: FTSE 100 ends day in Bear Market

London's index of key shares, the FTSE 100, has closed in "bear market" territory after another tough day for shares in Europe and the US.

Posted by afrobaggie @ 05:11 PM 1 Comments

Shorters killing are pensions, sign if you think its enethical to short

10 Downing Street: Stop are pensions being robbed by Hedge Funds shorting

A petition for those who wont stand idle and watch the greedy rob the hard working

Posted by lee @ 04:29 PM 0 Comments

Even Sir Alans worried

Times Online: Video: are SW1 business leaders still partying?

Every summer, the business heavyweights of Knightsbridge gather at the Motcomb street party to drink Champagne, eat strawberries and celebrate their great wealth. This year the mood has changed and it is not just the torrents of rain falling onto SW1.

Posted by landedgentry @ 02:45 PM 0 Comments

This is The Big One!!

Evening Standard: US pondering 2,500bn 'Rock-style' bailout

Born in the Great Depression, renationalised in the ... er ...

Posted by mark wadsworth @ 02:39 PM 15 Comments

Financial 'experts' fail to beat the markets again

MoneyWeek: Financial 'experts' fail to beat the markets again

If you're doing badly as a private investor, you're not alone: the City professionals are losing money too. So if you really want to invest in the stock markets, what should you do?

Posted by damien @ 01:08 PM 11 Comments

Forget houses, why not buy a pub instead?

BBC News: Market data - Punch Taverns

I picked this stock at the beginning of the year as one of the top stocks NOT to hold - partly because it's a recession vulnerable business, partly because they are up to their eyeballs in debt, but mostly from first hand observation of their incompetant management - a fair weather business model that was doomed to come unstuck when the going got tough. There'll be an awful lot of pubs for sale if this outfit goes down..

Posted by uncle tom @ 12:38 PM 12 Comments

Finally someone calls a spade a spade!!

marketoracle.co.uk: UK House Price Crash In Progress!

The Halifax house price data for June revealed a 2% fall in house prices for the month or a loss of value of 3,500 from May, house prices are now down 6.1% on an seasonally adjusted basis, which is a far cry from March 2008 when the bank's chief economist was painting a bullish picture for house prices. However the housing market is in CRASH mode for the quarter April to June 08, as forecast by the Market Oracle in November 2007 - "house prices could register a drop of as much as 5% in the quarter April 08 to June 08"

Posted by housebear @ 12:01 PM 24 Comments

What the Public Really Want

Mortgage Introducer: Consumers want house price falls

"Todays consumers want to see house prices stabilise or even fall, according to a recent poll by home move specialist Moveme.com." The VIs continue to dominate the press with doom and gloom. But the general public may be more savvy than they think!

Posted by renting2 @ 11:56 AM 1 Comments

You can't keep a Brick Chick down

Times: Housing shortage will only worsen as lights go out at more building sites

One VI who will never stop rambling about irrelevancies in the housing market. Still believes in the myth of a shortage. She may be right about one thing: a future price spiral as the aspirational Brits forget all about the last crash and fall over themselves to buy their "dream" - of such are small-minded dreams made. Mind you, this crash will be harder to forget. Yes, it is different this time.

Posted by letthemfall @ 11:36 AM 7 Comments

UK House Price Crash In Progress!

The Market Oracle: UK House Price Crash In Progress!

The Halifax house price data for June revealed a 2% fall in house prices for the month or a loss of value of 3,500 from May, house prices are now down 6.1% on an seasonally adjusted basis, which is a far cry from March 2008 when the bank's chief economist was painting a bullish picture for house prices. However the housing market is in CRASH mode for the quarter April to June 08.

Posted by nadeem walayat @ 11:25 AM 0 Comments

O2 blames new home sales for iphone mess up - seriously

Yahoo: Computer Snag Hits iPhone Launch

O2 said the problem was caused by the volume of people wanting to buy the new homes. A spokesman added: "We apologise for any inconvenience caused."

Posted by mark @ 10:55 AM 4 Comments

Let's go back to 1930

Telegraph: The money tap turns off, leaving the world in short supply

The lifeblood of countries' economies is draining away - with grim consequences for us all.... the UK was lurching from boom to bust. "Real money growth is virtually nil. The British economy is taking a thrashing and it is going to get worse."

Posted by pendulum @ 08:21 AM 104 Comments

how the 'experts' get it wrong

realtor news: how the 'experts' get it wrong

we will be seing a bit of this over the next few months

Posted by taffee @ 07:28 AM 3 Comments

U.S. Weighs Takeover of Two Mortgage Giants

New York Times: U.S. Weighs Takeover of Two Mortgage Giants

Alarmed by the growing financial stress at the nations two largest mortgage finance companies, senior Bush administration officials are considering a plan to have the government take over one or both of the companies and place them in a conservatorship if their problems worsen, people briefed about the plan said on Thursday. I also have some scathing commentary for this political stunt in the following two blog entries: http://www.creditwritedowns.com/2008/07/federal-takeover-of-gses-now-in-works.html http://www.creditwritedowns.com/2008/07/is-fanne-freddie-debacle-result-of.html

Posted by edwardnh @ 06:31 AM 1 Comments

Britain Needs A Stamp Duty Holiday

Express - Worlds Greatest Mewspaper: Yeah, yeah, yeah.......

''...Gordon Brown was under intense pressure last night to declare a stamp duty holiday to kick-start the flagging economy. Housing industry groups united to demand the temporary lifting of the tax for a year as fresh evidence showed prices falling at their fastest level for 15 years. The average property has lost 6.1 per cent of its value during the past year, figures from the Halifax yesterday showed...''

Posted by hpwatcher @ 05:46 AM 10 Comments

Slide in house prices is the worst since the Great Depression

Telegraph: End of property frenzy...

''...Britain is now in the midst of the worst housing slide since the Great Depression, economists declared after house price inflation dropped to the lowest level since comparable records began. ...''

Posted by hpwatcher @ 05:41 AM 14 Comments

Anything, but cut the asking price...

Times Online: Free car with your new home: slump in housing market brings desperate offers

''...Forget slashing the asking price, offer a free car instead. This is the approach that a developer in Newquay is hoping will help him to beat the sales slump as he tries to sell 65 flats. Another developer is simply threatening to sue buyers who pull out of purchasing luxury flats in a 25 million development in Plymouth. ...''

Posted by hpwatcher @ 05:35 AM 11 Comments

All your morning bear-food in one easily digestible post

Morning newspaper roundup: It's a bear-fest!

Check out comment 1 for all the meaty goodness

Posted by little professor @ 02:06 AM 7 Comments

'Heartbreak Home'

Daily Mail: Blow by blow account of one woman's fight to sell her home

You start off feeling sorry for the woman in this article. Her husband died a few years ago. But she was left a huge house with a lot of equity, and proceeded to squander it on buying a BMW X3 and sending her kids to private school at 20,000 per year. Having built up significant debts, she decided to downsize to solve her problems. Now she is trying to sell her house, and has had to drop her price from 575,000 to 475,000. And then at the last minute her buyer pulls out as they can't get a mortgage. She is left completely pwned. "It's as if the rug of a comfortable existence has been pulled away from me."

Posted by little professor @ 12:59 AM 16 Comments

Thursday, July 10, 2008

"A 30 per cent decline in real prices would hardly be surprising."

FT: Falling over a cliff in slow motion

"Spreads over the Bank of Englands policy rate are now higher than the 1997-2003 average, just as they were well below that average until the current crisis began. Moreover, many borrowers are being rationed out of the market altogether. The biggest issue, then, is not the fall in house prices itself but the transformation in credit conditions that lies behind it. Yet even here the evidence is mixed. Between August 2007 and May 2008, both the number of housing loans and their total value did shrink by close to 50 per cent, according to the council of mortgage lenders. Yet so-called 'M4 lending' the counterpart of the broad measure of money rose by as much as 12.4 per cent in the year to May. This does not look like a general credit squeeze, as yet." -- So where is the M4 money going??

Posted by drewster @ 11:52 PM 0 Comments

Property transactions now virtually evaporated - RICS

Firstrung: Housing demand is weak and transactions continue to evaporate, there is a very real danger to the wider economy - RICS

The lack of new instructions to sell property continues to provide the market with some support in the near term. Large numbers of 'distress sales' (either repossessions or sales from those attempting to avoid the repossession process) have not taken place. With mortgage arrears still low, until the worsening economic picture filters through into the employment situation, this lack of supply will prevent significant declines in house prices. In fact the net balance of Chartered Surveyors reporting new instructions to sell property fell to -26%, the second lowest figure since the question was asked in April 1999.

Posted by converted lurker @ 11:19 PM 0 Comments

Lower income couple no chance of owning in current climate

Firstrung: First time buyers need to save 100% of joint income for a year to save the average mortgage deposit - RICS

A first time buyer couple, earning lower quartile earnings (totalling 27,516 after taxes), will now have to save over 100 percent of their joint take home pay, to build up the 27,738 needed for the up front buying costs on a typical home (including the deposit, fees and stamp duty). This equates to a substantial rise from the low point of 21 percent of income required in 1996.

Posted by converted lurker @ 11:16 PM 2 Comments


Daily Mail: House prices falling at fastest rate for 50 years - and interest rates 'won't be cut until 2009'

The price of the average home has plummeted 17,000 since January. The price of the average home in Britain has plunged 17,000 since January, devastating figures revealed today. House prices are falling at a rate not witnessed since records began in the 1950s, according to the report from the banking giant Halifax. This suggests the current meltdown is even worse than the previous house price collapse in the 1990s. In a further blow, experts warn the current collapse is only at 'the initial stages of an extremely sharp correction'.

Posted by bufferbear @ 09:53 PM 6 Comments

Crashtastic pop pickers

Channel 4 News: British house prices in fastest decline since 1990s as Bank holds rates

A whole 12 mins at the start of the news tonight devoted to the house price crash. Johnathan Davis was with a Savills "expert" eating humble pie. Brilliant.

Posted by doomwatch @ 09:48 PM 2 Comments

What good name?

Times: We are squandering our good financial name

British banks owe 640 billion more in customer loans than customer deposits. That is more leveraged than any US bank is legally allowed to be. The regulators who allowed this to happen were once admired for their pragmatism. Now they are derided around the world for their sloppiness. I meet British bankers who say that they are routinely embarrassed, in meetings from Germany to China, by gibes about the uselessness of the London authorities. Hank Paulson, the US Treasury Secretary, brought a stern message to London last week: that the regulators need to get a grip. I will tell you how to become rich, Mr Buffett once said. Be fearful when others are greedy. We were all greedy together.Now it hurts.

Posted by little professor @ 09:37 PM 0 Comments

Stating the bleedin' obvious

Centre for Economic & Policy Research: The Impact of the Housing Crash on Family Wealth

As these projections should demonstrate, homeownership is not everywhere and always an effective way to accumulate wealth. For those who owned a home in the last few years, the collapse of the housing bubble led to the destruction of much or all of their wealth.

Posted by debtsurf @ 07:54 PM 1 Comments

Another UK services industry is born

FT: UK outsourcing to private sector doubles

Outsourcing and privatisation - export the services and the outsourcing expertise. At least it makes the privatisers rich.

Posted by icarus @ 06:02 PM 3 Comments

Will Repossesions Spike Here Too?

Bloomberg: Foreclosures Rose 53% in June, Bank Seizures Triple

Foreclosure activity is the highest since the Great Depression of the 1930s. ``The foreclosure problem is getting worse and will stay with us well into the next decade,''

Posted by ontheotherhand @ 05:31 PM 1 Comments

Cast your vote in Metro's poll

Metro: Poll: Is trying to buy a first home worth the hassle?

Is trying to buy a first home worth the hassle? [1] Yes, it's money well spent - prices will rise eventually [2] No, it is a rip off. The housing market is a joke I'm not suggesting that we deliberately rig the poll; please vote with whichever answer you feel is correct ;-)

Posted by drewster @ 05:00 PM 7 Comments

Increase in US reposessions again - America sneezes....

cnn: Six months, 343,000 lost homes

NEW YORK (CNNMoney.com) -- The number of Americans losing their homes to foreclosure continued to soar in June, according to a report released Thursday. RealtyTrac, an online marketer of foreclosed properties, reported that lenders repossessed 71,563 homes in June. A year ago, just 26,369 homes were taken back. During the first six months of 2008, 343,159 Americans lost their homes, up 136% from 145,696 recorded during the same period in 2007.

Posted by sp @ 04:09 PM 0 Comments

Get back to work, Nooneo and STR2007!

Evening Standard: House sales fall by half

This article will not have you in stitches, no, not at all! "One leading firm of London estate agents said house sales in the capital had halved this year and prices were already 15 per cent down. But a City analyst forecast much worse to come and said property values would plummet 35 per cent before hitting the bottom in 2011."

Posted by mark wadsworth @ 03:56 PM 14 Comments

If it goes - it's bigger than Bear stearns

CNN: Fannie, Freddie plunge on rescue report

News that government has begun to consider what to do if mortgage finance giants collapse sends battered shares sharply lower again

Posted by holding out @ 03:40 PM 1 Comments

Nice headline for people who don't understand percentages

Daily Mail: House prices fall by 20,000 in a year

Not much to add, good stuff nonetheless.

Posted by mark wadsworth @ 02:45 PM 15 Comments

Interest rates: BoE's next move will be a cut

Telegraph: Drivel from the telegraph's ''Economics Editor''

''...However, the Bank is unlikely to cut rates until the recession really starts to bite - the reason being that until it does there is always a small chance that wage bargainers will demand higher salaries. But as more companies cut jobs, and the chances of wage inflation leaping higher will diminish and the window of opportunity for lower rates may present itself. So expect a rate cut before the end of the year, though sadly it may come too late to prevent much of the pain currently being felt throughout the economy. ...''

Posted by hpwatcher @ 01:10 PM 11 Comments

George Bush will sort it out

CNN: http://dailybriefing.blogs.fortune.cnn.com/2008/07/10/white-house-mulls-fannie-and-freddie-failure/

The Bush administration has held talks about what to do if mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE) fail, The Wall Street Journal reports, citing people familiar with the matter.

Posted by holding out @ 12:31 PM 2 Comments

Britain turning into a globalisation loser

reuters: Britain turning into a globalisation loser

Britain, one of the big winners from the free flow of capital and services globally in the last decade, is rapidly becoming one of globalisation's losers due to its reliance on property and finance.

Posted by mark @ 12:19 PM 22 Comments

Bank holds interest rates at 5%

BBC news: Bank holds interest rates at 5%


Posted by matt_the_hat @ 12:05 PM 22 Comments

An alternative to the Gold Standard

The Money Masters: Towards Ideal Monetary Reform Legislation

Why draft model reform legislation with little to no chance of enactment under the present circumstances? Nobel Laureate in Economics, Milton Friedman, offers two reasons: 1)...it is worth discussing radical changes, not in the expectation that they will be adopted promptly but for two other reasons. One is to construct an ideal goal, so that incremental changes can be judged by whether they move the institutional structure toward or away from that ideal. 2) The other reason is very different. It is so that if a crisis requiring or facilitating radical change does arise, alternatives will be available that have been carefully developed and fully explored.

Posted by planning4acrash @ 11:39 AM 5 Comments

Celebrity foreclosures

CNN: Celebrity foreclosures

Even the rich and famous are abandoning their homes amid the foreclosure crisis.

Posted by mark @ 11:05 AM 0 Comments

What US stock car racing tells us about a UK recession

MoneyWeek: What US stock car racing tells us about a UK recession

"The message from 'over there' is that the slowdown is entering a new phase. The pain threshold is set to go quite a lot higher, and the 'luxuries' we've previously taken for granted could soon be right off the menu. As NASCAR fans are now learning, even sacred cows sometimes get slaughtered."

Posted by damien @ 10:59 AM 0 Comments

Are savvy investors considering buying back into builders

BusinessWeek: Britain's Homebuilders Get Bloodied

Housebuilders are without question being absolutely thumped in the markets and rightly so considering they did not contemplate the possibility and consequence of falling house prices. BusinessWeek consider that long-term investors may consider the shares may soon be buys. Personally I believe the fallout from builders will see the demise of some big names and the ones that do survive are at least 12-18 months off being worth buying. Builders shares anyone?

Posted by denzil @ 10:21 AM 5 Comments

US Backing its Allies??

TimesOnline: http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4305215.ece?&EMC-Bltn=KOZE89

"Boeing, the giant American aircraft manufacturer, complained that the bidding process had been unfair and, after a review, Robert Gates, the US Defence Secretary, announced that the competition would start again. This is was seen by many defence analysts as a concession to Boeings political backers, who want the Pentagon to go back to its buy American policy." The American Malaise continues to impact on us - How will these families pay their mortgages? Also indicates which way the support goes in troubled times.

Posted by renting2 @ 10:05 AM 18 Comments

The Assetz view of the London property market

Assetz: Lucky Londoners

Stuatz takes a fair and balanced look at the London property market, and concludes that (i) London is bucking the trend of price falls, and (ii) London is "dragging the UK property market up from its current slump."

Posted by keeprenting @ 09:47 AM 11 Comments

It was worse than thought!!!

Halifax: June House Price Index

As suggested by Holdingout (among others) they times this to come out just before the MPC decision (if it had been not so bad as expected, it would have come out later)

Posted by mark wadsworth @ 09:43 AM 28 Comments

This film criticises the Gold Standard and provides other solutions, pointing out that Gold is primarily held by private banks.

Google Video: The Money Makers

"The powers of financial capitalism had a far-reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole...Their secret is that they have annexed from governments, monarchies, and republics the power to create the world's money..." THE MONEY MASTERS is a 3 1/2 hour non-fiction, historical documentary that traces the origins of the political power structure that rules our nation and the world today. This is the greatest film of understanding the financial system that has caused the houseprice boom and crash, and beyond.

Posted by planning4acrash @ 09:28 AM 53 Comments

Halifax say another 2% Fall

BBC: UK house prices 'fell 2% in June'

UK house prices fell by 2% in June, according to the UK's biggest mortgage lender, the Halifax.

Posted by sosoon @ 09:21 AM 32 Comments

Bank of England Paralysed by Fear

The Market Oracle: UK Interest Rates On Hold as Bank of England is Paralysed by Fear of Inflation

The Bank of England Monetary Policy Committee is expected to keep interest rates on hold for a third month at 5% at today's meeting despite widespread calls for a rate cut in response to a collapsing housing market and an economy that is fast falling off the edge of a cliff, which is accompanied by more distress in the banking sector that saw Bradford and Bingley teetering on the brink of collapse earlier this week.

Posted by nadeem walayat @ 09:08 AM 0 Comments

Homes at auction take a hammering

The Press Association: Homes at auction take a hammering

The average cost of a home being sold at auction has slumped by 17% during the past year, figures show. Homes that went under the hammer between March and May fetched an average of 140,500 - 28,700 less than they sold for during the same period of 2007, according to research by the Liberal Democrats.

Posted by housebear @ 09:01 AM 0 Comments

Hundreds of EAs close as FTBs rent-and-wait

Wall Street Journal: U.K. Estate Agents Fret

With Britain's housing boom turning to bust, estate agents are finding it increasingly difficult to make money. 15,000 estate agents' jobs could be lost this year, the equivalent of about 5% of the country's nearly 300,000 estate agents. Would-be buyers like Thom Harrison have the upper hand. Mr. Harrison, a 23-year-old first-time buyer in Liverpool, said he and his partner had viewed 27 properties and considered all but two to be overpriced. They made an offer on one. "It needed 10,000 of work, so we took off 10,000 and the seller wasn't very happy. If we don't find a place to buy by the end of July, we'll rent for another six months," he said. "It's well worth the wait to save astronomical amounts of money."

Posted by drewster @ 08:44 AM 2 Comments

Seeking Government intervention

BBC Radio 4: Stewart Baseley, of the Home Builders Federation

Barratt has just released an update to the stock market on how well they are performing. Stewart Baseley, of the Home Builders Federation, discusses the results. And sounding like Steven Cranshaw just before B&B collapsed.

Posted by mken @ 08:40 AM 2 Comments


Finance Markets: Government house price index shows continued growth

The Department for Communities and Local Government (DCLG) has published its latest house price index which puts annual house price inflation at 4.9% in April. House prices actually rose by 0.7% during the month and the figure compares with annual inflation rates of 5.2% in March and 12.3% in July 2007, the point at which annual house price growth peaked. The figures contradict data from leading mortgage lenders, with Halifax and Nationwide reporting annual house price falls of 3.8% and 4.4% respectively.

Posted by should_of_banked_it @ 08:38 AM 0 Comments

Bob the Builder cannot fix it

Independent: Two more housebuilders cut 40% of their workforces

"Redrow and Bovis Homes piled further misery on the housebuilding industry yesterday, cutting 850 jobs, reviewing their dividend policies and warning that the property market was in its worst state in living memory."

Posted by quiet guy @ 08:25 AM 5 Comments

Home ownership out of reach for average earners

Home ownership out of reach for average earners: Times Online

House prices may be tumbling but the dream of home ownership is all but over for couples on modest incomes, as mortgage lenders demand heftier deposits, according to new figures.

Posted by becky @ 07:33 AM 12 Comments

Apocalypse Now

bloomberg.com: Granddad, Tell How Capitalism Committed Suicide: Mark Gilbert

Granddad looked up from the fire he was stoking with bundles of 2006 and 2007 vintage mortgage-backed bonds. ``In a way, Joel, yes. In developed countries, people got too greedy, especially bankers, and everyone borrowed too much. In less developed countries, people racing to improve their living standards reawakened the slumbering inflation monster.''

Posted by sold out @ 07:14 AM 3 Comments

US government discusses Fannie and Freddie bankruptcy

Credit Writedowns: US government discusses Fannie and Freddie bankruptcy

According to a Wall Street Journal report, the Treasury is concerned enough about the viability of Fannie and Freddie that they have discussed contingency plans in the case of potential bankruptcy. Given the level of risk these two are taking on their poorly capitalized balance sheets in order to provide liquidity to the mortgage market, it is only a matter of time before the Federal government has to step in. Massive write-downs and the need to raise capital should be a foregone conclusion by this time. Without a Federal guarantee neither of these outfits is a AAA company. The US government had better think of a solution and get involved fast before the situation at Freddie and Fannie destabilize the market any further.

Posted by edwardnh @ 04:11 AM 0 Comments

Wednesday, July 9, 2008

US stocks plunge...

Reuters: US STOCKS-S&P 500 plunges into a bear market

* S&P 500 joins Dow and Nasdaq in bear market * Cisco leads decline in tech shares on economy worries * Freddie Mac, Fannie Mae post sharp losses again

Posted by cashisking @ 10:10 PM 1 Comments

The pot and the kettle

Timesonline: Gordon Brown shock tactics force a UN showdown on Mugabe

Brown says it's time to get rid of Mugabe on the grounds that (1) he is unelected (2) he holds on to power despite his deep unpopularity (3) he does this by means of using his country's resources to reward his supporters (4) his actions have led to an inflation-ridden, fast-deteriorating economy and (5) he is denying working people the fruits of their labour.

Posted by icarus @ 09:47 PM 12 Comments

I wonder if it really is an EA commentating

mail online: The couple so desperate to sell their house they are offering to PAY someone to buy it

Listen up Mr and Mrs Hall. I am an estate agent with 30 years experience in London. I have seen ALL markets before. I have the T shirt, the video and the experience to tell you that you will still be sitting in your house next year unless you slash the price of your home. Take the bull by the horns and seek offers in excess of 285,000. Have your agent release the house on that basis a week before seeking best offers. Take the money and run. Life is to short to hold out for a dream price in the worst market I have seen in my career. Good luck. PS this advice should have come from your sleepy agent!

Posted by waitingtobuy @ 08:23 PM 4 Comments

Your Home Could be a Balloon

gasworld website: Home hydrogen technology developed

Home hydrogen refuelling could become a viable energy alternative in the future, according to the sentiments of the UKs ITM Power, which has just unveiled its fuelling station for the modern household. A hydrogen refuelling station which could be installed in the home as an alternative to visiting a petrol station has been unveiled, with the system also capable of being used for heating and cooking. Just make sure you don't smoke !!!

Posted by plato @ 08:19 PM 11 Comments

In case you weren't scared already

Asia Times Online: A tale of two downturns

The recession into which Britain is heading is likely to be considerably more serious than its US counterpart, and the way out less certain. Comparisons of UK/US as regards housing and also the post-Thatcher legacy of globalisation in the city. Scary.

Posted by briansj @ 08:17 PM 1 Comments

One City analyst warned the housing market could take 20 years to recover

truthseeker: Black Tuesday

At one point today all 100 firms listed in the FTSE were down but a late morning rally left the blue chip index only 70 points lower by lunchtime. Some of the biggest fallers included household names such as Royal Bank of Scotland and ITV, both down five per cent.

Posted by malct @ 07:11 PM 3 Comments

It's just us and Hungary

Times: Europe rebuke as UK breaks budget deficit ceiling

Alistair Darling was given six months by his fellow European Union finance ministers yesterday to bring Britain's budget deficit below the 3 per cent of gross domestic product required by the single currency rule book.....certain medium-term objectives should be followed, including prudent debt ratios that took account of the economic and budgetary impact of ageing populations, and sufficient room for budgetary manoeuvre to meet public investment needs.

Posted by pendulum @ 07:01 PM 12 Comments

This would be a 6th July event

CNN: The Fannie and Freddie doomsday scenario

Fannie Mae and Freddie Mac are government sponsored enterprises that help the mortgage market function by purchasing pools of loans and packaging them into securities. If one or both couldn't function, the result would be chaos.

Posted by holding out @ 06:48 PM 4 Comments

PLUNGING consumer sentiment to levels last seen after the 1990-91 recession and new record lows for housing finance have prompted warnings of worse to come.

australian: Pessimism sets in as fears rise for the next year

The Westpac-Melbourne Institute Index of Consumer Sentiment for July plunged to its lowest point since January 1992, when consumers were just recovering from a recession. The fall of 6.7 per cent to 79 points was worse than expected from a survey that was taken last week, when St George Bank announced another hike in interest rates.

Posted by big chris @ 05:14 PM 0 Comments

Oil - the losers and winners

Property Wire: Winners and losers in the global property market defined by growing oil prices

Soaring oil prices are affecting property investment across the globe to such an extent that countries that import energy supplies are likely to see even more of a downturn before markets bottom out. {Link from an earlier post today - long but can be paused, and worth a listen, http://commoditywatch.podbean.com/2008/07/09/uk-property-how-low-will-it-go/ }

Posted by whostolemyendowment @ 04:39 PM 1 Comments

Leeds - 952 apartment scheme on ice

Property Week: Credit crunch stalls Western Europe's tallest residential building

Developers KW Linfoot and Frasers Property have put the development of Lumiere in Leeds set to become the tallest residential building in Western Europe on hold.

Posted by whostolemyendowment @ 04:22 PM 0 Comments

The punchline is right at the end...

FT: Housebuilders under threat from price falls

Just in case you can't access the article without registering etc... "Merrill Lynch says a 20 per cent-plus decline in house prices over 12 months has the potential to eliminate all of a housebuilders net asset base.

Posted by mark wadsworth @ 03:57 PM 7 Comments

VI covers herself while boss is away

BBC: 'Brown is a man of true grit'

One thing about what she says is correct, Brown should not be underestimated - I don't think any of has ever really managed to underestimate Brown. He can underachieve anything we throw at him.

Posted by beartil2010 @ 03:53 PM 15 Comments

Everyone Wants to Leave but Have We Left it Too Late?

Shelter Offshore: Revealed: Why Britains Retirees are Moving Abroad

Specifically examining why British retirees are emigrating in greater numbers, but commenting on how many pre-retirees may now be trapped in the UK by falling house prices...it makes for factual and enlightening but grim reading!

Posted by richard stanton @ 03:39 PM 6 Comments

Another govt failure

Telegraph: Ann Abraham's report into Equitable Life shows the buck stops with the Government

Oblique to the topic but another example of govt regulatory incompetence and seeking to absolve themselves of responsibility. Deficit about to get bigger?

Posted by letthemfall @ 02:04 PM 1 Comments

Massive crash straight ahead

Market Oracle: Financial Stocks Meltdown: A Picture Worth 1,000 Words

Who a few years ago would have thought FNM and FRE would lose 70+% and 80+% of their market value

Posted by sold 2 rent 1 @ 01:46 PM 44 Comments

The cost of taking out a new two-year fixed rate mortgage has risen to the highest level in more than eight years

The Times: UK mortgage rate soars to eight-year high

New data revealed that between May and June the cost of two-year fixed-rate mortgage, for borrowers with 25 per cent-worth of equity, rose by 37 basis points to 6.63 per cent. The last time rates hit these heights was in February 2000.

Posted by eagle @ 01:18 PM 1 Comments

Ozzies reaching tipping point?

The Age: Shock Drop in Home-Loan Approvals

Bouyed by a commodities & mining economy but still have the same credit and banking problems. 8% drop in ONE month. What's going to happen? 'Home-loan approvals fell to an eight-year low in May as decade-high interest rates, rising inflation and a bearish outlook for business turned people away from buying houses. The number of home loans, seasonally adjusted, dropped 7.9% in May, according to the Australian Bureau of Statistics, the lowest since June 2000, according to data from Bloomberg.'

Posted by beartil2010 @ 01:12 PM 0 Comments

Housing downturn worse than early 1990s

reuters: Housing downturn worse than early 1990s

The downturn in the housing market has gathered pace and now feels "an awful lot worse" than the last major correction in the early 1990s, the chief executive of............

Posted by mark @ 01:09 PM 19 Comments

8th 8th 2008 - Lucky for some?

Telegraph: Barclays stops loans at FirstPlus

So a lucrative source of income gone for Carol. "Frits Seegers, head of Barclays' global retail business, had been running an auction for FirstPlus last year but failed to find a buyer who would pay a premium to the value of its loan book"

Posted by techieman @ 11:42 AM 4 Comments

A fool in denial or a man out of touch?

Telegraph: Gordon Brown to put brave face on economic bad news

''...Gordon Brown will insist today that the UK will ride out the current downturn despite growing fears that the economy is entering its first recession in more than a decade and a half. The Prime Minister, talking at the G8, will say that the economy is well placed to survive the difficult economic circumstances including rocketing oil and food prices and the credit crunch. ...''

Posted by hpwatcher @ 10:41 AM 14 Comments

The reason for the inverse correlation between house and commodity prices

Times: Copper thieves target empty American houses

This article appeared in April but I don't think it was ever posted here, so... The more copper goes up in price the more empty houses are vandalised. Imagine the graffiti the vandals leave behind: - In communist China the workers take the lead - In capitalist America they take the copper

Posted by icarus @ 10:35 AM 0 Comments

Krusty diverging for when her Chan 4 earnings dry up? Acclaimed! - WTF!

drop365: Tool Kit by Kirstie Allsopp

Off message - but things are so dire today..... The acclaimed co-presenter of LOCATION, LOCATION, LOCATION Kirstie Allsopp has worked with Sebastian Conran to design three starter kits to help make our lives a little easier. These high quality tools come neatly packaged in a beautifully designed 1930's style book box.

Posted by whostolemyendowment @ 10:34 AM 12 Comments

The gloom is all pervasive

MSN: Consumer confidence hits record low

Consumer confidence slumped to a new record low during June as a run of bad economic news made people worry about the future. Ongoing economic uncertainty, a weakening housing market and higher food and fuel costs all combined to make consumers feel increasingly negative, Nationwide said. Its consumer confidence index dropped to just 61 during the month, down from 65 in May and 93 in June last year, to hit a new record low for the sixth consecutive month.

Posted by musn't grumble @ 10:08 AM 0 Comments

Radio Show on UK Housing

Commodity Watch Radio: UK Property: How Low Will It Go?

1 hour podcast on UK property with John Woosley of Lauristons Estate Agents, Merryn Somerset Webb of Moneyweek Magazine, Jonathan Davis of Armstrong Davis, Reinhard Schu of Berlin Property Investments and Michael Hampton of Global Edge Investors.

Posted by frizzers @ 10:06 AM 6 Comments

UK Housing collapse and irrseponsible debt binge

London Evening Standard: UK in denial on housing, says the prophet of fear

Fantastic quotes from Christoph Wood a strategist for Hong Kong brokers CLSA Asia Pacific Markets: "But in Britain the story is only just beginning, with massive denial still rampant over the condition of the property market in the world's biggest rip-off city." "A housing collapse like the one Britain is about to experience will render all talk of inflation as an absurdity" "In Britain there is an almost pathetic lack of understanding of the potential downside of boom-bust credit cycles. Hence the shock at the all-too predictable demise of the wholesale funding-addicted Northern Rock. And hence the British Prime Minister's evidently ludicrous self-belief that he had presided as Chancellor of the Exchequer over an economic miracle as opposed to a totally irresponsible debt binge."

Posted by doomwatch @ 09:58 AM 39 Comments

Yet more job cuts at UK housebuilders

BBC: More job cuts at UK housebuilders

Bovis Homes and Redrow have become the latest UK housebuilders to announce a sweeping reduction in their workforces. - Between share prices, mortgage approvales, transaction volumes and job losses, I think the word "decimation" is most appropriate for the unfolding situation.

Posted by dohousescrashinthewoods @ 07:37 AM 8 Comments

Banks ride to the rescue as Bradford & Bingley hits share-price meltdown

Daily Mail: Banks ride to the rescue as Bradford & Bingley hits share-price meltdown

Britain's Big Six banks staged a dramatic rescue of Bradford & Bingley last night in a bid to avert a new Northern Rock crisis.

Posted by becky @ 07:13 AM 27 Comments

An American bank run?

Reuters: IndyMac depositors seek cash, comfort at Branches

IndyMac, one of America's biggest mortgage companies, announced yesterday that it is essentially shut to new business. It is selling its mortgage retail branches, and will not be issuing any more loans. They are also axing 3,800 jobs. IndyMac's share price reached a new low of $0.71 (from a high of $31.50 last year.) Now there are scattered reports coming in of an "elevated level of withdrawals" by depositors who are concerned about the safety of their money.

Posted by little professor @ 01:44 AM 5 Comments

Tuesday, July 8, 2008

Another PPP? And who is going to pay for all this?

Telegraph: Buy-to-let: the hassle-free rent guarantee

Private sector leasing is a potentially lucrative option for landlords, but it's not a commitment that should be taken lightly. By Jayne Dowle Does the idea of a guaranteed rental income, with no voids, no agency fees, no maintenance worries and vacant possession at the end of the tenancy sound too good to be true? Private sector leasing offers all of these, and may prove an attractive option to landlords who are struggling to fill their properties.

Posted by stevie dee @ 10:58 PM 0 Comments

An Englishman's home, is his....depreciating castle

Telegraph: Housing slump spreads to country mansions

Prime country property had until recently defied the slowdown but Savills, the property group, warned that country houses valued at up to 4 million are no longer immune to the stuttering market and the immediate future looks bleak.

Posted by rental john @ 08:41 PM 2 Comments

In the words of Mugabe, the NAEA can "go hang".

FinanceMarkets.co.uk: Estate agents urge prospective purchasers to action

The National Association of Estate Agents (NAEA) is urging prospective house purchasers into action, as a record number of homes languish on estate agents books.

Posted by eyes_wide_open @ 08:39 PM 9 Comments

Just when you thought it was safe to go back in the water!

Bloomberg: Toxic CDOs Given Up for Dead Coming to Life With Pension Funds

Collateralized Debt Obligations that helped drive banks to $400 billion of writedowns and credit losses are finding buyers under a different name: Re-Remics. Goldman Sachs Group Inc., JPMorgan Chase & Co. and at least six other firms are repackaging unwanted mortgage bonds as sales of CDOs composed of asset-backed securities fall to less than $1 billion this year !

Posted by alan @ 07:17 PM 2 Comments

Time to cut more staff

Bloomberg: Savills Drops the Most Since 2001 on Housing Slump

Savills Plc, the U.K.'s largest publicly traded property consultant, fell the most in seven years in London after the company said transactions fell ``significantly'' in the first half. The shares dropped as much as 18 percent.

Posted by alan @ 07:13 PM 0 Comments

How bad will it get?

Fool Uk: Turning Back The Property Clock

Turning Back The Property Clock By Cliff D'Arcy | 8 July 2008 Even the most optimistic property watchers would agree that the housing boom is well and truly over. Indeed, according to the Nationwide Building Society, the average house price fell by 0.9% in June, following a shocking 2.5% drop in May. In the past twelve months, the average house price has fallen by 6.3%, and is down 7.3% from its October peak.

Posted by bufferbear @ 06:51 PM 3 Comments

Barclays pulls the plug on property secured loans

Times: Barclays stops selling secured loans

Barclays are out of the secured loan business from August the 9th. News of Barclays Firstplus business pulling the loans has also prompted Moneysupermarket.com to issue a profits warning as a direct result.

Posted by enuii @ 06:15 PM 3 Comments

A nation of tenants?

Press Association: Sale-and-rent-back schemes warning

Half of homeowners would consider a sale-and-rent-back scheme if they faced having their property repossessed, a survey has showed. Around 50% of people said they would think about one of the schemes if they could no longer afford their mortgage, according to money website Fool.co.uk.

Posted by landedgentry @ 05:53 PM 0 Comments

It's not just the market that's impotent!

Mirror: Viagra boost for city high fliers hit by credit crunch stress

City high fliers in their 20s and 30s are flocking to buy Viagra and Cialis to cure bedroom flops brought on by credit crunch stress. But the bashful bankers, lawyers and hedge-fund managers have the pills delivered to them at work to keep the problem secret from partners. Mitesh Soma, founder of Chemistdirect.co.uk, the UK's largest online pharmacy, said a third of the monthly 10,000 orders now go to London's Square Mile or Canary Wharf. He said: "The credit crunch and long hours led to a surge in under 35s who need help."

Posted by disillusioned @ 05:52 PM 9 Comments

The poor rich

The Guardian: 'If I didn't have this house to look after, then I'd be well off'

Tissington Hall has been in the possession of Sir Richard Fitzherbert's family for 400 years. When he inherited it, he cried - how was he going to make ends meet? Like many stately home owners, he sees himself as a custodian of our historic heritage and believes he should be rewarded with bigger tax breaks. Could he have a point? Jon Henley reports

Posted by landedgentry @ 05:48 PM 0 Comments

A survey of EAs sentiment carried out by Abbey!!!

Metro: Housing decline 'over within a year'

Nearly two-thirds of estate agents expect house prices to stop falling within the next 12 months, a survey showed today. Around 61% of estate agents said they expected the property market to begin recovering within a year, while 28% thought it would take between one and two years before prices stabilised, according to high street bank Abbey.

Posted by rental john @ 04:26 PM 31 Comments

Oh... My... God

Guardian: Persimmon lays off 40% of its workforce

Housebuilder Persimmon is laying off 2,000 staff - 40% of its workforce - after a slump in sales, and warned that conditions in the housing market remain tough. The job cuts bring the combined job losses in the housebuilding sector to more than 4,000. Last week Barratt laid off 1,000 staff from its 6,500-strong workforce and closed six offices, while Taylor Wimpey, the biggest housebuilder by volume, axed 900. The expected job losses from Persimmon had been 1000.

Posted by little professor @ 04:13 PM 18 Comments

DCLG: -0.3% MoM, +3.7% YoY

Guardian: House prices continue to slow

The Communities and Local Government department said UK house prices grew by 3.7% in the year to May 2008, compared with 4.9% in the year to April 2008. The statistics, which include data on mortgage completions, show the average house now costs 218,151. According to the figures, prices rose in London by 7.8% in the year.

Posted by little professor @ 04:11 PM 1 Comments

It's Going To Be A Long Haul

Evening Standard: Day of turmoil - shares slide, job cuts, house prices fall

One City analyst warned that the housing market could take 20 years to recover from the credit crunch. House builder Persimmon-said it was cutting more than 1,000 jobs because of the housing crisis and shares in struggling mortgage lender Bradford & Bingley were declared "worthless" by a firm of City brokers.

Posted by yoyo1 @ 04:05 PM 3 Comments

Persimmon Eliminates 1,100 Jobs; Home Sales Drop

Bloomberg: Persimmon Eliminates 1,100 Jobs; Home Sales Drop

Persimmon Plc, the U.K.'s second- biggest homebuilder, eliminated 1,100 jobs after the worst housing slump in 30 years dragged down first-half sales by 34 percent. Persimmon, which dropped 72 percent this year, fell as much as 8.6 percent in London trading today. The cuts amount to about 20 percent of the York, England-based company's workforce. Sales by volume dropped 31 percent to 5,501 units and average selling prices declined 4.1 percent to 181,500 pounds from 189,255 pounds a year earlier, Persimmon said today.

Posted by edwardnh @ 03:37 PM 0 Comments

CDO's - they're back!

Bloomberg: Toxic CDOs given up for dead coming to life with pension funds

Just as you thought the packaging of toxic loans was over Wall Street bankers are now selling them again, just this time they are called Re-REMICS (resecuritization of real estate mortgage investment conduits). This time they are cliaming that the bonds are less complicated giving the investor a better understanding of what they are buying. Appears to be an attempt to allow the mortgage market to restart.

Posted by tim b jones @ 03:36 PM 0 Comments

Well, he would say that....

BBC News: PM 'right man' to steer economy

''...Gordon Brown has said he is the right person to take the British economy through "difficult times" - and that it is "more resilient than most". ...''

Posted by hpwatcher @ 02:54 PM 20 Comments

Cuts at Barclays mortgage division Firstplus

BBC online: 300 job losses at home loan firm

Banking giant Barclays is cutting 300 jobs at its home loans division in Cardiff, it has announced.

Posted by rental john @ 02:37 PM 3 Comments

The City bulls say 'Don't worry'. But you should.

MoneyWeek: The City bulls say 'Don't worry'. But you should.

Some strategists are forecasting market rises of 25% and more. But back on planet Earth, consumers are rattled and share prices are going in one direction only: down.

Posted by damien @ 02:06 PM 1 Comments

The 20 year article

Telegraph: Britain is close to recession, British Chambers of Commerce warns

This is the piece mentioned in str 2007's post below. It's an updated version of an earlier post by Nick Allen. The quote: "In a note to clients Mark Hake, an analyst at Merrill Lynch said: "[Compared] with the 1990 correction... it looks significantly worse, with house prices falling faster and further and very little recovery in real terms expected over 20 years."

Posted by letthemfall @ 01:45 PM 2 Comments

Is someone going to give them a call and ask where it is?

Halifax: House Price Index

This section of the site is where we can share some of that information with you. You will find our views on the global and U.K. economies, including the well-known and respected Halifax House Price Index, the annual Economic Factbook, the quarterly Scottish Economic Index and the monthly Scottish Labour Market report. If you require any assistance, contact the HBOS Economics Help-line on 0845 604 5404.

Posted by craigi @ 01:44 PM 5 Comments

CML reports slight increase after the battering in April

Council of Mortgage Lenders: Lending for house purchase lifts but remortgaging drops

OFFICIAL PRESS RELEASE: Lending for house purchase increased slightly from April to May, according to the Council of Mortgage Lenders. Loans for house purchase increased by 4% in volume and by 2% in value; although both were 44% lower than May last year. However, there was a steep decline in remortgaging, down 14% since last month and 23% since last year. The value of remortgage lending declined by 13% since last month. --- NOTE: All figures relate to May 2008, not June 2008. These are lagging the Nationwide index.

Posted by drewster @ 12:24 PM 1 Comments

No more Broone - he 's bust...

The Renegade Economist: Gordon's Famous Last Words

Gordon Brown's Cabinet colleagues are reported to be hoping that the recession will be done-and-dusted and forgotten - by the General Election in 2010. In fact, by 2010 Gordons famous last words will be ringing in everyones ears.

Posted by neo-serf @ 12:22 PM 5 Comments

Commercial property sales tank in London

Home Move: Londons commercial property deals 50% down on last year

Commercial property sales in London are down 50% on last year.

Posted by brite2006 @ 12:20 PM 0 Comments

Transfers from B&B, A+L and perhaps HBOS?

FT: Building society puts stop on Isa transfers

Sorry, I only have the summary article...

Posted by rental john @ 11:58 AM 0 Comments

Unravelling?.....No, it's imploding!

FT: Fannie and Freddie hit by fresh concerns

Shares in Fannie Mae and Freddie Mac plunged on Monday as investors worried that the two giant government-sponsored mortgage financiers would have to raise fresh capital.

Posted by rental john @ 11:55 AM 0 Comments

It's a bear market

The Times: Recession fears send London into bear market

London officially entered a Bear market today.

Posted by crashologist @ 11:23 AM 0 Comments

B&B final meltdown?

Telegraph: Wipe-out fear for Bradford & Bingley's investors

...B&B's shares falling again yesterday - down 8 to 42p - there was a growing view that the plan, backed by four of B&B's biggest shareholders and underwritten by a mixture of investment and high street banks, was merely a sticking plaster.

Posted by rental john @ 10:39 AM 0 Comments

On which planet?

Reuters: House prices up 3.7 percent in May

Short article.....but why not say compared to 5 or 10 years ago.......utter cr@p.

Posted by rental john @ 10:23 AM 1 Comments

It's the system stupid...

The Renegade Economist: Bitter Seeds for the Next Boom/Bust

Study the next business cycle (2010-2028) by decoding the signs that are being flagged up in the marketplace. The seeds of the next property mania are even now being sown, as a report in The Sunday Times reveals. It reports the financial dealings of the Berkeley Group, led by the shrewd Tony Pidgley. The house builder, with a market value of 766m, is allocating 7% of its shares to Pidgley and his colleagues. Pidgley will pocket 31m. Whats behind the financial package?

Posted by neo-serf @ 09:51 AM 0 Comments

Between a rock and a hard place

FT: Outlook: Inflation narrows Bank rate options

Inflation continues to dominate the economic agenda, and this week the Bank of England decides how it can best balance the risk of slowing growth and rising prices. On Thursday, the Bank is expected to hold the UK base rate at 5 per cent as the pressure of inflation leaves it hamstrung in offering financial markets any assistance.

Posted by davethebox @ 09:37 AM 0 Comments

Savills Plc - Trading update

London Stock Exchange: Savills Plc - Trading update

"Within Savills' core prime markets, transaction volumes in London are down about 45% year on year, with prices being adjusted downwards by approximately 7.5% in central London in the first six months of 2008. Prime country property was initially less affected than London but is now following suit."

Posted by katalan1 @ 09:35 AM 0 Comments


Time Online: Savills hit as London house prices down 7.5%

''...Savills, one of the biggest property agents in the UK, said that London house prices have fallen by around 7.5 per cent in the first six months of 2008 and forecast difficult times ahead. ...''

Posted by hpwatcher @ 09:24 AM 6 Comments

Views by Mark Hake Merrill Lynch Analyst - see my post

Telegraph: Builders Hit by Another Day of Falls

Housebuilders suffered another bad day on the stock market with their shares sliding by up to 14pc as analysts from Merrill Lynch and Royal Bank of Scotland downgraded the sector.

Posted by str 2007 @ 09:19 AM 32 Comments

Bradford & Who?

Youtube: Hugh Laurie - Marketplace Bradford & Bingley

With shares falling on B&B, thought I would put on an advert for nolstagia. That's right, it is the marketplace. Bye Bye B&B

Posted by stevie dee @ 09:14 AM 1 Comments

Credit crunch leaves homeowners with no way out

Guardian: Deadlock in the auction room

For this desperate homeowner the view was not a welcome one - there were no bidders for his flat. Auctions across the country reveal the same picture with auctioneers and vendors deadlocked. The former are telling the latter that if they want to sell their houses, they have to lower their prices significantly, but sellers can't afford to do it. Auctioneer Andrew Binstock said, "I'm telling people if they think their property's worth 100,000, then put it up for 70,000 or 80,000." Charles Smailes, auctioneer at Feather Smailes & Scales in Harrogate, said: "Demand has dropped to nothing. It's like the property market has fallen off a cliff."

Posted by little professor @ 08:10 AM 26 Comments

Wile E Coyote economy well past the cliff edge

BBC News: Recession 'looming' for UK firms

I was slightly surprised to see the Beeb reporting in such a dismal tone: The BCC's director general David Frost said the report was deeply worrying. There has been disappointing news on house building and mortgages "I am sending Alistair Darling and Gordon Brown a strong message from the businesses I meet every day up and down the country," he said. "To put more pressure on business would not only restrict business growth and hit the consumer hard, it would crush further what our economy is based on - confidence."

Posted by quiet guy @ 08:08 AM 4 Comments

buy-to-let lender is worthless

Telegraph: Bradford & Bingley shares crash

Pali International, a stockbroker, cut its target price for the bank to "zero" and calculated B&B's "net present value" to be -14p. In a separate note, banking specialist Fox-Pitt, Kelton said: "We cannot rule out the possibility of an effective failure with shareholders receiving little or nothing for their shares." No wonder Steven Cranshaw was feeling ill.

Posted by mken @ 07:58 AM 8 Comments

The miracle economy with sound fundamentals

Telegraph: Britain is on brink of recession, says BCC

Britain is on the brink of a recession and unemployment is set to rise 300,000 by the end of next year, according to the British Chambers of Commerce. Manufacturing output fell 0.5 per cent between April and May when analysts had been expecting a much smaller decline In a dire warning it said the economic outlook for the business sector was "grim and ominous" and the downturn could be "longer and nastier" than previously expected.

Posted by sovietuk @ 07:46 AM 3 Comments

Comical Assetz

assetz: Cushioned from negative equity

This demon of the property market caused nightmares for homeowners 20 years ago and it seems that history could be about to repeat itself. As house prices drop around the country, negative equity poses a real threat to property owners. Fortunately Nationwide released figures earlier this week that house prices only slipped by 0.9 per cent in June - half the rate it fell in May. And what is more comforting for those investing in property is that GE Money Home Lending has produced a reassuring picture of the chances of negative equity affecting homeowners.

Posted by sold out @ 06:47 AM 10 Comments

Some more 'sound fundamentals'

daily mail: Recession and job losses could start in months, say bosses

''...Britain is on the verge of a recession and the number of permanent job vacancies is falling, two reports warn today. The British Chambers of Commerce describes the outlook as 'grim' and warns that a recession could start within months...''

Posted by hpwatcher @ 05:21 AM 1 Comments

Spain faces ression as housing bust takes hold

Wall Street Jurnal: Spain's Once-Hot Economy Faces Recession

The Spanish economy could face recession in the second half, possibly depriving the euro zone of a principal engine for job creation and economic growth. The housing boom peaked last year when prices reached three times their 1997 levels and a series of European Central Bank interest-rate increases made financing more expensive. The outbreak of the U.S. subprime-mortgage crisis last summer precipitated a correction by making financing even more expensive for Spanish home builders.

Posted by edwardnh @ 02:17 AM 1 Comments

Here's a giggle, from the soon-to-be ex-bank

Bradford & Bingley: Buy to Let Seminars

If you are looking to learn more about Buy to Let mortgages, then our seminars are ideal. So book your free place at a seminar below. Check out the list of seminars.

Posted by little professor @ 12:55 AM 6 Comments

10,000 for a house. That's more like it!

Telegraph: US housing shows signs of recovery

"In the US, people are finding fair and good deals that suit them. The sales numbers show that people's psyche is beginning to turn, albeit spurred on by low prices. The number of low-end sales has doubled in the past year, with houses offered at a staggering sub-$20,000 (10,000) being the most popular. One house price was so low the purchaser used a credit card to buy it. People are seeing houses priced at 55pc of the value they were previously, with a $600,000 home now costing $325,000. Mortgage banks are becoming increasingly keen to rid themselves of such properties."

Posted by drewster @ 12:51 AM 9 Comments

Monday, July 7, 2008

So-called inflation-linked bonds are yet another rip-off

Economist: Index-linked bonds - Losing Interest

Two articles (see inside): ECONOMIST: "Higher inflation is not all bad news for the government. The race to buy index-linked bonds, which protect their owners against future price rises, is so intense that the 50-year gilt was offering a real (after-inflation) yield of just 0.3% in trading last week. That is a very cheap way [for governments] to borrow money. One interpretation of this trend is that the markets have lost faith in the Bank of England's ability to control inflation." BLOOMBERG: "Treasury Inflation Protected Securities aren't living up to their name for bond investors who say they can't trust the way the U.S. government calculates the rising cost of consumer goods. 'The consumer price index underestimates inflation', said ..." HPC SUMMARY: Inflation is ripping off everyone.

Posted by drewster @ 11:12 PM 2 Comments

Everything's going to be fine

Edeus: Let's not overegg the mortgage crisis

Last week, Edeus were saying that everyone was over-reacting to the credit crisis, and everything would be fine. This week, they have pulled out of the market, and are paying people to redeem their mortgages

Posted by jonb @ 07:50 PM 4 Comments

Donald Trump's plans for Scottish golf course and housing development

BBC Radio 4: Putting for Profit

1/2. Colin Blane reports as Donald Trump's plans for a reported one billion pound golf development in Aberdeenshire are subject to a public inquiry. Link to Radio 4 'listen again' from 11.00 am 7/7/08

Posted by rental john @ 07:18 PM 0 Comments

Another one bites the dust

This is Money: Specialist lender Edeus offers borrowers sweeteners to go

"Former specialist mortgage lender Edeus is offering cash sweeteners to encourage its borrowers to redeem their mortgages early. Alan Clearly, managing director, at the group, said: 'If we sold our mortgage book outright, we would most likely make a loss. By going direct to the consumer we can curb this.' Edeus, launched less than two years ago by the former heads of HBOS's specialist lending arm Birmingham Midshires, was a specialist lender at the forefront of the UK's subprime mortgage sector. 'We do not think there is a market in the UK for a company like us anymore. We think that the market is going to get worse.'"

Posted by drewster @ 06:28 PM 1 Comments

Oh dear, how many more people will be stuck on their lender's SVR?

Fool: Are 95% mortgages next for the chop?

"UK house prices have fallen 6.9% over the last year, according to Nationwide, and you'd have thought that would be good news for potential first-time buyers as homes should now be more affordable. But sadly, for wannabe homeowners, while houses are getting cheaper, mortgages are getting more expensive. Last week saw the death of the 100% mortgage. This means no deposit, no mortgage -- simple as that. The situation is so dire these days that the best deals are usually reserved for those with a mighty 25% deposit. If the figures dont add up, it may be a smart move to put off buying for now and save hard to boost your deposit. Who knows, in that time, house prices may have fallen even further, making dreams of owning your own home a reality."

Posted by drewster @ 06:21 PM 5 Comments

Knee-jerk solution hits the buffers

FT: Confusion over UK rules on shorting

When you mishandle the economy you go into fire-fighting mode - and start another series of problems. The new FSA rules to reduce shorting can lead to the identification of successful shorters, causing others to pile in and achieving the opposite of the intended effect. Now other problems with the application of the rules are emerging - but don't worry the FSA is keeping things under review and their (in)famous 'light touch' is being applied to the enforcement of these rules.

Posted by icarus @ 05:36 PM 9 Comments

How rumours led to Bear's collapse

Vanity Fair: Bringing Down Bear Stearns

This story is very intriguing. On Monday, March 10, the rumor started: Bear Stearns was having liquidity problems. In fact, the maverick investment bank had around $18 billion in cash reserves. But soon the speculation created its own reality, and the race was on to keep Bears crisis from ravaging Wall Street. With the blow-by-blow from insiders, Bryan Burrough follows the playersBears stunned executives, trigger-happy reporters at CNBC, a nervous Fed, a shadowy group of short-sellersin what some believe was the greatest financial scandal in history.

Posted by edwardnh @ 05:35 PM 0 Comments

Clouds gathering over the slow train wreck

Sharecast: Update: B&B rights issue worries grow

At their worst, the shares were trading at 41p each Monday, some 14p below the rights price, raising concerns that shareholders will be deterred from stumping up fresh cash. It has also emerged that B&B will have to pay fees to Goldman Sachs, which gave the bank advice on TPGs proposed investment, even though the deal fell through.

Posted by paul @ 05:16 PM 1 Comments

Edeus paying borrowers to get off their books

FT Adviser.com: Edeus encourages borrowers to redeem mortgages

According to Papitogrande in the main forum, "I received a letter this morning informing me that a BTL client of mine was to be offered 10,300 if he redeemed his mortgage within the next 2 months." The mortgage has just 15 months left to run and edeus will waive the redemption penalties. Edeus paying 10,300 to get a mortgage off their books because they figure the hit they'll take over the 2 year life of the mortgage will be greater must surely be unprecedented. Buckle your seatbelt, Dorothy, because Kansas is going bye-bye.

Posted by pacific state @ 04:44 PM 0 Comments

Persimmon follows suite with other builders...


Chief executive Mike Farley will confirm he has been forced to wield the axe in what is likely to be a grim trading update to the City. The cull, a fifth of the 5000-strong staff, would add to the gloom for the industry after Barratt Developments last week slashed 1000 jobs and Taylor Wimpey cut 900.

Posted by rental john @ 04:28 PM 0 Comments

Oilrritable Bowel Syndrome - A speculators dream

Reuters - Yahoo: Oil below $142 on dollar gain, Iran in view

Oil retreated to below $142 a barrel on Monday as the dollar gained, taking a pause from a record-breaking rally that has lifted prices by almost 50 percent this year. Investors were also eyeing signals from Iran, the world's fourth-largest oil exporter, in its dispute with the West over its nuclear work, and some saw signs that Iran may be more flexible in negotiations.

Posted by stevie dee @ 04:23 PM 0 Comments

Yet another crooked broker....

Thisismoney: Broker fined 129,000 for false mortgages

Sadia Nasir, a director of Ilford-based London Mortgage and Financial Services, is the 12th mortgage broker to be banned by the Financial Services Authority this year, but the first to date to be both banned and fined for mortgage fraud.

Posted by rental john @ 04:22 PM 0 Comments

Recession worries in Germany deepen

Credit Writedowns: Recession worries in Germany deepen

Recession worries in Germany deepen Recession worries at the heart of Europe deepened as it was revealed that factory orders in Germany declined unexpectedly for the sixth straight month. With inflation and interest rates rising, it seems rather unlikely that Germany can escape recession despite the lowest unemployment levels since reunification.

Posted by bes @ 02:07 PM 1 Comments

How many zeroes is that?

Naked Capitalism: Banking System Losses to Hit $1.6 Trillion?

Bridgewater Associates, a hedge fund, estimates that total global losses, due to the credit crunch, will be 4X the $400 Billion that has been lost already. Other commentators are using sporting analogies, such as "we're only in the second innings of this game": I think that's Baseball, but whatever they mean, this is just not Cricket. PS: it's $1,600,000,000,000 = $1.6x10

Posted by brian t @ 02:00 PM 13 Comments

$1.6 trillion is largest writedown loss estimate yet

Sonntagszeitung: U.S. study estimated losses of financial institutions at $1.6 trillion dollars

This German-language article is based on the analysis by Bridgewater Associaes, a very well-resected hedge fund in the US. Translation is available at the blog Credit Writedowns (original article is in German) http://www.creditwritedowns.com/2008/07/16-trillion-new-esimate-on-writedowns.html Obviously Bridgewater thins systemic risks from this magnitude of expected losses is large. Yet another reason the markets have been falling.

Posted by edwardnh @ 01:06 PM 2 Comments

Old Article to refresh the memory

SKY NEWS: House Prices Slide Speeds Up Again

10:31am UK, Thursday June 05, 2008 House prices have fallen by nearly 4% during the past year - their fastest rate of decline in 15 years, latest figures have shown. Britain's biggest mortgage lender, Halifax, said the cost of a home slipped by a further 2.4% during May to stand at an average of 184,111. On an annual basis house prices have now fallen by 3.8% since May last year, the biggest year-on-year drop since April 1993. The average home now costs 6.8% less than it did at the beginning of the year, with prices falling in four of the past five months, while property values are 9.4% lower than at their peak in August last year

Posted by plato @ 12:43 PM 15 Comments

David Smith finally gets it!

Times: Remember building societies? Net lending by them dropped 90 per cent in May

"There comes a point when you just have to stand back in amazement. Last week, I reported that the banks had provided fewer than 28,000 new mortgages in May, 56% down on a year earlier. What was not clear then was that this was in the context of the banks themselves gaining market share. Full figures for new mortgages in May, courtesy of the Bank of England, showed an even bigger drop, 64%, to just 42,000 from all lenders. Getting a mortgage these days is becoming almost as rare as winning the lottery. These figures are worth setting in context. They are a third of the monthly number of mortgage approvals we saw in November 2006, when 129,000 were granted. So how low can they go? Will it be 30,000, 20,000 or none at all?"

Posted by drewster @ 12:37 PM 36 Comments

Slump could be good news

Daily Mail: Slump could be good news

Summary of why falling prices should be making us feel better. Sadly this article is in the business pages, I would like to have seen reader comments.

Posted by wally @ 11:50 AM 0 Comments

Better to let the bubble burst

FT: Recession is not the worst possible outcome

A substantial economics article from the FT. The conclusions will I suspect receive support here - "We might run a greater risk of a recession in the short term. But a recession is not the worst possible outcome. The worst is for this crisis to go on and on, for Minskys moment to become an eternity."

Posted by letthemfall @ 11:35 AM 3 Comments

Barclays Wealth sees stubborn inflation

reuters: Barclays Wealth sees stubborn inflation

Wealth managers at Barclays are stepping away from equities and telling their clients to prepare for central banks to have difficulty controlling inflation.

Posted by mark @ 11:29 AM 10 Comments

Oh dear!!!

BBC News: Faster decline in factory output

The output of the UK's manufacturers, miners and energy producers has declined at its fastest rate for more than a year. "The lower pound should mean that the manufacturing sector is the UK's shining light, but with output no higher than eight months ago, it seems that the global and domestic slowdowns are having more of an impact," he said.

Posted by mattormsby @ 11:26 AM 0 Comments

Don't worry folks! Your job is safe! Darling!

FT: UK industrial output falls sharply

UK industrial production fell by 0.8 per cent in May, much more than expected, adding to a growing picture of an economy where growth is challenged in almost every sector. Meanwhile, manufacturing output between April and May fell by 0.5 per cent with widespread falls in almost every category and no sector seeing a strong increase in production. Over the latest three months, output fell by 0.2 per cent compared with the previous three months.

Posted by stevie dee @ 11:15 AM 14 Comments

Hypocrite - Take the log out of your eye, before ...

Times Online: Waste not want not, Gordon Brown tells families

Mr Brown reinforced its message yesterday, calling on people to stop throwing food away as he travelled to the G8 summit in Japan. If we are to get food prices down, we must do more to deal with unnecessary demands, such as by all of us doing more to reduce our food waste, he said. Another spin on the "Fairtrade" message that is being delivered, and the distraction gamit that all parents know when taking away a favorite toy from a child. That said, GBH is getting more childish and transparent all the time.

Posted by fahrenheit451 @ 10:35 AM 18 Comments

You lied to me - it IS different this time ...

GM.TV: Property Webcast

Gary McCausland confirms we have almost the exact opposite of what we had in the 90's ... today we have low interest rates (that will fall to 4% sometime next year), high employment, high 'pent up' demand and of course, a limited supply and inflation at only 3%. PS don't forget to buy my new book 'How to make a million from property' GM This is a 7 minute video, FF to 6 minutes in.

Posted by angonamo @ 08:39 AM 23 Comments

Alistair Darling is saved


Reacting to the reported decision he said: "If it's true it's devastating for the farming families who are really suffering at the hands of Alistair Darling". "It's devastating their family businesses, it's ruining their lives. It's something we've got to act on."

Posted by sold out @ 07:55 AM 10 Comments

Oil price shock means China is at risk of blowing up

telegraph: China's factories "were not built with current energy levels in mind", said Mr Jen. The outcome will be "non-linear". My translation: China is at risk of blowing up.

Any low-tech product shipped in bulk - furniture, say, or shoes - is facing the ever-rising tariff of high freight costs. The Asian outsourcing game is over, says CIBC World Markets. "It's not just about labour costs any more: distance costs money," says chief economist Jeff Rubin.

Posted by big chris @ 04:20 AM 1 Comments

In Manchester, asking prices are up but real prices are down

Guardian: Tables turn in favour of tenants

"Don't believe all you hear about sky-high rental prices. News reports might suggest otherwise, but letting agents are reporting rents requested, not rents achieved. Ignore those ludicrous prices displayed outside and politely ask if they have anything cheaper on their books. In one instance, the morning rent was a risibly inflated 700. At midday, the price had shrunk to 600 and by the evening it was 500 (negotiable) inclusive of parking. Times have changed and the plethora of new flats should benefit tenants."

Posted by drewster @ 04:11 AM 6 Comments

At least a few years of pain?

Telegraph: The signs of a recession are all here

"Why should the economy recover more quickly now? The credit crisis is not going to go away. Banks will be struggling for years and their lending policies will bear the marks of the shortage of capital and greater scrutiny by regulators and shareholders. The difficulties in the housing market are deep-seated and will not disappear like a will-o'-the-wisp."

Posted by quiet guy @ 01:08 AM 7 Comments

Sunday, July 6, 2008

A really bad week of ecomonic pointers!

Telegraph: Sir Stuart Rose is right: the sky may be falling in on us

A round-up of all the bad economic news fom last week

Posted by wdbeast @ 10:09 PM 2 Comments

An Inconvenient Lesson from History for the Economic Elite

BBC: Upstairs, downstairs

As the filthy rich accelerate away from the grubby masses are we risking a dislocation in society that would surprise our Tudor forefathers. Since the economically super rich have no need to interact with less prosperous members of their community at all, they know increasingly little about us, whereas Tudor times it was simply impossible for the inhabitants of the manor houses to forget those less fortunate than themselves.

Posted by enuii @ 10:09 PM 3 Comments

Bonds linked directly to house prices - what a great idea (not!)

'I'm sticking with my house price gamble': Mail on Sunday

"Falling house prices are delivering a double blow to tens of thousands of investors. Not only is the value of their homes dropping, they are also seeing returns on their savings eroded because they have fixed-term bonds linked to the value of property. And there is little anyone can do to protect their investments because of expensive exit penalties or onerous terms and conditions that prevent them getting hold of their money until plans mature. Banks including Abbey, Barclays, Bradford & Bingley, Newcastle Building Society, Skipton Building Society and Saga are among those that have sold these bonds, which link profits to the value of the Halifax House Price Index (HHPI). Halifax itself does not sell such investments."

Posted by drewster @ 07:05 PM 2 Comments

if you like 'doom and gloom' last week was as good as it gets

Firstrung: Firstrung, first time buyers the week in focus

Brits were subjected 'en masse' to more 'doom and gloom' when searching for housing market news this past week. However, as always if you're a priced out first time buyer the future (in relation to the singular activity of buying your first home) has never looked as promising for some time

Posted by converted lurker @ 05:32 PM 2 Comments

Approximately 4.1 million households have fallen into this trap in the past year

Firstrung: Rising housing costs force seven per cent of people to take out personal loans in the past year

The research from price comparison site moneysupermarket.com also found nine per cent of people have had to spend a lot more on their credit cards because of increased housing costs. Twenty per cent of people in their forties have been forced to turn to loans or credit cards to keep their heads above water. And with 30 billion worth of mortgage deals coming to an end in July, many more people will be thrown into the vicious situation of facing much higher monthly repayments.

Posted by converted lurker @ 05:30 PM 1 Comments

Housebuilders at risk of collapse

Observer: Homebuilders face disastrous 3bn landslide

Britain's housebuilders will see at least 3bn wiped off the value of their land assets as a further 1,300 jobs in the sector go this week. The slump will create new demands from banks for housebuilders to shore up their devastated balance sheets with fresh capital.

Posted by mken @ 01:22 PM 8 Comments

"Buffett once told me there are three 'I's in every cycle"

WSJ: The Credit Crisis Is Going to Get Worse

But it would be a mistake to dismiss Mr. Forstmann's pessimism too quickly. After all, he knows something about both credit and crises. "You've got [Treasury Secretary Henry] Paulson saying 'Oh, you see the good news is it's over.'" The problem, according to Mr. Forstmann, is that it's far from over. "I think we're in about the second inning of this." "Buffett once told me there are three 'I's in every cycle. The 'innovator,' that's the first 'I.' After the innovator comes the 'imitator.' And after the imitator in the cycle comes the idiot. Which makes way for an innovator again." So when Mr. Forstmann says we're at the end of an era, it's another way of saying that he's afraid that the idiots have made their entrance.

Posted by stevie dee @ 12:31 PM 0 Comments

Everyone is leaving the uk. Well done Labour

Shelter off shore: Expat Rats Leaving the Great British Sinking Ship

Its now a well-documented fact that 200,000 Britons fled UK shores in 2006, but did you know that there are 5 million Britons living abroad and that the conservative estimate is that another million will leave in the next five years?

Posted by sortofsilver @ 12:10 PM 0 Comments

Good housebuilders summary

Independent: Housebuilders partied like it was '89. And now the pain is like '91

Leslie Kent, a director and analyst at broker FinnCap, says Barratt's decision to buy Wilson Bowden at the top of the market has caused its current plight. "It paid 22 quid for every 11 quid of assets," he points out. The falling values of those assets and the decline in house sales meant Barratt was in serious danger of breaching its banking covenants. However, a trading statement this week is expected to confirm that Mr Clare has managed to find 400m of fresh debt to help finance repayment of the Wilson Bowden acquisition. He should also announce that he has negotiated a relaxation of Barratt's covenants.

Posted by herrbbiiee @ 11:43 AM 0 Comments

Sample of decline in rents

Global Property Guide: Japan Price History

There is a graph of the decline in rent in comparison to the decline in the value of property (lower down). The decline in rent is much shallower. Be aware that due to custom built high rise apartments rents are cheaper in Japan that in they would be in the UK.

Posted by stillthinking @ 10:45 AM 15 Comments

Realism sets in

Guardian.co.uk: Property getes a reality Makeover

Cheer up, house prices are falling. Nationwide said this week that values have fallen again, for the eighth month in a row. Everything else is going up - food, petrol, electricity - but houses, our biggest and most expensive purchase, are falling. Hurrah! Newspapers reported the story in their usual gloomy fashion: economists "fear" further declines; experts say the market is "the worst for decades". Figures show new mortgage approvals are at their lowest level since 1993, and down 64% over the past year. Cue more wailing about a "meltdown".

Posted by herrbbiiee @ 10:16 AM 1 Comments

Day of Reckoning

Indy: We're riddled with debt... but the cure is a killer

Given the levels of debt that the credit boom of the past 10 years has produced, any widespread default could bring down the entire financial edifice. After all, this is exactly what happened in the US sub-prime disaster, when interest rates on the mortgages of low-income households were suddenly jacked up to levels they simply couldn't afford to pay. Our own housing sector is now poised on a similar cliff edge.

Posted by pendulum @ 09:35 AM 17 Comments

Even Kirsty is following the Bear ....

Times: Fame and Fortune: Kirstie Allsopp

Well, who'd have thought it, words from Kirsty "I think in the short term there may be a decline in prices that will affect those who bought in the past two years with 95% mortgages.". She bought a flat at the summer 2007 peak for 350K too ho ho !

Posted by voiceofreason @ 09:12 AM 20 Comments

120 apartmens on the block in NW London!

SundayPost: Investors face action over London properties

Some buy-to-let investors who placed deposits on 26 million worth of London apartments face the threat of legal action due to their inability to raise the necessary borrowings to complete the deal. Irish investors placed deposits on 120 apartments to be constructed at the 2.5 billion Wembley City development in London. The apartments sold out in two weeks when they were marketed in Ireland by Mannion Auctioneers in 2006.

Posted by confused76 @ 08:41 AM 0 Comments

Here we go again ...

Telegraph: Bank of England urged to hold interest rates

Business has urged the Bank of England to keep interest rates on hold at 5% this week and be ready to cut them in the coming months to head off a recession. After a week of bleak economic news, pressure on the Banks monetary policy committee (MPC), which meets this week, is intensifying. The outlook is more worrying than at any time in the Banks 11 years of independence

Posted by uncle chris @ 08:41 AM 2 Comments

BTL investors in deep s...

Earth: Cry for Help From Buy to Let Investors

many buy-to-let professionals unable to cope with their mounting debts. The helpline reports that there has been a 100 per cent rise in the number of enquiries

Posted by confused76 @ 08:39 AM 0 Comments

Frustrated sellers become landlords among falling rental prices

Times: Don't sell your home, become a landlord instead

With prices falling and the market grinding to a halt, however, times are changing, and homeowners and buyers are having to adapt. Hamptons International reported a 40% rise in rental stock levels in London, and a 26% increase in the country. Despite reports of rising rents, there are signs they have already hit their peak in London and the southeast in particular. And in Liverpool, Newcastle and other places where there is a surplus of new-build buy-to-let flats, they are falling.

Posted by confused76 @ 08:23 AM 0 Comments

'The sky isn't falling in'

Independent: Ignore housing's doom-mongers

A homeowner who bought as recently as 2004 has an average "equity cushion" of 48% of the value of their property, according to research from GE Money Home Lending. House prices would need to fall by almost half before the value of the loan exceeded the value of the property. The market will carry on falling "readjusting", if you will in the short term. But long term, house prices rise. So if you borrowed 125 per cent of the value of your house at the top of the market last summer, then just sit tight, until your numbers break even.

Posted by little professor @ 02:06 AM 20 Comments

It's all going Pete Tong !

guardian: From building sites to sofas, the crisis starts to hit home

Falling house prices are just the most visible sign of an economy under high pressure. Heather Stewart reports on the firms, big and small, that are feeling the strain

Posted by frustrated gardener @ 12:40 AM 0 Comments

Saturday, July 5, 2008

Careful what they wish for ?

Times: Estate agents would not be the only casualties

"Many readers suggested that as house prices have already fallen by more than 5 per cent in only six months, I was wrong to say that the market is sinking rather than collapsing. ... The people who want to see a full-scale house price crash should be careful what they wish." Not sure how this guy got to be personal finance editor, when it would appear his only real life experience of finance has been 2-3 years as a traders b1tch at Bear Stearns (http://andrewellson.com/page3.htm). But then again, with quality "journalists" like Anne, there' not much competition.

Posted by doomwatch @ 09:24 PM 5 Comments

Buy-Toilet: An Inconvenient Truth

Mail: Various articles

Look at the BTL news coverage in the Mail over the past year... BTL, "from stars to toilet"

Posted by confused76 @ 07:06 PM 0 Comments

Is the worst behind us? The short answer is No

MoneyWeek: Is the worst behind us? The short answer is No

'Commodity-led inflation' and 'credit-led deflation' have made investors realise just how bad things are over the past few weeks. But are there any reasons to be positive?

Posted by damien @ 05:59 PM 9 Comments

European banks need 60-90 billion euros

AFP Google: Goldman Sachs lowers estimates on 40 European banks

The US investment bank Goldman Sachs has lowered its 2008-2010 forecasts for more than 40 European banks, warning Friday that some of them may have to raise between 60 and 90 billion euros to shore up finances in the face of a nearly year-long credit crisis. Pressure on levels of capital holdings, either self-imposed or applied by regulators or ratings agencies, could force European banks to raise 60 billion euros or withhold one year of dividends, according to the study. But it added: "If in addition to regulatory tightening, the sector returns to the early 1990s level of credit losses, we estimate that the capital shortfall could amount to 90 billion euros."

Posted by mken @ 04:27 PM 3 Comments

Summary of Moody's report for B&B

thisismoney.co.uk: B&B: Note that spelt doom for US bail-out

This is the rating agency note that prompted US private equity house Texas Pacific Group to pull out of a proposed funding deal for Bradford & Bingley, leaving the future of the bank in question...

Posted by ash4781 @ 02:58 PM 0 Comments

Nice little gotcha hidden in the government's largess to savers

Telegraph: Credit crisis: How safe is your bank?

n addition to lifting the maximum compensation payment from its current level of 100 per cent of the first 35,000 per person lost to 50,000 per person, the Treasury proposes to discount any debts individuals may have to failed institutions when calculating compensation. At present, mortgages and other loans outstanding can be taken into account to offset compensation paid for deposits lost. So if you owe the bank more than you have in savings with it, you are not entitled to any compensation. Fair enough, so don't save with the bank you have a mortgage with is the message. Otherwise they can basically eat up your savings to pay off as much of the mortgage as they can when *they* go bust, even if you are making your payments. Nice.

Posted by last_days_of_disco @ 01:29 PM 6 Comments

VIs waffle on

FT: Dwindling house stocks to lift prices

Some "experts" tell us there will be a floor to house prices. A pity their genius didn't tell them there was a ceiling too. A bit of light weekender reading from the FT, just in case you thought it was all serious stuff in that paper.

Posted by letthemfall @ 01:24 PM 10 Comments

Buy-to-let name is damaged beyond repair, says Grant Bovey

Property Week: Buy-to-let name is damaged beyond repair

He said it.... plus Bovey and bank imagine future Residential market downturn leads to review of Imagine Homes buy-to-let partnership http://www.propertyweek.com/story.asp?sectioncode=297&storycode=3117557&c=1

Posted by hogwash @ 12:36 PM 7 Comments

First time buyers ARE the bears!!

scotsman.com: First-timer buyers need help to ward off the bears

ONE of mankind's most fundamental incentives is securing a safe environment in which to live. True, this was not always the case, with evidence suggesting that our earliest comparable ancestors were nomadic hunter-gatherers, forever moving on to metaphorical and literal fresh pastures in those pre-Tesco days.

Posted by housebear @ 12:14 PM 4 Comments

More of the same happening everywhere...?


Monthly sales reached 2,064 homes in Nottingham and Notts in March 2007. But in March this year, the most recent figures available, only 1,025 sales were completed.

Posted by rental john @ 11:22 AM 0 Comments

Need a good laugh? I can't stop.......

The Scotsman: Now is the time to grab that dream home in a buyers' market

But would-be buyers and particularly first-time buyers with access to funds are in the ideal position at the moment to find the property they want. Laughable article, by Scott Brown, could this be GB's nom de plume?

Posted by rental john @ 11:16 AM 0 Comments

But can you can afford the fee....

Banking Business Review: Nationwide Building Society slashes mortgage deal prices

With effect from July 9, 2008, the society will reduce the rates on its two-year fixed rate and two-year tracker mortgages. At the same time, the society will launch a new two-year tracker, available from 5.78% with a GBP1,499 fee.

Posted by rental john @ 11:07 AM 0 Comments

Northern Rock in slow motion

The Independent: B&B sinks ever lower as investors play the blame game

"We wrote about this company several months ago, that it could be Northern Rock in slow motion," said Leigh Goodwin at Fox-Pitt Kelton. "It looks like things may be moving a bit faster than that now. "The company doesn't have a viable business model right now. Bad debts on the mortgage side are going up and funding costs are also going to go up now."

Posted by paul @ 10:48 AM 4 Comments

Our favourite wealth preservation strategy goes mainstream

Telegraph: Gold: the precious laggard that will hit $2,000

Apologies because it's not directly related to HPC, but I know a lot of bloggers here believe gold is the best hedge against inflation. This is important if you've spent years saving for a deposit on a house - you wouldn't want to lose it all through inflation. From the article: "Unlike oil, copper, nickel and a host of other commodities which have seen rises of between eight and thirteen fold increases in the last ten years, gold has risen a mere three and a half times from its low. Either gold is incredibly cheap or oil is incredibly expensive on a relative basis. [Western central banks] have run out of gold to sell, [while] the central banks of the emergent economies have become buyers."

Posted by drewster @ 10:21 AM 19 Comments

Credit crisis: Negative equity threat spreading for homeowners

Telegraph: Credit crisis: Negative equity threat spreading for homeowners

estimated 145,000 mortgage holders already owe more in mortgage payments than their houses are worth, according to research undertaken for the Daily Telegraph.

Posted by eagle @ 08:52 AM 6 Comments


Daily Telegraph: Matt

With so much going wrong the cartoonist must have difficulty deciding what sketch to do!

Posted by who stole my pension? @ 07:08 AM 3 Comments

Is HBOS the next B&B or next NR?

Daily Telegraph: City Lofts survival fight ends in administration

City Lofts, the legendary property developer that brought us "loft living" has been put into administration. The company, is heavily exposed to falling property prices in regional cities, has been haemorrhaging money since last year. After fighting to save it, chief executive and founder Stuart Wright finally caved in yesterday, and asked the courts to appoint Ernst & Young as City Lofts' administrator. The owners are expected to recover little, if any, of their money. It was also unclear last night whether City Loft's biggest lender HBOS would lose money. Yesterday it emerged that celebrity property developer Grant Bovey - who is best known for his marriage to TV presenter Anthea Turner - is in talks with his lender HBOS to restructure his struggling buy-to-let, Imagine Homes.

Posted by who stole my pension? @ 06:51 AM 3 Comments

I hope we don't run out of paper for the printing presses!

Guardian: Credit crunch: UBS piles $7.5bn on to its write-down bill

UBS yesterday piled on the agony for its shareholders by finally admitting that it faced further write-downs. The Swiss bank said that if it managed to break even in the second quarter it would only be due to an unexpected tax credit. The bank, once renowned for its caution, has already written off $37bn (18.6bn) from exposure to the US mortgage market and could be forced to write of a further $7.5bn, according to analysts.The shares, worth Sfr60 a year ago, slumped in later trading by more than 3% to near Sfr20.

Posted by who stole my pension? @ 06:44 AM 0 Comments

Won't happen here. We are different!

Daily Telegraph: US housing slump creating 'ghost towns'

nothing else to say other than GB says we will be okay.

Posted by who stole my pension? @ 06:39 AM 12 Comments

The economy could have hit the wall

australian: It could well be that the self-sustaining growth surge the RBA has been trying so hard to restrain is now changing into a self-perpetuating slowdown.

So there is a broad-based loss of momentum in employment, a major driver of household spending, which in turn helps determine employment growth.

Posted by big chris @ 03:43 AM 0 Comments

FSA irritated TPG didn't buy duff B&B debt

FT.com: TPG faces cool reception in future

TPGs own investors have argued that the worst damage to its reputation was done by bad investments, rather than from withdrawing from a transaction. Moreover, TPG is not the first private equity group to back out of a deal during the credit crunch.

Posted by paul @ 12:07 AM 0 Comments

Corrupt to the core. Where is Guy Fawkes when you need him?

Telegraph: Expenses reform rebel minister made 200,000 from flat

The former Labour minister who led the rebellion against reforming MPs' expenses made a windfall of almost 200,000 last year from selling a flat which could have been funded by his taxpayer-funded expenses, the Telegraph can disclose.

Posted by paul @ 12:02 AM 5 Comments

Friday, July 4, 2008

High drama at B&B

Times: TPG, youve got 15 minutes - City chiefs deadline to put up or shut up over B&B

TPG is thought to have been concerned not only by the Moodys downgrade but also by increasingly worrying signals from the British mortgage market. B&B is a big player in buy-to-let home loans and in self-certified mortgages, loans where borrowers do not have to give evidence of their income

Posted by confused76 @ 11:52 PM 0 Comments

Prime property leads the slump!

Times: Market report: prime property suffers the most

Knight Frank data reveals prices fell 1.7% in June, adding to a quarterly decline of 3.1 per cent, the worst since 2002. Worst affected part of the market is (cheap!) homes priced under 1m, for which buyers tend to be dependent on mortgage finance (loan approvals are down 28 per cent in a month to a record low of 42,000). But international buyers enriched by the commodities boom got no problems. Yolande Barnes, of Savills, also suggests that this market downturn may follow a traditional form: prime homes will fall in value but when the market turns they will recover more quickly. Traditional form? what?

Posted by confused76 @ 11:21 PM 0 Comments

Greater annual ISA limits for FTBs

Telegraph: Alistair Darling says first-time buyers could be given a tax break

Alistair Darling, the chancellor, has said he wants to help first-time buyers get on the housing ladder by introducing greater tax breaks towards saving for a house. Isa rules limit annual savings to 7,200, with just 3,600 in cash. It is possible the Government could raise these limits for first time buyers, saving for a deposit.

Posted by uncle chris @ 09:23 PM 18 Comments

Dogs Dinner...?

The Renegade Economist: Cooking The Books

Auditors have refused to sign off on the UK Treasurys accounts, exposing an accounting technique that is designed to deceive. But cooking the books is also a problem with the banking system. It used a technique which freed them to expand credit to the point where the house of credit cards had to collapse.

Posted by neo-serf @ 06:12 PM 0 Comments

overcooking the books?

daily mail: Embarrassing new blow for Darling as audit watchdog rejects Treasury accounts

Chancellor Alistair Darling faced further embarrassment today after Britain's spending watchdog refused to approve the Treasury's accounts. The National Audit Office took a hardline stance that centred on the liabilities incurred by the Northern Rock nationalisation

Posted by waitingtobuy @ 06:08 PM 0 Comments

Better get on my bike!

Guardian: Latest oil price surge 'could add 20p' at the pumps within weeks

Motorists are facing further pain after a new warning that the latest surge in crude oil prices to record highs could add another 20p to a litre at the pumps within weeks. The forecast, from the Institute of Advanced Motorists came as new figures showed car sales wilting in the face of sky high fuel prices and collapsing consumer confidence. Fuel prices set yet another record today at the pumps, rising to an average of 119p for unleaded petrol and 132.4p for diesel, according to the IAM Motoring Trust, which monitors pump prices daily. Tim Shallcross said that the surge in oil prices in recent days to fresh records above $146 a barrel had yet to feed through to the pumps.

Posted by who stole my pension? @ 05:31 PM 13 Comments

Today's WTF award goes to...

Yorkshire Post: Buyer's market

Andrew Elson, independent financial advisor said: "Now couldn't be a better time to buy for first time buyers. There are some real bargains to be had out there because people who do want to sell are worried about a downturn in prices, so they'll be prepared to drop their prices from the start for fear they'll drop even further. "My only warning is that if you're going to get a bargain get it now because if prices do continue to drop then what you'll see is people refusing to sell at all. "Now is the perfect time to buy"

Posted by little professor @ 05:21 PM 11 Comments

MP's stop spending at John Lewis!

Daily Telegraph: Credit crunch: John Lewis sales tumble as much as 25pc

John Lewis department stores saw sales slump last week as the high street slow down hit one of Britain's most successful retail groups. The company said sales fell by 8.3 per cent last week, compared to the same period a year ago the seventh fall in the past eight weeks - as the credit crisis continues to hit home. Some of its large out-of-town shops saw sales fall by as much as 25 per cent, with shopping centres in the south of England faring particularly badly. Are MP's to embarrassed to keep shopping at John Lewis?

Posted by who stole my pension? @ 05:21 PM 3 Comments

UK consumers are virtually broke as spending power falls "dramatically"

BBC: UK spending power 'in heavy fall'

After household bills and tax, the typical family has less than 20% of its gross income remaining compared with 5 years ago with the worst yet to come according to Ernst and Young. The study also reveals that fixed monthly household costs have risen by almost 45% with petrol costs up 29.4%, household energy bills 110% and council tax 25% on average over the same period.

Posted by enuii @ 04:47 PM 9 Comments

Word of the month: Plummet

Guardian: Mortgages: Bank of England warns credit squeeze will tighten

"Michael Coogan, at the Council of Mortgage Lenders, said: "Neither the cost nor the availability of wholesale funds has improved for lenders since the Bank of England launched its special liquidity scheme. This means that cost and availability to customers has not improved either. And this in turn means that consumers are now beginning to give up and demand is falling, with confidence in the housing market falling with it." "

Posted by letthemfall @ 04:37 PM 0 Comments

Yes, but where's the Halifax June survey!!??

Find A Property: Prices Dip In Every Region In June

Chestertons are way behind the curve..... "Not only was the -0.8 per cent fall marginally worse than the -0.7 per cent in May, but annual appreciation declined for the eleventh consecutive month, leaving house prices just 1.3 per cent higher than they were a year ago."

Posted by mark wadsworth @ 01:33 PM 14 Comments

BTL t*ts up for this investor

Daily Mail: 175,000 flat I bought last year is now worth less than 100,000: Owner's negative equity horror

175,000 flat I bought last year is now worth less than 100,000: Owner's negative equity horror

Posted by buddleia @ 12:52 PM 24 Comments

Vicious circle turns ever faster ...

The Times: Families turn to loans and credit cards to cover mortgage bills

"More than four million households have resorted to personal loans or credit cards to cover mortgage or rent payments in the past year. The financial comparison site Moneysupermarket.com said that many more homeowners could be sucked into a spiral of servicing long-term debt with expensive short-term borrowing when about 30 billion of mortgage deals come to an end this month." Nothing new, but all good evidence to support the reassuring thought that the HPC will be short sharp and steep.

Posted by mark wadsworth @ 12:49 PM 23 Comments

Anyone fancy chipping in to make a few commercials in the UK?

GetUp! Sydney: Fuel Watch

Great idea to provide the public with the truth - a little off topic but humour seems in short supply!

Posted by magnaman @ 12:04 PM 2 Comments

Now that has got to hurt!

Evening Standard Website: Flat bought last year for 175K is now worth less than half

BTL landlord gets in a bidding war last year for a property that's 120 sq ft. Pays way way too much and is now surprised when he tries to remortgage. I'm amazed that he has agreed to have his photo taken outside!

Posted by bankside @ 11:51 AM 0 Comments

Asleep At The Wheel

The Oil Drum (Europe): The Fantasy World Of The UK Government

Contributing to one of the threads yesterday, I touched on the worrying trend in government these days to avoid ANY talk of bad news - lest it undermine confidence in the market. And true enough, there's Alistair Darling today - in the face of carnage on the High St and housing sector, declaring that the economy is sound. But wait . . maybe he actually believes it. Especially if the government is supplied with stats like these from the DTI (BERR) - its 'high scenario' forecasting oil reaching a stratospheric $105 bbl by 2030. Best comment is by 'bunyonhead': 'My only suggestion to BERR is that if they intend to publish the report for mass market consumption, they should do so in a joint venture with Andrex so that the report will at least have some utility'.

Posted by lierbag @ 11:17 AM 5 Comments

Why the housing bust is bad news for the fire brigade

MoneyWeek: Why the housing bust is bad news for the fire brigade

"...the housing boom was based on consumption, not productive investment. Buy-to-let flats were overpriced consumer goods that have now gone out of fashion. Like a warehouse full of leftover models of last year's must-have Christmas toy, all they're doing is taking up valuable space that could be better devoted to something else..."

Posted by damien @ 10:56 AM 8 Comments

Bovey's imagination questioned...

Property Week: Bovey and bank imagine future

Residential entrepreneur Grant Bovey and Bank of Scotland Corporate are undertaking a strategic review of their relationship in the light of rapidly deteriorating conditions in the housing market.

Posted by jezzer187 @ 10:56 AM 1 Comments

OUCH!!! - Inflation tsunami to hit UK shores!

BBC: BHP almost doubles Chinese prices

Mining giant BHP Billiton has reached a deal with China's largest steelmaker to almost double iron ore prices. Under the agreement, covering contracts for one year from 1 April 2008, BHP will increase its prices by up to 96.5% for deliveries to state-owned Baosteel.

Posted by tyrellcorporation @ 10:41 AM 5 Comments

Luck of the Irish

Irish Independent: Desperate developer slashes price by 150,000

A PROPERTY developer in Ireland has slashed 150,000 off the price of a five-bed detached house in a desperate bid to attract buyers. House hunters in Palatine, Co Carlow, can now buy a luxury 1,800 sq ft property in Lime Grove for 300,000, instead of the original asking price of 450,000. The Kavanagh Group has also shaved 81,000 off the price of three-bed terraced houses, which are now going for between 199,000 and 210,000. The price of a three-bed semi in the development has also dropped, to 220,000. So far, only 24 of the 67 homes, some of which are still being built, have been sold, said James Kavanagh, who runs the business with his brother Brendan. But after advertising the new prices, things are looking up.

Posted by smc @ 09:55 AM 0 Comments

Never mind ... The BoE will help them (secretly)

BBC News: B&B confirms new cash call plans

TPG walked away from its deal to buy the stake in B&B after Moody's, the credit rating agency, announced it was downgrading the long-term debt of the UK mortgage lender.

Posted by angonamo @ 09:40 AM 8 Comments

the Bank of England expresses its determination to prevent the ups and downs of booms and depressions


Even today the Bank of England expresses its determination to prevent the ups and downs of booms and depressions, yet there have been nothing but ups and downs since its formation with the British pound rarely being stable. XAT when history is news

Posted by malct @ 09:20 AM 4 Comments

This will help Oil speculators & Raise Inflation

Jerusalem Post: Gov't officials: US fears Israel gearing up for Iran strike

Does anyone truly believe that Iran is making a nuclear weapon. Like with Iraq's "Weapons of Mass Destruction". This merely fuelling more speculation of Oil, further creating inflationary pressures. Like I said before, it is merely a distraction. So, an attack on Iran is imminent Israeli officials said Iran was also the main topic of conversation when Bush called Prime Minister Ehud Olmert on Wednesday to express his condolences for the victims of the bulldozer attack in Jerusalem. "All this is designed to throw cold water on any possible Israeli intentions," the officials said. "They are worried by the atmosphere in Israel, and that reports of an inevitable attack have suddenly started to dominate the debate."

Posted by stevie dee @ 09:17 AM 0 Comments

A change of tack?

m.a.p.: A short, sharp housing shock may be best

Is it better that prices should slide gently but continuously for three years? Or would a quicker and deeper plunge in year one, followed by two years of stability or even gently rising prices from a new lower base, be better?

Posted by cornishman @ 08:42 AM 18 Comments

It's getting harder to recapitalise

Times: B&B shareholders forced into funding rescue

Bradford & Bingleys largest shareholders were forced to rescue the bank's capital-raising effort last night as TPG Capital, the private equity group, pulled out of a 179 million deal.

Posted by holding out @ 08:35 AM 3 Comments

Welcome to the dark world of global finance

New York Times: What Really Killed Bear Stearns?

According to Mr. Burroughs account, Bear did not have a liquidity problem, at least at first. In fact, he said it had more than $18 billion in cash to cover its trades when the week began. There were no major withdrawals until late in the week, after rumors flew that the company was in trouble. A top Bear executive told Mr. Burrough, There was a reason [the rumor] was leaked, and the reason is simple: someone wanted us to go down, and go down hard.

Posted by planning4acrash @ 07:19 AM 16 Comments

Creative accounting!

Timesonline: National Audit Office rejects Treasury accounts

Britains spending watchdog is refusing to approve the Treasurys accounts, compounding a miserable year for Alistair Darling, the Chancellor of the Exchequer. Senior officials spoke last night of a collapse of morale at the Treasury after a string of U-turns and interference by No 10. In another blow to Mr Darlings independence, Gordon Brown has asked him to carry out a review of green taxation to pave the way for further climbdowns on road tax and fuel duty this autumn.

Posted by flintster1994 @ 07:10 AM 4 Comments

Activism at its best.

infowars.com: Infoweapons away! - Truth Rising

This film, just released today, shows what us HPC bloggers should be doing. We should be going to meetings hosted by the chancellor, by Mervyn King, by media vi's that lie. We should be holding up banners shouting, housepricecrash was an inside job! Debating them on the street about why they are debasing our currency.

Posted by planning4acrash @ 07:10 AM 53 Comments

LA's Tent City

Dr Housing bubble.com: The Day Housing Faced the Plague of Locusts: Lessons from The Great Depression Part XIII. Facing our Own Economic Pilgrimage.

The decadence of the Roaring 20s had brought on a major hangover and many were ready for the morning after remedy. We live in a similar parallel. Can you do without your Hummer? Do you really need three cars for your household? Must you have that plasma TV and put it on your credit card? Is consumption at the mall really the pinnacle of success for our country? Can you forego the family vacation this year? Do you need that McMansion? We have been on a once in a lifetime spending binge and weve just mortgaged our future for it. Was it worth it? Many people will be asking these questions at the kitchen table.

Posted by sold out @ 05:30 AM 1 Comments

Texas Pacific Group leaves B+B at the altar

Bloomberg: B&B Enlarges Rights Offer as TPG Exits Investment

Last month private equity firm TPG pledged to invest 179 into ailing lender Bradford & Bingley. But after hearing that Moody's had downgraded B+B's credit rating, TPG has done a last minute runner. Now the bank has had to go back to the drawing board, with an enlarged rights issue, in a desperate attempt to scrape up some cash. Oops!

Posted by little professor @ 03:56 AM 2 Comments

Thursday, July 3, 2008

Northern Rock written all over it - this is the beginning of the end for B&B

Peston's Picks: Bradford & Bingley rescued (again)

Leading City institutions have rallied round to provide 179m of vital equity following a last-minute decision by the US private-equity house, Texas Pacific Group, to walk away from the deal. TPG backed away from providing the new money after Moody's, the credit rating agency, decided it was downgrading the debt of Bradford & Bingley.

Posted by paul @ 11:49 PM 2 Comments

Hands together and eyes closed ...

FT.com: Economy will grow, says chancellor

Mr Darling said he believed that, despite current woes, the economy was now in better shape to weather a storm than it had been in the past. Interest rates and unemployment were far lower now than in the downturn of the early 1990s.

Posted by paul @ 11:35 PM 3 Comments

"The inflation monster is back, and with him the memories of how dangerous he can be are coming back. Across the world, people are reacting to the new attacks with fear and anger. In Haiti and Somalia, the poor are protesting higher rice prices and Span

spiegel.de: 'The Inflation Monster Is Back'

"The inflation monster is back, and with him the memories of how dangerous he can be are coming back. Across the world, people are reacting to the new attacks with fear and anger. In Haiti and Somalia, the poor are protesting higher rice prices and Spanish fishermen are lighting cars on fire outside the offices of the European Commission because the cost of marine diesel has become unaffordable. "

Posted by big chris @ 11:08 PM 0 Comments

L.A. foreclosure chart looking "like a ski jump"

Los Angeles Times: Peter Viles on the rapidly changing landscape of Los Angeles real estate market and beyond

This should send shivers down all of your spines. It confirms that the sub-prime fiasco has only just begun. As has the bank bail outs, inflation and currency crisis. Expect an Iranian war to be used as cover for the crisis.

Posted by planning4acrash @ 09:41 PM 4 Comments

Barratt Shares have fallen by almost 97%

Me: Is Barratt bust??

Barratt share price on 6 Feb 2007 was 1289 (Click on the link above for price list) Todays closing price is 41.50 Hence the fall in share price is (1289 - 41.50) * 100 ---------------------------- = 96.78% 1289 So if you invested 100 on 6feb 2008. Today it would be worth 3 pounds 20 pence. I have no idea how they have not broken their covenance against their bank loans. Barratt is the second largest house builder in the UK. If this is what the market values Barratt its actually valuing its land banks and its properties and project its developing. So were they over priced by 93%.... Could be

Posted by deepak @ 09:41 PM 11 Comments

Should've put some money aside instead of frittering it on executive bonuses ...

Guardian: Barratt culls 1,000 jobs

Barratt, like other housebuilders, is struggling to cope with a 60% dive in housing starts since June last year. It is also weighed down by 1.8bn of debt, which has combined to push down its share price by 84% in two months to 42p.The company held meetings at hotels around the country today at which staff were told of the changes.

Posted by paul @ 08:38 PM 3 Comments

Seventy percent of crude contracts on the Nymex are held by speculators... Some form of regulation is needed," OPEC secretary general Abdallah El-Badri replied on Wednesday, referring to the US commodity futures exchange.

afp.google.com: Worried oil chiefs fail to find consensus

Seventy percent of crude contracts on the Nymex are held by speculators... Some form of regulation is needed," OPEC secretary general Abdallah El-Badri replied on Wednesday, referring to the US commodity futures exchange.

Posted by big chris @ 08:32 PM 1 Comments

Perhaps B&B stands for Bye Bye!!!!

FT: Bradford & Bingley braces for credit downgrade

Buy ToiLet lender B&B is braced for a further setback after Moodys, the rating agency, indicated it was preparing to cut the ailing mortgage lenders credit rating. Moodys, which has been reviewing B&Bs credit ratings ever since it issued a profit warning last month, has decided to lower the banks main ratings by a single notch, people familiar with the matter said. An announcement could be made later on Thursday.

Posted by who stole my pension? @ 06:44 PM 12 Comments

Perfect Storm

Times: Mortgage drought to tighten over debt fears

Lenders said they had reduced the supply of credit because of their expectations for the housing market, the changing economic outlook, changes in their own appetite for risk and their own continuing difficulties in getting wholesale funding.

Posted by pendulum @ 06:41 PM 5 Comments

Pig, Snout, Trough.

Timesonline: MPs vote to keep controversial expenses system

MPs tonight voted to reject reform of their controversial expenses system. Their vote in the House of Commons means they will retain their additional costs allowance to fund second homes in London. They will also have their spending audited only by internal auditors. Voting was close with 172 voting to retain the old system and 144 voting for change, leaving a majority of 28 maintaining the status quo.

Posted by flintster1994 @ 06:35 PM 4 Comments

Have they got a death wish?

This is Money: TPG ready to rescue Taylor Wimpey

After bailing out Bradford & Bingley last month, private equity giant Texas Pacific Group is now looking to rescue ailing homebuilder Taylor Wimpey. Taylor Wimpey, which has a market capitalisation of 300m and debts of 1.7billion, announced yesterday that it had failed to secure emergency funding and may have to default on its banking covenants next year.

Posted by little professor @ 04:55 PM 8 Comments

Hopefully with a red hot poker!

FT: MPs to probe speculators as oil touches $146

Concern over the possible role of speculators in driving record crude oil prices has prompted the House of Commons Treasury select committee to hold its first hearing into regulation of Londons oil markets, John McFall, the committees chairman, said on Thursday.

Posted by rental john @ 03:48 PM 18 Comments

There are now more Euros in physical circulation than there are U.S. dollars.

321 gold: Das Monetary Policy

It is widely known that, since its terrible experiences with hyper-inflation after World War I, the Germans have developed an ingrained intolerance of inflation. As a result, the ECB has shown a backbone that is completely lacking among the invertebrates at the Federal Reserve. The resulting confidence has led many holders of U.S. dollars, including central banks, to diversify major parts of their vast holdings of U.S. dollar trade surpluses into the Euro. Of course, much of the credit for the astounding rise of the Euro must go to the massive debasement of the U.S. dollar, a debasement that has robbed every single man, woman and child who holds or invests in dollars.

Posted by malct @ 03:40 PM 2 Comments

Bottom feeding b'stards

Guardian: Mortgages: Borrowers offered rate rise protection

Homeowners on variable rate mortgages are being offered insurance to protect them against any future rises in interest rates. Sounds good, until you read in to it....!

Posted by rental john @ 03:39 PM 3 Comments


24dash: Private landlords 'defying tenant deposit protection laws'

Nearly two thirds of private landlords are breaking the law by failing to properly protect their tenants deposits, new research has revealed. You've got ask yourself....how many cash strapped or bankcrupt BTLers will simply run off with the money?

Posted by rental john @ 03:34 PM 4 Comments

After Taylor Wimpey cuts 900 jobs yesterday

Bloomberg: Barratt to cut 1000 jobs

Barratt Developments Plc, the U.K.'s worst-performing homebuilder this year, plans to cut about 1,000 jobs as it closes and merges divisions. Barratt will close two divisions and a further eight will be merged into four, company spokesman Dan Bridgett said in a telephone interview today. The reduction may affect 1,000 jobs, a person familiar with the plan said. Bridgett declined to confirm the number of job cuts when asked by Bloomberg News. ``We are taking decisions that ensure our overheads are in line with market conditions,'' said Bridgett. The company is in ``full consultation'' with workers and the move will leave Barratt with 26 remaining divisions, he said.

Posted by little professor @ 03:02 PM 0 Comments

5 billion black hole to fill, I wonder who will foot the bill for this.. hmm?

Firstrung: House price crash would mean Darling facing a 5bn stamp duty hangover

Lib Dem point of view, but worth considering..

Posted by george monsoon @ 02:52 PM 4 Comments

Credit Crunch - now recognised in the Dictionary. I think Sheeple will be next...

BBC: Credit crunch enters the lexicon

Gone are the days when "crunch" was just something you did with a biscuit. The credit crunch has become such a major issue for households that it has entered into the official lexicon.

Posted by george monsoon @ 02:48 PM 4 Comments

Borrowing money to keep up with the repayments of borrowed money.

Timesonline: Homeowners turn to loans to pay mortgages

Increasing numbers of hard-pressed homeowners and tenants are turning to personal loans and credit cards to fund their housing costs. More than 4 million households have taken out a personal loan or credit card to cover their mortgage or rental costs in the past year, according to a survey by comparison service Moneysupermarket.com. Tim Moss, head of loans and debt at Moneysupermarket.com, said: "It's a very serious situation when you have people turning to a short-term solution to fund a long-term product.

Posted by flintster1994 @ 02:39 PM 3 Comments

Irish Eyes Aren't Smiling....

The Renegade Economist: From Homeless to Loss of Homeland

Mass out-migration from Ireland would restart as the crash in the housing market deepened. After nearly two centuries of expelling its own children, two decades ago something remarkable happened. The Irish started coming home. The politicians took the credit. So my news was rejected by the government, which continued to promote the view that it had put in place a "sustainable" recovery of the Irish economy. They haven't.

Posted by neo-serf @ 01:51 PM 0 Comments

Will the BoE keep up with the Schmidt's?

Times: Europe raises interest rate to 7-year high of 4.25%

The European Central Bank (ECB) today defied deepening gloom over the eurozone's economic prospects and intense political pressure when it pressed ahead with a rise in interest rates to their highest level for almost seven years. The Frankfurt-based central bank raised rates by a quarter-point to 4.25 per cent, after Jean-Claude Trichet, the ECBs President, sounded a warning on Wednesday that eurozone inflation could explode without decisive action.

Posted by uncle chris @ 01:27 PM 19 Comments

Europe stocks fall, eyes on ECB and payroll data

Reuters: Europe stocks fall, eyes on ECB and payroll data

European shares were down in midday trade on Thursday, with investors eyeing the release of U.S. payroll data as well as the interest rate setting decision by the European Central Bank. Imagine these events as cards Card 1. US Payroll Data. Card 2. ECB Rate Decision. Card 3. Iran?.

Posted by stevie dee @ 12:59 PM 0 Comments

Impending Doom (not directly house prices)

The Actuary: Energy: The peak oil challenge

As the world stands on the brink of another recession, it is impossible to tell how deep it will be or how long it will last. Commentators are always confident that there will be an upturn and economic growth will return. This time, however, some are reminding people that past performance may not be indicative of future results, and there are claims that globalisation is unsustainable and growth economics is coming to an end.

Posted by brickie_burns @ 12:54 PM 0 Comments

Rational Comments - Telling the Truth

Fox Business: Ron Paul on the Economy

The original submission had a link that did not work. This link works. Ron Paul, just saying how it is, the Economy, Petrol Prices, Iran, etc

Posted by stevie dee @ 12:08 PM 0 Comments

How bad will the recession get?

MoneyWeek: How bad will the recession get?

It seems that Gordon Brown didn't really eliminate boom and bust after all. Who would have thought it? Even the Iron Chancellor couldn't change the laws of economic physics. What goes up, must come down. It's just a shame that, having stacked up a debt mountain of more than 1.4 trillion, we've got so far to fall.

Posted by damien @ 11:46 AM 10 Comments

A fall of 7% to 15% from where they are NOW.

Reuters: Galliford Try sees 7-15 pct house price drop

LONDON, July 3 (Reuters) - UK construction firm Galliford Try (GFRD.L: Quote, Profile, Research) expects house prices to fall by between 7 and 15 percent over the next year, its chief executive Greg Fitzgerald said. "You could say our forecast assumes prices will reduce by somewhere between 7 and 15 percent from where they are now," Fitzgerald told analysts on a conference call on Thursday.

Posted by rental john @ 11:46 AM 0 Comments

Subsidence, or total collapse?

FT: Taylor Wimpey fails to secure rescue deal

Taylor Wimpey has failed to agree a deal with shareholders and potential new investors, forcing the stricken housebuilder to admit on Wednesday that it could breach banking covenants if the housing market does not recover.

Posted by rental john @ 11:28 AM 0 Comments

SALE!!! Everything must go! Finance NOT available!! No refunds!! Written detail on request! !

Spiked-online: Paying the price for inflated property

Many experts and ordinary mortgage payers seem to be rushing around like headless estate agents, asking how bad the price falls in the UK property market will get and how far it will drag us all down. Others are asking whether falling house prices might be a good thing that could teach us all a lesson about the evils of our spendthrift living-on-the-never-never ways.

Posted by housebear @ 11:18 AM 3 Comments

There is a house price crash!

Metro: Is there going to be a house price crash?

Predictions of a potential property slump are coming thick and fast, but is Britain on the cusp of a house price crash? Warnings of a house price crash have flowed thick and fast as the credit crunch has unfolded. Sages as diverse as Alan Greenspan, the IMF and the Government's housing expert Kate Barker have all warned on UK property. Meanwhile, the chances of a house price crash are being talked up by a growing band of house price sceptics. But property cheerleaders have been fighting back claiming the house prices are due a soft landing but no dramatic slump. So where does the truth lie? This is Money shows how to spot a slump, and investigates whether a house price crash is about to hit...

Posted by housebear @ 11:08 AM 17 Comments


Telegragh.co.uk: We're in for a bleak winter as the economy slumps into deep freeze

This is not just any slump, this is an M&S slump. It is a risotto recession and a Starbucks slowdown. The credit crunch has just landed foursquare in the front garden. Listen to Sir Stuart Rose of Marks & Spencer, who says families are giving up "fripperies" when they shop in his stores. Listen to Andy Clarke, retail director at Asda, who has seen his car parks filled with "expensive metal" as well-off customers desert Waitrose.

Posted by housebear @ 11:05 AM 3 Comments

When does a 'correction' become a crash?

Metro News: City crisis as FTSE 100 plunges 2.5%

The FTSE slumped by 2.5 per cent yesterday as further falls in the housing market scared investors away and deepened City gloom. Seema Shah at Capital Economics said: 'The correction in house prices is likely to step up a gear in the coming months.'

Posted by rental john @ 11:01 AM 0 Comments

this is going to get interesting, anyone want some office stuff? cheap!!

CNN: Banks: Everything must go!

If it's not bolted down, you can bet that troubled financial firms are thinking of putting a price tag on it. There has been plenty of talk lately about how the nation's largest banks and securities firms are looking to shed some of their assets.

Posted by mark @ 10:43 AM 1 Comments

When will property porn Channel 4 also come clean?

Guardian online: BBC presenter: media to blame on house prices

The former BBC economics editor Evan Davis said yesterday that journalists could have done more to warn the public about the credit crunch that triggered the current housing price crash and general financial turmoil. I notice that Channel 4, and more so its spin-off More 4 and More 4+1 schedules are still crammed with property porno shows!

Posted by rental john @ 10:08 AM 0 Comments

Are the banks running out of money?

BBC News: Mortgage squeeze 'will continue'

The availability of mortgages is expected to fall further in the next three months, lenders have told the Bank of England.

Posted by loneranger @ 10:04 AM 1 Comments

And still the Ftse is climbing today! Sheeeesh!

Bloomberg: U.K. Services Contracted Most Since October 2001, Reuters Says

July 3 (Bloomberg) -- U.K. services from banks to airlines contracted the most since October 2001 last month, a sign Britain's economy is edging towards a recession. An index based on replies from about 700 service companies fell to 47.1 from 49.8, Reuters said, citing a survey by the Chartered Institute of Purchasing and Supply said today in London. The median forecast of 33 economists surveyed by Bloomberg was for a drop to 49.5. A reading below 50 shows contraction.

Posted by flintster1994 @ 10:03 AM 8 Comments

Analysts expect ECB to raise interest rates by at least a quarter percentage point

Yahoo - AP: ECB expected to raise interest rates

Analysts widely expect the European Central Bank to raise its main interest rate Thursday for the first time in a year in an effort to rein in escalating inflation, but whether such a move will help or hurt is still in question. ECB President Jean-Claude Trichet said at the bank's last monthly meeting June 5 that the bank is in a state of "heightened alertness" on inflation and could raise the main rate "by a small amount." He said at that meeting that members of the ECB's governing council had already made a case for raising rates even then.

Posted by stevie dee @ 09:51 AM 0 Comments


BBC News: Dow Jones becomes a bear market

The Dow Jones Industrial Average closed more than 20% below its October 2007 peak on Wednesday, meaning it is officially a bear market. The blue-chip index fell 166.8 points or 1.46% to 11,215.5, which is 21.0% below its 14,198.1 close on 11 October

Posted by flintster1994 @ 09:43 AM 3 Comments

Oil approaches 150 a barrel

Times: Oil soars close to new $146 a barrel record

Oil tightened its squeeze on world economies today soaring to a new high of over $145 a barrel. Eurozone growth is also expected to take a further hit at lunchtime when the European Central Bank is expected to raise rates to curb inflation. In London, the continuing threat of an attack on Iran, the world's fourth largest oil producer, sent Brent crude to $145.75 a barrel, while in Asia, oil for August delivery was trading at $144.35 - more than 30 per cent higher than prices at the end of last year.

Posted by uncle chris @ 09:38 AM 25 Comments

Rational Comments

Yahoo - Fox Business: Ron Paul Paul on the Economy

In the video, Senator Ron Paul (R) Texas, talk about the realities of todays financial woes, also mentioning Iran.

Posted by stevie dee @ 09:08 AM 3 Comments

Moodys to check on accuracy

FT.com: Moodys to check on accuracy

I bet you thought that the senior management carried more of the responsibility. They were paid for it right? That's what the additional money is partly for. Wrong!! This is the second thing that has alluded to lower level employee error. So lets just get one thing straight. If things go well - it's down to my genius. If they go wrong - it's down to your failure. Are you with me? .. or against me?

Posted by whiteknight @ 09:04 AM 2 Comments

The fool who fell for his own spin priceless.

Independent: After all the gloom, at last there's some good news on house prices...

Negative equity is poised to claim one of its most famous victims yet. In Connaught Square, the Georgian residency of Tony and Cherie Blair, house prices are falling faster than a rat down a Grade II-listed drainpipe.

Posted by lloyd @ 08:59 AM 10 Comments

The left-Right political spectrum is a fraud

campaignfordemocracy.com blog: A Republic, Not a Democracy.

When dealing with house prices, people move from debating the left right paradigm. Truth is, its a fraud (see the video). The most appropriate way is not represented by that spectrum. And like, in Orwell's 1984, if language is manipulated to rid it of description of something, it cannot be thought about or discussed, hense double think. In the part based on law, called here as the way of the republic, you get sound money, no inflation, etc. In the old system you get a status quo that always has unsound money, inflation and asset bubbles.

Posted by planning4acrash @ 08:38 AM 62 Comments

Don't throw good money after bad

Telegraph: Housing woes shake economy's foundations

An analytical article which lays bare the key issues: Noone wants to get involved with an asset base that people think will shrink. The Government have no money to act but are compelled to protect exchequor revenue or blow all other spending plans. The industry want handouts to mitigate incredibly poor management of long term risks. Directors having enjoyed the hay while the sun shone are probably long gone. We have a huge mess coming and I still can't see any real progress. If the FSA can act on hedge funds to reduce less desirable speculation, when will they lay down a framework for responsible and sustainable lending??

Posted by growler @ 07:29 AM 9 Comments

Wednesday, July 2, 2008

Introduced as a special order and inserted into the Congressional Record next week.

CampaignForLiberty.com: Ron Paul statement on the pending financial disaster

I have, for the past 35 years, expressed my grave concern for the future of America. The course we have taken over the past century has threatened our liberties, security and prosperity. In spite of these long-held concerns, I have daysgrowing more frequent all the timewhen Im convinced the time is now upon us that some Big Events are about to occur. These fast-approaching events will not go unnoticed. They will affect all of us. They will not be limited to just some areas of our country. The world economy and political system will share in the chaos about to be unleashed. The problem we face is not new in history. Authoritarianism has been around a long time. For centuries, inflation and debt have been used by tyrants to hold power, promote aggression, and provide bread and circuses"

Posted by planning4acrash @ 10:34 PM 36 Comments

German printers stop flow of Zimbabwe cash

Guardian: German printers stop flow of Zimbabwe cash

With inflation running at 1m% who will print Zimbabwe's money now that its main source has dried up?

Posted by spotthedog @ 08:49 PM 1 Comments

No escaping MRSA & c diff

FT: Health tourism plan put forward

Strenghthened rights for patients to seek treatment in other (EU) countries were put forward by the EU yesterday - a move that dismayed the UK..... The proposal was attacked by the UK, which fears paying for a flood of refugees from a strained NHS system. The UK Department of Health said it wanted to control who travels for medical procedures.

Posted by icarus @ 08:10 PM 5 Comments

The Great Unwind Continues

FT: Ambac trading halted in New York after shares slide to $1.04

Ambac, the worlds second-biggest bond insurer, stopped trading on the New York Stock Exchange in a subpenny halt' after its share price fell as low as $1.04. Ambac declined 3 cents, or 2.5 per cent, to $1.15 in over- the-counter trading at 1:39 p.m. in New York. Ambac, which was stripped of all three of its AAA rankings from the largest credit-rating companies, has tumbled 99 percent in the past year

Posted by gardeniadotnet @ 07:51 PM 1 Comments

The decline is gainng momentum

guardian.co.uk: Shrinking land values add to UK housebuilder woe

Plummeting land values are piling the pressure on some of Britain's debt-burdened housebuilders just as new sources of capital shrivel up for companies such as Taylor Wimpey Plc. "Developers are dashing for cash. Every site is for sale," said Yolande Barnes, director of research at property services group Savills, highlighting a potential vicious circle of forced selling that could yet slash the value of company land banks. Historical precedents were not encouraging, property experts say. "The thing that falls the most in a downturn is the land," said Ian Marris, a partner in residential development at rival Knight Frank. Little respite for housebuilders and developers.

Posted by plato @ 07:29 PM 2 Comments

So it's back to gold & silver, er, cattle and grain? Shells maybe?

Giesecke & Devrient press release: G & D halts deliveries to the Reserve Bank of Zimbabwe

They're taking away Mugabe's banknote paper. The simplest ideas are always the best

Posted by icarus @ 07:00 PM 4 Comments

So it's back to gold & silver, er, cattle and grain? Shells maybe?

Giesecke & Devrient press release: G & D halts deliveries to the Reserve Bank of Zimbabwe

They're taking away Mugabe's banknote paper. The simplest ideas are always the best.

Posted by icarus @ 06:53 PM 13 Comments

credit crunch timeline of all writedows by major banks globally

Credit Writedowns: Credit Crisis Timeline

This is an economic timeline or a credit crunch timeline by financial institution or bank as well as a traditional timeline. It may be the most comprehensive data set on writedown statistics during this credit crunch to date. The list reaches far and wide and should give one pause as to the ability of the global financial system to recover from this calamity without significant recessionary effects in the real economy in the UK, the US and elsewhere. The losses and needed capital continually rise, with investors willing to infuse these institutions with capital time and again. Updated continuously. Part of the blog www.creditwritedowns.com

Posted by edwardnh @ 05:31 PM 0 Comments

City Lofts puts assets in receivership

Reuters: City Lofts puts assets in receivership

"City Lofts has been forced to place 250 unsold apartments into receivership in light of Britain's housing slump, a spokesman for the privately owned urban apartment developer said on Tuesday." These flats are going to be auctioned off (if they can find a buyer) imagine what effect this will have on flats in Manchester, Nottingham, Leeds, Liverpool, Cardiff and Birmingham. Slums of the future anyone?

Posted by lololzz @ 05:18 PM 0 Comments

Fortis expects bankruptcies of 6000 U.S. banks that now lack coverage.

fortis via google translation: U.S. 'meltdown' reason geldinjectie Fortis

serious trouble with text translation here but screen looks OK

Posted by malct @ 04:44 PM 12 Comments

Evan blames the journalists for HPI

The Guardian: BBC's Evan Davis says media could have warned of credit crunch

The BBC's former economics editor Evan Davis said today journalists could have done more to warn the public about the credit crunch that triggered the current housing price crash and general financial turmoil. Davis, now a presenter on BBC Radio 4's Today, said the media may have helped drive up the market by over-reporting statistics on rising house prices in run up to last summer's credit crunch crisis.

Posted by ezkay @ 04:35 PM 21 Comments

Finally....someone at the BBC admits they were partly to blame for soaring house prices

Guardian: BBC's Evan Davis says media could have warned of credit crunch

The BBC's former economics editor Evan Davis said today journalists could have done more to warn the public about the credit crunch that triggered the current housing price crash and general financial turmoil. Davis, now a presenter on BBC Radio 4's Today, said the media may have helped drive up the market by over-reporting statistics on rising house prices in run up to last summer's credit crunch crisis.

Posted by sophiezilla @ 04:21 PM 4 Comments

Sound Fundamentals? Unemployment makes a return

Daily Telegraph: UK unemployment likely to rise, OECD warns

"Unemployment in the UK is expected to rise by 100,000 over the coming two years, according to projections by an international economic body. Joblessness rates will increase from 5.4pc of the workforce last year to 5.8pc in 2009, with the total numbers reaching 1.8m, said the Organisation for Economic Co-operation and Development."

Posted by growler @ 04:12 PM 3 Comments

Average owed by every UK adult is ~ 30,394 (including mortgages).

credit action uk: Debt Facts and Figures - Compiled 1st July 2008

Debt Facts and Figures - Compiled 1st July 2008 Total UK personal debt Total UK personal debt at the end of May 2008 stood at 1,443bn. The growth rate increased to 8.0% for the previous 12 months which equates to an increase of ~ 107bn. Total secured lending on homes at the end of May 2008 stood at 1,210bn. This has increased 8.2% in the last 12 months. Total consumer credit lending to individuals in May 2008 was 233bn. This has increased 7.0% in the last 12 months. Total lending in May 2008 grew by 5.4bn. Secured lending grew by 4.1bn in the month. Consumer credit lending grew by 1.4bn. link is to main page as stats page invalid - click debt stats link

Posted by malct @ 03:53 PM 1 Comments

Upset US homeowner shoots his real estate agent...

Zoomf Blog: Upset US homeowner shoots his real estate agent...

We often hear that XYZ is the latest victim of the falling housing market, but this US story is truly tragic.

Posted by alex gordon @ 02:07 PM 2 Comments

This is not just a profits warning - this is an (M&S) harbinger of recession...

FT: M&S plunges on surprise warning

Marks and Spencers shares fell more than 20 per cent on Wednesday morning after a profits warning from Britiains biggest clothing chain prompted analysts to slash profit forecasts for the retailer.

Posted by james @ 01:05 PM 0 Comments

Massive reduction in money coming into the economy - Where's that tin hat?

BBC: Fall in amount cashed in on homes

Housing equity withdrawal - when owners take out bigger mortgages to spend on things other than their home - fell to 5.043bn in January to April in the UK. This was down from 7.373bn during the previous quarter and far less than the 13.892bn of the same period in 2007.

Posted by tyrellcorporation @ 11:57 AM 26 Comments

The deleveraging process for the financial system has barely started

signs of the times: Signs Economic Commentary for 30 June 2008

The deleveraging process for the financial system has barely started as most of the writedowns have been for subprime mortgages; the writedowns and/or provisioning for the additional losses have barely started. Thus, hundreds of banks in the U.S. are at risk of collapse. The typical small U.S. Bank (with assets less of $4 billion has 67% of its assets related to real estate; for large banks the figure is 48%. Thus, hundreds of small banks will go belly up as the typical local bank financed the housing, the commercial real estate, the retail boom, the office building of communities where housing is now going bust.

Posted by malct @ 11:04 AM 1 Comments

Economic Threat to Supermarkets

webindia: Nationwide truckers strike from today

Truckers across the country are on an indefinite strike today to push their demand for abolishment of toll tax and rationalization of duty of diesel. Millions of Indian truckers strike over fuel and taxes. Here in the UK, knowing the supply chain nightmare of 'just in time' delivery, I asked a local supermarket manager for the real story. No deliveries means out of fresh food in one day, out of canned and boxed food two to three days. Our truckers (used to be lorry drivers) obviously know this. But what's this I see a 'Hanson' truck demonstrating today.

Posted by malct @ 10:46 AM 31 Comments

House prices go down 17 per cent in a year and experts warn 'outlook is dire'

Mail Online: House prices go down 17 per cent in a year and experts warn 'outlook is dire'

House prices fell by up to 17 per cent in the past year and the outlook for the market is 'dire', financial experts warned yesterday. Nationwide, the country's biggest building society, said it has not seen such a sharp drop in prices since the property crash of the early 1990s.

Posted by housebear @ 10:44 AM 6 Comments

House Prices in Britain Fallen at their Fastest

istockanalyst: House Prices in Britain Fallen at their Fastest

If the future path of the U.K. housing market is anything like the present course for the one in the U.S., the strength of the lower rungs of their "property ladder" will soon be tested.

Posted by housebear @ 10:43 AM 0 Comments

Falling house prices raise spectre of a crash

Times Online: Falling house prices raise spectre of a crash

Fears that the already severe slump in the housing market will mutate into a full-blown crash intensified yesterday as a key survey showed house prices plunging at their fastest annual rate since the end of the last recession.

Posted by housebear @ 10:40 AM 2 Comments

House price warning for Scots as regional variations mask stagnation in market

The Scotsman: House price warning for Scots as regional variations mask stagnation in market

COTTISH homeowners were last night warned they are not immune to the global credit crunch and will face tough times for at least a year despite figures showing the country is the only one in the UK to buck a national house price slump.

Posted by housebear @ 10:37 AM 5 Comments

Fears for pension schemes as 30billion is wiped off FTSE after shares plummet

Daily Scare!!: Fears for pension schemes as 30billion is wiped off FTSE after shares plummet

Investors were reeling yesterday after share prices plunged on stock markets around the world. The FTSE index of Britain's 100 biggest companies fell 146 points - 2.6 per cent - to close at 5,479 points. It wiped more than 30billion off the index.

Posted by housebear @ 10:35 AM 2 Comments

Housing crisis has knock on effect in North Wales

Daily Post: Housing crisis has knock on effect in North Wales

BLEAK new statistics show Welsh house prices have fallen 7.6% in the last 12 months according to leading mortgage lender Nationwide with homes in Wrexham falling 5.4% over the year. The future outlook is even more concerning with mortgage approvals down 64% nationally on last year, figures reflected by a North Wales mortgage broker who said they were processing half the number of mortgages as in June 2007.

Posted by housebear @ 10:32 AM 4 Comments

UK House Price Crash is Here as Forecast!

The Market Oracle: UK House Price Crash is Here as Forecast!

The Halifax house price data to be published in the next few days will show a house price fall of between 4% and 5% for the quarter April 2008 to June 2008 on an non seasonally adjusted basis this equates to an annualised rate of between -12% and -15% and thus will be recognised as a crash in UK house prices. Despite house prices now falling by 6.3% on an annualised basis, the Nationwide continued to try and clutch at straws to talk the market higher by stating: " House prices fell by 0.9% in June, less than half the rate of the previous month Prices are 6.3% lower than this time last year, but remain 4% higher than 2 years ago "

Posted by housebear @ 10:29 AM 4 Comments

This is not "speculation", this is panic.

David Seaton: Oil and the mother that bore him

There is much argument as to if we are rapidly running out of oil or if there is plenty left. Most of these arguments are magic ones. There are so many sound and reliable experts on either side of the question that I am tempted to say that the "magic quotient" is having a disproportionate effect on the present crisis. This is no longer really about making money, this is about not losing shirts. Oil being the center value of our civilization its paper value is soaring, just as the paper value of gold and wheat. This is not "speculation", this is panic.

Posted by malct @ 10:28 AM 3 Comments

Homebuilder shares smack down!

Home Move: TW, RDW and BDEV shares plummet

Homebuilders are getting tanked on the FTSE this morning: Taylor Wimpey down 50%, Barratts and Redrow down more than 20%. Other builder down 10-20%.

Posted by brite2006 @ 10:23 AM 0 Comments

C'mon! Where is it?

Halifax: June House Price Index

Somebody posted a link to a website yesterday that tells you when all these announcements are coming out, could we have it again please? Edge of the seat stuff.

Posted by mark wadsworth @ 10:19 AM 5 Comments

No Fed chief in US history has been forced to submit to the kind of humiliation that Ben Bernanke is facing.

Information Clearing House: The Shrinking Influence of the US Federal Reserve

Under its bylaws, the IMF is charged with the supervision of the international monetary system. Roughly two-thirds of IMF members -- but never the United States -- have already endured this painful procedure. For seven years, US President George W. Bush refused to allow the IMF to conduct its assessment. Even now, he has only given the IMF board his consent under one important condition. The review can begin in Bush's last year in office, but it may not be completed until he has left the White House. This is bad news for the Fed chairman.

Posted by malct @ 10:03 AM 1 Comments

Taylor Wimpey with some gloomy housing market predictions

Reuters: Taylor Wimpey Unable to Raise Cash

"The company said housing reservations had declined sharply since its last update in April, with UK housing reservations down 45 percent year-on-year and both its order book and home completions down a third. On Monday, the housebuilder had warned of a "significant downturn" in the UK housing market and an expected 660 million pound writedown in the value of its assets." Only 0.9% down in June - I don't think so.............

Posted by mapp1066 @ 09:57 AM 2 Comments

Real prices down 10% in 8 months!

FT: Worst house price fall since early 90s

Not much new here, but this bit is good: Holger Schmieding, economist at Bank of America, said: "Adjusted for the rise in consumer prices, house prices have now fallen 10.3 per cent in real terms in a mere eight months."

Posted by mark wadsworth @ 09:51 AM 0 Comments

UK House Price Crash is Here!

The Market Oracle: UK House Price Crash is Here as Forecast!

The Nationwide following on from a series of house price data releases by several mortgage banks and institutions in recent weeks confirmed that UK House price declines are set to accelerate over the summer months as the market heads for a crash.

Posted by nadeem walayat @ 09:35 AM 0 Comments

House prices fell by 76.4pc

Irish Independent: Japan's housing slump was scary, and ours could be too

This chart records the traumatic property experience of Japan. A monumental boom in the late 1980s and early 1990s reversed dramatically and house prices fell by 76.4pc from the peak. This happened, not in a corrupt, tin-pot dictatorship, dependent on commodities for its sole exports, but in the world's most sophisticated economy, with the most dynamic financial sector and a history as the world's pre-eminent innovator.

Posted by jd @ 09:27 AM 1 Comments

35k or 50k coverage?

Money Saving Expert.com: Are your savings safe?

at the end put :"/safe-savings". This is a duplicate - but important link that has been updated since first posted. 35k (or 50k) limit allocation. This was discussed - i.e. whether its a good or bad thing, and how it gets funded - yesterday, as an aside from the spectre of a raise to 50k. Icarus i will post my last response after yours so we can continue the debate should you wish. For others please forgive the indulgence although this should be an important issue....and may take on more importance going forward,

Posted by techieman @ 08:40 AM 1 Comments


MSN: Starbucks to cut up to 12,000 jobs

About time - long overdue. Hope it happens in the UK as well. As the moeny dries up so will the overpriced coffee's.

Posted by waitingfor hpc @ 08:20 AM 3 Comments

Low unemployment, better placed to weather the storm.......

BBc News: Taylor Wimpey set to cut 900 jobs

Housebuilder Taylor Wimpey has said it is to close a third of its 39 offices, with the loss of 900 jobs, as it seeks to cope with the housing downturn. The firm added it had so far failed to agree a deal to raise extra funds, reported to be about 500m, through an emergency share issue.

Posted by flintster1994 @ 08:13 AM 11 Comments

Couldn't happen here....could it?

Reuters: Mortgage ruling could shock U.S. banking industry

The judge transformed the case from a run-of-the-mill class action to a potential nightmare for the U.S. banking industry by also finding that the borrowers could force the bank to cancel, or rescind, their loans. That decision was stayed pending an appeal to the 7th U.S. Circuit Court of Appeals, which is expected to rule any day.

Posted by gardeniadotnet @ 07:25 AM 3 Comments

Got Gold?

Safe Haven: The Dow-Crash, The Dollar, Gold, and WAR!

So, the world is now faced by an America that claims it wants to "spread democracy" while using its military to tyrannize countries that simply want to sell their oil for another currency. America has become what she always claims to be opposed to: an absolute tyranny that no longer even cloaks itself. Not surprising, given the role assigned to her by her globalist masters in ushering in the preconditions for eventual total centralization.

Posted by sold out @ 06:59 AM 17 Comments

This year, Easter fell earlier than usual in March, meaning there was a sharp spike in food sales during that month, while in April, there was a sudden fall in food sales.

smh: Retail figures deceptive

Retail figures deceptive The bounce in May's retail sales could prove to be an artificial blip, with evidence Australia's consumers are still doing it tough. The retail numbers published today showed a 0.7% increase, seasonally adjusted for May, which was more than triple the market's consensus call of a 0.2% increase. However, most of the rise was provided by a 1% surge in food sales. Now it's not a case that Australians are eating more, but instead a matter of timing.

Posted by big chris @ 06:29 AM 0 Comments

Another sign of sentiment changing

Independent: House prices the market collapses

Only a few months ago, the consensus view was that house prices would be broadly flat during 2008, but the most pessimistic observers are now predicting a much worse outcome. Seema Shah, a property specialist at Capital Economics, said: "The bottom line is that the housing market is in only the early stages of a deep and extended correction. Our forecast is for house prices to fall by 15 per cent this year, and to continue falling in 2009 and 2010."

Posted by quiet guy @ 01:52 AM 3 Comments

Just one of many bearish articles this morning - see comment 1

Guardian: When bubbles go pop

Sometimes bubbles deflate gently; other times they just go pop. No prizes for guessing which is the case in Britain's housing market. As price slides go, this is the fastest since 1992. Nor is it likely to stop. Instead of gentle deflation, we are getting a big bang. Prices on basics such as food and fuel are soaring, while credit has dried up. Consumers are seeing a squeeze on their standard of living while also fretting about rising joblessness.

Posted by little professor @ 01:14 AM 7 Comments

Tuesday, July 1, 2008

Gesture politics from Darling

Times: Guarantee for bank savers raised to 50,000 (courtesy of taxpayers)

So let's get this straight, before this scheme, banks had to guarantee up to 35,000 of each savers money, now the taxpayer guarantees 50,000 instead. So as a bank, if a customer defaults on loaned assets, the customer pays (the bank can legally chase you) and if the bank defaults on loaned assets, then ... the customer pays (because the state will take your money and give it back to you) ... ? Something doesn't seem right there!

Posted by paul @ 11:20 PM 4 Comments

Baby Boomers Rule OK!!!

Newsday: Baby Boomers begin collecting their social security

Just a little animated vid, about the Baby Boomer the generation. Enjoy

Posted by stevie dee @ 10:13 PM 0 Comments

Pass the Salt Kirstie

Financial Times: UK House Prices

"Modelling the lagged effect of mortgage approvals, UBS calculates that, by November, house prices will have dropped 17 per cent year on year,..." starting to sound a bit old hat. Still, more life in that hat than Kirsties, who should be looking at recipes now. Perhaps washed down with a nice bottle of Chapeau Neuf du Pap.

Posted by baudot @ 09:49 PM 0 Comments

ECB will probably raise rates

Bloomberg: ECB Is Martian, Fed Venusian, Says Deutsche Bank

The European Central Bank and the Federal Reserve are reacting differently to the threat of faster inflation, with policy makers in Europe likely to backtrack after raising interest rates, according to Deutsche Bank AG economists.

Posted by alan @ 08:52 PM 0 Comments

Dollar & Sterling Devaluation

Asia Times via infowars.com: How to stop the Great Crash of 08

Many look at the American's with pity, most forget that Sterling is falling FASTER than the dollar. It was at $2.05+ last summer, and is now below $2 "The oil price has doubled in the past year because the US Federal Reserve panicked over risks to the over-leveraged financial system and flooded markets with excess liquidity. The world is willing to pay arbitrarily high prices to hedge against inflation, but the cost of inflation hedges drags down the world economy. Last weeks spike in commodity prices and swoon in global stock markets points the way to a deep and prolonged fall in economic activity."

Posted by planning4acrash @ 07:12 PM 0 Comments

We are not allowed to know how much of OUR money was used to bail out this failed bank.

BOE and HM Treasury: Freedom of (dis)information request

Please find the following responses for my "freedom" of (dis)information request(grovel). The responses are below. Basically, they passed a law to ensure that we can't ask questions of the BOE. This means that the BOE has become secretive like the Feral Reserve. Read and get angry.

Posted by planning4acrash @ 06:36 PM 20 Comments

Just noticed that HPC website has an ad for the same rip-off loans!

Guardian online: You can settle the loan on payday - but the APR could be more than 2,000 per cent

Wouldn't normally post off message article - but HPC website as advert for the same type of loan. ***From a couple of days ago... Offshore money-lending companies charging interest rates in excess of 2,000 per cent are targeting cash-strapped borrowers in the UK via the internet. They are offering 'payday loans' that provide desperate borrowers with up to 1,000 over 31 days, which then has to be paid back with hundreds of pounds added on in interest.

Posted by rental john @ 06:09 PM 5 Comments

Inflation? What inflation?

BBC News: Fed loans $75bn more to aid banks

The US central bank has auctioned a further $75bn (38bn) of short-term loans to help the financial sector. Offers for $90.88bn-worth of loans from 77 bidders were tabled during the auction, the Federal Reserve said. The auction, the 15th since December, is part of the Fed's attempts to help banks through the credit crunch.

Posted by flintster1994 @ 04:56 PM 3 Comments

this delusional complacency is now rapidly collapsing

RGE monitor: The delusional complacency that the worst is behind us is rapidly melting awayand the risk of another run against systemically important broker dealers

After the collapse in mid-March of Bear Stearns and the ensuing bailout of Bears creditors and the extension of the Feds lender of last resort support to systemically important members of the shadow banking system (the non-bank broker dealers that are primary dealers) a sense of delusional complacency emerged in financial markets based on fairy tales such as the worst is behind us, the recession will be short and shallow, that housing is bottoming out or even that we will avoid the recession. But this delusional complacency is now rapidly collapsing as financial markets are back to panic mode. Lets detail how

Posted by malct @ 04:06 PM 12 Comments

Wall Street: Bear country, USA

CNN: Wall Street: Bear country, USA

Worst June since the 1930s. The Dow's plunge of 10.2% in June was the worst monthly performance since September 2002 when it fell 12.4%, and the worst June since 1930, when it sank 17.7%. The S&P 500's 8.6% decline was the worst month since September 2002, when it fell 11% and the worst June since 1930, when it fell 16.5%.

Posted by mark @ 03:12 PM 1 Comments

Would you like ketchup with that?

FT Lex: UK house prices

"Would you like ketchup with that? For Kirstie Allsopp, the bullish presenter of a Channel Four property programme who once promised to eat her hat if UK house prices fell, Tuesdays data from Nationwide will make chewy reading. For the first time in the 17-year history of the mortgage lenders monthly index (which is, incidentally, turning into something of a liability for the building society), house prices have fallen for eight consecutive months. Even in the downturn of the early 1990s, prices never fell with such conviction".

Posted by mark wadsworth @ 02:56 PM 8 Comments

The corruption of the whole ponzi scheme becomes clearer by the day.

Bloomberg: Moody's Says Some Employees Breached Code of Conduct on CPDOs

July 1 (Bloomberg) -- Moody's Corp. said some members of its credit committee breached its code of conduct when evaluating some structured debt products. The company has initiated disciplinary proceedings against some employees who were involved in monitoring constant proportion debt obligations, or CPDOs, the company said in a statement distributed today on Business Wire.

Posted by flintster1994 @ 02:33 PM 1 Comments

Goebbels: Something is definitely NOT right!

BBC: Savers' cash safer if banks fail

Chancellor Alistair Darling has proposed new measures to protect savers in the event of a bank getting into financial difficulty. The plans are intended to increase public confidence in the banking system in the wake of the near collapse of Northern Rock in September last year. As part of the plans, the threshold for guaranteed deposits is expected to rise from 35,000 to 50,000. ****Propaganda machine in full swing****

Posted by stevie dee @ 01:41 PM 8 Comments

Still a slowdown/correction, apparently - tell that to someone who bought last year.

Belfast Telegraph: Northern Ireland house prices tumble by 18%

"Northern Ireland's beleaguered property market faced another significant low today after new figures showed house prices dropped by almost a fifth in just one year." Now the talking heads claim that they always knew prices were unsustainable.....learly they are unaware of something called the internet, where every word is stored for future reference.... I know prices that have dropped 25-30% and still no sale, so a bit to go yet.....

Posted by shipbuilder @ 01:36 PM 6 Comments

Warning lights flash as economy stutters

reuters: Warning lights flash as economy stutters

Carpetright chairman Philip Harris, a 50-year veteran of carpet selling, warned on Tuesday that the coming year would be one of the most difficult he had ever seen.

Posted by mark @ 01:29 PM 5 Comments

Finally some sane commentary

Guardian / CommentIsFree: Cheer up - house prices are falling

Cheer up, house prices are falling. Nationwide said today that values have fallen again, for the seventh month in a row. Everything else is going up in price - food, petrol, electricity - but houses, our biggest and most expensive purchase, are falling. Hurrah! Financial websites this morning reported the news in their usual gloomy fashion economists "fear" further declines, experts say the market is "the worst for decades". And it comes after figures showing new mortgage approvals are at their lowest level since 1993, and down 64% over the past year. Cue more wailing about a housing market "meltdown". Down in the real world, where young adults have for a long time been priced out of the market by avaricious investors, price falls are unalloyed good news.

Posted by afcone @ 01:15 PM 0 Comments

Government Admits Banks Own the UK!

Timesonline: UK banks off the hook for savings guarantee

The Government today confirmed plans to increase the guarantee on depositors' savings to 50,000 if their bank collapses but said lenders will not have to pay billions of pounds upfront into a protection scheme. Following the Northern Rock fiasco, the Government pledged to increase the guarantee on savers' money from 35,000 to 50,000. However, UK banks had been worried that, with their finances already under pressure, they would be asked to pre-fund the system.

Posted by flintster1994 @ 12:58 PM 30 Comments

Repossessions, mortgage fraud, and solicitor negligence all on the rise

Mortgage Introducer: Title insurance set to soar

London & European has forecast a surge in the uptake of title insurance policies by prime lenders, in particular building societies. Christian Bearman, director at London & European, explains: Weve experienced a 116% increase over the past year in inquiries from this community as its focus has shifted from growth or market share to risk........"

Posted by landedgentry @ 12:50 PM 0 Comments

FTSE tanking down 2.5% at Lunchtime

BBC: Market Report - London

The London market fell sharply in early trade, with the FTSE 100 down more than 1% shortly after opening. By 0830 BST, the FTSE 100 was down 59.9 at 5,566, with nearly all shares in the top index trading lower.

Posted by stevie dee @ 12:19 PM 0 Comments

Meltdown is so close now

The Telegraph: House prices fall at fastest rate in 16 years

Average property values in June stood 6.3pc cent lower than a year before - the biggest such drop since the 1990s crash, the Nationwide building society said.

Posted by sold 2 rent 1 @ 12:07 PM 22 Comments

Big Boys looking for Mugs to underwrite their losses

Arc Income & Capital plc: 'Bricks and mortar plan'

Basically, they stick your money on deposit for six years (that's where the 30% comes from) and there must be some well-capitalised house-price-bears somewhere who are prepared to take the other side of the gamble, in other words, the more prices fall, the bigger their pay-out (and vice versa). If I were a bank or building society, or indeed a big property company (who have left it far too late to sell off their properties), that's exactly the kind of punt I'd take - it insures me against house price falls. So, who do you think will win this bet, the Big Boys or the mugs who sign up for this?

Posted by mark wadsworth @ 11:52 AM 3 Comments

Hat eating

Krustie Hairy Allsopp: Eating hats

I know this is a bit left of centre but when will this overweight and overpaid sloanie start eating her hat! Even Fionnuala Earley is basically saying that we are in a house price crash situation. www.housepricecrash.co.uk is finally vindicated and we it's users are not "talking down the market". She, and all the other property pornstars are as responsible as the programme makers and even the money lenders in over egging the cake and letting the housing market blow up get to silly preportions. The jig is up Allsop, start eating bee-atch!

Posted by nooneo @ 11:23 AM 23 Comments

More Straight Talk From Money Week

Money Week: Why the mortgage drought is good for first-time buyers

Cheaper prices equals less debt for first time buyers. Crash likely to stop at 3.5 times average salary for an average house. Worse than the crashes of the 70s and 90s.

Posted by ader @ 11:19 AM 0 Comments

Property Bear launches a 'wealth' index in the wake of and using the Nationwide hpi data

Diary of a Property Bear: Homeowner Wealth Index - June 2008

The Property Bear's newly launched "Homeowner Wealth Index" examines the effect of mortgage leverage of homeowners housing equity wealth by loan to value - and thereby on the different categories of borrower.

Posted by hotairmail @ 10:44 AM 1 Comments

House prices: the latest forecasts, region by regionHouse prices: the latest forecasts, region by region

Times: House prices: the latest forecasts, region by region

Here are the experts' predictions on how much further prices will fall this year in each region of the UK. ****how sentiment has changed since last year****

Posted by mark @ 10:42 AM 1 Comments

Many homeowners are now losing almost as much from their property as they are earning from their job

ThisIsMoney: House prices fall 11,500 in a year

Another fall in values last month - the eighth on the trot - leaves the average price of a home in Britain 6.3% down since the start of the year and 7.3% below the market's peak last October

Posted by confused76 @ 10:18 AM 8 Comments

Less than 5%! Your vote would be wasted faster than voting Labour in a by-election.

Guardian online: House prices: How low will they go?

Nationwide building society today reported a 0.9% drop in house prices in June, and experts are predicting further falls. At the halfway point in the year prices are down 6.3% on 2007. How much further to you think they will fall by the end of 2008?

Posted by rental john @ 09:45 AM 2 Comments

Oil edges up in Asia, staying above $140, on concerns about Iran, dollar weakness

Yahoo - AP: Oil edges up in Asia, stays above $140

Oil prices edged higher Tuesday in Asia, staying above $140 a barrel, amid concerns about tensions between Iran and Israel and a weakening dollar. "You have supply-side concerns, such as the rhetoric on Iran, that will likely keep a floor under prices," said Victor Shum, an analyst with Purvin & Gertz in Singapore. "I don't see much resistance to $150, which could happen in the coming weeks." Traders were still anxious about tension in the Mideast after the commander of Iran's Revolutionary Guards warned that if his country is attacked, Tehran would strike back by barraging Israel with missiles and that it would control a key oil route in the Gulf.

Posted by stevie dee @ 09:34 AM 7 Comments

Reality from The Times

The Times: Annual house price falls worst since 1992

No spin as per Nationwide about a "slowing" of the decline in June. A good article analysing likely future numbers: "Furthermore, latest survey evidence shows that agreed house sales are very low, buyer interest is continuing to decline, it is taking longer to sell a house and sellers are achieving a falling percentage of their asking price. All these factors point clearly to further declines in house prices"

Posted by growler @ 08:11 AM 6 Comments

Spring bounce?

BBC News: House prices 'fell 0.9% in June'

''...UK house prices fell by 0.9% on average last month, according to the latest survey from the Nationwide. The decline was less severe than the record 2.5% fall seen in May, but prices were now 6.3% lower than a year ago, the Nationwide said...''

Posted by hpwatcher @ 07:48 AM 12 Comments

The slide continues

Nationwide: Pace of house price falls slows in June

The 3-month figure continues to deteriorate, in contradiction to the press release headline. Just heard the chap on the Today programme on Radio 4, wriggling and bleating. This time the attempt is to cling to the volatile monthly figue to claim that things are getting better. An exasperated Evan Davis flatly contradicted him before quietly leaving him to it.

Posted by dohousescrashinthewoods @ 07:17 AM 31 Comments

A year ago, the Bank for International Settlements startled the financial world by warning that we might soon face challenges last seen during the onset of the Great Depression. This has proved frighteningly accurate.

telegraph.: BIS slams central banks, warns of worse crunch to come

the ultimate bank of central bankers, said years of loose monetary policy had fuelled a dangerous credit bubble that would entail "much higher costs than is commonly supposed".

Posted by big chris @ 03:20 AM 6 Comments

Will Mervyn cave in? I doubt it

Independent: Dealing with Britain's beleaguered housing market may call for some radical solutions

"New mortgage approvals for house purchases (as opposed to remortgaging) were nearly two-thirds lower in May than a year earlier. John Charcol, the mortgage broker, is laying off 15% of its staff, and Taylor Wimpey shareholders are faced with 50% dilution. Pete Redfern, the chief executive, is unprepared to spell out the fall in house prices [...] because he fears it would become a self-fulfilling prophecy if he did. ... To date, Mervyn King has specifically rejected the case for underwriting new mortgage finance, as this would be tantamount to the Government itself entering the mortgage market and might encourage a return to the overheated conditions of a year ago. The intention of the SLS is to provide emergency liquidity to markets, not to replenish the punch bowl. But ....."

Posted by drewster @ 02:34 AM 4 Comments

Campaign for the Protection of Residential Equity strikes again

Telegraph: 'Eco-towns' will fall victim to economics

"With the bottom dropping out of the housing market, are builders really going to commit to these new towns, no matter how fetching the locations?" --- Yes! Even in a falling market people would rather live in a shiny new eco-town than a crumbling inner city ex-council apartment block. Eco-towns are a controversial topic (I'm staunchly in favour) so let the flames begin....

Posted by drewster @ 02:20 AM 5 Comments

The Game is up

The Age: IMF finally knocks on Uncle Sam's door

The unveiling of what actually makes up the cut of the emperors new clothes is approaching for blundering Bernanke and the US Fed

Posted by van hoogstraten @ 01:49 AM 0 Comments

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