September 2008 Archive

Tuesday, September 30, 2008

How much money is Gordon Browns personally brokered HBOS deal worth?

Times: Gordon Brown in struggle to shore up HBOS rescue

Gordon Brown was personally fighting to save the 12 billion proposed rescue of Britains biggest savings bank tonight amid growing doubts over the deal. I am confident that the Lloyds TSB takeover of HBOS will go ahead, he insisted.

Posted by enuii @ 10:53 PM 0 Comments

FINANCIAL institutions across the globe last night urged the US to agree a bail-out package, warning

Daily Mash: STOCKMARKETS RUNNING OUT OF UNDERPANTS

Need a giggle?!

Posted by planning4acrash @ 09:23 PM 3 Comments

FLASHBACK they will be back for more

newstatesman: Everything you want to know about the bank crisis

This is the worst financial crisis in 60 years, and it has shaken the banking system to its foundations. Even the Chancellor, Alistair Darling, has compared the crisis to the Great Depression and he is not given to overstatement. Banks are in the business of lending money they don't have - it is called "fractional reserve banking". But every so often the banks succumb to irrational exuberance, lend too much and find their reserves have been eaten up too fast, forcing them out of business. This is what happened to Northern Rock, and is now happening to all the big banks. That is why they had to be rescued to the tune of 50bn last month by the Bank of England - ie, us. They will be back for more.

Posted by malct @ 08:31 PM 2 Comments

Wasn't a problem when they hyped on the way up!!!

Property Wire: UK mortgage lending association abandons short term property price forecasts

Trying to predict property prices in the UK in the short term is futile in the current economic turmoil, according to the country's trade association for mortgage lending industry. *Will Nationwide and Halifax indices go the same way?

Posted by whostolemyendowment @ 06:39 PM 5 Comments

From the property porn channel

Channel 4 news: Buy-to-let mortgage deals nosedive

One in 10 mortgages has been pulled during the past 24 hours following the nationalisation of Bradford & Bingley, figures showed. The number of buy-to-let loans has nosedived, with just 481 different deals now available, a 27% fall on Monday's figure of 662, financial information group Moneyfacts said.

Posted by whostolemyendowment @ 06:33 PM 3 Comments

Load of very interesting news that caused the US property boom...

Metacafe: Who will you vote?

A liar builds up your world, leaves with your money and your good intentions, knowing he's fooled you and walks away. He's proud of what he's done, building his and his friends' fortunes on the backs of people he's duped. Load of very interesting news that caused the US property boom...

Posted by mario @ 05:20 PM 10 Comments

Another myth exposed...

FT: Lenders refuse mortgages based on City bonuses

We were told high-end, prestige homes in the 1m+ bracket would not experience as severe a decline as the rest of the market due to continued demand from the wealthy. Oh well, looks like demand from the wealthy was based on cheap, dodgy credit just like the rest of us - lenders are now refusing to lend on the basis of job bonuses (can't believe they were doing this anyway as a bonus can never be a guarantee). There goes the City end of the market overnight...!

Posted by an bearin bui @ 04:30 PM 9 Comments

lets hope it fails... Lloyds should not be able to do this...

Yahoo: London afternoon: HBOS battered on merger fears

A statement by Royal Bank of Scotland (LSE: RBS.L - news) to alleviate fears about its exposure to the fall-out from the Fortis (Amsterdam: FOO.AS - news) rescue may have succeeded in its aim, but the stock is still lower as investors threat about the UK banking industry

Posted by mark @ 03:19 PM 7 Comments

Global financial turmoil day by day

reuters: Global financial turmoil day by day

Following is a day-by-day summary of recent events in the financial crisis:

Posted by mark @ 03:13 PM 0 Comments

An still it goes on.

CNN: Record decline in home prices

July home prices plunge 16.3% in 12 months, according to the Standard & Poor's/Case-Shiller 20-city housing index.

Posted by holding out @ 02:50 PM 8 Comments

Emergency official rate cut on the cards?

Bloomberg: Libor Surges Most on Record After U.S. Congress Rejects Bailout

The cost of borrowing in dollars overnight surged the most on record after the U.S. Congress rejected a $700 billion bank rescue plan, heightening concern more institutions will fail. The London interbank offered rate, or Libor, that banks charge each other for such loans climbed 431 basis points to an all-time high of 6.88 percent today, the British Bankers' Association said.

Posted by lukeskywalker @ 02:07 PM 1 Comments

More jobs go

Yahoo: Job cuts at ITV; journalists threaten action

The job cuts will include 430 redundancies in the 1,075-strong News department as the company seeks to reduce costs to free up money for investment in UK content.

Posted by mark @ 01:33 PM 4 Comments

BTL = Bad Turbulent Landing (please adopt crash position)

mortgagestrategy: Buy-to-let product choice obliterated

84% of buy-to-let products were stripped from the market yesterday with the nationalisation of Bradford & Bingley and product withdrawals by UCB Home Loans and The Mortgage Works, reveals Moneyfacts.co.uk. The market as a whole saw 11.4% of mortgage products wiped out bringing numbers from 3,914 Monday morning to 3,469 today. The residential market was also hit hard losing 60% of its products in 24 hours.....It appears that lenders are slowly turning the tap off on the number of mortgage products available and their appetite to lend. If the problems continue we have to start asking the question, will the tap will be turned off completely until stable markets return?

Posted by jack c @ 01:27 PM 4 Comments

Ireland Keeps It Safe

BBC News: Irish Government Guarantees Banks

On Tuesday, the Department of Finance said the state would safeguard all deposits, bonds and debts in six banks and building societies for two years.

Posted by yoyo1 @ 12:58 PM 11 Comments

Panic home selling now the order of the day

Firstrung: House sellers have to drop prices by as much as 12.5% to get a sale - RICS

Across the UK, houses are selling at an average of nine percent below the asking price with sellers in some regions being forced to accept as much as 12.5 percent discount off their advertised price, says RICS research... As economic fundamentals continue to worsen, the gap between selling and asking prices is widening. In the North vendors are accepting the lowest offers - averaging 12.5 percent below the marketed price. Vendors in the North West, East Midlands, West Midlands and Wales are accepting offers averaging approximately 10 percent below but in London the figure stands at 8.5 percent.

Posted by converted lurker @ 12:46 PM 6 Comments

the message from government officials is that the economy is dropping into the john.

Telegraph: Bailout failure 'will cause US crash

The financial system could face a meltdown of 1929 proportions unless US politicians succeed in their efforts for a $700bn rescue scheme, Officials close to Paulson are privately painting a far bleaker portrait of the fragility of the global economy than that advanced by President George W Bush in his televised address last week. One Republican said that the message from government officials is that the economy is dropping into the john. He added: We could see falls of 3,000 or 4,000 points on the Dow [the New York market that currently trades at around 11,000]. That could happen in just a couple of days.

Posted by malct @ 12:44 PM 16 Comments

The times, they are a changing

Firstrung: Home selling transactions now at levels not seen since the 1960's - Hometrack

A survey by property consultants Hometrack has revealed that UK house prices have fallen for a 12th consecutive month in September, suggesting the government's decision to raise the threshold for stamp duty has done little to support the ailing housing market.... The latest drop has pushed up the annual rate of decline to a record level of 6.2% for the year to the end of September. Hometrack also recorded a further fall in the number of new buyers registering with estate agents; 5.3% less people starting the 'househunting' process in September 2008 compared with August 2008.

Posted by converted lurker @ 12:44 PM 0 Comments

The housing market is crashing, securitzation is kaput, and the broader economy is drifting towards

Counterpunch: Black Monday?

Once the banksters have offloaded their fraudulent securities and crappy paper on Uncle Sam, they will do whatever they need to do pad the bottom line and drive their stocks up. They'll move their capital wherever they think they can maximize their profits. In fact, a sizable portion of the $700 billion will likely be invested in commodities, which means that we'll see another round of hyperbolic speculation in food and energy futures pushing food and fuel prices into the stratosphere. Ironically, the taxpayers largesse will be used against them, making a bad situation even worse. Then again, if a rehabbed bill isn't passed, no one can predict with certainty what will happen.

Posted by malct @ 12:41 PM 0 Comments

Amongst the gloom some GOOD news

Mail online: The day when buy-to-let died

The collapse of Bradford & Bingley sounds the death knell for buy-to-let. More than 1.1million British investors put their money into property for rent, borrowing against the value of their family homes. The hope was that the rental income would cover the mortgages, while they would cash in from the supposedly inevitable rise in house prices. However, the market has now been hit by a double-whammy which threatens mass repossessions and an even bigger property market collapse than the 1990s bust.

Posted by sold out @ 12:41 PM 2 Comments

The problem is the collapse of an $8 trillion housing bubble

SOTT - Uffington Post: Why Bail? The Banks Have a Gun Pointed at Their Head and Are Threatening to Pull the Trigger

(It was remarkable how many so-called experts somehow could not see the housing bubble as it grew to ever more dangerous levels. It is even more remarkable that many of these experts still don't recognize the bubble even as its collapse sinks the economy and the financial system.) The decline in housing prices to date has already cost the economy $4 trillion to $5 trillion in housing equity. This would be expected to lead to a decline in annual consumption on the order of $160 billion to $300 billion. Given the loss of housing equity, I have actually been surprised that the downturn has not been sharper. Homeowners had been consuming based on their home equity. Much of that equity has now disappeared with the collapse of the bubble. We would expect that their consumption would fall.

Posted by malct @ 12:34 PM 0 Comments

Hhhmmmmmmmm??

Mortgage Introducer: Buy-to-let arrears below market average.

Statistical data released by the CML shows that the percentage of buy-to-let mortgages more than three months in arrears stands at 1.1% of all buy-to-let mortgages outstanding. This compares with a total mortgage market figure of 1.33% in arrears of three months or more. There are currently 1,103,000 buy-to-let mortgages outstanding out of a total market of 11,741,000. Source here - http://www.cml.org.uk/cml/filegrab/AP5.xls?ref=5217

Posted by renting2 @ 12:29 PM 10 Comments

Where are the September numbers from Nationwide?

Nationwide: House Price Index

It's the last business day of the month, so where are the Nationwide house price index numbers for September? This data always comes out before the end of the month. What's going on here then?

Posted by ana lytics @ 11:48 AM 23 Comments

The veil has been lifted for those who have eyes to see it. We are being shown who is in control of

OpEdNews: US Banking Collapse a 'Controlled Demolition'

What does the rest of the world know that we don't? The United States Dollar is dead. While we are being jerked around by the mainstream media here at home, the rest of the world has already drawn the final conclusion for us, and what they are saying about us isn't pretty. We are in the middle of a crisis much larger than most Americans could imagine, a portion of America can't even handle it, for that matter. The Bailout is an awful idea, and the majority of Americans realize that. There is even a provision that would grant Treasury Secretary Henry Paulson dictatorial powers, and that is obviously insane, but here we are debating it. It's like asking a dead man whether he wants to be buried or cremated;

Posted by malct @ 11:45 AM 3 Comments

This is just incredible

CNN: The $55 trillion question

The financial crisis has put a spotlight on the obscure world of credit default swaps - which trade in a vast, unregulated market that most people haven't heard of and even fewer understand. Will this be the next disaster?

Posted by mark @ 11:15 AM 1 Comments

Yes, it's called capitalism. An endangered species.

Times online: Consumers to foot bill for Bradford & Bingley bailout in higher bank charges

Bank charges and insurance premiums are set to rise after high street banks and insurers were ordered to pay up to 14 billion under the terms of Bradford & Bingleys nationalisation. [Er, yes, and if it's unreasonable, customers will go elsewhere. Companies that can generate cash, with a working business model that convinces customers to pay them instead of their competitors, will indeed survive. It's known as a free market economy. Is this more naked bleating on behalf of the bankers?]

Posted by dohousescrashinthewoods @ 11:08 AM 3 Comments

Growth on downward trend, credit card bill soaring

BBC News: UK confirms economy at standstill

The UK economy saw no growth in the second quarter of 2008, while the gap in the current account widened to its highest level in almost a year.

Posted by dohousescrashinthewoods @ 10:57 AM 4 Comments

Where is the Sept 08 Index price ?

Nationwide: September 08 Index

Last day of September and still no release ? Never been this late ?

Posted by doomwatch @ 10:35 AM 1 Comments

Markets are working just fine it's government that has failed

MoneyWeek: Markets are working just fine it's government that has failed

The fall-out from the failed Wall Street rescue package will be brutal. But there could yet be a silver lining, says John Stepek. We might just be seeing the end of big government.

Posted by damien @ 10:31 AM 12 Comments

It appears some bankers are good

Yahoo: Murder Probe As Banking Exec Dies

Frank McGarahan, 45, who worked for Barclays Wealth, intervened in a brawl in Norwich city centre at 3am on Sunday.

Posted by mark @ 10:01 AM 7 Comments

And yet our Government bails out failed banks.

BBC "News": 'Millions' of UK young in poverty

Millions of children in the UK are living in, or on the brink of, poverty, a report claims. The Campaign to End Child Poverty says 5.5 million children are in families that are classed as "struggling" - 98% of children in some areas. The campaign classes households as being in poverty if they are living on under 10 per person per day.

Posted by eyes_wide_open @ 09:55 AM 8 Comments

Euro in serious trouble

The Telegraph: Banking crash hits Europe as ECB loses traction

Mr Redeker said the latest alarming twist is a move by banks to deposit 28bn in funds at the European Central Bank in a panic flight to safety. This has jammed the mechanism used by the authorities to shore up the financial system in a crisis. "The ECB is no longer able to inject liquidity because the money is just coming back to them again. This is extremely serious. If monetary policy is no longer working, there is a risk that the whole system will blow up in days," he said.

Posted by sold 2 rent 1 @ 09:50 AM 0 Comments

More proof that the BBC are unbelievably stupid

Bank of England: Monetary & Financial Statistics - September 2008

Yesterday, the BBC insisted that mortgage lending was down 98% compared to a year ago, and that mortgage lending was down to 143 million a month. A glance at the tables on page T20 of the actual BoE report shows that gross lending was 20 bn (down a third on a year earlier). It is only NET lending (advances minus repayments) that is down to plus-minus-nothing.

Posted by mark wadsworth @ 09:34 AM 10 Comments

Ron discusses his reaction

Ron Paul's Campaign for Liberty: Ron Paul on the Bailout

He explains that the Fed already has the power to print all the money it needs, that social security will not go bust, but the dollar will if we continue borrowing and spending at will.. He talks about a Fed Audit bill he is putting forward (They aren't audited!) - Explains that free markets are not to blaim but that Fed cronyism is to blame.

Posted by planning4acrash @ 07:00 AM 26 Comments

With major European banks now failing, calls have increased for an entire restructuring of the finan

Infowars: Calls For New EU Financial Order Increase As Total Meltdown Becomes Likely

Now that the Fed has managed to create carnage and nepotism on a grand scale, it appears that the problems it has created have led some of our "brightest stars" to propose a similar, unacountable, unfettered model here, in the "United" States of Europe. "With Belgian-Dutch group Fortis becoming the first major European bank to buckle, British mortgage lender Bradford & Bingley also being nationalized, as well as several other banks failing in Iceland, Denmark and Germany, economists have warned that more are teetering on the brink and only a radical centralization of power in Europe can stave off financial ruin."

Posted by planning4acrash @ 06:49 AM 3 Comments

A massive collapse in mortgage lending - first time borrowers/buyers finally see sense!

Guardian: Lack of loans pushes approvals figure down by 95%

According to the Bank of England, net mortgage lending fell to 143m in August. This was less than 5% of the 3bn of net lending in July and the lowest level since records began in April 1993.

Posted by nelson @ 05:33 AM 5 Comments

We need some honesty and progressive solutions

The Progress Report: If we don't bailout Wall Street, what happens to us?

The cause of all this mess is land speculation that has grown out of all proportion. The fact is that anyone who has bought a property in the last fifteen years has done it to make money as well as to live in it. Wall street bosses have just been better at it leveraging the boom. We need a proper taxation system based on land usage to move forward - not to bail out the people that benefited the most out of the boom - so they can do it again.

Posted by julian hodgson @ 12:33 AM 1 Comments

Monday, September 29, 2008

Robbing the Prudent to Compensate the Wreckless

FT.com: Building societies angry at B&B liabilities

The use of the Financial Services Compensation Scheme by the government has provoked an angry reaction from the UKs 59 prudent building societies, which will also have to contribute despite having no connection with B&Bs failure. We are concerned at the use of the FSCS to help rebuild a nationalised banks balance sheet, as deposit taking institutions our members will be badly hit by this.

Posted by enuii @ 10:53 PM 6 Comments

BTL Fire Sale on the way?

Telegraph: B&B: A Nail in the Coffin for BTL Investors

"Investors" borrowing at 7% to get a rental yield at 3.5% was always a sign of a bubble. I wonder how many canny property kings who thought housing was a one-way bet are now realising it only made sense if prices only went up.

Posted by afcone @ 10:49 PM 0 Comments

Ooops!!

MSNBC: Dow slammed, posts worst-ever point decline

NEW YORK - Wall Street ended a stunning session with a huge loss Monday, with the Dow Jones industrial average plunging 778 points its largest point drop ever after the failure of a House vote on the financial bailout plan.

Posted by renting2 @ 10:13 PM 6 Comments

Paulson Would Have Free Rein to Spend 700 Billion "As He Sees Fit"

Los Angeles "Times": Paulson Will Have No Peer

If the 700 Billion package - or a similar one - eventually makes it through Congress, one man will hold the power of life and death over everyone in the country. Certainly reading the phrase "unprecedented powers" in relation to Henry Paulsen makes the blood run cold. The reporter, Peter Gosselin explains -- "Under terms of the compromise announced Sunday, any firm selling troubled assets to the government would have to give Washington the right to take an ownership stake in the firm -- a more sweeping requirement than had been expected....Paulson's new powers will be almost breathtaking in their scope." And further, Paulsen can spend the "bailout" fund on any financial instrument he sees fit to "promote market stability" giving him unlimited power to cut deals with foreign banks. .

Posted by indiablue19 @ 09:47 PM 11 Comments

Let's just do it anyway

Bloomberg: Fed injects $680 billion into financial system

The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression. The Fed's expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone.

Posted by little professor @ 08:04 PM 53 Comments

As this unfolds - a UK HPC pails in to insignificance!

MSN Money: Bailout bill fails; Dow drops more than 500

Stocks plunged this afternoon, with the Dow Jones industrials off more than 500 points, after the House of Representatives narrowly failed to approve a $700 billion rescue plan for the nation's financial system. (http://www.sing365.com/music/lyric.nsf/Won't-Get-Fooled-Again-lyrics-The-Who/761EF79AAB42FA9C48256977002E72F9 )

Posted by whostolemyendowment @ 08:04 PM 2 Comments

Surprised?

Bloomberg: U.S. House Rejects $700 Billion Financial-Rescue Plan

Sept. 29 (Bloomberg) -- The U.S. House rejected a $700 billion financial-rescue plan intended to restore confidence in the nation's banking system, dealing a blow to government efforts to contain a lending crisis. The House rejected by a vote of 228 to 205 the measure to authorize the biggest government intervention in the markets since the Great Depression. The Dow Jones Industrial Average fell 554 points, or almost 5 percent to 10,589, at 2:32 p.m. New York time. ``The American people rejected this bailout and now Congress did likewise,'' said Republican Representative Mike Pence of Indiana.

Posted by flintster1994 @ 07:41 PM 23 Comments

No no no bail out

BBC: House votes down bail-out package

The lower house of the US Congress has voted down a $700bn (380bn) plan aimed at bailing out Wall Street. The rescue plan, a result of tense talks between the government and lawmakers, was rejected by 228 to 205 votes in the House of Representatives.

Posted by peter_2008 @ 07:32 PM 0 Comments

The nation's entire financial system slid toward a terrifying abyss, they say

SOTT: Signs Economic Commentary for 29 September 2008

Summary: Let's start at the end and then go back to the beginning of the past week. The end result, as of Sunday night, the 28th, was a massive, $700 billion bailout agreed upon by the U.S. Congress and the President. So what caused this massive action, one that no one seems comfortable with, to avoid "a full-blown economic meltdown?" What happened on Wednesday that so spooked the stewards of the global economy, that pushed aside as the top story of the day the largest bank failure in U.S. history? According to a report on NPR, it had to do with the "commercial paper" market. Money almost couldn't be borrowed for a day by even the most creditworthy borrowers...

Posted by malct @ 06:49 PM 3 Comments

Expect branch and head office culls will be in the 1000's.

Mortgage Strategy: B&B deposits and branches go for 612m

Alongside Abbey and B&Bs deposits, Santander also acquired Alliance & Leicester in July for 1.2bn. The combined branch network across the lenders will now total 1,286 offices with a combined client base of 24 million consumers. * It is starting to show up who are the winners, and the losers in this banking monopoly game....!

Posted by whostolemyendowment @ 06:46 PM 0 Comments

So if it's also sh1t for Saudis - what chance here!

FT: High and dry in Saudi property boom

After months of frantic but fruitless efforts to secure a home loan and buy a house, Hazim Bahjats wedding date was approaching and he had to change plans. He and his bride-to-be settled for renting an apartment in Riyadh, the Saudi capital.

Posted by whostolemyendowment @ 06:42 PM 0 Comments

Profit a Gunner

London Evening Standard: How Arsenal scored an own goal on 300m stadium flats

The extra time the Gunners have spent fiddling with the development has pushed sales completions into a period of plunging prices. Last week the club admitted the chance of scoring the expected profit was fading. A visit early Monday morning to what is now called Highbury Stadium Square was discouraging. Lights were burning in just three of the 680 units on the 300 million development. The vast majority of the pleasant-looking flats, set in a quadrangle around the pitch-turned-square, are clearly empty.

Posted by doomwatch @ 06:08 PM 1 Comments

I think it's a chance you see only once a century

reuters via truthseeker: Bank of China says open to Wall Street buys

TIANJIN, China (Reuters) - Bank of China, the country's largest foreign-exchange lender, is open to buying into U.S. banks in the wake of the global financial crisis, a senior executive said on Sunday. Banking industry observers in China are torn over whether the fall in the share prices of many U.S. financial firms presents more of a risk or a buying opportunity.

Posted by malct @ 06:06 PM 0 Comments

Have a look at what the news media DIDN'T show you!

Hub pages: Protests on Wall Street - what the news media isn't showing you64

Protests took place on Wall St. to protest the bail out plan - and the mainstream news media didn't even mention it Hundreds of protestors demonstrated agains the proposed $700 Billion bail out plan for the finance and banking industry, yet the national news media in America didn't even report it! Why not? It seems strange that this barely generated a gander from the big news outlets like ABC, CNN, CBS, NBC etc. all of whom have a presence in New York City.

Posted by malct @ 06:00 PM 19 Comments

anyone want to explain this banks logic!!!

CNN: Credit freeze and your paycheck

Take Drew Greenblatt, president of Marlin Steel Wire Products in Baltimore. He recently asked his bank to add $175,000 to his line of credit so he could purchase steel for two large customer orders. The bank said he could get the funding, but only if he first put $175,000 into a certificate of deposit.

Posted by mark @ 04:47 PM 2 Comments

There is no free money

Guardian: Banks will bear losses from B&B nationalisation

Banks make their money from loans. Surviving banks will have to pay the losses of B&B, NR etc(!). So, money made from loans is required to refund the government. So, mortgage holders will be liable for the bailout. Note, this isn't guarantee money, as in I will make good lets hope it doesn't come to that, this is real money from the banks future capital. Causing financial services to relocate before they get stung, and also causing mortgage costs to correspondingly increase for the remainder.

Posted by stillthinking @ 03:05 PM 11 Comments

Repo Repo Repo TV series the new location location location

Yahoo: CBI predicts City jobs cull

A plunge in profits across the financial sector will have cost the City "at least 12,000 jobs" during the past three months, the CBI warned Monday.

Posted by mark @ 02:30 PM 1 Comments

Mortgage Express Shut

Mortgage Express: Urgent - Mortgage Express currently closed to new business

Following the decision to take the mortgage assets of Bradford & Bingley Group into temporary public ownership, Mortgage Express is now currently closed to all new business. We will not accept new applications for mortgages or further advances and re-offers will no longer be made.

Posted by renting2 @ 02:21 PM 26 Comments

Sage of Omaha got it right - so why not everyone else?

CNN Money: Warren Buffett's Happy Housing Story

A subsidiary to Buffett's Berkshire Hathaway was also involved in lending to low income households but has managed to maintain profitability and has a low foreclosure rate. How? Because they avoided securitisation and so had to take responsibilty for the quality of their loan book. They also made sure loans were actually affordable and most importantly that the buyers were buying for a home, not a speculative investment. It all makes so much sense - so why couldn't all mortgage lenders have followed Buffett's model?

Posted by an bearin bui @ 02:02 PM 3 Comments

Hypo Real bailed out by German peers

Ft.com: Hypo Real bailed out by German peers

We should have a more highly regulated system like the Germans..... so said someone on here last week.

Posted by whiteknight @ 01:54 PM 3 Comments

A touch of responsibility

BBC Robert Peston: B&B collapse to cost City 9bn

If I understand correctly, the government has handled this one with a touch of thought - and a spot of poetic justice. I am no fan of Gordon's Economic Disaster, but credit where it's due. In short, the Govrnment have bailed out depositors and dumped risk on the banks. Like it or not, that's a beauty - socialism for people, capitalism for companies. How does it work? The failure of B&B invokes the Financial Services Compensation Scheme, but we know the banks are broke, so the government steps into the breach and covers the amout due under the insurance, maintaining order. However, and this is the clever bit, the government gets the money back - with interest. Any shortfall after the mortgages have been paid off (or gone toxic) will be made up by the banks. They eat their own risk.

Posted by dohousescrashinthewoods @ 01:42 PM 14 Comments

UK land prices fall 33% in one year!

FT: Builders' woes lead to fall in land prices

Residential development land has dropped by a third in value over the past year. Yorkshire and Humberside have been worst hit by the downturn, with land in all categories now worth about half its value from a year ago. The north-west has also been badly affected, with drops of 41 per cent and 36 per cent for brownfield and greenfield sites. The capital has avoided the full impact, with land prices in inner London falling by just 10 per cent. Outer London areas have fared only marginally worse, with a fall of 15 per cent over the past year. Vulture investors are entering the market to snap up bargains among the numerous forced sales of distressed builders. [Maths note: a 33% fall is the opposite of a 50% rise!]

Posted by drewster @ 12:45 PM 19 Comments

The inevitable has happened.

BBC NEWS: Iceland nationalises Glitnir bank

The Icelandic government has taken control of the country's third largest bank, Glitnir, after it faced short-term funding problems.

Posted by renting2 @ 12:41 PM 7 Comments

Pre HIP properties and your requirements

HIP-Consultant.co.uk: Pre HIP properties and your requirements

The Home Information Pack legislation is generally understood; that all domestic properties being placed on the market require a HIP, except in a few exceptions. The important date of the 1st October 2008 looms in regard to the Energy Performance Cerification of properties; did you realise that if your house was on the market before the relevant Home Information Pack legislation was enacted that you will require an Energy Performance Certificate (EPC)?

Posted by hip-consultant.co.uk @ 12:10 PM 1 Comments

'You can't go wrong with bricks and mortar.'

MoneyWeek: The most dangerous financial clich in history

'You can't go wrong with bricks and mortar,' they said. As another UK lender goes under, we're seeing again how how mistaken that is. And despite all the bail-outs, the crisis isnt over yet. Property prices are still falling, and it will be a long time before they stop.

Posted by damien @ 11:46 AM 2 Comments

Mortgage lending down 95% in one month

Telegraph: Financial crisis: Mortgage lending plunges 95 per cent as housing market 'decimated'

The value of mortgages lent to British homebuyers fell 95 per cent last month, according to the Bank of England. It said mortgage lending dived to just 143 million during August - its lowest since this data was first collected in April 1993 and a fraction of the 2.998 billion lent in July. In other words, unless you are paying cash, you probably won't be able to buy a house now.

Posted by jonb @ 11:42 AM 24 Comments

Where's those Oligarchs and city types when you need them eh?

Firstrung: London house prices crash by 2% in August - Primelocation

Prime London sale values dropped by another 2% in August, according to data from primelocation.com. This is the third consecutive monthly drop and now means that values are 5.37% lower than in May. The data also shows that prime London rental prices and prime country sales values have also fallen showing a gloomy outlook all round for the prime property market... The latest data finds that, all prime London areas have experienced a monthly reduction in average prices and that annualised growth has reduced to 4.1% now at its lowest level since May 2006, following sales prices taking their third consecutive hit in August.

Posted by converted lurker @ 11:39 AM 0 Comments

Want a mortgage? In six months it's gonna be 8% minimum

Firstrung: Mortgage rates set to soar as LIBOR climbs above 6% - Fool.co.uk

It has taken six months for the interest rate that banks pay to borrow from each other to fall from 6% to 5.7%. But following the recent turmoil in financial markets, it has taken less than a week for those costs to be completely reversed. In just four days, the London Interbank Offered Rate (LIBOR) has climbed back above 6%... Since March, the fall in LIBOR has benefitted homeowners as lenders passed on their cheaper borrowing costs. Six months ago the typical Standard Variable Rate (SVR) was 6.74%, when LIBOR was 6%. Six months on, LIBOR rates fell to 5.7%, with typical SVRs dropping to around 6.49%.

Posted by converted lurker @ 11:37 AM 0 Comments

Guess that means it's ALL over then guys?

Firstrung: Net mortgage lending collapses by over 95 percent in August to reach lowest recorded figure

Mortgage lending virtually stopped during August, with advances diving to a stunning 5% of the previous month's total, figures released this morning by the bank of England have shown... Net lending was only 143 million during the month, a fraction of July's sum of just under 3 billion and the lowest figure ever recorded by the Bank of England's statistics series which began in 1993. Speculation over the Government's recent stamp duty flip flopping and later announcement is also thought to have caused people to delay making a purchase during August until the future of the tax was clearer.

Posted by converted lurker @ 11:35 AM 5 Comments

The reality of the situation is....there is no reality! So do you take the red or the blue pill?

Introducertoday: Sharpest house price falls on record and more to come

The house price fall of 1.9% recorded by the Land Registry in August was the sharpest in the whole of the eight years that the official house price index has been going. But agents fear that because the Land Registry is so historic recording prices of deals completed months after prices were agreed worse is to come.

Posted by whostolemyendowment @ 11:07 AM 0 Comments

Are we going to have the Blackest Black Octobers in modern times?

Market Oracle: Last Chance for Financial Crisis Truth

Martin Weiss writes: On this fateful Sunday morning, while Congress inches closer to approving the greatest financial bailout in history, while we teeter on the brink of what the President himself calls "a financial panic," and while you and I enjoy the momentary luxury of a quiet respite, it's time to sit back and take a long, hard look at what's best for us, our country, our children and their children as well.

Posted by sold 2 rent 1 @ 11:06 AM 25 Comments

Buy To Losers dealt another blow....but what about the future of their sitting tenants?

Citywire: The death blow for buy-to-let?

......One thing is clear though. Even if the taxpayer is protected under the plan, the buy-to-let market is not. Bradford & Bingley was the industry's largest buy to let and self cert lender. With its collapse it is hard to imagine any other lenders wanting to get into this market.

Posted by whostolemyendowment @ 11:01 AM 3 Comments

is lloyds TSB under stress?

Yahoo: Cazenove advises Lloyds TSB to raise cash now

Lloyds TSB should bite the bullet and raise cash now instead of risking being forced to do so if its proposed merger with HBOS

Posted by mark @ 10:52 AM 0 Comments

lets see 40K Hbos, poss3k B&B, anymore? thats 46k in a week

bbc: Akzo Nobel set to cut 3,500 jobs

The world's largest paintmaker, Akzo Nobel, is to cut 3,500 jobs by 2011 as part of a cost-cutting drive. Akzo Nobel, which bought ICI in an 8bn deal earlier this year, said the move to trim costs would lead to extra savings of 100m euros ($144m; 79m).

Posted by mark @ 10:48 AM 5 Comments

How about something to do with UK houses

Large fall in mortgage lending but its amazing that anyone bought in August!!

BBC News: Mortgage Lending Slumps

Mortgage lending collapsed in August, according to the latest figures from the Bank of England. Only 143m was lent by banks and building societies, just 5% of July's lending figure and only 2% of the lending in August 2007. August is traditionally the quietest month for house sales. But the Bank's figures also show that 32,000 new mortgages were approved in August, a new record low and 70% fewer than a year ago. This suggests that the fall in sales and prices will continue into next year.

Posted by unbeliever @ 10:34 AM 0 Comments

The commoners rebel

CNN: Main Street turns against Wall Street

A populist backlash is changing America's political climate. Inflamed by the financial crisis and bailouts, a form of class warfare could haunt business leaders for years to come.

Posted by mark @ 10:34 AM 0 Comments

A Glimmer of Optimism?

FT: A bad day for Benelux banking - a great day for Europe

The most important financial crisis-related news this morning is not the tentative agreement on TARP-lite reached over the weekend in the USA. At best this is a holding operation that buys (a little) time for the US banking system while the industry and the authorities figure out how to recapitalise the banking sector. It is also not the nationalisation of Bradford and Bingley, a systemically unimportant UK bank specialising in residential and buy-to-let mortgages. B&B is less than half the size of Northern Rock (at its peak).

Posted by stevie dee @ 10:34 AM 0 Comments

Northern Rock, B&B, Fortis and Hypo - who's next? (oh no surely not RBS)

BBC: Hypo shares crash after loan deal

Shares in German lender Hypo Real Estate plunged after it struck a loan deal with a consortium of German banks. Its shares lost three-quarters of their value, falling to 3.39 euros, before a slight revival to 63% down at 5 euros. The firm did not reveal the names of the loan banks, or even the deal amount, which may be up to 35bn euros (27.8bn,$51.21bn) say media reports. Hypo has been badly affected by the financial markets crisis as it borrows heavily from the interbank market. It is thought the deal has ensured financing for the Hypo until the end of next year.

Posted by jack c @ 10:34 AM 6 Comments

Paulson caught secretly saying to Bush, "That was close, thought we wouldnt get the dosh"

CNN: Rescue bill unveiled

Don't be surprised if Paulson decides vanish to some south american country now with a pocket full of dosh....

Posted by mark @ 10:30 AM 1 Comments

Brief discussion about hyperinflation and the alternatives.

Lew Rockwell Show: Hyperinflation?

Lew Rockwell interviews Jrg Guido Hlsmann. In this 15min podcast, he explains that the markets could solve this in 1-3yrs, but that the bailout means 10yrs plus of depression. He warns that the Euro is also at risk and touches upon the threat that this crisis will be used to formalise a global financial body. I personally say formalise, because central banks now seem to be co-ordinating all their efforts, with far more emphasis on the global than the local. Its as if the electorate didn't exist!

Posted by planning4acrash @ 10:25 AM 0 Comments

Leaving the taxpayer with 50bn of toxic subprime sludge

Telegraph: Santander buys Bradford & Bingley's branches

Santander, the Spanish banking giant and owner of Abbey National and Alliance & Leicester, has bought Bradford & Bingley's branch network and 21bn deposit book, leaving the Treasury to nationalise the failed mortgage lender's 50bn loan book.

Posted by paul @ 08:24 AM 35 Comments

Fortis is the next bank to be nationalised

Yahoo Finance: Belgium, Luxembourg, Netherlands partially nationalise Fortis

The Belgian, Dutch and Luxembourgian governments have taken 49% stakes of the subsidiaries in their respective countries. I'm not sure where that leaves the UK subsidiary. They have a few branches in this country which mainly deal with business and high net worth clients. They are also one of the largest car insurers in the country, selling policies through the likes of HSBC.

Posted by jonb @ 01:25 AM 1 Comments

Hometrack: -1% MoM, -6.2% YoY

Guardian: UK house prices fall again in September

British house prices fell for a 12th month running in September to stand 6.2 percent lower than they were a year ago, a survey by Hometrack showed on Monday. The drop of 1.0 percent on the month to 165,300 pounds was bigger than the 0.9% decline in August and suggests the government's decision to raise the threshold for stamp duty has done little to support the housing market. Richard Donnell, Hometrack's director of research, said, "Looking ahead it is very hard to identify the mechanisms by which the current cycle of weak confidence, declining sales volumes and falling prices can be reversed in the near future." Properties in September typically took almost twice as long to sell as last year -- and the percentage of the asking price being achieved fell to the lowest level on record.

Posted by little professor @ 12:23 AM 7 Comments

Sunday, September 28, 2008

Financial crisis: Hedge funds face record redemptions

telegraph: Hedge funds face record redemptions :

Financial crisis: Hedge funds face record redemptions Global hedge funds will this week be forced to hand back hundreds of millions of pounds to investors in the biggest round of redemptions the sector has ever faced.Hedge funds are preparing to return between 10 per cent and 50 per cent of their assets under management to investors who want their money back at the end of yet another quarter of dire investment performance. One prime broker said: Many funds will have to close. There were a flood of redemption notices at the beginning of the quarter but many investors said they wouldnt actually withdraw the money if performance improved. It hasnt.

Posted by big chris @ 11:57 PM 0 Comments

150 Billion what could i buy for that? Apart from 2 s**t banks?

Telegraph UK: Financial crisis: Bradford & Bingley nationalisation will cost taxpayers 150bn

Britain will effectively have its own Government-owned toxic bank with 150 billion of debt - 50 billion from Bradford & Bingley and 100 billion from Northern Rock......

Posted by tom101 @ 11:44 PM 9 Comments

It's becoming routine now

Telegraph: Financial crisis: Fortis to become latest victim of bank crisis

Fortis, a giant Belgian-Dutch bank is poised to become the biggest European casualty of the banking crisis, with regulators in Europe trying to negotiate a rescue package. The bank, which has a significant presence in the UK it is the country's third largest car insurer could become the largest victim of the financial turmoil that has swept from Wall Street across the Atlantic.

Posted by landedgentry @ 10:13 PM 0 Comments

Where did all the money go?

Telegraph: Gordon Brown is 'bust', says David Cameron

"On the first day of the Conservative Party conference in Birmingham he said it was Mr Brown who spent too much while he was Chancellor and plunged Britain into debt. The Tory leader also raised the prospect of having to raise taxes if he becomes Prime Minister. And he warned against "bashing" bankers, and said he would not seek "cheap headlines" by blaming City practices for the current crisis".

Posted by alan @ 08:55 PM 18 Comments

Jon Moulton on the Economy

BBC: Alchemy boss says recession looms

One of the UK's most outspoken businessmen, private equity boss Jon Moulton, has said the UK economy is weeks away from recession. He said he feared that the US financial rescue plan may not work. "Nobody really knows how it will work, there are no good models." "This vast package may not even be big enough." "I'm a very depressing bear at the moment."

Posted by renting2 @ 08:11 PM 1 Comments

Try sleeping on this.Tomorrow's another day.

TIMESONLINE: The Ten Biggest Stock Market Crashes of All Time

Some investors might think they have had a rough ride on the stock market over the past seven or eight months. But the recent share price gyrations pale into insignificance when compared with the biggest stock market falls of all time. David Shwartz, the stock market historian, says: The very big stock market crashes are invariably triggered by a series of different events which unfold one after the other. So no need to worry then, but have you noticed that with the exception of 1929-32 the last 20years or so have be whoppers.Chances are the next one will be a double whopper.

Posted by plato @ 07:16 PM 6 Comments

Peston's take on Boomford & Bustley

BBC: B&B: end of an era

"The reverberations from the nationalisation of Bradford & Bingley will be profound. First, it takes out of the market the leading provider of buy-to-let and self-cert mortgages. Once the 41bn of B&B's mortgages is publicly owned, it will be run down over the coming years. And it's very unlikely that the Government will feel it wants to use taxpayers money to provide new buy-to-let and self-cert mortgages. In other words, two big chunks of the mortgage market will be all-but closed - since few other banks are remotely interested in providing this kind of mortgage, which are perceived as higher risk."

Posted by renting2 @ 06:02 PM 9 Comments

Keep the money where you can get at it. Banks can no longer be trusted as we have found out

TBR news: The Voice of the White House

And may I give you several pieces of what I consider sound advice? First, if you have any extra money in one of the bigger banks, take it out and put it in a shoe box in your closet. If these banks start to collapse suddenly, which they are very likely to do, even the Government cant supply them and their branches with enough paper to cover deposits. The second thought is to take some extra money, assuming you have any, and buy gold with it. Get this from a reputable coin dealer and buy older European gold coins like British Sovereigns and Half Sovereigns, French or Swiss francs. Keep away from weird gold from small countriesvery hard to sell if you need to.and never, never buy gold and let some big company help you out by insisting they will store it in their safe vaults.

Posted by malct @ 05:59 PM 0 Comments

Congress: Think Before You Act!

Market Ticker: MAKE THIS VIRAL - STOP THE BAILOUT! SAVE AMERICA!

Please think carefully about the following facts before you vote: Public opinion is running anywhere from 100:1 to 300:1 against passing this bill, according to sources on Capitol Hill. You must return home after you pass this package to ANGRY constituents with an election less than a month away. Given the massive size of this package, the fact that it rewards the guilty on Wall Street and does nothing to address the cause that anger is fully justified. but - but - but GORDON SAID IT WAS OK !

Posted by malct @ 05:55 PM 2 Comments

What happens when you distort a market?

Times Online: Savers flock to Northern Rock

NORTHERN ROCK is within days of being forced to stop taking savings from new customers after a rush of deposits into the nationalised bank. More than 1 billion of savings has flooded into it in the past two weeks, following the continuing chaos that has engulfed the banking sector. The government guarantees underpinning Northern Rock have been encouraging savers to move their cash. [Comment:] Ill thought-out knee-jerk reaction that attempts to control a market soon has its comeuppance when the government realises the market has more money than it does and it comes back to bite them. Should they: a) interfere further, causing further distortion, or b) back off and remove the distortion, so avoiding capital outflow from other banks, which endangers the rest of the system?

Posted by dohousescrashinthewoods @ 05:31 PM 10 Comments

This is clever and nobody in the mainstream media has figured it out.

Market Ticker: Mother of all Frauds

The claim is that this is intended to "promote confidence and stability" in the financial markets. It will do no such thing. It will instead strike terror into the hearts of investors worldwide who hold any sort of paper, whether it be preferred stock, common stock or debt, in any financial entity that happens to be domiciled in the United States, never mind the potential impact on Treasury yields and the United States sovereign credit rating. I predict that if this passes it will precipitate the mother and father of all financial panics, although exactly when the "short bus" riders who inhabit the equity market will figure it out remains to be seen. If they have an IQ larger than their shoe size it will commence at 9:30:01 AM Monday morning,

Posted by malct @ 05:28 PM 1 Comments

So far, more than a 190 prominent economists have urged Congress not to pass the $700 bailout bill.

ICH via Truthseeker: Trouble in Banktopia

Last week, there was a digital run on the banks that most people never even heard about; a "real time" crash. An article in the New York Post by Michael Gray gave a blow by blow description of how events unfolded. Here's a clip from Gray's "Almost Armageddon": "The market was 500 trades away from Armageddon on Thursday" Roubini added: "The Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown." and over here, the banks get B&Bsavers deposits and the tax payer gets the debt.

Posted by malct @ 04:31 PM 15 Comments

There is a new problem looming on the horizon while US Congress tries to agree on a plan

Seeking Alpha: It Could Happen - Cramer's Mad Money (9/26/08)

"We are truly in dire straits here people," Cramer told viewers. He said the failure of Congress to pass the bailout plan is causing the banking system to fall deeper into trouble. The markets, he said, are completely out of control.

Posted by jack c @ 12:13 PM 4 Comments

Paulson had it right. Embarrassing. We couldn't handle our buzz. We didn't know when to stop.

Seeking Alpha: The Secret Villain Behind Our Economic Collapse

"I think what made this bubble more powerful than most was the sheer magnitude of the people who benefited from it..Even the village idiot got in on the act. He went from flipping burgers to flipping houses..and that makes for great TV..This ecstasy feedback loop was particularly powerful because people weren't just making money. They were underwriting "the American Dream". Isn't that what it's all about? In that way, this bubble was stronger than the "dot com" bubble or the Tulip bubble. It was almost as powerful as a gravitational black hole..The few people who did sound the alarm sounded like party poopers." House Price Crashers

Posted by mountain goat @ 11:34 AM 3 Comments

Buy-to-let: a disaster just about to happen

Telegraph: Britain suffering from a buy-to-let blowout

Unusually, an article about the UK housing market. How bad things are looking and how dependent Bradford & Bingley is on buy-to-let mortgages.

Posted by monty032 @ 09:28 AM 17 Comments

Sad news. Like 1929, I'm afraid we'll see a lot more of these banker suicides

Yahoo: Wealthy financier throws himself under a train

A wealthy financier said to be overwhelmed by the current global banking crisis has died after throwing himself in front of a commuter train. Married father-of-one Kirk Stephenson, 47, chief operating officer at private equity firm Olivant, died on Thursday near Taplow station in Buckinghamshire, police said. Olivant came to prominence as one of the bidders for Northern Rock in 2006. Mr Stephenson reportedly owned a 3.6 million house in Chelsea and another property in the West Country. A source said: "I imagine, like most high-flying bankers, he will probably have lost a lot of cash recently as a result of the credit crunch. It appears the pressure became too much to bear. Figures close to Mr Stephenson are worried that news of his death will lead to speculation about his company."

Posted by little professor @ 09:22 AM 25 Comments

Bradford & Bingley Nationalised Another UK Bank Wiped Out by Tulip Backed Securities

The Market Oracle: Bradford & Bingley Nationalised Another UK Bank Wiped Out by Tulip Backed Securities

Bradford and Bingley's slow 12 month death march towards the same fate as Northern Rock finally looks set to have come to an end with expectations on Sunday that the beleaguered bank will be nationalised with a view to a break of the bank and liquidation of assets so as to cover in part the estimated 20 billion bailout cost that is required to fill the gap between assets and liabilities. The toxic mortgages will probably end up with the government owned Northern Rock bank which will increasingly be seen as the UK Governments Toxic Mortgage Dump where the tulip backed securities of further bank busts and partial bailouts will end up.

Posted by nadeem walayat @ 09:11 AM 0 Comments

Its all our fault, ouch

The Local: Germany's News in English: Steinbrck slams US for sparking global financial crisis

Germany headed the Group of Eight industrialized nations last year and advocated greater transparency in international financial transactions, especially in hedge funds. But it was thwarted by US and British resistance. The Germans are having a field day with this. Any problems in their own economy will be conveniently blamed on the UK and US. As they say in football, "We have gifted them this one".

Posted by last_days_of_disco @ 08:50 AM 6 Comments

Saturday, September 27, 2008

Interesting point

Times Online: Bailout storm rages

One senior banker said: People keep saying that banks are scared to lend to one another, but thats not quite it. The money we lend is not ours, but our customers. With everything going on in the markets, our corporate customers are only willing to deposit it overnight. Its a corporate equivalent of all our personal customers moving their savings into their current accounts in case they need the money.

Posted by stillthinking @ 11:31 PM 1 Comments

JP Morgan continues to be the winner.....conspiracy anyone?

FT: Washington Mutual

On Thursday night, the Federal Deposit Insurance Corporation descended to carve up Washington Mutual. After the Office of Thrift Supervision ordered the closure of the largest US thrift, the meat of WaMus business was immediately sold to JPMorgan Chase for a mere $1.9bn. Also see http://markets.ft.com/tearsheets/performance.asp?s=us%3AJPM & http://en.wikipedia.org/wiki/JPMorgan_Chase

Posted by whostolemyendowment @ 11:01 PM 1 Comments

Ron Paul and Jim Cramer on the Federal Reserve - from Dec 2007 but even better now

CNBC Mad Money: Ron Paul on Jim Cramer's Mad Money

Ron Paul and Jim Cramer make unlikely allies, but I am delighted that finally an old-style politician of true sincerity has actually broken through into the mainstream. Here they summarise with wonderful clarity what is wrong with the world monetary system and explain how it causes boom and bust cycles. Ron Paul: "It is the distortion of interest rates by manipulating of the money supply that cause these bubbles to form." Jim Cramer to Ron Paul: "Why is it that people are turning on to YouTube to see you talk about something that 'everybody else' thinks is too boring??!?!!!?"

Posted by sneaker @ 11:01 PM 0 Comments

Off message - but still affects future property development over here

Times Online: Boris Johnson asks China for 2012 handout

THE mayor of London, Boris Johnson, is planning to go cap-in-hand to the Chinese government after the credit crunch and falling house prices left a 250m hole in funding for the 2012 Olympics.

Posted by whostolemyendowment @ 10:50 PM 1 Comments

40 year low

BBC: Property slump in '40 year low'

It's that dastardly credit crunch again. No mention of insanely high prices putting buyers off who've finally worked out the "market" is a big scam and it's crash like the house of cards it is. Pointless rubbish.

Posted by doomwatch @ 10:19 PM 6 Comments

And it's gone

BBC: BREAKING NEWS: Treasury to nationalise B&B bank

Troubled bank Bradford & Bingley is to be nationalised, the BBC has learned. The bank will be nationalised using special legislation the Treasury put through when it took Northern Rock into public ownership earlier this year. BBC News business editor Robert Peston says the Treasury will almost instantaneously sell to a bank, or a number of banks. B&B's 50bn of loans will not be sold and will be nationalised on a long-term basis.

Posted by little professor @ 10:13 PM 16 Comments

it has hit the biggest fan in the world...

CNN: Senate passes $634B spending bill

Automakers gained $25 billion in taxpayer-subsidized loans and oil companies won elimination of a long-standing ban on drilling off the Atlantic and Pacific coasts as the Senate passed a sprawling spending bill Saturday. The 78-12 vote sent the $634 billion measure to President Bush, who was expected to sign it even though it spends more money and contains more pet projects than he would have liked.

Posted by mark @ 09:33 PM 6 Comments

B&B = Boom & Bust

FT: Regulators race to find B&B solution

The UK Treasury and financial regulators are racing against time to find a solution to help shore up Bradford & Bingley before the markets open on Monday morning.

Posted by renting2 @ 09:07 PM 3 Comments

'House price crash is a popular but much misused term' (sic)

thisismoney: House price crash myths: True or false?

Homeowners across Britain are facing up to a 'house price crash', but will it help you move up the ladder, are mortgages impossible to get and is buy to let dead? The Daily Mail updates white not-too-intelligent middle-class xenophobics.....

Posted by cha55a @ 08:33 PM 0 Comments

morgage victims may go to court

bbc news: morgage victims may go to court

Thousands of people who say they are trapped in their home by mortgages they took out in the 1990s could get the contracts changed by the courts. Lawyers say these deals were unfair giving too much to the banks and too little to the borrowers.

Posted by it will happen @ 07:49 PM 0 Comments

I'm sure they bl**dy do!!

Bloomberg: U.K. Banks Seek Government Funding Plan to Help Restart Lending

British banks are proposing the government help bail them out of losses from the credit crunch so they can resume lending, Industry executives held talks this week about different options, including the establishment of a so-called bad bank, run by the government. It would take over assets including mortgage-backed securities that declined in value with the collapse of the U.S. subprime home-loan market, said the people, who declined to be identified because the negotiations are confidential. Not in my name.

Posted by kernow @ 06:38 PM 0 Comments

Oh please. Is this really news?

BBC News: Lamborghini free with house

A seller whose Essex house has been on the market for three months has thrown in his Lamborghini as a sweetener.

Posted by matt @ 06:34 PM 0 Comments

Next Uk?

Bloomberg: California Home Prices Drop Record 41%

The median price of an existing, single-family detached home fell to $350,140, the lowest since March 2003, and will likely fall further, the Los Angeles-based California Association of Realtors said today in a report. Sales increased 56.7 percent from August 2007 and 1.8 percent from July.

Posted by mario @ 05:55 PM 0 Comments

Gordon's the Short Seller

The renegade economist: Gordon's the Short Seller

Gordon Brown is the real villain, not his scapegoat: the short sellers. These traders sell shares they do not own, hoping to pocket a profit. This is now blamed for destabilising the banks, and the Prime Minister is promising to clean up the City. Another year and we'll be in the 2010 recession?

Posted by mario @ 04:36 PM 0 Comments

post office savers covererd up to 80k

this is money: post office savers covered up to 80k

post office savers covered up to 80k

Posted by heinzbean @ 03:35 PM 3 Comments

Smoke and Mirrors

The Guardian: Want a new house? It's yours for free

"As offers go, it's pretty hard to beat. Buy a newly built home now and you can live in it for free - no mortgage, no council tax and no house insurance. The developer is even offering to pay your gas and electricity bills." This deal over a year amounts to only a 5% reduction on price and yet is decsribed in these terms by the reporter; "it looks as though the Persimmon deal has raised the bar again - and this in an industry that has already seen new houses being offered complete with linen on the supplied beds and towels in fitted wardrobes" Sorry, towels and linen??!! How much does that knock off the price of the house (and you'll be lucky in they're to your taste)? Only a lunatic would be tempted by the latest offer - but I guess there are still a few of those around...

Posted by jonathan @ 03:33 PM 5 Comments

Go Vince !!

BBC: Question Time 25th Sep 08

He let's rip "straight off the bat" with the first question ... "Property bubble ... pyramid selling scheme ... etc, etc." Hazel "Ronald McDonald" Blears thinks we've got a stable economy and refused to accept blame about housing market, instead trying to divert focus to those nasty short seller bogey men. I said over 2 years ago that the housing bubble would soon beocme a political hot potato if avoided.

Posted by doomwatch @ 03:21 PM 18 Comments

The role of central banks in the financial crisis

MoneyWeek: The role of central banks in the financial crisis

We've read a lot in recent months about central banks 'injecting' money into markets but how does this work? And how deep are their pockets?

Posted by damien @ 02:01 PM 3 Comments

Counterview

Telegraph: Financial Crisis does US face full scale run on its currency

Run on US $ unlikely because no viable alternative other than gold. Global recession a done deal. US has vitiality to emerge from it. EU (which isn't a real entity anyway) likely to be ripped apart. Some positive words for gold and silver bugs.

Posted by bellwether @ 01:34 PM 1 Comments

The 'right thing to do...'

VOAnews: US Bailout Talks Continue; Britain's Brown Pledges Support

British Prime Minister Gordon Brown met with Mr. Bush at the White House late Friday, and offered his backing. "Britain supports the financial plan, and whatever the details offered, it is the right thing to do to take us through these difficult circumstances," he said.

Posted by cornishman @ 12:50 PM 19 Comments

Open letter by John Mauldin to a Republican Congressman

Market Oracle: End of the Financial World- LIBOR TED Spread Flashes Trouble

Best thing you will read on this, for the exceptional info alone, even if you disagree. But call it a Stabilization Plan not a Bailout. He explains how paniced the credit markets are (excellent charts) and the consequences of inaction (a depression). "There is no reason for the taxpayer to lose money. Warren Buffett, Bill Gross of PIMCO, and my friend Andy Kessler have all said this could be done without the taxpayer losing money, and perhaps could even make a profit. As noted above, these bonds could be bought at market prices that would actually make a long-term buyer a profit. Put someone like Bill Gross in charge and let him make sure the taxpayers are buying value. This would re-liquefy the banks and help get their capital ratios back in line." Hold your nose and vote yes he says.

Posted by mountain goat @ 12:20 PM 2 Comments

Our own dodgy banking practices will haunt us for years to come

The Independent: Be in no doubt, Britain too is in the centre of this storm

We should not underestimate the extent to which the City is suffering from the same contagion as Wall Street. There was stupid lending and greed-driven recklessness in London, just as there was in New York. Our banks might not have been involved in the disgraceful business of selling sub-prime mortgages to poor Americans who could not afford them, but they were more than happy to buy up the high-yielding financial instruments that were linked to the value of these bad loans. And our larger investment banks still have a lot of this financial toxic waste on their balance sheets.

Posted by nooneo @ 12:13 PM 7 Comments

Meanwhile back at the house price crash

FT: Its time to review the house rules

Merryn Somerset Webb calls for regulation of the dodgy property pumpers

Posted by letthemfall @ 11:52 AM 3 Comments

You say depression: I say a fundamentally sound economy

Telegraph: Financial Crisis: The next decade could be our very own Great Depression

"History shows that whenever there is a banking crisis, an economic slump, with all that entails - mass redundancies, falling house prices, widespread bankruptcies - invariably follows. The scale of the recession depends on the size of the banking crisis; the past year has brought the biggest systemic financial collapse since the 1930s." But...but...but... interest rates are much lower than last time!

Posted by letthemfall @ 11:20 AM 4 Comments

The birth of Sub-prime?

The New York TImes: Fannie Mae Eases Credit To Aid Mortgage Lending

The article from 1999 provides a historic insight into the birth of sub-prime and the seed of a large proportion of the current financial mess experienced today. Hindsight is a wonderful thing but I do believe that alarm bells would and should have started ringing in the head of any individual reading this back in 1999, let alone those "professionals" in the financial World.

Posted by denzil @ 10:43 AM 1 Comments

Can anyone tell me the logic in this

Right move: Property details -Save on stamp duty

Why would I want to save 1650 when I will lose 33,000 when prices drop a further 20%?

Posted by mark @ 09:40 AM 3 Comments

Rabbit cull at Playboy

Telegraph: Hugh Hefner to sack Playboy bunnies amid financial crisis

Things must be getting really bad if Hugh Hefner is having to cut costs. If virtually all industry was wiped out by financial Armageddon, like cockroaches after a nuclear war, this is one of the industries I would expect to find crawling out from under a rock. Its not exactly the oldest profession, but speaks to the same desires. Perhaps Mr Hefner is just being shrewd,l maybe after all the turmoil is over this could be the next bubble. Imagine that, a Playboy bubble, what would that be like?

Posted by mikelivingstone @ 08:22 AM 9 Comments

For "illiquid assets" read "worthless assets"

Pittsburgh Tribune: The Ron Paul solution

Bill Steigerwald talked to Paul by phone from Washington early Thursday evening as the Beltway political powers were still meeting and trying to agree on how to fix the problem.

Posted by gardeniadotnet @ 08:11 AM 5 Comments

Sounds about right!

Telegraph: Financial Crisis: US bail-out plan will not rescue the British economy

Indeed, watching the supercharged policy action coming from US policymakers, the question for many here should be "what about us"? The contrast is staggering. UK challenges are arguably just as great, and without any imaginative actions here, the risk of a recession at least as bad as in any of the past 30 years, if not worse, could arise. UK mortgage lending has all but come to a standstill. Just based on this factor alone and its historical track record as a leading indicator, the UK could be entering a year of significant negative domestic demand, causing a large rise in unemployment and much misery.

Posted by stevie dee @ 05:06 AM 2 Comments

Please don't buy this shower Gordon

Guardian: Fears for Bradford & Bingley as shares crash

Speculation intensified last night that Bradford & Bingley's days as an independent bank were numbered, after its shares were pummelled and its market value fell to 390m, a fall of more than 90% from its peak. Shares in Lloyds TSB, HBOS, and Royal Bank of Scotland also dived, amid heightened concern over stability in the financial system if plans for the $700m (378bn) US mortgage market bail-out fail. The financial authorities were reportedly scrambling for a solution for Bradford and Bingley, amid worry that the stricken lender might have to be nationalised if no solution can be found.

Posted by stevie dee @ 04:52 AM 11 Comments

Lucky to get out!

BBC: Large discounts by home sellers

Home sellers are being forced to accept offers on average 9% below their asking price, said the Royal Institution of Chartered Surveyors (Rics). The gap between asking and selling price is widening as the property market downturn worsens, Rics added. Property prices have fallen by 11% in the past year, according to major lenders, while sales have fallen by more than half.

Posted by stevie dee @ 04:02 AM 0 Comments

Friday, September 26, 2008

Some heavy reading for the weekend

Daily Mail: Stand by for Black Monday: Britain braced for meltdown

The City is bracing itself for a "Black Monday" meltdown after President Bush admitted he had failed to land a bank bail-out deal. Senior market figures said the FTSE-100 could fall by between 600 and 1,000 points when the stock market opens next week if no deal is forthcoming. The frightening prospect of a collapse to match the 1987 crash was raised as George Bush confirmed that he had not yet been able to persuade senior Republicans to back his $700 billion rescue plan.

Posted by little professor @ 10:58 PM 18 Comments

Some light reading for the weekend

The Daily Express: Bank shares soar on $700bn bail out

I know we are only supposed to add articles from reputable sources, but you may be interested to know that in the Daily Express's parallel universe, everything is fine, and you don't need to worry, unless of course you happen to own the Daily Mail

Posted by jonb @ 10:42 PM 2 Comments

This was forecast on HPC last Christmas

Telegraph: Financial crisis: Bradford & Bingley to become latest victim

Bradford & Bingley can no longer continue as an independent bank and will have to be nationalised in some form in the coming days, City sources have warned. A B&B spokesman said: "We are fully-funded and we are one of the strongest capitalised banks in the UK ( yeah - whatever)!

Posted by alan @ 10:28 PM 1 Comments

Boom, boom, boom. Bust, bust, bust.

Evening Standard: Stand by for Black Monday

The City is bracing itself for a "Black Monday" meltdown after President Bush admitted he had failed to land a bank bail-out deal. Senior market figures said the FTSE-100 could fall by between 600 and 1,000 points when the stock market opens next week if no deal is forthcoming. George Bush confirmed that he had not yet been able to persuade senior Republicans to back his $700 billion rescue plan.

Posted by dohousescrashinthewoods @ 09:44 PM 4 Comments

Where now Scottish House Prices?

Mortgage Introducer: Scottish economy grinds to a halt

The latest Lloyds TSB Scotland Business Monitor shows the Scottish economy grinding to a halt. This latest edition for the three months ending 31 August 2008 shows 39% of firms surveyed reporting a decrease in turnover, 32% reporting static turnover and 29% reporting an increase, giving a net balance of -10%, down significantly from the previous quarter's figure of +11% and the +28% recorded for the same quarter one year ago.

Posted by renting2 @ 09:42 PM 0 Comments

Like Kirstie Said - London Property will never go down

Evening Standard: London house prices hit by record monthly fall

London house prices suffered a record plunge last month, wiping more than 8,000 off the value of an average home. Economists warned that the dramatic 2.4 per cent monthly drop reveals that the meltdown in the capital's property market is accelerating and set to get worse.

Posted by dohousescrashinthewoods @ 09:42 PM 4 Comments

Bloomberg Video: Marc faber on US bailout & more

Bloomberg.com: Marc Faber Says U.S. Credit Losses May Total $5 Trillion

Marc Faber, well known economist and investment analyst gives an interview on Bloomberg TV, providing his views on the current crisis and the US bailout plans. He regards the proposed $700bn bailout as 'nothing' and a drop in the ocean to what is actually needed i.e. $5 Trillion.

Posted by hotfoot @ 07:40 PM 0 Comments

Gordon the hypocrit wants to put the age of financial irresponsibility behind himself!

Times: Gordon Brown: time to end the age of financial 'irresponsibility'

Gordon Brown today called for an end to the age of irresponsibility in the financial sector, his most frank acknowledgment so far the City was allowed to run wild while he was Chancellor.

Posted by enuii @ 07:30 PM 18 Comments

Ireland enters recession why Britain is next

MoneyWeek: Ireland enters recession why Britain is next

Ireland's economy has finally gone into recession. And while many commentators argue that Britain won't be next, those commentators are wrong...

Posted by damien @ 05:29 PM 5 Comments

House Price story for a change

The Telegraph: House prices fall in all areas of the country

Title says it all real, old news I guess, but the land registry is finally caching up with reality.

Posted by kernow @ 05:08 PM 1 Comments

Blaming the Tories for Labours economic "stability"

the Guardian: We must seize the initiative on the economy

The economic system constructed under Thatcher and Reagan is collapsing around us. The Tory party was partly responsible for this failed system and this gives Labour the opportunity to take the offensive provided it is bold and draws the necessary conclusions. Gordon Brown now has an opportunity to set Labour's agenda for the coming decade. Labour has to take the arguments of his speech that addressed these issues and follow through with policies that will protect the public. As someone is going to have to pay the price for this economic crisis, Labour has to make clear it will not be the people the party must represent but the Tories whose Thatcherite system created this mess in the first place.

Posted by sold out @ 04:11 PM 19 Comments

Its Big.

BBC news: Bush says bail-out will be passed

President George W Bush has said that legislators will "rise to the occasion" and pass the Wall Street rescue plan. In a statement he said that are still disagreements because, "the proposal is big and the reason it's big is because it's a big problem".

Posted by sold out @ 03:16 PM 13 Comments

First European Bank (Excluding NR) to face a run

Citywire: Fortis ( Belgo-Dutch bank) takes a pounding as shares continue to plummet

Shares in Belgian-Dutch financial group Fortis fell for a fifth consecutive day on Friday as speculation mounts about the bank's future. Fortis' shares were down 8.3% on Friday and hit a 13-year low of 5.66 (4.48), amid worsening newsflow about the Belgo-Dutch bank. Newspaper reports from Holland suggested Fortis would have to sell off some of its core activities to raise liquidity and there were also reports of a run on branches of ABN Amro, the Dutch consumer banking operations of which Fortis purchased last year.However, ABN Amro's Netherlands head tried to quell the concerns and told De Telegraaf that there was no need for investors to worry about the bank's liquidity.

Posted by jack c @ 03:02 PM 4 Comments

Don't Panic! Lighten Up!

SOTT: Financial Advice From Gorlock

Stephen Colbert gets sound advice from his financial advisor Gorlock. short comedy video and on topic

Posted by malct @ 02:44 PM 0 Comments

No bailout, so BIG banks get Bigger and more Powerful

Wall Street Journal: WaMu Is Seized, Sold Off to J.P. Morgan, In Largest Failure in U.S. Banking History

"In what is by far the largest bank failure in U.S. history, federal regulators seized Washington Mutual Inc. and struck a deal to sell the bulk of its operations to J.P. Morgan Chase & Co." Government intervention would stop this sort of thing. What kind of a world will we be left with if laissez-faire capitalism allows the powerful to make a killing in the boom and then gobble up the small players in the bust? We need intervention now and strict regulation of the banking system like Germany has.

Posted by mountain goat @ 02:40 PM 9 Comments

JJB denies covenant breach

Yahoo: JJB denies covenant breach

Is JJB about to go down the pan?

Posted by mark @ 02:16 PM 15 Comments

Really!!

The Times: Falling rents hit London homes

Rents have suddenly started to slide alongside house prices as pessimism sets in throughout the City, say Savills

Posted by magnaman @ 01:49 PM 2 Comments

The $700bn bail-out is already hurting your wallet

MoneyWeek: The $700bn bail-out is already hurting your wallet

The US Treasury's financial rescue plan isn't going to work. Banks are already hoarding cash and lending rates are soaring. And that means the cost of your own borrowing is going up, too. As David Stevenson explains, the plan is just a plain bad idea.

Posted by damien @ 01:26 PM 6 Comments

Notice who is managing the crisis. Not our elected leaders.

Buchanan via truthseeker: The Party's Over

Patrick J. Buchanan September 2008 The Crash of 2008, which is now wiping out trillions of dollars of our peoples wealth, is, like the Crash of 1929, likely to mark the end of one era and the onset of another. An unelected financial elite is now entrusted with the assignment of getting us out of a disaster into which an unelected financial elite plunged the nation. We are just spectators. What the Greatest Generation handed down to us the richest, most powerful, most self-sufficient republic in history, with the highest standard of living any nation had ever achieved the baby boomers, oblivious and self-indulgent to the end, have frittered away.

Posted by malct @ 12:10 PM 2 Comments

Give it a rest guys

Telegraph: Give it a rest guys

Malct and Stevie Dee, you have posted twelve articles so far today and they are all about the general economic problems, not about house prices. The general economic problems are important but this is is the House Price Crash website. If I want to read about the general economic crisis I'll read the Economist. Please be a bit more selective about what you post.

Posted by monty032 @ 11:59 AM 116 Comments

Land registry latest

BBC: House price falls 'accelerating'

The fall in house prices has accelerated in England and Wales, according to the Land Registry. Its latest report shows that prices fell by 1.9% in August, taking the annual rate of price deflation to 4.6%. The figures mean that the average property now costs 174,493; 8,320 less than a year ago, with 3,871 of that drop occurring last month. Prices in London fell by 3.2%, the first monthly fall since the Registry started publishing its figures in 2000.

Posted by jack c @ 11:53 AM 11 Comments

"You know the thesis of the Shock Doctrine is that you need a disaster to rationalize pushing throug

SOTT: Naomi Klein: The Bomb Has Yet to Detonate

Naomi Klein argues that by transferring Wall Street's gambling debt to Main Street (what she calls crybaby capitalism), the shock doctrine will come into play: "They have moved the disaster from Wall Street to Main Street by accepting those debts.... But the bomb has yet to detonate. The bomb is the debt that has now been transferred to the taxpayers.

Posted by malct @ 11:36 AM 3 Comments

Lets see if armagedon happens - my gut feeling is NO

Sky News: Revolt Scuppers $700bn Bail-Out

The McCain campaign told reporters the summit degenerated into a "shouting match". Two sources inside the room told Fox News that the president warned dissenters the plan had to be approved or "this sucker (meaning the economy) could go down".

Posted by matt_the_hat @ 11:34 AM 8 Comments

triple witching hour of housing bust, stock market bust and credit cont

Forbes: Not This Time

Consumer spending accounts for three-quarters of the $14 trillion U.S. economy. But this time spendthrift Americans, reeling from multiple blows, may not be able to come to the rescue. Their homes are still falling in value; stock market volatility has set everyone on edge; cash-out refinancing has nearly disappeared; and credit from other sources will soon run dry. People are losing their jobs. Personal debt (mortgage and other) hovers at 100% of annual GDP. Even if people wanted to spend it's harder than ever to do so

Posted by malct @ 11:34 AM 0 Comments

$700 Billion - "We just wanted to choose a really large number"

Forbes: Bad News For The Bailout

In fact, some of the most basic details, including the $700 billion figure Treasury would use to buy up bad debt, are fuzzy. "It's not based on any particular data point," a Treasury spokeswoman told Forbes.com Tuesday. "We just wanted to choose a really large number." Wow. If it wants to see a bailout bill passed soon, the administration's going to have to come up with some hard answers to hard questions.

Posted by malct @ 11:28 AM 13 Comments

...and Metrovacesa is having problems selling the HSBC

Times Online: Songbird Estates suffers a 470m loss as banking crisis at Canary Wharf bites

Songbird Estates, which develops and leases most of Canary Wharf in East London, said yesterday that the value of its property portfolio fell by 9.6 per cent to 6.7 billion in the first half of the year.... Metrovacesa, the Spanish property company, is having problems selling all or part of the HSBC tower in Canary Wharf. It bought the skyscraper from HSBC in April 2007 for 1.1 billion, making it Britains most expensive building. Metrovacesa is selling the building to help to repay an 810 million bridging loan that expires at the end of November.

Posted by disillusioned @ 11:10 AM 2 Comments

Now, for comparison, here's the shell game version. Keep your eye on the pea.

Huffington Post: Keith Richards, Cockroaches, and the Firm of Goldman Sachs

It's been said that when the dust clears from WWIII, the only things left standing will be Keith Richards, cockroaches, and the investment bank of Goldman Sachs. Having lived long enough to see the Stones, my old New York kitchen, and the events of the past week, I wish I could disagree. Mr. Buffett, will receive perpetual preferred shares in Goldman, Mr. Praag said. The preferred stock will pay a 10 percent dividend. shell game explained in hpc comments - article page slow, has 133 comments

Posted by malct @ 10:53 AM 2 Comments

Wachovia and Ambac: two more banking collapses ready to go

Finance Markets: Are Wachovia Bank and Ambac next to fail?

As Washington Mutual fails, Wachovia Bank and Ambac look increasingly like the next two big banking failures.

Posted by brite2006 @ 10:50 AM 0 Comments

Barclays and HSBC raise mortgages again

The Times: Borrowers hit as HSBC and Barclays raise rates

Mortgage rates continue up, with Barclays and HSBC the latest to announce rate rises.

Posted by brite2006 @ 10:47 AM 0 Comments

5407/m2, most expensive land in the UK?

Rightmove: Space 7,Lower Fish Street Garage,ST IVES

58000 for a car parking space in St Ives: Dimensions MAX HEAD HEIGHT 1.9M SPACE Width 4.36m SPACE Length 2.63m narr to 2.29m Mad, just mad. For that money you could park for 40 years in the public car park near the Tate in St Ives.

Posted by kernow @ 10:29 AM 6 Comments

"God bless America, we the people are waking up"

CSPANjunkie: HEY! CONGRESS! LISTEN UP! The American People Are Not Buying It!

Genuine C-Span Washington Journal video headlines coverage and phone in are they too late?

Posted by malct @ 10:13 AM 6 Comments

Even Fewer finance Workers in Canary Wharf

BBC NEWS: Bank giant HSBC axes 1,100 jobs

"Banking giant HSBC is to axe 1,100 jobs worldwide, blaming the current financial turmoil for the decision." .... "Many of the job-losses will be at the headquarters of HSBC's investment banking division, which are in London's Canary Wharf." More downward pressure on London house prices/rentals? More potential teachers? (News this am about city workers turning to teaching as a safer career.)

Posted by renting2 @ 09:33 AM 0 Comments

Jeff Randell's take on the bail out

Telegraph: US taxpayers are being enrolled in an economic chain gang

"To preserve their [the people's] independence, we must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty, or profusion and servitude" - Thomas Jefferson

Posted by holding out @ 09:33 AM 6 Comments

Death and Taxes

financialdirector.co.uk: HMRC plans swoop on a million landlords

Up to one million landlords could be facing the taxman as part of HMRCs drive to track down tax evaders HM Revenue & Customs (HMRC) is targeting up to a million landlords in an effort to track down landlords who could be liable to pay extra tax on their buy-to-let rental income.

Posted by landedgentry @ 09:25 AM 3 Comments

$188 billion a DAY?!

Reuters: Central banks dole out cash as bailout doubts grow

Figures released late Thursday showed U.S. institutions borrowed from the Fed $188 billion per day on average in the latest week, almost four times the previous record.

Posted by gardeniadotnet @ 09:03 AM 3 Comments

Liquidity in gold coins drying up

The FT: Gold coin sales halted after retail rush

The rush by retail investors into gold on Thursday forced the US government to temporarily suspend the sales of the popular American Buffalo one-ounce bullion coin after depleting its inventories.

Posted by sold 2 rent 1 @ 09:00 AM 27 Comments

Ralph Nader puts forward his 12 point plan

Counterpunch: Who Will Show Some Backbone Against the Bailout?

Here is Ralph Nader's take. He would have a good chance, but the Presidential "Debates", once run by the league of women voters was taken in by a quango when, Quigley inspired Clinton was panicked by a 3rd party getting almost 10% of votes. The Debates commission is headed by a Republican and a Democrat, and guess what, they ban 3rd and 4th parties from the debate,. Ralph is important because he can get 10% in some states, so is the main challenge to the two party dictatorship. "Congress needs to show some backbone before the federal government pours more money on the financial bonfire started by the arsonists on Wall Street." Ralph unfortunately appears to think that a bailout is necessary, but he does ask for debate, oversight, tough conditions & understands the threat from derivatives.

Posted by planning4acrash @ 08:57 AM 3 Comments

Hank Paulson on his knees......

Times: Tempers flare as $700bn US rescue deal stalls

But not to Dubya this time. That's for laters. As p4ac says get your s*it together now. Don't rule out anything happening.

Posted by tom101 @ 08:47 AM 0 Comments

I do not believe this is the right approach. We did not get into this situation in a matters of day

U.S. Senate: SHELBY PROPOSES ALTERNATIVE

Proponents of the Paulson plan are telling the American people we can solve this problem with a single bill. I dont believe that is credible. We have a number of interrelated problems that need to be addressed in order of their significance. First, and most urgent, is liquidity. Then we must address the solvency of our financial institutions and declining home values, not to mention our entire regulatory structure.

Posted by stevie dee @ 08:42 AM 0 Comments

Any Ideas?

FT: Time for the UK policy makers to wake up and tackle the crisis

With no private counterparty considered trustworthy for unsecured transactions, and with the private tripartite repo markets also drying up because of lack of confidence in the intermediaries that act as counterparties for both legs of a tripartite repo market transaction, it is time for the Bank of England to take up the role of universal counterparty in tripartite repo transactions between private entities, and indeed also in the unsecured interbank market. The Bank of England must become the interbank market. Indemnification of the Bank of England by the Treasury for any credit-risk related losses incurred as a result of its universal counterparty role will, of course, be necessary.

Posted by stevie dee @ 07:59 AM 0 Comments

Interesting Comments by Nader

Nader.org: Congressional Backbone Needed

Congress needs to show some backbone before the federal government pours more money on the financial bonfire started by the arsonists on Wall Street.

Posted by stevie dee @ 07:51 AM 0 Comments

Some house price news for a change

Daily Mail: House prices falling by 83 a day - that's more than the average wage

The average UK house price has been falling 45 a day since the beginning of the year, research revealed yesterday. In the worst-hit part of the country - Merioneth in North Wales - prices are tumbling 83 a day. At this rate, a typical worker is losing more from the value of their home than they earn after tax. The average full-time worker earns 23,750 a year - equal to a take-home pay of only 69.65 a day. Price falls varied significantly by area, according to the report by property valuation website Zoopla.co.uk.

Posted by little professor @ 07:46 AM 7 Comments

Giz a Job!

FT: HSBC cuts 1,100 staff from its investment bank

Thursdays cuts equal to about 4 per cent of HSBCs total employees in its global banking and markets division come as investment banks around the world cut staff and trim costs in expectation of a continued slowdown in the business.

Posted by stevie dee @ 07:38 AM 0 Comments

Whammo WAMU!!

BBC: Regulator shuts Washington Mutual

Washington Mutual (WaMu) has been closed by its regulator, making it the biggest US bank to fail.

Posted by renting2 @ 07:35 AM 5 Comments

Another one bites the dust!

AP - Yahoo: WaMu becomes biggest bank to fail in US history

As the debate over a $700 billion bank bailout rages on in Washington, one of the nation's largest banks -- Washington Mutual Inc. -- has collapsed under the weight of its enormous bad bets on the mortgage market. The Federal Deposit Insurance Corp. seized WaMu on Thursday, and then sold the thrift's banking assets to JPMorgan Chase & Co. for $1.9 billion. Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history. Its $307 billion in assets eclipse the $40 billion of Continental Illinois National Bank, which failed in 1984, and the $32 billion of IndyMac, which the government seized in July.

Posted by stevie dee @ 07:32 AM 0 Comments

Billions: Paulson gambled that share prices at four British banks would plunge

mail: Named: The trader with a 1bn bet that British banks will fall

Paulson & Co was revealed as shortselling four of Britain's five biggest financial companies by holding 1 billion in shares. It has short positions of 352 million (1.18 per cent) in Barclays, 260 million (1.76 per cent) in Lloyds TSB, 90 million (0.95 per cent) in HBOS and 292 million (0.87 per cent) in Royal Bank of Scotland

Posted by big chris @ 06:15 AM 0 Comments

Banks and building societies are raising their fixed rates, with some deals being increased by up to

mail: Homeowners face paying an extra 450 a year as lenders rush to raise mortgage rates

Billions of pounds have been put into the Bank of Englands overnight low-interest standing deposit facility a sign of its nervousness. Although this was 9.5billion on Monday, it had fallen to 5.9billion on Tuesday, and just 35million on Wednesday.

Posted by big chris @ 06:08 AM 0 Comments

"Some banks in the Netherlands, Germany, Britain and other countries are running into difficulty be

spiegel.de: 'Europe Should Establish A Rescue Fund' In Europe, too, banks could suddenly find themselves in trouble. Europe needs to find a way to handle this, argues ex-banker and finance professor Dolf van den Brink.

Dolf van den Brink is an experienced banker. He lived through the Latin American debt crisis, the currency crisis that hit the European Monetary Fund, the fall of the British pound in 1991, the Russian crisis of 1997 and the Asia flu in 1998. But he has never seen anything that compares with what is happening with the current financial markets crisis on Wall Street.

Posted by big chris @ 06:04 AM 0 Comments

JP Morgan Chase buys WaMu out

Credit Writedowns: JP Morgan Chase buys WaMu out

JP Morgan Chase has taken over the deposit taking subsidiary of Washington Mutual. The transaction is effective immediately, meaning it has closed. This is the biggest deal in FDIC activity yet.

Posted by edwardnh @ 03:14 AM 0 Comments

Update e-mail from Ron Paul (He aint happy)

Ron Paul's Campaign for Liberty: My Answer to the President

Also visit the Campaign For Liberty Website - Full e-mail in the first comment. Dear Friends: The financial meltdown the economists of the Austrian School predicted has arrived. We are in this crisis because of an excess of artificially created credit at the hands of the Federal Reserve System. The solution being proposed? More artificial credit by the Federal Reserve. No liquidation of bad debt and malinvestment is to be allowed. By doing more of the same, we will only continue and intensify the distortions in our economy - all the capital misallocation, all the malinvestment - and prevent the market's attempt to re-establish rational pricing of houses and other assets.

Posted by planning4acrash @ 02:55 AM 15 Comments

A Few Days Old....

Property Week: West Mids estate agent Barbers goes into administration

One of the largest and oldest estate agencies in the West Midlands has been forced to call in administrators, close offices and cut 60 staff.

Posted by magnaman @ 02:07 AM 0 Comments

Like to see the FSA tackle the CEO of this organisation!

Evening Standard: Church accused of short-selling

The Church of England has been accused by a think-tank of using short-selling tactics to maximise profit on its 5 billion investments.

Posted by magnaman @ 01:52 AM 0 Comments

Lets screw the half-wit Brits a bit more - GE is American!!

Guardian: FSA fines mortgage lender 1.1m

Sub-prime lender GE Money Home Lending has been fined 1.1m by the city watchdog for system failings that resulted in borrowers facing losses of more than 2.3m

Posted by magnaman @ 01:34 AM 0 Comments

Mortgage rates up another 0.30% as interbank rates rise

Yahoo: HSBC hikes mortgage rates on market turmoil

HSBC is hiking the cost of its fixed mortgages from Friday in reaction to credit market turbulence last week, a move widely expected by analysts. HSBC, the country's ninth largest lender, said it would increase the interest on its range of fixed rate products to 6.27 percent from 5.97 percent, following in the footsteps of Yorkshire Building Society on Monday. Fees will decrease to 499 pounds from 799 pounds. "With swaps spiking over the last week by 40 bps, we have tried to maintain choice in the market, but also not reducing LTVs (loan to value)," said HSBC. Swaps are used by banks to finance fixed rate mortgages. Turmoil in the markets last week led to a tightening of wholesale funding and a jump in the interbank lending rates.

Posted by drewster @ 01:09 AM 1 Comments

Bail Out Deal? Not So Fast

CNN: Democrats say they reached bipartisan agreement on set of principles, but Republican balk. White House meeting contentious.

Chaos erupted on Thursday in the negotiations over the proposed financial bailout as lawmakers bickered over competing counterproposals to the Bush administration's $700 billion rescue plan. A meeting at the White House between President Bush, congressional leaders and the presidential candidates was meant to speed approval of an agreement, but instead revealed deep divisions between Democrats and Republicans.

Posted by stevie dee @ 12:38 AM 0 Comments

This is not going to work even if it does go through.

AP - Yahoo: No deal yet on financial bailout: Congressional leaders still working on $700 billion bailout

Key members of Congress claimed agreement Thursday on an outline and crucial details of an urgent multibillion-dollar plan to stave off national economic disaster, but a historic White House meeting with President Bush, the two men fighting to replace him and other congressional leaders broke up with conflicts in plain view.

Posted by stevie dee @ 12:23 AM 0 Comments

Thursday, September 25, 2008

What planet are these people on!

Times: Hopes of interest rate cut rise as Kate Barker acknowledges dangers facing economy

Too much to sum up in this one but its worth the read for the MPC members views including; there is a real danger that the latest developments in the financial market will result in a large undershoot of the inflation target, and if we enter a recession it will be less severe than the early Eighties and early Nineties ones!

Posted by enuii @ 10:43 PM 9 Comments

Another pillar falls!

The Times: Falling rents hit London homes

Falling rents will depress yields and further discourage any investors who may have been drawn in by higher relative returns as property values dropped. Lucian Cook, a director of research at Savills, says: It will be very hard for investors to pin the tail on the donkey while rents are falling.

Posted by cheekie charlie @ 10:29 PM 0 Comments

Plunge Protection Team Bailout?

Seeking Alpha: Is the $700 Billion Really for Bailing Out the Fed?

The Fed, according to PPT theory, acts as the PPTs private slush fund. Money is taken out to pump up stock prices, and then taken back in so that prices will fall. The PPT players profit on the movements of the market, induced by this activity. If all of this is true, maybe, Bernanke and Paulson don't want to admit the embarrassing facts?

Posted by gardeniadotnet @ 10:01 PM 3 Comments

Oil rises on bailout worries

CNN: Oil rises on bailout worries

Crude ends the day higher as investors fret that the government's $700 billion economic rescue plan could cripple the dollar.

Posted by mark @ 09:54 PM 3 Comments

Are we next?

Telegraph: Banking bailout gets backing from congress

"News of the deal will spark speculation that Gordon Brown will soon have to introduce a copycat scheme for Britain's struggling banks. The Prime Minister is travelling out today to Washington DC to meet the US President and discuss the global financial crisis." A UK bank bailout might be tempting to our lame duck PM.

Posted by quiet guy @ 09:53 PM 2 Comments

Home sales decreased 11.5%

Bloomberg: U.S. Economy: Home Sales drop

Sales of new homes in the U.S. fell in August to a 17-year low and orders for durable goods dropped more than forecast, evidence of the mounting risks to the economy that Federal Reserve Chairman Ben S. Bernanke warned of yesterday. Today's reports are ``a recipe for recession,'' said Guy Lebas, chief economist at Janney Montgomery Scott LLC in Philadelphia.

Posted by alan @ 09:29 PM 0 Comments

Good bye dollar, US, Fiat currency

The Times: Wall St bailout - the deal is done

Gold!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Posted by matt_the_hat @ 08:44 PM 20 Comments

Let's Play "WALLSTREET BAILOUT" The Rules Are... Rep Kaptur

via truthseeker: wall street bailout

says it all again but if they fall we fall http://www.thetruthseeker.co.uk/index.asp Israel Shamir: Hang 'Em High! Instead of spelling disaster, writes Israel Shamir, the financial collapse offers a unique opportunity to fix all of Americas ills More ...

Posted by malct @ 08:21 PM 3 Comments

US agrees to details of bail-out

BBC: US agrees to details of bail-out

Both US parties in Congress have reached agreement on the outlines of a $700bn (348bn) bail-out plan to revive the financial sector.

Posted by magnaman @ 06:24 PM 1 Comments

hard times by my cabin door

daily mail: queens credit crunch

whoooooarrrgh.... the honourable lady still recieves benefits ..surely isnt right.

Posted by campin @ 06:08 PM 0 Comments

Could you imagine it if this this doesn't go through?!

Evening Standard: Bailout hopes boost shares

"The US deal overshadowed gloomier economic news in Britain with high street lender HSBC setting higher interest rates for first-time buyers and Bradford & Bingley announcing 300 job losses in Hertfordshire"

Posted by sid public @ 05:48 PM 0 Comments

How to make an offer on your dream house

HIP-Consultant.co.uk: How to make an offer on your dream home

Youve located the house of your dreams; how should you approach making an offer on this property? There are some simple points to consider and remember but have you done so? HIP-Consultant.co.uk's guest writer Karen Donaldson offers some practical tips, advice and her thoughts.

Posted by hip-consultant.co.uk @ 04:53 PM 1 Comments

You are an idiot Gordon Brown - Dont expect any votes

Yahoo: Brown Backs Bush's Bail Out Plan

Gordon Brown has backed George Bush's rescue plan for the US economy. The Prime Minister said the taxpayer's bail out was essential to restore stability to the markets. ============================================ But I thought things were stable.....

Posted by mark @ 04:01 PM 52 Comments

the chance to harvest new profit from their own fraud and criminal irresponsibility

The Nation: Paulson Bailout Plan a Historic Swindle

If Wall Street gets away with this, it will represent an historic swindle of the American public--all sugar for the villains, lasting pain and damage for the victims. My advice to Washington politicians: Stop, take a deep breath and examine what you are being told to do by so-called "responsible opinion." If this deal succeeds, I predict it will become a transforming event in American politics--exposing the deep deformities in our democracy and launching a tidal wave of righteous anger and popular rebellion.

Posted by malct @ 02:31 PM 21 Comments

Congresswoman Marcy Kaptur

C-span via SOTT: Congresswoman Marcy Kaptur Puts a Beatdown on Bush Bailout (video)

Wall Street and the Administration want to play the bailout game, and this is how they propose to do it: 1.) Rush the decision 2.) Disarm the public through fear 3.) Control the playing field (hide info from the public, hold private hearings, and private teleconferencing calls) 4.) Divert attention and keep people confused 5.) The goal is to privatize gains and socialize losses You have perpetrated the greatest financial crimes ever on this American Republic. You think you can get by with it because you are extraordinarily wealthy, and the largest contributors to both presidential and congressional campaigns in both major parties. more here http://www.dailykos.com/storyonly/2008/9/23/14159/5504/484/60

Posted by malct @ 02:17 PM 7 Comments

Beijing's first attempt to erect defences against the deepening U.S. financial meltdown

Reuters via SOTT: China banks told to halt lending to US banks-SCMP

BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday. The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.

Posted by malct @ 02:06 PM 8 Comments

another one bites the dust

CNN: GEs leverage problem

General Electric (GE) is the latest levered-up financial company to hit the wall.

Posted by mark @ 01:52 PM 1 Comments

Update on Denis Kucinich's solution

supporter's e-mail: KUCINICH'S MAIN STREET RECOVERY PLAN

Listening to the mainstream Democrats and Republicans is useless. Denis is the voice of traditional Democrats and Ron Paul is the voice of traditional Republicans/Libertarians. This e-mail, just in, the rest is in the comments below: Dear Friend, While Wall Street and the Bush Administration try to blackmail Congress into a $700 billion bailout for corporations that have shown zero concern about the plight of the American people through the last decade, I have been working on a comprehensive alternative. Today, I am releasing a plan for economic recovery that will provide not only economic stimulus, but also fairness for everyday people on every "Main Street" in America. The plan is detailed below, and it will also be available on the campaign website.

Posted by planning4acrash @ 01:50 PM 5 Comments

anyone want a cheap loan? Bailout or merger?

bbc: Car giants set to get $25bn loan

The House of Representatives voted to back a spending bill that includes a low-interest loan for the industry. The US government has only bailed out a carmaker once before and that was with a much smaller amount of money.

Posted by mark @ 01:49 PM 4 Comments

Britannia will rule the world .... again

Bloomberg: U.K. Banks Are Biggest Winners in Credit Turmoil: Matthew Lynn

"Once the chaos of the last few weeks eases and everyone gets a chance to sort through the rubble, one thing will be clear: The dominant members of the financial system that emerges will be British retail banks such as Barclays Plc, HSBC Holdings Plc and Lloyds TSB Group Plc." I don't agree with this, but interesting none the less.

Posted by mountain goat @ 01:44 PM 4 Comments

An EU Economic Miracle - Surprised?

BBC NEWS: Irish Economy Goes Into Recession

The Irish Republic's economy has fallen into recession after shrinking for a second quarter in succession. Full Story - http://www.cso.ie/releasespublications/documents/economy/current/qna.pdf

Posted by renting2 @ 01:35 PM 17 Comments

Ron Paul gives, another lesson to Bernanke

youtube: Congressional Joint Economic Hearing from yesterday morning

Check out the various statements to congress by Ron Paul on the issue on Google. Ron Paul discusses solutions taken "I don't know where you get the authority to create credit from thin air" - Bernanke blames Congress for delegating unconstitutional authority via the 1913 Federal Reserve Act. Way to go Ron! He also makes the elephant in the room statement, that Inflation cannot be solved with more inflation.

Posted by planning4acrash @ 01:34 PM 18 Comments

There is no safety net to rescue buy-to-let landlords who can no longer meet their mortgage interest

Citywire: Gaping cracks open in new-build buy-to-let

News coming out of the auction houses indicating that house prices still have further to fall and mortgage lenders will have to be much more realistic about the price they can expect to get for repossessed properties. Moreover buy-to-let investors who think they can just walk away from investments which are now in negative equity and worth less than the value of the mortgage will have to think again. The lenders will pursue them.

Posted by jack c @ 01:32 PM 0 Comments

Time to Revise the Recovery Time Frames?

Mortgage Introducer: FTBs could take until 2023 to save a deposit

Fairinvestment.co.uk research has found that it could take first time buyers 15 years to save the deposit for their first home.

Posted by renting2 @ 01:10 PM 12 Comments

B&B going down?

Times: B&B slashes hundreds of mortgage jobs, throwing future into doubt

"B&B said it remained strongly capitalized." Which usually means they are in big trouble

Posted by letthemfall @ 12:05 PM 1 Comments

The C of E wades in

Guardian: Archbishops attack profiteers and 'bank robbers' in City

Perhaps this is off-topic, but now that only the fairies can hold up house prices I think are interest is broader. I welcome the Church offering their views, especially as politicians seem incapable of offering convincing leadership these days. ' "To a bystander like me, those who made 190m deliberately underselling the shares of HBOS in spite of a very strong capital base, and drove it into the arms of Lloyds TSB, are clearly bank robbers and asset strippers," he said.' Bystander, you're not the Archbishop are you???

Posted by letthemfall @ 11:58 AM 14 Comments

Those toxic assets can be valued, it's just that banks can't sell at those prices

Truthseeker: When the gamblers bail out the casino

Bank's say they cannot value their troubled mortgage assets and that they're gumming up the system. This is just plea for bailouts to 'free up' lending again and 'get the economy going'. In fact there is a market for these assets. Hedge Funds and others regularly offer 55-60 cents on the dollar for them but banks hold out for an unrealistic 75-80 cents. Given bank's 30:1 leverage they cannot sell for 55-60 cents without destoying shareholder capital (even though maybe only 15% or less of that capital is in Level III junk). Another possibility is to allow the Saudis or the Chinese to take control of the failed banks - they'd pay the premium to have an insiders view of the inner workings of America.

Posted by icarus @ 11:52 AM 3 Comments

Some honesty at last! They have got a long way to go!! Down that is!!

IFAonline: Pointless to call bottom of house price crash - CML

It is futile to make predictions of how far property prices will fall given the current market turmoil, says the Council of Mortgage Lenders (CML). Earlier this year, the CML predicted property price would fall by 7% during 2008, but recent reports suggest prices have already fallen by 12.7% and are set to fall even further in the next few months. In the latest CML News & Views newsletter, the industry association says the current market outlook is too uncertain, and the CML cannot commit itself to any further predictions.

Posted by housebear @ 11:24 AM 0 Comments

Crash Gordon and the case of the disappearing home buyers !!!

Times online: Did they think buyers would just carry on?

This is no time for a novice, the Prime Minister declared this week. So how does he explain the elementary mistake his Government made over the housing market? - The Times points out what everyone on HPC.co.uk was pointing too within hours of the start of the dithering over Stamp Duty, sales plummeted and the housing market, effectively, rolled over and actually died. How can Crash Gordon keep using the same old rhetoric when his mantra of "No more boom and bust" will haunt him into his political grave?

Posted by nooneo @ 11:15 AM 5 Comments

Hedge Funds: Running Scared

Financial Times: Hedge funds move $100bn into safe havens

Hedge Funds - usually seen as no-holds barred risk takers - are fleeing markets for "safe" investments.

Posted by brite2006 @ 10:58 AM 0 Comments

Bush: Our entire economy is in danger

MSN: Bush: Our entire economy is in danger

"Without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold," Bush said in a 12-minute prime-time address from the White House East Room that he hoped would help rescue his tough-sell bailout package.

Posted by renting2 @ 10:55 AM 14 Comments

Even some Republicans on the Senate committee expressed exasperation Monday with the swindles that t

SOTT: Financial Fascism

One of those provisions, summarized by the heading of Title III, ensured the "Legal Certainty for Swap Agreements," which successfully divorced the granters of subprime mortgage loans from any obligation to ever collect on them. That provision of Gramm's law is at the very heart of the problem. But the law went even further, prohibiting regulation of any of the new financial instruments permitted after the financial industry mergers: "No provision of the Commodity Exchange Act shall apply to, and the Commodity Futures Trading Commission shall not exercise regulatory authority with respect to, an identified banking product which had not been commonly offered, entered into, or provided in the United States by any bank on or before December 5, 2000. ..."

Posted by malct @ 10:36 AM 13 Comments

Is the Federal Reserve itself nearly bankrupt?

The Oil Drum: Paulson and Bernanke ratchet up the blackmail talk

The Fed has lent out $600 billion of its $800 billion balance sheet in an alphabet soup of emergency liquidity facilities innovated over the past year. Under Enron-style accounting, toxic waste securities were used as collateral for US Treasuries at 85% of face value. Without recapitalisation, the Fed is at risk of failure in the midst of this crisis. The Paulson Plan recapitalises the Fed without ever publicly admitting that it was dangerously overextended. The Fed is effectively "broke." This is not supposed to happen to a central bank, which can print money without restriction. In order to take on more toxic collateral from the banks, it would need to actually print money, which would immediately be visible and would be seen as very inflationary.

Posted by drewster @ 09:50 AM 24 Comments

VAT Problems to builders............

Accountancy Age: Housing slump sees property developers take rental VAT hit

House builders unable to sell properties due to the housing market downturn could face a hefty tax bill if they decide to rent out new homes, HM Revenue & Customs has warned. Advice published by the government body warns developers may have to pay back VAT they have reclaimed due to the different treatment of VAT on selling and letting properties. HMRC claims than many house builders will not be affected as there are exemptions for small amounts of tax involving temporary lets. But some property developers could be liable for repayments before any rental income has been accrued, as the trigger for repayment was the intention to rent

Posted by eagle @ 09:39 AM 0 Comments

US Treasury Secretary Henry Paulson too busy understandable, butSarah Palin will meet him though

ITV: Brown in New York for economy talks

Asked whether Downing Street had requested a meeting, an official said: "Mr Paulson is in Washington and we are in New York. "Mr Paulson is busy in Washington for completely understandable reasons." There is the prospect of an encounter with Republican vice-presidential candidate Sarah Palin, however, as she has been attending the general assembly this week. Says it all really, bugger off we're busy we'll tell you what we have decided later

Posted by matt_the_hat @ 09:34 AM 4 Comments

Lew Rockwell interviews Dr Robert Higgs

Lew Rockwell Show: The Bogus Financial Crisis

Latest 15min Lew Rockwell Show. The Fed are Pirates and this is a bogus crisis. The Fed created this crisis and the world would be vastly better off if they disappeared over night. (In my opinion, the "bailout" is the monetisation of derivatives that will cause this weapon of mass destruction to cause hyperinflation. Pre-bailout, derivatives remain impotent to all but the culprits, IMHO). This plutocratic robbery is the worst "solution". We are bailing those who made big mistakes, leaving others to fall that made no mistakes and the majority don't want it and are not fooled!

Posted by planning4acrash @ 08:33 AM 4 Comments

be happy...

Times: 20 reasons to cheer falling house prices

Thousands of pounds may be wiped off the value of your home as you read this, but property market crashes are not all bad. Here are 20 reasons not to be downhearted about the downturn...

Posted by cha55a @ 06:56 AM 24 Comments

Huge, informative essay from Webster G Tarpley

Prisonplanet.com: NO To The Paulson-Bernanke Derivatives Scam Bailout

Webster G. Tarpley is author of NYT Bestseller, "Obama, the Postmodern Coup" - "The mass of world derivatives is between $1 and $2 quadrillion. This sum is so large that it dwarfs the total value of the entire planet earth and all those who live here. It represents an insatiable black hole which is capable of putting an end, not just to civilization, but the human life itself." (Liquidised and invested in real assets, you will see hyper inflation that would make Zimbabwe look like a model of Monetary Conservatism) "The moral choice could not be clearer: humanity will either destroy the derivatives bubble in our time, or the derivatives bubble will surely destroy humanity. Those are the stakes in the current exercise."

Posted by planning4acrash @ 01:26 AM 8 Comments

The Dummy's Guide to the US Banking Crisis

Credit Writedowns: The Dummy's Guide to the US Banking Crisis

If you want the 3-minute version to the US banking crisis, this is it.

Posted by edwardnh @ 01:23 AM 0 Comments

The net's favourite anchor man gives newz on the credit crisis!

The Fkn Newz: THE AMERICAN DREAM - DEATH DEBT & DELUSION

"admis traitors bail out American dream preserving world financial nightmare" "UK shopping still popular despite emptiness of consumer lifestyle"

Posted by planning4acrash @ 01:01 AM 1 Comments

Tim Harford entertains and informs

FT: Houses cost more in the summer. Heres why.

UK.....house prices fell by 1.5 per cent in April, according to the Halifax index. Except: they didnt. The Halifaxs own figures show that house prices rose in April, albeit by less than 0.2 per cent. The 1.5 per cent fall, widely reported, is the result of seasonal adjustment, an attempt to strip out predictable calendar patterns and report just the underlying trend. House prices usually surge in April, and this April the surge was disappointing enough to be reported as a fall.

Posted by jayk @ 12:15 AM 9 Comments

Wednesday, September 24, 2008

They have given up predicting future prices !

Telegraph: House price predictions 'futile' says CML

House price predictions are "futile" (me: so is trying to stabilise your investments) in the current market, according to the Council of Mortgage Lenders which has abandoned forecasts for this year. The CML admitted that its prediction in May that house prices would drop by 7 per cent in 2008 had "underestimated the extent to which property values are set to adjust".

Posted by landedgentry @ 11:45 PM 2 Comments

New home for short sellers?

FT: Crisis seen as possible aid to China reform

WTF.....As usual the Chinese think they're not only immune but immortal! The global financial crisis will not delay, and could even accelerate, the pace of financial reform in China, one of the countrys leading financial officials said. His comments come amid signs that China will proceed with the introducing margin trading and short selling of shares in spite of the current turmoil. Many countries have imposed restrictions on short selling to combat market turbulence.

Posted by whostolemyendowment @ 11:34 PM 0 Comments

A new sense of urgency.....what now?

Times: George Bush to sell bailout to sceptical Americans with TV address

President Bush is tonight due to deliver a rare prime-time televised address to convince Americans - and a hostile Congress - of the urgent need to pass his administration's $700 billion rescue plan for the country's stricken financial sector.

Posted by tom101 @ 11:12 PM 1 Comments

Lots of zero(e)s

MoneyandMarkets: Too Little, Too Late to End Debt Crisis

The bailouts...expected to cost over $1 trillion, are too small to rescue most institutions at risk, let alone address multiple problems with U.S. interest-bearing debts outstanding of $51 trillion and derivatives held by U.S. banks of $180 trillion.

Posted by gardeniadotnet @ 11:07 PM 3 Comments

More thinking required, more open debate

Council on Foreign Relations: The Good and the Bad of the Bailout Plan

Steil proposes a different plan. Under his plan, financial institutions that wanted to sell mortgages would come to the Treasury, ask for their mortgage-backed assets to be evaluated, and pay a fee to have them evaluated. The Treasury would then classify the assets based on the evaluation and would offer to buy the assets at prices based on what tier they are in. The firms holding the assets would then be able to choose whether to sell them to the federal government, or could attempt to sell them to other investors through the open market.

Posted by last_days_of_disco @ 10:16 PM 0 Comments

We have to look at prior bear markets or steep downtrends in the markets when considering this crisi

cnbc: S&P to Fall Another 40%: Analyst

We have to look at prior bear markets or steep downtrends in the markets when considering this crisis, according to Roelof van den Akker from ING Wholesale Banking. Van den Akker expects the S&P 500 index to decline by up to 40% over the coming months to about 800.

Posted by big chris @ 09:51 PM 0 Comments

Chairman Bernanke states that the US economy faces "serious consequences"

BBC: Bernanke demains bail-out action

In what is one of the largest issues facing the US in generations, Chairman Bernanke urges politicians to "act quickly" and support the farcical mother of all bail-outs. The whole plan, which plans to buy debt at considerably more than its current market value will saddle the US taxpayer with debt in excess of $1 trillion. To top it all off the bail-out will ensure that top directors still receive their bonus. Presumably that bonus is just reward for the quite staggering grade A f**k up caused by almost unbelievable mis-management.

Posted by denzil @ 09:25 PM 4 Comments

A near meltdown of the nation's financial system will affect jobs well beyond Wall Street.

CNN: What about my job?

Since May, General Motors (GM, Fortune 500) laid off 19,000 hourly workers, Starbucks (SBUX, Fortune 500) cut 12,000 jobs and American Airlines (AMR, Fortune 500) announced it was cutting 7,000 jobs, according to Challenger, Gray & Christmas. Other companies have instilled temporary hiring freezes or put their hiring plans on hold altogether. "Employment expectations are down substantially," according to John Dooney, manager of strategic research for The Society for Human Resource Management.

Posted by mark @ 08:59 PM 0 Comments

Reliability of data in question, so why when prices go up everything is true?

Sky News: 'House Prices Falling All Over'

During the 12 months to the end of June the cost of property fell in 21 of the 33 countries across the world for which there is reliable data.

Posted by whostolemyendowment @ 08:11 PM 0 Comments

B&B bcomes BBB- (Situation to watch tomorrow!)

Banking Times: B&B credit rating on the brink of Junk

Fitch Ratings yesterday downgraded the bank from BBB+ to BBB-, the lowest of the agencys ten investment classes and only one notch above speculative grade, or in colloquial terms, junk.

Posted by whostolemyendowment @ 08:06 PM 0 Comments

Hahahahaha...no stop....hahahaha

Telegraph: Taxman to knock on landlords' doors

Buy-to-let landlords could get a knock on the door from the taxman as part of a Government drive to track down those who do not pay enough tax.

Posted by whostolemyendowment @ 08:02 PM 0 Comments

Get the 'world's smallest violin' jpg ready

Dorset Echo: Estate agents cut jobs as housing crisis bites

PROPERTY prices in Bournemouth and Poole have plunged by up to 20 per cent according to one local estate agent who has been forced to cut his workforce by a third. Gary Witheyman, a former chairman of the National Association of Estate Agents, said: "Confidence in the market has gone; it's the worst trading time I can remember and has hit us much worse than the late 80s recession. "In January this year it was like someone had suddenly turned the lights off. We used to register between 800 and 1,000 new properties every month; at the moment it's down to 120 a month." He added: "In general house prices here have fallen by around 20 per cent. "Despite all the doom and gloom, if you've got the money it is a very good time to buy."

Posted by little professor @ 07:48 PM 10 Comments

But the governments of Germany and Great Britain have shaken their heads.

Spiegel Online via Truthseeker: Merkel Says Washington Helped Drag Europe into the Credit Crisis

The United States government is campaigning around the world for support for its multibillion-dollar Wall Street rescue package. The reaction has been skeptical at best and in Europe the plan has been met with bareknuckled criticism. German Chancellor Angela Merkel has accused the US government of serious failures which she believes contributed to the current credit crisis. In particular she blamed Washington for resisting stricter regulation.

Posted by malct @ 05:31 PM 14 Comments

Can you believe it!

CNN: Bank of New York's $22.5 billion headache

The Russian government is suing the Bank of New York for smuggling cash out of the country. Can a U.S. bank get a fair trial in Moscow?

Posted by mark @ 05:15 PM 2 Comments

Council of Mortgage Lenders - House price predictions are 'futile'

Guardian: House price predictions are 'futile'

Honk! They're not playing any more and they're taking their ball with them!

Posted by james @ 04:16 PM 0 Comments

Consciousness in the USA

LA Times: Only 31% favor bailout

The poll was conducted from Friday through Monday....My sense is that the bailout is becoming less popular each day, and that a poll taken this week would show even deeper opposition to the original Paulson plan

Posted by gardeniadotnet @ 02:01 PM 22 Comments

Nigerian E-mail scam? Nope. It's the Paulson bailout.

LA Times: Nigerian E-mail scam? Nope. It's the Paulson bailout. Seriously.

I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you.

Posted by gardeniadotnet @ 01:25 PM 14 Comments

Buffett buys a piece of Goldman Sachs at bargain price

Bloomberg: Goldman Gets Buffett Aid in $7.5 Billion Fundraising

GS are desperate and on their knees. A terrified market has withdrawn all liquidity. The great investor knows a bargain when he sees it. ``It's a hell of a deal for Buffett,'' said Brad Hintz, an analyst at Sanford C. Bernstein & Co. who rates Goldman stock ``market perform.'' ``The key thing for Goldman is making it through the credit cycle, and they're doing the right stuff.''

Posted by mountain goat @ 12:24 PM 2 Comments

This may prove to be the dollars epochal moment the moment historians look back at as its major

UK Telegraph: US dollar set to be major casualty of Hank Paulson's bailout

The US taxpayer bail-out of Americas banking sector is an event whose significance will reverberate for many years. What it means for free markets, for the way Western economies are run, for the prosperity of the world economy, must remain to be seen. But as investors scrambled to make sense of last weeks events, already one conclusion was all but irrefutable the US dollar will have to take another major fall.

Posted by malct @ 12:15 PM 28 Comments

Its the ultimate nightmare to have a run on the money marketsthat is truly Armageddon

WSWS: US government to bail out Wall Street

Its the ultimate nightmare to have a run on the money marketsthat is truly Armageddonand theyre not going to allow that to happen, When it comes to the social needs of the people, the universal cry from corporate America and the two parties is, There is no money, but when the fortunes of the financial elite are threatened, the full power of the government and unlimited resources are marshaled virtually at a moments notice. There was no suggestion in the statements of Bush and Paulson of any relief for the working classnothing to stop home foreclosures or help those who have already lost their homes. Rather, hundreds of billionsand more likely trillionsof dollars in public funds will be used to prop up the banks.

Posted by malct @ 12:09 PM 2 Comments

Derivatives were a key lubricant in the system that kept dollars moving around the world.

MSN money central: Another devil in the financial crisis

This crisis is no longer about the U.S. housing market or mortgages, or even about failing Wall Street institutions. We're way beyond that. What's at stake now is the entire global financial system that has underpinned world economic growth over the past two decades or more.

Posted by malct @ 11:58 AM 2 Comments

How the short-selling ban could backfire on the banks

MoneyWeek: How the short-selling ban could backfire on the banks

Short-sellers are being used as a scapegoat for a crisis which they did not create. Regulation is not the answer, says Dominic Frisby. In fact, the proposed ban on short-selling could have some nasty consequences...

Posted by damien @ 11:25 AM 17 Comments

A year and a half too late sheeple

Fool.co.uk: Published in Property Home on 24 September 2008 1 comments Should you cash in on the property slump by selling your home?

Over a few beers at the weekend one of my friends announced that she and her husband had put their house on the market. Oh, have you found somewhere you want to buy? I said. Well, were not looking at the moment, she replied, were going to rent for a bit and see what happens. The plan, it seems, is to wait for property prices to fall, then either buy a similar-sized property for less money and or buy a bigger place for the same amount they sell their two-up two-down terrace for. Good luck to them, I say, but isnt it a risky strategy? Its certainly not an uncommon one at the moment. But like all cunning plans, it has a list of pros and cons.

Posted by housebear @ 08:56 AM 31 Comments

Another blow to the Housing Market

FT.Com: Housebuilders face extra tax on rents

Another nail in the coffin for the property developers. They could be forced to repay value-added tax they have already claimed back because of differing VAT treatment of selling and letting properties, according to advice published by Revenue & Customs. The tax implications of putting unsold properties on the rental market were likely to come as a shock to some builders.

Posted by jj @ 08:36 AM 4 Comments

There is more to come....

population 43,000 has been forced to confront less picturesque assets: its local government, the Wingecarribee Shire Council, is sitting on millions of dollars in toxic investments backed by United States mortgages.

nytimes: In the Land of the Koala, Bailout Bypasses Villages

Its a different story for large Australian banks, which have also been hit by the United States mortgage troubles. It is not clear now how the bailout will treat foreign banks, but those with United States subsidiaries are expected to be bailed out.

Posted by big chris @ 07:37 AM 0 Comments

Ultimate spin from the self declared Hater Of Spin?

Guardian: 'Cynical, but splendid - he will die with his boots on'

Cheesy, vacuous - and occasionally brilliant, this was indeed the speech of Gordon Brown's life ... this was the product of desperation, it's tactics a measure of how bad things have got and how far the PM is willing to go to cling to power.

Posted by renting2 @ 07:28 AM 4 Comments

Bail-out faces flak from wary Congress

FT.com: Bail-out faces flak from wary Congress

So the people pay the government (tax) to pay the banks so that they can stay in business to debt collection from them. Say what? Got to agree with people that say the money should go the other way around the system. If you are going to print up $700 billion then give it to the people to pay off their debt to the banks.

Posted by whiteknight @ 01:56 AM 0 Comments

Hank Paulson tell us that our banking system was sound for over a year. He was the CEO of Goldman Sachs. He knew the extreme risk taking that was going on. He was lying to the American public. Today, he is being hailed as a hero in saving our country

Lew Rockwell.com: The Mugging of America

Hank Paulson, has committed our future generations to trillions in obligations for the sins of his buddies on Wall Street. I know many heroes, and Hank Paulson is no hero.When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing. Perhaps the Federal Reserve can stave off the day of reckoning by purchasing GSE debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary, but painful market corrections will only deepen the inevitable fall. The more peop

Posted by jaffa100 @ 01:53 AM 2 Comments

No time for a novice, warns Labour leader

Tuesday, September 23, 2008

Have you been asking about this?

Fun Online Poll: Gordon Brown's Labour Conference Speech

The top inanity from his otherwise cretinous speech - which took him and his little friends months to write - was this "Some people have been asking why I haven't served my children up for spreads in the papers. And my answer is simple. My children aren't props; they're people." I dunno. I can honestly say that I have never asked that question. I've set up a fun online poll to see whether anybody actually did.

Posted by mark wadsworth @ 11:33 PM 0 Comments

Council Of Mortgage Lenders Spin Department throws in the towel ...

FT: Lenders drop house price forecast

For those who don't have time to register for the FT online ..."The Council of Mortgage Lenders, whose house price forecasts have been among the UKs most optimistic, on Tuesday threw in the towel, saying conditions were too difficult to make predictions, and that no improvement was likely until 2010. The CMLs last forecast, made in May, was for prices to be 7 per cent lower in the fourth quarter than last year. Indices from Halifax and Nationwide, both CML members, suggest that prices are already down by more than 10 per cent on the year. Halifax and Nationwide are forecasting peak to trough declines of 20 to 25 per cent and some private sector economists are predicting even steeper falls."

Posted by mark wadsworth @ 11:28 PM 4 Comments

Hedge funds could have an unprecedented level of cash pulled out by investors this quarter, according to insiders

cnbc: NEXT HUGE FOOT TO DROP - WITH CLIENTS FALLING OUT OF BED

Hedge funds could have an unprecedented level of cash pulled out by investors this quarter, according to insiders

Posted by big chris @ 10:19 PM 2 Comments

Goldman Sachs which has become a bank to joint the line for huge taxpayer handout paid its Chairman and CEO Lloyd Blankfein $70 million last year. Co-Chief Operating Officers Gary Cohn and Jon Winkereid were paid $72.5 million and $71 million, respectivel

US Business Journal: CEO pay: What those involved in the financial meltdown made

As Congress considers a $700 billion bailout for Wall Street and the banking sector, there are calls to restrict the pay and severance packages for CEOs at investment houses, Executives from some of the major investment and commercial banks involved in the financial upheaval and bailout earned hefty paychecks last year, according to proxy statements outlining their salaries, bonuses and stock options:

Posted by jaffa100 @ 08:39 PM 2 Comments

Not any more. With Wall Street in tatters and Europes and Japans economies faltering, many investors are beginning to ask if China too might stumble badly. After five turbo-charged years of accelerating growth...

.blackswantrading.com: Beijings burden: A slowing China bodes ill for the world economy

As the credit crisis unfolded over the past year, one of the few certainties in the global economy seemed to be Chinas ability to plough on regardless at double-digit growth rates. Not any more. With Wall Street in tatters and Europes and Japans economies faltering, many investors are beginning to ask if China too might stumble badly. After five turbo-charged years of accelerating growth...

Posted by big chris @ 08:27 PM 0 Comments

European banks face greater capital shortages than their U.S. counterparts, but have become too big for any one European country to save, according to an article published Saturday by European economists Daniel Gros and Stefano Micossi on the Centre for E

wsj: European Banks: Too Big to Rescue?

European Banks: Too Big to Rescue? European banks face greater capital shortages than their U.S. counterparts, but have become too big for any one European country to save, according to an article published Saturday by European economists Daniel Gros and Stefano Micossi on the Centre for European Policy Studies

Posted by big chris @ 08:14 PM 0 Comments

House prices have fallen at an unprecedented rate this year

If only the Americans could look beyond their shores for once....

NY Times: How Sweden Solved Its Bank Crisis

A banking system in crisis after the collapse of a housing bubble. An economy hemorrhaging jobs. A market-oriented government struggling to stem the panic. Sound familiar? It does to Sweden. The country was so far in the hole in 1992 after years of imprudent regulation, short-sighted economic policy and the end of its property boom that its banking system was, for all practical purposes, insolvent. But Sweden took a different course than the one now being proposed by the United States Treasury. And Swedish officials say there are lessons from their own nightmare that Washington may be missing. Sweden spent 4 percent of its GDP to rescue ailing banks. The $700bn that the Bush administration wants is 5 percent of GDP. But the final cost to Sweden ended up being less than 2% of GDP...

Posted by drewster @ 06:21 PM 7 Comments

bailout anger over 2000 angry comments

CNN: THE BAILOUT

check out some of these comments on the biggest bailout in history

Posted by mark @ 06:12 PM 8 Comments

e-mail from Denis Kucinch about the economic crisis

Democrat Congressman Denis Kucinich: Protecting the public interest in any economic "bailout"

Back from motivational clips to real news. You've heard what dictator Paulston has to say, curiously, no address from Bush! You can't make it up. Well, you heard solutions from Republican Ron Paul here that you won't see in any mainstream UK media outlets. Now, here, in the fold beneath, is an e-mail just this minute sent out by Denis Kucinich on his solutions. For background on him. He was responsible for putting forward 35, yes, 35 articles of impeachment of George W Bush. As the UK media didn't cover a whisper of impeachment proceedings, you won't read this in any UK newspapers or see it on any UK TV shows. Forget expecting any sense from any UK "politicians".

Posted by planning4acrash @ 06:02 PM 15 Comments

Remember 1959?

Telegraph: House sales fall to lowest level in 50 years

lThe number of houses sold plummeted to just 62,000 in August, which is the lowest level since records began in 1959 and less than half the figure for a year ago, according to HM Revenue and Customs. The sales statistics are the starkest evidence yet of how Britain's housing market has ground a halt.

Posted by cha55a @ 05:33 PM 0 Comments

why not try, for once, a trickle-up approach?

The Mortgage Lender: The Great Financial Do-over

If we're going to start handing out Free Money, is this the only way to do it? If the problem is the collapse of the housing market, leading in turn to a collapse of these absurd credit default swaps, why not try, for once, a trickle-up approach? Spending nearly a trillion dollars to reduce foreclosures and homeowner debt would have a huge economic impact for the general public -- and it would help teetering credit default swap owners by increasing the value of those assets, or at least limiting the exposure from them.

Posted by malct @ 04:56 PM 9 Comments

The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

321gold: INVESTMENT BANKERS DON'T NEED TO BE BAILED OUT

The answer to America's problems is clear. Thomas Jefferson said it two hundred years ago. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. Let's do what has to be done, America - or do you still want to blame Muslim terrorists and illegal immigrants for America's problems; or maybe you are still hoping that somehow maybe somehow Paulson's proposed trillion dollar government bailout of the rich and well-connected will somehow trickle down to you and save you and your family from being tossed out onto the streets when your house is foreclosed on by the banks he is going to save.

Posted by malct @ 04:51 PM 16 Comments

Sure, but They DON'T CARE!

The Market Oracle: Recommendation to Congress Not to Spread Financial Panic

I've always found M. Weiss to be very pragmatic, prudent and reasonable with his market analysis, and he's been saying since 2001 that things are very bad - he probably just wasn't privy to Government machinations. Anyway, some very scary debt figures here based on his analysis, with recommendations to Congress on what to do. But, IMO they aren't interested in sorting America out, nor the global economy, so if these 'shoes' drop... "There are currently $14.8 trillion in mortgages in America. But beyond mortgages, there is another $20.4 trillion in consumer and corporate debt. This means that mortgages represent only 42% of the private-sector debt problem in America."

Posted by layers @ 04:35 PM 0 Comments

Your comments required

Yahoo: Is there any hope for the ailing property market, and for those of us hoping to get a foot on the ladder?

lets put this fool straight, he thinks crashing houseprices is bad for first time buyers...

Posted by mark @ 04:26 PM 0 Comments

Ryanair grounds planes as recession looms

Yahoo: Ryanair grounds planes as recession looms

High fuel costs and weak demand will force Ryanair (Dublin: RY4.IR - news) to ground 14 planes at Stansted this winter, the Irish low-cost airline confirmed Tuesday.

Posted by mark @ 02:51 PM 6 Comments

What do this PIG and Bankers have in common?

Yahoo: Monster pig traps Aussie woman in home

They both bite the owner, they both hold you hostage and both want more and more....ENJOY...

Posted by mark @ 01:59 PM 4 Comments

Government building targets are all puff & air - NHF

Firstrung: Government has no chance of meeting new home building targets - NHF

The Government's ambitious target of building three million new homes by 2020 could be missed by up to nine years unless ministers intervene further in the housing market, a leading expert has warned... National Housing Federation Chief Executive David Orr issued the stark warning at the ICC, in Birmingham, when he addressed the annual conference of the Federation, which represents England's housing associations.

Posted by converted lurker @ 01:03 PM 1 Comments

Finally re-mortgaging and equity withdrawal begins to collapse

Firstrung: Mortgage approvals now 64% lower than August 2007 as re-mortgaging finally begins to retract

In August, net mortgage lending rose only by 2.1 billion; less than half the average rise over the previous six months. The number of approvals for house purchase was again very low and those for remortgaging also fell. Consumer credit rose by 0.4bn in August, slightly above the previous 6 month average of 0.3bn. Personal deposit growth continued to be weak and the annual growth rate declined by 0.7% to 4.0%...

Posted by converted lurker @ 01:00 PM 1 Comments

Not everyone can profit from falling markets

Halifax HBOS: Not everyone can profit from falling markets

I am appalled that HBOS is still getting away with putting this out there. Halifax Contracts for Differences (CFDs) are a way of making (or losing!) money from share price movements without owning the share itself. You simply own a contract which you buy at one price and sell at another making (or losing) the difference. This is gross neglect of responsibility and takes the p*** out of the UK people.

Posted by andy @ 12:48 PM 4 Comments

Of echelons and Peerless

Times: Resale of the century

As a 10m house is repossessed, its clear that nobodys safe from property-price pain

Posted by confused76 @ 12:36 PM 13 Comments

You want free of this chaos? Go do it your damn self. Getting freedom government is Orwellian doublespeak, your freedom comes from you!

Youtube: "Country Boy Can Survive" Hank Williams Jr.

May seem off topic, but this dude knows about personal freedom and liberty. Want to avoid inflation? Stock up on silver and gold, find a local grocer who hoards silver and agree to buy at spot rate conversion to save him a trip to the coin dealer. Don't have land? Plant an apple tree in the local park! Whatever you do, just go do something to give yourself some kind of personal liberty! - "The interest is up and the stock markets down, and you only get mugged if you down town. I can plough a field all day long, catch cat fish from dusk till dawn, make our own whisky and our own smoke too, grow good old tomatoes and home made wine, we can skin a buck and run a truck line, because a country boy can survive, Country folk can survive! because you can't stomp us out and you can't make us run!!

Posted by planning4acrash @ 12:18 PM 41 Comments

who will bail these folks out? Coming to UK near you NOW..

CNN: Small biz credit crunch: In their own words

It burns my candles to see the bailouts going on, and that we have no recourse for the failed economy and loans. So give them money to set themselves straight and hang us out to dry? How fair is that?! Who will bail out us, the consumers that are being burned? Where is our money from the government? The measly $600 to stimulate the economy? That wasn't enough to make a mortgage payment.

Posted by mark @ 12:10 PM 0 Comments

Why fear is good for the dollar

MoneyWeek: Why fear is good for the dollar

It won't be the recession that kills off the dollar - it will be the recovery. Because as long as investors are fleeing risk, says John Stepek, the US has a very powerful force propping up its currency: sheer terror.

Posted by damien @ 11:45 AM 5 Comments

housing prices can start to rise again and the collapse can be prevented - maybe

SOTT: Signs Economic Commentary for 22 September 2008

extracts :- The unwavering message of the mainstream coverage of the 'Credit Crunch' is... The impending implosion of our financial system is an unintended consequence of unreasoning, animalistic, undirected greed and fear. No-one could have predicted it. There is no predetermined objective. The people responsible for our great financial institutions are honestly trying to unf*** things as best as they can for the Common Good . - It will shift the banks' liabilities onto the federal government, sharply increasing government budget deficits and the US debt, a process that can only further erode the creditworthiness of the United States and place a bigger question mark on the value of the US dollar.

Posted by malct @ 11:32 AM 0 Comments

Keeping insolvent banks on life support is not a rescue plan; it's insanity.

Information Clearing House: Grasping at Straws

No one has any idea of the magnitude of the deleveraging ahead or the size of the debts that will have to be written down. That's because 30 years of deregulation has allowed a parallel financial system to arise in which over $500 trillion dollars in derivatives are traded without any government supervision or accounting. These counterparty transactions are interwoven throughout the entire "regulated" system in a way that poses a clear and present danger to the broader economy. It's a mess. Mike Witney and again These counterparty transactions are interwoven throughout the entire "regulated" system in a way that poses a clear and present danger to the broader economy. It's a mess. Anyone really believe this won't hit the UK economy hard?

Posted by malct @ 11:14 AM 13 Comments

Confims what many of us supected ...

Metro: More renting as mortgage woe deepens

"Demand for rented accommodation has soared by two-thirds during the past year and is the strongest 'for decades'. The number of leases taken out during August was 65 per cent higher than in the same month last year... 'If you can't get the finance to buy a house, you're forced to rent.... the strong demand for rented accommodation was not driving up rents, as the demand was being met by supply from sellers who had opted to let their home rather than accept a lower price for it in the current market. Latest figures from the Bank of England showed that the number of mortgages approved dropped by 71 per cent year-on-year during July."

Posted by mark wadsworth @ 10:07 AM 11 Comments

News just in

BBC: Mortgage approvals 'at new low'

UK mortgage lending by the major banks fell to a record low in August with approvals for house purchases 64% lower than a year ago.

Posted by gardeniadotnet @ 09:56 AM 1 Comments

America is about to be legally stolen from the people, and given to a very small group of powerful men.

housing panic blog: The end of America as you knew it is at hand. It was a good 232 year run. But it is about to be stolen in the night.

America is about to be legally stolen from the people, and given to a very small group of powerful men. Yes, HP can be a bit dramatic sometimes. This is not one of those sometimes. The Patriot Act of Finance, otherwise known as Paulson's $700 billion bailout bill, if passed in its present form will be the nail in the coffin for an America by, for and of the people. Just like the Patriot Act appeared to be written before 9/11, so does this Patriot Act of Finance appear to be written before the housing crash. And yes, both were rushed through a panicked Congress and complacent media in the middle of the night.

Posted by malct @ 09:21 AM 46 Comments

On this occasion leverage is good

hogtronix: This Account Has Been Suspended

There seems to be a bit of a problem with Fergus and Judith Wilsons web site.The last time I heard Fergus blowing his trumpet was on this link http://news.bbc.co.uk/1/hi/business/7432256.stm Given his leveraged position he must now have equity issues

Posted by sosoon @ 08:06 AM 0 Comments

The group's "imploded funds" list has hit 51 companies since the sub-prime mortgage crisis in the United States kicked off a widespread downturn.

independent.: Hedge funds could have an unprecedented level of cash pulled out by investors this quarter, according to insiders, just as they faced millions of pounds of losses from last week's shock regulation of short selling. It has been a tough year for the industr

The group's "imploded funds" list has hit 51 companies since the sub-prime mortgage crisis in the United States kicked off a widespread downturn. That compares with its historical list, stretching back more than a decade to the end of 2006, of just 14, including the collapse of Long-Term Capital Management and Amaranth. This year, big names including Peloton Capital

Posted by big chris @ 03:09 AM 0 Comments

Monday, September 22, 2008

Fred Harrison and The 18-Year Cycle In Property

Commodity Watch Radio: Fred Harrison

In the latest Commodity Watch Radio Fred Harrison, The Renegade Economist, discusses the 18-Year Property Cycle and suggests ways for Gordon Brown, or whoever should succeed him, to avoid boom and bust in the future. Plus Michael Hampton aka Dr Bubb shares his views on Fred's cycle and the London property market.

Posted by frizzers @ 11:39 PM 6 Comments

There is no EU Treasury to back the euro, and therefore no Euro-Paulson with the powers and legitimacy to take sweeping steps in an emergency. By extension, there is no clear-cut lender of last resort either. Each country is on its own, yet none have the

telegraph: Financial Crisis: America rises to the occasion as storm heads for Europe

The European Central Bank stands aloof with Teutonic severity, as hawkish as the old Bundesbank or the Reichsbank in 1931. It too is a prisoner of a rigid treaty mandate. There was a mad Wagnerian feel to its July rate rise. We now know that Euroland was already slipping into recession when it acted. Do the hawks mean to unleash Gtterdmmerung on the peoples of Spain, Ireland, Italy, Portugal, and Greece, with all the dangers that must accompany a disintegration of EMU?

Posted by big chris @ 11:19 PM 0 Comments

Maybe it is some FELLA living under a ROCK!

Bloomberg: U.S. Commodity Regulator `Closely Monitoring' Nymex Oil Prices

The Commodity Futures Trading Commission is ``closely monitoring today's large movement in the price of crude oil'' on the New York Mercantile Exchange, the agency's acting chairman said.

Posted by stevie dee @ 10:35 PM 1 Comments

Our man Jonathan Davis revises his house price crash prediction

ITV Tonight: Crunch time, Tonight, Monday 22 Sept, ITV1, 8pm

As the economic crisis worsens, Tonight asked the experts to predict what the current turmoil will mean for your savings, house prices and jobs. JD features heavily in this programme - pick it up online if you missed it - panel consensus -50% from peak.

Posted by jack c @ 10:32 PM 12 Comments

You can print and hand this out at the Train Station to counter propaganda in the Metro Magazine.

Ron Paul's Campaign For Liberty: Grassroots Action: Crisis on Wall Street Handout

The Campaign 4 Liberty staff has developed a simple one page handout that can be distributed door-to-door or easily handed out to anyone you come across. This handout sums up the current situation, gives a four-step solution to getting our country out of this mess, and includes contact information for people to reach their representatives and senators. Its designed to get as much information in the hands of as many people as possible as fast as possible. Get the PDF here: Crisis on Wall Street

Posted by planning4acrash @ 09:40 PM 8 Comments

If the US bailout plan is the first step in the right direction, we didn't see the markets responding positively to news on Monday. The bear market is still firmly intact,

cnbc: Bear Market Still in Place:

If the US bailout plan is the first step in the right direction, we didn't see the markets responding positively to news on Monday. The bear market is still firmly intact,

Posted by big chris @ 09:37 PM 0 Comments

The problems for the hedge-fund industry may only just be starting,

cnbc: Hedge-Fund Concerns Mount

Hedge-Fund Concerns Mount The problems for the hedge-fund industry may only just be starting, according to Nouriel Roubini, chairman of RGEMonitor.com.

Posted by big chris @ 09:29 PM 0 Comments

Can not blame the shorts now!

Yahoo: DOW Down 360

Explaination: You can blame it on shorts. Blame it on the rain and ban the world. Till the time you fix the source problem it will fall. ie. House Price Bubble

Posted by deepak @ 08:57 PM 10 Comments

not a good sign..

CNN: Oil skyrockets

Oil prices jumped more than $20 a barrel Monday in biggest dollar jump ever as the dollar falls following the government's $700 billion Wall Street bailout plan. Oil surged $22.46 to $127.01 a barrel, after reaching as high as $128.55 - a $24 gain - at these levels it will be oil's biggest gain ever in dollar terms.

Posted by mark @ 07:55 PM 8 Comments

And now for something completely different

Telegraph: Repossessed properties at auction too pricey

An article about house prices crashing. Properties are not selling at auctions because the reserve price is too high, meaning they will have to come down a lot more for the market to start moving again. They are already down 25%, and with buyers on strike and repossessions increasing rapidly, they are going to fall a lot more.

Posted by jonb @ 07:36 PM 5 Comments

read the comments and add yours

CNN: Be ticked off - but get over it

argue that the bailout, while infuriating, is needed to prevent even more job losses, housing market woes and economic pain. Do you agree or disagree?

Posted by mark @ 07:00 PM 2 Comments

Even Cuban Cigar sales are down!

Bloomberg: NYC Loses More Jobs, London Homes Drop as Banks Reel

"London's motto, ``Domine Dirige Nos,'' or ``Lord Direct Us,'' is appropriate right now, said Stuart Fraser, policy chairman for the City of London and a former fund manager for Brewin Dolphin Ltd. ``I think we probably need that guidance,'' he said.

Posted by alan @ 06:32 PM 0 Comments

Here We Go Again!

CNNMoney: Stocks slump after $700 billion plan

Wall Street weakens as investors look for clarity on the government's bank bailout plan. Morgan and Goldman become bank holding companies. Oil and gold prices spike. NEW YORK (CNNMoney.com) -- Stocks tumbled Monday, as worries about the Treasury Department's proposed $700 billion bailout plan for the financial services sector overshadowed any relief about the outlook for Morgan Stanley and Goldman Sachs. The Dow Jones industrial average (INDU) fell 190 points, or 1.7%, over two hours into the session. The Standard & Poor's 500 (SPX) index fell 2% and the Nasdaq composite (COMP) fell 1.5%. Another week of madness coming up but overall the Markets are tumbling.

Posted by plato @ 06:13 PM 5 Comments

the truth about Treasury Secretary Hank Paulson $700 billion plan

Bloomberg: Morgan Stanley's Mack Seeks Protection From You: Jonathan Weil

Here's the truth about why Treasury Secretary Hank Paulson wants $700 billion of your money to bail out stupid financial companies. It's not about protecting you, the unwitting American. It's about protecting people like him. ...

Posted by joe le taxi @ 04:59 PM 3 Comments

Ouch

CNN: Here comes $500 oil

If Matt Simmons is right, the recent drop in crude prices is an illusion - and oil could be headed for the stratosphere. He's just hoping we can prevent civilization from imploding.

Posted by mark @ 04:05 PM 16 Comments

Darling admits heavy use of hallucinogens

Telegraph: Financial crisis: Alistair Darling admits Britain will fall into dangerous debt

Darling, half of a lawyer/historian pair traditionally associated with maths skills, announced that the government will be going heavily into debt. This is reasonably interesting, I think there will be deflation at some point, so government borrowing won't necessarily cause inflation, but gov. borrowing will cause higher taxation. As in even if taxation stays the same, more will go on debt servicing not services, so we pay more. Basically if an economic stimulus works then good, and by that I mean people hold sustainable jobs and savings maintain value. This is just the beginning of what looks like collapse. Idiot Darling ignores the fact that Japan was a massive net creditor when they started expanding government borrowing, whereas the UK is the most indebted .....

Posted by stillthinking @ 03:49 PM 6 Comments

The Yanks are Revolting

Flip This Burger - Patrick.net: You Must Act Now - THIS IS URGENT!

"The U.S. Government has allowed Treasury Secretary Paulson to hijack The United States of America - without one single bullet being fired. Hank Paulson is now the new dictator of America. George W. Bush might have the title of President of The United States, but the great folks down at FedEx/Kinko's are busily changing his business cards to read: George W. Bush Paulson's Bitch (and president) 1600 Pennsylvania Avenue Washington DC Speaking of bitches, have you seen Ben Bernanke around lately?! You know why you haven't seen that little punk ass around? BECAUSE HE DOESN'T MATTER ANYMORE. And he's off hiding with Greenspan hoping the mobs don't come after them."

Posted by renting2 @ 03:15 PM 6 Comments

I'm mad as hell, and I'm not going to take it anymore!

Youtube: Peter Finch wins best actor due to this speech

We know things are bad, more than bad,. Things are crazy. I want you to get mad! All I know that first, you have to get mad, God damn it. MY LIFE HAS VALUE!!

Posted by planning4acrash @ 03:11 PM 19 Comments

less rubbish salt and fat laden food in those cheap shops..lol

reuters: Market woes hit German economy

As the world's largest exporter of goods, Germany is exposed to its trading partners' woes and faces a sharp slowdown in export growth. The economy is probably already in recession and shows little sign of picking up soon. "Whatever happens to our trading partners will happen to Germany, with just a little lag," said Bank of America economist Holger Schmieding.

Posted by mark @ 02:55 PM 2 Comments

another nail in the BTL coffin

Government: Advice to landlords, builders and solicitors

Homes will require an EPC on rent from 1 October 2008.

Posted by mark @ 02:50 PM 3 Comments

incredible

reuters: Credit crunch sends shivers across nanny market

Watch out Mary Poppins, the hurricane howling through the world's financial markets is starting to be felt in the rarefied world of the British nanny. As bankers and money dealers fall like flies to a credit crunch that has seen three major U.S. investment banks disappear in a puff of smoke, so the nannies they have employed on salaries of up to 40,000 pounds ($73,000) have suddenly become expensive luxuries. "The problems are just starting. In the last week or two I have started getting calls from nannies saying one or both of their employers have lost their jobs and so they have too," said Kate Baker of Abbeville Nannies in south London.

Posted by mark @ 02:40 PM 4 Comments

Takeover, Merger are the new spin words for bankrupt / back door bailout

Yahoo: Takeover rumours boost Bradford & Bingley

LONDON (ShareCast) - Bradford & Bingley (LSE: BB.L - news) soared on weekend reports that UK authorities are trying to broker a takeover of the buy-to-let mortgage group.

Posted by mark @ 02:17 PM 1 Comments

Is This Already Happening in The UK, or Could It?

Redtape: MILLIONS AT RISK OF FORECLOSURE FRAUD

"The reason Carter, 55, is facing eviction, she says, is that she fell for a high-stakes scam thats sweeping the nation, preying on the 1 in 11 consumers who are either behind on their mortgage payments or already in foreclosure."

Posted by renting2 @ 01:57 PM 0 Comments

Police cause credit crunch.

Sky News: Gangs Make Mint Out Of Fake Coins

There are 30 million fake 1 coins in circulation. If the police were to suddenly stop them at source, and the banks find and destroy them, then 30 million would need to be removed from the banking system to replace current requirements for real in-use currency, as in taken out of the banking system, not shifted between banks. Thereby collapsing 300 million of mortgage funding currently available for the 40,000 housing transactions per month. I was hoping this would be more dramatic than it ended up.

Posted by stillthinking @ 01:42 PM 4 Comments

There are no fools like old fools

BBC online: Warning over home equity release

Andrea Rozario, director-general of Ship (Safe Home Income Plan (Ship or is it Shi* - Safe Home Income Talk ) , claimed that Which's report was "outdated". "It has not taken into consideration the market advancements of the past decade, let alone the last 12 months," she said. "Equity release products offer increasing flexibility. There are now products that offer the security of fixed-rates with little or no redemption penalties, and recently we have seen rates falling, in stark comparison to the mainstream mortgage market. "This, coupled with safeguards offered by Ship members and compared to normal mortgages, not only means that the products are safe, but also incredibly flexible."

Posted by lloyd @ 01:35 PM 0 Comments

Defying gravity! More cheap loans needed to take housing from upper atmosphere into the stratosphere!

Bloomberg: U.K. Housing Market `on Its Knees,' Rightmove Says

``The housing market is on its knees and will remain so until financial institutions address the disastrous state of the mortgage funding markets,'' said Miles Shipside, commercial director at Rightmove.

Posted by v stor @ 01:31 PM 0 Comments

'Dale' era finished, no more Mr Flashy pants

Yahoo News: Huge Fall in UK Car Production

Even the wealthy ahem, are cutting back on necessitied opps, new cars. Sorry did I say wealthy, I meant debted up to the eye balls. It seems Range Rover have cancelled nights, Bentley are on a 3 day week and Jag, well are just Jaguar. But don't worry the worst is now over, according to Foxes Estate Agents.

Posted by doctor gloom @ 12:55 PM 0 Comments

Answer - Possibly a LOT

John Stipek at MSN: How Much Will Our Obsession with Property Cost us?

More sense from Mr Stipek - good parallels with Japan

Posted by kingwowns @ 12:35 PM 4 Comments

really!!!! lol

Yahoo: 'Huge Fall In UK Car Production'

Sky News understands there has been a dramatic fall in car production in Britain.

Posted by mark @ 12:12 PM 9 Comments

One for our occasional series on the slump in the housing market ...

BBC: Wolseley hit by housing downturn

Building materials giant Wolseley has seen profits drop 77% after being hit by the US and UK housing slowdown. Pre-tax profits for the year to 31 July fell to 145m ($266m) from 634m a year ago, and Wolseley said conditions in many of its markets may get worse. As well as a slowdown in the UK, the US housing slump, where it makes about half its sales, has also hit profits. The world's biggest distributor of plumbing materials said it had cut 7,700 jobs since since last August.

Posted by mark wadsworth @ 12:05 PM 0 Comments

Is this the death of capitalism?

MoneyWeek: Is this the death of capitalism?

"...when it comes to paying for the global property bubble, it won't just be those who over-extended themselves to buy over-priced houses who suffer. And it won't just be the bankers who sold them the loans. It'll be you, me, and every other mug who ever paid a penny in taxes to governments who blatantly ramped the idea of property ownership as a right."

Posted by damien @ 11:53 AM 49 Comments

How will this work ?

Telegraph: Financial crisis: Alistair Darling promises not to raise taxes

Darling announces that he will not be reducing public services, and that taxes will not rise. He conceded public debt will rise. So Darling must think that government borrowing is at no cost. Well, I think he is going to be borrowing a massive amount. This borrowing will crowd out mortgage funding and I am sure we will be paying borrowing costs. Public sector workers need to understand that they are killing the economy, and that we just cannot afford such a huge state sector. Also, the government, because of chronic stupidity, ignore the fact that you need to consider total UK debt, not just government debt. Wait... Oh yeah, house prices ! Ummm. Going down like the poor old private sector.

Posted by stillthinking @ 11:35 AM 10 Comments

oops maybe we shouldnt bail out those banks bush says in his last days...

CNN: Mad as hell - taxpayers lash out

"NO NO NO. Not just no, but HELL NO," writes Richard, a reader from Anchorage, Alaska. "This is robbery pure and simple," Anna from Denver posted on CNNMoney.com's TalkBack blog this weekend. "It's our money! Let these companies die," added Claudio from Plainville, Conn.

Posted by mark @ 11:19 AM 9 Comments

The Shadow Banking System is unravelling

The Financial Times: The Shadow Banking System is unravelling

The real economic side of this financial crisis will be a severe US recession. Financial contagion, the strong euro, falling US imports, the bursting of European housing bubbles, high oil prices and a hawkish European Central Bank will lead to a recession in the eurozone, the UK and most advanced economies.

Posted by v stor @ 09:39 AM 8 Comments

Pure desperation - nothing, it seems, is OFF the table! - Question: Will it work?

Bloomberg: U.S. Widens Scope of Bad-Debt Plan Beyond Home Loans

"The change to potentially allow purchases of instruments such as car loans, credit-card debt and other devalued assets may force an increase in the size of the package as the legislation proceeds through Congress." This is turning out to be a full and comprehensive bailout of the US consumer, where does the Dollar go from here?

Posted by tyrellcorporation @ 08:40 AM 14 Comments

As prices fall, homeowners take houses off market

The Times: As prices fall, homeowners take houses off market

The number of houses for sale is expected to fall as the credit crunch sets in and mortgages become more difficult to get

Posted by becky @ 08:29 AM 21 Comments

How we have learned the limits to free markets - the hard way

Telegraph: How we have learned the limits to free markets - the hard way

Perhasp not surprising given last weeks events Roger Bottle looks to have revised his focast for lower uk property prices further in the linked article in the Telegraph today " To me, much the most striking thing about the past week was the near failure of HBOS when the fall of UK house prices has hardly begun. On my reckoning, they have another 25-30pc still to fall. What position will the UK banking system be in when these falls have happened and the economy is performing in accordance with them?"

Posted by chris williams @ 08:28 AM 1 Comments

Rightmove: -1% MoM, -3.3% YoY

Reuters: House prices fall again

Asking prices for homes in England and Wales fell 1 percent on the month in September, leaving them 3.3 percent lower than a year ago, a survey showed on Monday. The Rightmove monthly survey showed the average asking price for a property dipped to 227,438 this month, down from 229,816 in August -- the fourth successive fall. However the annual rate of decline eased from 4.8% last month to 3.3% in September.

Posted by little professor @ 08:06 AM 7 Comments

Another shoe drops - whatever that means

FT: Goldman, Morgan Stanley to become regulated banks

Goldman Sachs and Morgan Stanley, the last surviving big investment banks on Wall Street, have become regulated banks. The move effectively spells the end of the investment banking industry as a separate sector, leaving behind only small boutique securities firms. In doing so it ends the decades old division of the US financial industry into two halves, which dates back to legislation passed after the Great Depression.

Posted by gardeniadotnet @ 07:05 AM 7 Comments

Brown attacks irresponsible City bonuses

FT.com: Brown attacks irresponsible City bonuses

Does Barclays still have access to a penny of UK Taxpayers money? If it does (and i must admit i have not been paying attention) then why has it put up around $2.5 billion for US bankers never mind City bankers. This would mean that the UK Taxpayer was paying top US bankers bonuses for stuffing up the financial system. As i say - I am not sure if Barclays is still borrowing? is it?

Posted by whiteknight @ 12:55 AM 10 Comments

No one wants Bungle Bank ....

Times: FSA fails to find saviour for Bradford & Bingley

Attempts by the Financial Services Authority to find a buyer for Bradford & Bingley are understood to be floundering

Posted by hogwash @ 12:16 AM 5 Comments

Sunday, September 21, 2008

Is Gordon a leader or a lemon?

Times: Survival depends on treading a fine line

Gordon Browns future depends on whether the public accepts his new slogan: Its the global economy, stupid; as he develops a new narrative of limited responsibility. Not only is he, over the past 11 years as Chancellor and Prime Minister, not to blame for what has gone wrong but he now views himself as the experienced financial statesman and the right leader to handle these problems.

Posted by enuii @ 11:09 PM 3 Comments

Always like to read the Prof.

FT: More and different, including a debt-for-equity swap for the financial sector

I expect that Secretary Paulson or his successor will, if Congress grants the $700 bn request, be back for more before long. Probably at least another $700 bn, as it is unlikely that a crisis of the magnitude we are witnessing will be resolved without the tax payer coughing up at least 10 percent of annual GDP. US GDP for 2008 is likely to be around $14.5 trillion, so you can do the arithmetic.

Posted by stevie dee @ 10:36 PM 0 Comments

They may have "known" of it, but it was too convenient for them to do anything about it

BBC News: Ministers knew of housing bubble

The government knew there was a "bubble" in house prices but was not tempted to take control of interest rates, the City minister has said. Kitty Ussher said the Bank of England had thought it appropriate to keep interest rates low. And she rejected calls by Labour MP Jon Cruddas for a rethink of the way rates are set following recent turmoil.

Posted by wanderinman @ 07:15 PM 4 Comments

$450m housing project crashes

New Zealand Herald: $450m housing project crashes

The construction project is the largest and most advanced in New Zealand to go under. Kensington Park Properties had planned to build 750 houses on the former Puriri Park camping ground in Orewa. Only about 60 have been built.

Posted by hubbers @ 06:45 PM 1 Comments

Fire Sale of Top End London Property To Come?

Guardian: Turmoil to spark slump in lettings

"New York may be 3,500 miles from the UK, but the fallout from crises afflicting the giants of the financial world is affecting our own housing market. The loss of thousands of Lehman jobs in the City of London and the Home Counties will have a severe impact on the corporate rental market, which had been one of the few property sectors performing well this year. Rental agents Savills say 64 per cent of its corporate tenants in London work in the financial services industry, a proportion mirrored in most top-end lettings agencies. Large-scale job losses will result in the termination of tenancies on hundreds of top-end apartments and houses - most of them at rents of 1,000 a week or more - in 'prime' London areas such as Docklands, the City and Notting Hill."

Posted by renting2 @ 05:39 PM 2 Comments

So rich he gave the bank a free house - Oh yes?

BBC news: Millionaire spooked from mansion

Spooked by something more than ghosts. Perhaps it was the site of those trunkless bodies as the tide went out.

Posted by eeyore @ 05:33 PM 4 Comments

HBOS admitted the short sellers had it right all along

Reuters: FSA faces legal action over short-selling ban-papers

*Not directly related to house prices*. The UK Financial Services Authority faces legal action from a group of leading hedge funds over the ban on short-selling financial shares it imposed on Thursday

Posted by paul @ 05:19 PM 4 Comments

The plan involves buying up hundreds of billions of dollars in bad mortgages to take them off the books of financial institutions that otherwise might fail.

politico news: Paulson plan could cost $1 trillion

Congressional leaders said after meeting Thursday evening with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke that as much as $1 trillion could be needed to avoid an imminent meltdown of the U.S. financial system. Paulson announced plans Friday morning for a "bold approach" that will cost hundreds of billions of dollars. At a news conference at Treasury headquarters, he called for a "temporary asset relief program" to take bad mortgages off the books of the nation's financial institutions. Congressional leaders had left Washington on Friday, but Paulson planned to confer with them over the weekend. includes - President Bush goes AWOL - where has he been lately? Where has he been during Americas worst financial crisis etc

Posted by malct @ 12:39 PM 4 Comments

This guy, head of mises.org has been predicting this crisis for decades

Lew Rockwell: Understanding the Crisis

What caused this? It is a simple question, and yet answers are all over the map, as you might expect. Here's mine in two words: fiat money. The word fiat means: out of nothing. Money out of nothing is money that is eventually worth nothing. The possibility of precisely that happening emerged on August 15, 1971. Since Nixon severed the last tie of the dollar to gold, the world's monetary system has not been restrained by anything physical. We've depended on the discretion of central bankers. We can't trust that, and this crisis shows precisely why.

Posted by planning4acrash @ 11:03 AM 2 Comments

The word crash instead of crunch at last

Independent.co.uk: Plunge in house prices outstrips the crisis of the 1990s

The crash in house prices is now the worst ever in Britain. HBOS, which has just been taken over by Lloyds TSB, will publish figures next month showing that the decline from last year's peak now exceeds the fall during the 1990s. From the top of the market in May 1989 to the bottom in February 1992, the bank's seasonally adjusted index of prices fell by 13.1 per cent. That fall has already been exceeded since the market peaked last August.

Posted by housebear @ 10:58 AM 28 Comments

People are now starting to increase their use of credit default swaps to bet that the U.S. will default on its ability to pay on its treasury debt.

George Washington's Blog: The Market is Now Pricing In the Genuine Possibility that the US Will Default on its Debt

An article in the Telegraph from today includes a here showing credit default swaps on US 10 year treasury debt, and explains: "Check out the chart showing the recent spikes in the US 10-year credit default swap. In other words, the market is now pricing-in the genuine possibility that the US will struggle to pay-back some of its long-term T-bills. That possibility is still deemed to be quite low. But the ultimate financial question - until recently, unthinkable - is now being asked. Yes siree, the mighty US government could default. That's how much the world has changed."

Posted by planning4acrash @ 10:54 AM 1 Comments

"I can calculate the movement of the stars, but not the madness of men." Sir Isaac Newton, after losing a fortune in the South Sea bubble

global research: It's the Derivatives, Stupid! Why Fannie, Freddie, AIG had to be Bailed Out

Why not let the free market work? Bankruptcy courts know how to sort out assets and reorganize companies so they can operate again. Why the extraordinary measures for Fannie, Freddie and AIG? The answer may have less to do with saving the insurance business, the housing market, or the Chinese investors clamoring for a bailout than with the greatest Ponzi scheme in history, one that is holding up the entire private global banking system. What had to be saved at all costs was not housing or the dollar but the financial derivatives industry; and the precipice from which it had to be saved was an "event of default" that could have collapsed a quadrillion dollar derivatives bubble, a collapse that could take the entire global banking system down with it.

Posted by malct @ 10:21 AM 1 Comments

The next one to go under

Telegraph: FSA in talks to find buyer for B&B

The City regulator is involved in secret talks to engineer a takeover of Bradford & Bingley as it seeks a permanent solution to secure the future of the embattled buy-to-let mortgage lender, The Sunday Telegraph has learned. Last week, Moody's, the credit rating agency, downgraded B&B debt to one notch above junk status, underlining concerns about its financial health.

Posted by little professor @ 10:01 AM 6 Comments

The Crisis is over! Stocks soar on News Of Assistance! will echo throughout the land.

TBR News: TBR News September 19, 2008

The American housing market has collapsed and the collapse is still in progress. The collapse of the American housing market means that while a homeowner may have a mortgage on a house once worth $200,000, this house now only can be sold for $125,000.That means that if the house is sold, the bank, holder of the mortgage, is now owed $75,000. Let me tell you all something: Given all the slicing and dicing and resales the criminally greedy banks and lending agencies indulged in, at this point, no one in any lending institution knows who holds the actual mortgage and, believe this, they can never find them. The person who owns the house can be forced into foreclosure but in court, they have the right to confront the mortgage holder.

Posted by malct @ 08:37 AM 1 Comments

Continued market chaos and UK mortgage frauds

Observer: Wall Street worries the crisis is not yet over

Politicians on both sides of the Atlantic will be watching the markets anxiously tomorrow, amid fears that the euphoria that greeted Treasury Secretary Hank Paulson's plan to rescue American banks will give way to a renewed slump in the price of shares. ... UK banks probe massive mortgage frauds by criminal gangs as Bradford & Bingley lose 15m

Posted by mken @ 01:19 AM 3 Comments

Saturday, September 20, 2008

Taxes will soar in credit crisis

The Times: Taxes will soar in credit crisis

Easily the biggest single effect on HPC coming to you and i soon, 5p in the pound would be nothing short of massive, even if this is over stated and its 3p it would be collosal, i am more convinced daily that the real time ( taking inflation into account ) HPC of 50% is not actually posible but likely

Posted by rimmer @ 11:49 PM 1 Comments

Leman Bros Fallout

Economist: Derivatives: Nuclear Winter

"When Warren Buffett said that derivatives were financial weapons of mass destruction, this was just the kind of crisis the investment seer had in mind".

Posted by alan @ 06:17 PM 5 Comments

Reform The Monetary System?

Commodity Watch Radio: Money Reform Party

Anne Belsey of the UK Money Reform Party suggests ways in which our monetary system should be changed to get rid of this endless expansion of debt. Playing time c 35mins.

Posted by frizzers @ 05:09 PM 3 Comments

The fool says it straight

Fool.co.uk: A House Price Crash Is Unstoppable!

House prices will continue to fall... and there's nothing anyone can do about it! How do you catch a falling housing market? Prime Minister Gordon Brown has given it his best shot. Housebuilder Barratt is giving it a go. And with nine out of the top 12 mortgage lenders recently cutting their rates, you could argue that banks and building societies are doing their bit as well.

Posted by quiet guy @ 03:03 PM 3 Comments

They are gloating at you, the NEW WORLD ORDER exists, research it.

WALL STREET JOURNAL: "One Week Later, a New World Order" (Their title not mine)

"In the annals of history last week will be remembered as the implosion. But the market heads into next week treading on a landscape where short-selling is prohibited, the government is engineering some kind of Golem-like structure to cleanse balance sheets, and investors cannot be sure if the two-day rally was for real or a mirage. Consider it sort of a financial demilitarized zone, where little remains, save perhaps for overturned tractor-trailers with piles of nickels lying about." - Bush Senior talks about it, Wall Street Journal talks about it, but it doesn't exist. Pure Orwellian Doublethink

Posted by planning4acrash @ 01:28 PM 26 Comments

Big changes ahead in finance

FT: Long View: Increased regulation of financial markets

A very level-headed analysis.

Posted by letthemfall @ 01:20 PM 1 Comments

Not for long...lol

CNN: The world's most expensive streets

Every city has one - a retail thoroughfare that houses the most exclusive stores. Real estate slowdown or not, these luxury corridors are still thriving - for now, at least.

Posted by mark @ 11:44 AM 0 Comments

Only 12??? wow i thought it would 1200 by now..lol bailout must be working..lol

CNN: 12th bank failure of the year announced

Ameribank Inc. was shut down on Friday by the Office of the Thrift Supervision, making it the 12th bank this year to go under.

Posted by mark @ 11:41 AM 2 Comments

The Sun tries to polish a lump of dull grey base metal

The Sun: Good Friday

The Sun spins away at full pro-glubberment, whilst the comments under the article reveal that the majority of it's wordly wise readership who can be bothered to post have not had the wool pulled over their eyes. Lots of carefully chosen words words are used to polish the story up undoubtedly to instill spending 'confidence' in the credit/debt dependent masses.

Posted by enuii @ 11:41 AM 6 Comments

useful chart on page, look at where Lehman is compared to Citi

CNN: Bailout cost: higher than you think

Henry Paulson and Ben Bernanke have saved us, for now, from a market meltdown - but at the cost of allowing the folks who caused the current crisis to keep ducking reality. In the long run, guess who gets to bear that cost?

Posted by mark @ 11:40 AM 0 Comments

Aresenal FC braced for a wave of cancellations from investors who put down deposits but are now unable or unwilling to raise a mortgage

FT: Arsenal on back foot over flat sales windfall

The property slump has hit Arsenals hopes of a windfall from the redevelopment of their old Highbury stadium, prompting the Premier League club to say that any profit from the sale of flats would now be regarded as a bonus.Arsenal had earlier this year confidently predicted it would generate turnover of more than 350m from its development projects, which would have provided a surplus of up to 100m. But a more sombre view emerged in Fridays results, in which Peter Hill-Wood, chairman, said the sale of 680 apartments may be affected by the property market.

Posted by jack c @ 11:02 AM 2 Comments

The surge in financial shares was driven at least in part by traders who were forced to buy those stocks to cover earlier short sales, raising doubts about whether the rally will last.

New York Times: Markets Soar, but New Rules Upset Traders

Computers that automatically buy and sell for big investors hit snags because they were not programmed for such a restriction. Securities firms and money managers that routinely sell short to hedge against possible losses wondered how they would cope. In certain stocks and funds traded on New York Stock Exchange, some prices and trades were erroneous, a spokesman said. Hedge fund managers who made vast profits betting against the nations financial titans called the ban unfair, and said the move would only prolong the financial crisis. Some traders said they were no longer betting on the intrinsic health of companies, but rather on what the government might do next.

Posted by stevie dee @ 11:00 AM 1 Comments

Prices will continue to fall - but we all know that anyway

FT: Lenders likely to lift fixed rates in next few days

"Recent cuts in mortgage rates have come abruptly to a halt as the banking crisis has brought renewed fear to the financial markets."

Posted by letthemfall @ 10:53 AM 1 Comments

Paulson and Bernanke told the president that the situation was "extraordinarily serious," according to a senior administration official.

Wall Street Journal: Shock Forced Paulson's Hand

"If we don't do this, we risk an uncertain fate," Mr. Bernanke added. He said that if the problem wasn't corrected, the U.S. economy could enter a deep, multi-year recession akin to Japan's lost decade of the 1990s, or what Sweden endured in the early 1990s when a surge in bad loans plagued the economy and sent unemployment to 12%. One lawmaker asked whether the solution will prevent bank failures. Mr. Paulson said it will stabilize markets. "But we'll still see banks fail in the normal course," he said.

Posted by stevie dee @ 10:51 AM 0 Comments

Guardian's property Q&A's - reality dawns

Guardian: Are house prices going to crash or are we looking at swift recovery?

Whichever way you look at it, this week's events are hardly going to help a property market that was already in the doldrums with prices between 8% and 10% down this year. At best, prices look set to continue their downward path to a predicted 10%-15% fall by the end of the year, followed by a similar fall next year. At worst, this week's events will send the UK market into a 1990s' Japanese-style freefall from which that country is yet to recover.

Posted by jack c @ 10:44 AM 3 Comments

Lehman Money Master laments his Ferrari

The Guardian: 'There is no money at Lehman, please gather your things and leave'

"It was then I realised how many lives had been screwed by the greed of a few" He's talking about himself and his fellow parasites!

Posted by bri2 @ 10:42 AM 0 Comments

Toxic Asset Dump (TAD) for the USSA

FT: A TAD (Toxic Asset Dump) for the USSA

The punitive pricing of any assets acquired by the TAD should discourage future reckless lending by the banks. Requiring the individuals who took out excessive mortgages to live with the consequences of their actions is the best mechanism for discouraging future reckless borrowing by would-be home owners. They were consenting adults. There is no efficiency or fairness argument for the tax payer to cough up resources to enable those who borrowed too much in the past to continue to live in houses they can no longer afford. Individual over-leveraged home owners also dont constitute a threat to systemic stability.

Posted by stevie dee @ 10:39 AM 0 Comments

Improved Energy Performance Certificates

HIP-Consultant.co.uk: Improved Energy Performance Certificates - RDSAP v9.82

Energy Performance Certificates were implemented as part of the Home Information Pack legislation on 1st August 2007 and will also be required as of the 1st October 2008 in the rental market. EPC are now becoming more widely understood and the benefits they bring recognised. However, there has been criticism made about the accuracy of some assessments in certain scenarios due to the inherent limitations of RDSAP to include some less frequently found aspects.

Posted by hip-consultant.co.uk @ 10:21 AM 0 Comments

Tent Cities

CNN: Growing 'tent cities' blamed on foreclosure crisis

Number of tent cities in the US is growing

Posted by depressed @ 10:18 AM 0 Comments

Knight Frank - "average prices in the Midlands have fallen by 5% since last Autumn"

Mortgagesolutions: New homes in the Midlands at a standstill: Knight Frank

Development of new homes in the Midlands has reached a standstill with severe implications for the long-term economic and social health of the area, according to Knight Franks latest Central England residential development review. The firm said the Governments prediction that housebuilding in the region this year would fall 10,000 short of its target of 41,061 homes was overly optimistic, as housing starts for the first quarter of the year were around 60% below the required level.

Posted by jack c @ 10:18 AM 1 Comments

Happy Campers

sky: us tent cities

here is some news about new campers from across the pond. lets hope this coming winter is a mild one for all the tent people in this world,

Posted by campin @ 09:57 AM 0 Comments

Broke The Rules But will They Pay?

NEWS.scotsman.com: HBOS: The questions just keep piling up

SERIOUS doubts about Lloyds TSB's takeover of HBOS emerged last night after a leading City figure suggested there had been an abuse of the market rules as talks were being held. Keith Skeoch, the chief executive of Standard Life Investments, said there had been a delay before the talks were formally announced. Stock market rules dictate companies in advanced talks should make a formal announcement to the stock exchange, with trading in their shares being suspended. Panic dictated the government action. is this the final calamity they'll make?

Posted by plato @ 09:29 AM 0 Comments

The price tag for bailing out the US financial system may exceed $1.3 trillion dollars.

Henry Makow: http://www.henrymakow.com/the_fed_is_making_a_killing_on.html

The purchase price for the two mortgage lenders, and Bear Stearns and AIG is over $300 billion. The assumption of the bad loans held by the banks may cost an additional one trillion dollars. If the US Treasury created its own money, this might be bearable. But last I heard the system of money creation has not changed. I'm not an economist but it seems that the Fed is making a killing on our banking woes. The Fed is creating this "money" out of thin air and using it to buy US Treasury Notes and Bonds. The Treasury (i.e. US taxpayers) are on the hook for these securities plus interest. In other words, The banksters are a trillion dollars richer thanks to this bail out.

Posted by malct @ 09:27 AM 0 Comments

We need to stop funding the culprits who brought us this debacle at our expense.

The Truthseeker: It's the Derivatives, Stupid!

The Fed is buying an insurance company? Where exactly is that covered in the Federal Reserve Act? The Associated Press calls it a "government takeover," but this is not your ordinary "nationalization" like the purchase of Fannie/Freddie stock by the U.S. Treasury. The Federal Reserve has the power to print the national money supply, but it is not actually a part of the U.S. government. It is a private banking corporation owned by a consortium of private banks. The banking industry just bought the worlds largest insurance company, and they used federal money to do it. Yahoo Finance reported on September 17: comprehensive background stuff

Posted by malct @ 09:18 AM 4 Comments

Another "sign of the times" -20%

Allsop: A Freehold Detached House subject to a Tenancy

This house was sold in 2005 (3 years ago) at 495K, "2005-09-02 67 Bronte Avenue, Stotfold, Hitchin, Bedfordshire, SG5 4FB 495,000" yesterday it was "unsold" for 400.000 it means more than 20% discount and they did not sell it!! Getting interesting to check auctions in these days, I tried for a couple of years and there was nothing worth to buy...

Posted by mario @ 07:37 AM 0 Comments

I shorted the market and was robbed! The government has mugged me.

Yelnick Typepad: WELCOME TO THE LAND OF COMMUNIST AMERICA

Yelnick discussion on the Bailout: I shorted the market and was robbed! The government has mugged me. Watch out folks! It was me today and tomorrow maybe you. And thats because I am the small guy and not Goldman Sachs with their dodgy borrowings and investments.

Posted by jaffa100 @ 01:55 AM 0 Comments

Friday, September 19, 2008

They can't solve this, learn to protect yourself!

Market Oracle: The Real Reason for the Global Financial Crisisthe Story No Ones Talking About

The truth is more frightening than your worst fears. Yet you won't hear about itbecause they can't tell you. They are U.S. Federal Reserve and Treasury Dept. They can't tell you what's really going on because they can't do anything about it, except add liquidity. JPMorgan Chase & Co. ( JPM )] bankers devised credit default swaps early 1990's to hedge their loan risks. They are not standardized instruments, aren't technically true securities in the classic sense of the word, not transparent, aren't traded on any exchange, aren't subject to present securities laws, and aren't regulated. They are, however, at risk all $62 trillion (the best guess by the ISDA) of them. What's even worse, however, is that speculators sold and bought trillions of dollars of insurance, also at risk, e.g.AIG

Posted by planning4acrash @ 11:47 PM 6 Comments

This dose of moral hazard will really change banking, yes, banks will take more risks in future!

Whatreallyhappened.com: SO, JUST WHAT ARE THEY GOING TO DO WITH THAT TRILLION?

Here is the Cliff Notes version of the economic disaster. 1. The banks and investment houses made up a bunch of products and sank their investors' money into them. 2. The banks and investment houses couldn't convince you to buy those products. 3. The banks and investment houses got the government to FORCE you to buy those products. Any questions?

Posted by planning4acrash @ 11:36 PM 1 Comments

A good day to bury more bad news then - Northern Rock has cost us 92bn and counting

BBC 'News': Northern Rock expands state debt

"By the end of June this year, the government had loaned directly the Northern Rock 21bn. However, the liabilities taken on through the Rock's takeover have boosted the national debt by much more - pushing it up by 92bn last October. "

Posted by paul @ 11:28 PM 8 Comments

The Feds Bad Bank will make things worse

MoneyWeek: The Feds Bad Bank could make the financial crisis worse

US plans to set up a dud debt fund will only make things worse. It's only a matter of time before the share price rally disappears into thin air

Posted by damien @ 10:26 PM 0 Comments

If Iggy and Mick and Ozzie had been in charge of the worlds financial system they couldnt have made more of a mess of it than the present bunch of gangsters in hand-made shirts

Times Online: Why the market meltdown is just like Reservoir Dogs

"The incredible scale of this market f***-up is so huge that it can only be expressed with inappropriate language. We really all need to sit down and take a moment. Theres simply no point in pretending that sober looking men with distinguished haircuts and well-cut suits have any sort of monopoly on wisdom and good sense. This is finances shame, and rocknrolls finest hour. Mothers, dont let your daughters marry a banker." Right on dude!

Posted by last_days_of_disco @ 08:49 PM 12 Comments

Sheer Madness, rewarding risk & greed then stumping the taxpayer with bill

CNN: Will it work?

"The one thing you don't want is to have the economy grind to a halt because people can't get credit," said Dean Baker, co-director of the Center for Economic and Policy Research. ----------------------------------------------- But Credit caused all this, how stupid are these people?

Posted by mark @ 08:48 PM 0 Comments

.....as if it will escape!!

The Times: Country property succumbs to the crunch

The country housing market is being damaged by a year of economic uncertainty and job losses at Lehman and other financial groups. Prime country house prices have fallen by 7.9 per cent in the past 12 months and by 4 per cent in the past three months.

Posted by magnaman @ 07:41 PM 0 Comments

I think the market is losing more than 10 % per year...

Allsop: Auction

Here the result of latest Alsopp auction, they sold this four bedroom for 289.000, Charles Church asked me, for the same house, two year ago 480.000 pounds ridiculous ... we're on about 40%... another interesting point is that the house is a former showhome brand new, in a posh place in Milton Keynes (that should be the fourth city not affected by recession.... I suppose the property crises is bigger than what we read... Cheers Mario

Posted by mario @ 05:53 PM 1 Comments

Will these companies be "bailed out" ?

BBC: Fewest UK bricks made since 1940s

Brick production in the UK is set to drop to its lowest levels since the 1940s, according to industry experts. Two of the biggest companies, Ibstock and Wienerberger, have announced that they are closing plants and axing jobs. They blame the pressures of the credit crunch and the downturn in the housing market resulting in fewer builders buying bricks.

Posted by jack c @ 03:48 PM 27 Comments

Kristina Grimes out of a Job

The Sun: Sir Al girl Kristina's out of a job

Some of you will remember the article with Kristina Grimes boasting about how Manchester was the property investment capital of Britain. You may also remember the discussions we had regarding Dandara's wendy house sized properties. What a change a few months makes!

Posted by jay76 @ 03:29 PM 2 Comments

Home loans on borrowed time

The Times: Home loans on borrowed time

...no surprise here!!

Posted by magnaman @ 03:16 PM 3 Comments

The stocks bottom is in - April is Armstrongs next top

Market Oracle: US Governments Financial Disaster Fix-it Plan Sends Stock Markets Soaring

U.S. stocks rallied the most in six years yesterday (Thursday) - with traders actually cheering the ticker action from the floor of the New York Stock Exchange - on the news that the federal government is taking steps to shore up the unraveling U.S. financial system and end the global credit crisis.

Posted by sold 2 rent 1 @ 03:00 PM 2 Comments

Prescient Economist

Accountancy Today: Debt and Doom? (Dec 2003)

James Dean once put it pithily. Dream as if youll live forever. Live as if youll die today. Britains consumers have been behaving in a way that JD would like. They have been out there spending away like billy-o. Saving for tomorrow is largely out; expenditure for today is in. For example, on some measures, borrowing through extra mortgages and remortgaging is at all-time highs. I worry about this. A natural question is: could the remarkable debt levels in Britain lead bit-by-bit to a serious economic crash? It is impossible to say for sure. But I think the answer is yes. It is sensible to face the possibility that the decade might bring a nasty economic downturn caused by a domino-like spiral in confidence.

Posted by another alan @ 02:14 PM 0 Comments

We are heading for more than a house price crash with intervention of this nature

Bloomberg: Paulson, Bernanke Push New Plan to Cleanse Books

Sept. 19 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed moving troubled assets from the balance sheets of American financial companies into a new institution. Congressional leaders who met with Paulson and Bernanke late yesterday in Washington said they aim to pass legislation soon. The initiative is aimed at removing the devalued mortgage- linked assets at the root of the worst credit crisis since the Great Depression. Today, the Treasury announced a $50 billion program to insure the holdings of money-market mutual funds for a year.

Posted by jack c @ 01:51 PM 7 Comments

The case for Land Value Tax in twenty one words.

Guardian: Letters page

On the topic of "Speculations on the credit crunch" ... "How about reducing interest rates and stopping the cheap credit being diverted into another housing bubble with a land value tax?" DBC Reed, Northampton

Posted by mark wadsworth @ 01:46 PM 6 Comments

Paulson and Bernanke presented a "chilling" picture of the state of the financial system

washington post: Citing Grave Financial Threats, Officials Ready Massive Rescue

The Bush administration is urgently preparing a massive intervention to revive the U.S. financial system, including a plan to sweep away the unpaid loans that are choking banks and blocking the flow of money to borrowers. The plan involves using hundreds of billions of dollars in government funding to buy bad loans, leaving banks with more money and fewer problems, according to two sources familiar with what was said at the meeting.

Posted by malct @ 01:30 PM 19 Comments

Buy Toilet

Evening Standard: At last! The price is right

Past sales have proved that old public loos make fantastic one-off commercial premises, says the firms Paul Mooney. The guide price is 90,000.

Posted by sold out @ 01:06 PM 5 Comments

Gordon Dons His Cleaning Gear...

The Renegade Economist: Gordon Brown's Toxic Tongue

To call the Prime Minister a liar is unedifying. And yet, what is a man to do when faced with Gordon Brown's claim that he is going to clean up the financial system?

Posted by neo-serf @ 11:57 AM 1 Comments

Shooting the messenger

Evening Standard: Only a fool will blame us short-sellers

A very interesting read, and a cautionary tale about Einhorn vs. Lehmans. But look at it logically. We had this huge bubble of credit which was engineered by the government. It suited Gordon Brown to have all this money around. It produced lots of taxes which he was able to use to finance political schemes. That bubble has now burst. Jobs are being lost. Not because I have shorted shares but because those workers have been let down by policies that couldn't be sustained.

Posted by paul @ 11:37 AM 6 Comments

More grit for the pan

City News: Lehman's collapse hits buy-to-let landlords

Letting agent Cluttons reports that a number of its tenants based in Belgravia and Wapping have immediately given notice on their rental properties, following redundancies resulting from the collapse of Lehman Bros. One tenant, an ex-Lehman employee, requested that his deposit should be used for his final months rent, as he wasnt sure if he would be paid his salary at the end of September

Posted by paranoia blue @ 11:36 AM 12 Comments

Short-Sale Restrictions Are an Exercise in Naked Power

Mises: Short-Sale Restrictions Are an Exercise in Naked Power

So, government are banning short selling. Is it because they want to force their Marxist Capitalist solutions onto the economy and do not wish the free market to determine the new economic order? Austrian Economists at Mises argue that short sellers are a key financial check and balance that help the market correct itself. Many put actions like this as how the Great Depression was solved in the 1930's. Peeps at the Mises Institute argue that the policies are the reason why the crisis last ed so long, that the free market a) would not bhave caused the crash in the first place and b) that free market principles would have resulted in a short sharp correction back to normality. Also read: Don't sell short selling http://mises.org/story/2527 -

Posted by planning4acrash @ 11:05 AM 7 Comments

Short-sellers didn't cause this crisis - the government and bankers did

MoneyWeek: Short-sellers didn't cause this crisis - the government and bankers did

Short sellers are only taking advantage of the underlying problem, writes John Stepek. The banks made wildly irresponsible loans all through the property boom, and now that the bubble has popped, they are in serious trouble...

Posted by damien @ 10:55 AM 5 Comments

A year ago they couldnt predict their bankruptcy but were predicting the climate 100 years ahead

Icecap: Lehman Brothers Close Ties to Gore, Hansen and Carbon Trading

Al Gores carbon trading business GIM was banked with Lehman Bros. It will be interesting to see how this will play in the future but I suspect that this increases the risk of participating in Carbon trading. Merrill Lynch, was also deeply involved in this business. Last year Lehman Brothers released a long and highly publicized report about climate change in which they preached about decarbonization, trying to make their investors keep getting high profits from the Kyoto carbon trade scheme and the support of huge public subventions. All that, of course, with the applause of the usual choir of politicians, the entire media and the Greens.

Posted by malct @ 10:28 AM 38 Comments

The Three Lessons of Rocket Science To Learn

FSA: Speech by Callum McCarthy

"Let me turn to what the industry should do. For financial institutions I would draw three particular lessons. The first is the need for greater realism some would say modesty about their risk management capability." ........ "The second is the need for greater openness about the position of each bank." ....... "The third lesson is not for those financial institutions who originate or distribute financial products, but for those who invest in them. ....... understand what you are buying."

Posted by renting2 @ 09:39 AM 3 Comments

Unbelievable

Times Online: Outcry as superbank puts saving Scottish jobs above English ones

The clause on page one of the formal takeover document promises that the management focus is to keep jobs in Scotland. There is no similar reassurance about jobs in England and Wales.

Posted by gardeniadotnet @ 09:30 AM 15 Comments

But the government's just outlawed it ... ?

Telegraph: Short selling helped promote truth about HBOS and Lehman Brothers

"the short sellers took the view that HBOS was going to have a funding problem next year, a view that was very probably right. By betting on the price going down, short sellers were signalling publicly what they thought about HBOS's prospects. They understood HBOS's prospects and helped the rest of the market understand them. They helped us know about a problem earlier than we would otherwise have done. Is that such a bad thing?"

Posted by paul @ 08:56 AM 13 Comments

NuLab's fling with the city appears to be fading

Guardian: Harman lays into excessive City bonuses

'The Labour deputy leader, Harriet Harman, yesterday claimed the public were outraged at the level of city bonuses, which had brought "mad house prices" to London and sent ripples across the country.' Brown has been keen to pin the credit crunch on global issues now Harman is blaming house prices on the city.

Posted by quiet guy @ 08:47 AM 13 Comments

UK Government outlaws speculative selling on FTSE

BBC 'News': FSA introduces short-selling ban

"While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets," said FSA chief executive Hector Sants. If it is a legitimate investment technique, and the UK operates a free market economy, why are they banning it? Does this mean we are turning into communists? I think so.

Posted by paul @ 08:45 AM 12 Comments

Media reports this morning paint a particularly dire picture of the immediate prospects for the US financial system.

USNews: Panic Sweeping Wall Street May Leave No One Standing

Some background here accounting for Paulson's statement. The credit crisis on Wednesday threatened to drag down Wall Street banks Morgan Stanley and Goldman Sachs. The Washington Post reports shares of the firms "tumbled as fears mounted that the two most-vaunted names in investment banking could fall victim to the credit crisis." The New York Times says on its front page, "Even Morgan Stanley and Goldman Sachs, the two last titans left standing on Wall Street, are no longer immune," underscoring "how quickly a sense of fear is spreading through Wall Street."

Posted by malct @ 08:27 AM 6 Comments

8 min address by Ron Paul on the economic crisis

Ron Paul's Campaign for Liberty: Ron Paul Addresses Financial Crisis

Ron Paul explains that the issues are being caused, not by Capitalism, but by Interventionism that has failed and now been socialised. Do have a read of Ron Paul's New York Times Best Seller; The Revolution". If you enjoy that, "A Foreign Policy of Freedom: Peace, Commerce, and Honest Friendship" is a compendium of his foreign policy speaches to Congress since 1976, shockingly and refreshingly enlightening.

Posted by planning4acrash @ 01:36 AM 1 Comments

This guy predicted the carnage last friday

Market Oracle: Systemic Failure of the United States- Game Over

Another chilling article from Jim Willie. A must read.

Posted by sold 2 rent 1 @ 12:54 AM 14 Comments

Thursday, September 18, 2008

I had to look twice when I read this! - Wish I'd bought RBS and Barclays today as the LSE will crash tomorrow morning.

Bloomberg: U.S. Stocks Rally Most in Six Years on Plan to Shore Up Banks

U.S. stocks rallied the most in six years on prospects the government will formulate a ``permanent'' plan to shore up financial markets, while regulators and pension funds took steps to curb bets against banks and brokerages. Traders erupted into cheers on the floor of the New York Stock Exchange as the Dow Jones Industrial Average jumped 617 points from its low of the day. The Standard & Poor's 500 Index climbed 4.3 percent as 68 companies in the gauge rose more than 10 percent.

Posted by tyrellcorporation @ 09:53 PM 11 Comments

Its all part of the service

Rightmove: For Sale by Auction

Commercial Property - Agents for sale by auction, what goes around comes around.

Posted by acetip @ 09:35 PM 0 Comments

Bye bye FSA compensation sceme

The Times: If this fails, it will take down all Britain's banks

Sadly, the events of the past two weeks may be only the prelude, not the climax, of this amazing crisis. Even the apparent rescue of Halifax Bank of Scotland may result in a bigger crisis, if the drowning HBOS drags down its rescuer, Lloyds TSB. If this happens, every big bank in Britain, except possibly HSBC, will have to be nationalised, Northern Rock-style. This may happen next year when the HPC will really start to happen?

Posted by cheekie charlie @ 09:06 PM 3 Comments

Mmmm.. I wonder what they could call this repository?

Ap - Yahoo: Stocks surge on report of entity for bad debt

Wall Street surged higher Thursday, with the Dow Jones industrials up more than 400 points after a report that the federal government is considering creation of a repository for banks' bad debt. CNBC said Treasury Secretary Henry Paulson is considering creation of an entity like the Resolution Trust Corp. that was formed after the failure of savings and loan banks in the 1980s.

Posted by stevie dee @ 08:50 PM 0 Comments

What were they drinking? Has the hangover started yet?

Guardian: Lloyds TSB chairman struck HBOS deal with Brown at City drinks party

"The prime minister promised that the deal would not be investigated if the enlarged bank continued to provide funds to would-be homeowners" "Lloyds TSB has given the government a pledge that it will keep lending to first-time buyers, in return for assurances that its 12bn bid for HBOS, announced today, would escape the scrutiny of the competition authorities."

Posted by quiet guy @ 08:48 PM 4 Comments

Crisis? Wall St says "what crisis?" on rally

Finance Markets: Shares in US Financials rally after crisis

The immediate financial crisis appears to be over according to Wall St, with a massive rally in US financials since 6pm, and the Dow Jones up +4% already.

Posted by brite2006 @ 08:44 PM 0 Comments

Mmmm, this I HAVE to see! - No real article here but they are basically admitting defeat with these pointless cash injections.

Bloomberg: Treasury, Fed Weighing Wider Plan to Ease Crisis, Schumer Says

U.S. Treasury and Federal Reserve officials are considering a ``permanent'' plan to address the financial crisis, Senator Charles Schumer said. ``The Federal Reserve and the Treasury are realizing that we need a more comprehensive solution,'' Schumer, a New York Democrat who chairs the congressional Joint Economic Committee, told reporters in Washington today. ``I've been talking to them about it and I may throw out a few of my own ideas this afternoon.'' The discussions focus on ``trying to do something more permanent'' after a series of government interventions in individual companies, Schumer said.

Posted by tyrellcorporation @ 08:02 PM 4 Comments

FSA bans the selling short socks (or something similar)

Moneymarketing: FSA bans short-selling of financial stocks

The Financial Services Authority has banned the active creation or increase in net short positions in listed financial companies from midnight tonight. The FSA says the provisions will remain in force until January 16, 2009 but will be reviewed after 30 days. The regulator is also ramping up disclosure requirements forcing hedge funds shorting financial companies to disclose daily all net short positions in excess of 0.25 per cent of the ordinary share capital of the relevant companies held at market close on the previous working day. Disclosure of positions held at close on Friday, September 19 will also be required on Tuesday, September 23.

Posted by jack c @ 07:17 PM 14 Comments

Bite on this Leather Strap when it Hurts

Bloomberg: BOE's Dale Sees `Painful' U.K. House-Price Adjustment

The adjustment in U.K. house prices will be ``painful'' for many households as home values fall to a more sustainable level, Bank of England Chief Economist Spencer Dale said. ``A range of indicators point to further weakness in the months ahead,'' Dale said in a speech to business leaders in Dover today. ``This process of adjustment will be painful for many households.''

Posted by alan @ 07:17 PM 2 Comments

Inflation is like a stretched elastic band right now. Waiting to pop.

The International Forecaster: All Roads Lead To Hyperinflation

Losses and bankruptcies of the major banks that we predicted, trouble for the taxpayer who now shoulder a trillion in debt from bank failures, Why do we have to bail out Wall Street fraud? Lehman Brothers left to expire, We are watching our Zombie economy implode, Buy-outs are just throwing good money after bad, Toxic waste eats your equity capital, eats your stocks, your bonds, and eats your retirement funds. 1929 all over again. the Treasury has been given the right to stop dividend payments on both common and preferred stock of AIG shareholders, which means basically that they have both just been vaporized.

Posted by planning4acrash @ 06:35 PM 2 Comments

Don't Panic, lighten up! - Titanic has been sailing between Southampton and New York for more than 90 years

daily mash via SOTT: Satire: Nothing can possibly go wrong with gigantic new bank

HBOS and Lloyds TSB last night created a monstrous new banking entity safe in the knowledge that nothing can possibly go wrong. Politicians and businessmen breathed a collective sigh of relief as two of the biggest names on the high street formed one very long name that will never do anything other than be brilliant all the time. Martin Bishop, a senior trader at Madeley Finnegan, said: "History tells us that massive financial institutions do not fail. Ever. Okay, there is maybe a tiny handful of exceptions. "Okay, maybe 40 or 50 exceptions. Actually, you're right, this is starting to look really dodgy." just when you thought I was a miserable doomsayer - even my sense of humour prooves you right!

Posted by malct @ 06:10 PM 10 Comments

House price crash calculator

thisismoney.co.uk: House price crash calculator

I'm not sure if this has been posted before, but first time I came across it.

Posted by c'mon correction @ 05:56 PM 0 Comments

"The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States."

reuters via SOTT: China paper urges new currency order after "financial tsunami"

Threatened by a "financial tsunami," the world must consider building a financial order no longer dependent on the United States, a leading Chinese state newspaper said on Wednesday. The commentary in the overseas edition of the People's Daily said the collapse of Lehman Brothers Holdings Inc "may augur an even larger impending global 'financial tsunami'."

Posted by malct @ 05:53 PM 1 Comments

Panic Is the Word of the Hour

der spiegel via SOTT: 'The World As We Know It Is Going Under'

Panic Is the Word of the Hour Traders abandoned the NYSE temple visually defeated and immune to the TV crews rushing past. The disastrous closing prices were flickering on the ticker above the NYSE entrance: American Express -8.4 percent; Citigroup -10.9 percent; JPMorgan Chase -12.2 percent. American icons, abused like stray dogs. Even Apple took a hit. "I don't know what I should say," stammered one broker, who was consoling himself with white wine and beer along with two colleagues at a bar called Beckett's. Ties and jackets were off, but despite the evening breeze, you could still make out the thin film of sweat on his forehead. His words captured the speechlessness of an industry.

Posted by malct @ 05:50 PM 0 Comments

Since there is no limit to the amount of money the Fed can create, there is no limit to the number of assets they can acquire.

321gold: Comrade Bernanke Does it Again

By nationalizing nearly 80% of AIG for $85 billion, the Fed is doing a lot more than simply flushing taxpayer money down the toilet. The greater wrong is allowing the agency that has the power to print money to take control of a private enterprise, especially without the approval of the company's shareholders. The move represents the largest lurch toward socialism that this country has ever seen, and signals the end of the vibrancy of America's once vaunted free market economy. Since there is no limit to the amount of money the Fed can create, there is no limit to the number of assets they can acquire.

Posted by malct @ 05:46 PM 5 Comments

More info for those holding ETF or ETC investments

Citywire: ETF Securities pushes for AIG collateral

Having made a paper loss on these, I sat in on an institutional-investor conference call this morning. This covers most of it, I will also add a comment.

Posted by beartil2010 @ 05:44 PM 2 Comments

Another two bite the dust ...

Evening Standard: Goldman and Morgan Stanley on the ropes

The last two independent investment banks on Wall Street were today engulfed by the banking crisis. Morgan Stanley is being forced into a desperate merger to stay afloat. Goldman Sachs is also on the rack, having seen 14 per cent wiped off its share price last night.

Posted by mark wadsworth @ 03:54 PM 16 Comments

Super Hero Brown To The Rescue

BBC NEWS: Brown pledge to 'clean up' City

Gordon Brown has pledged to "clean-up" the financial system following the rescue of Britain's biggest mortgage lender HBOS by Lloyds TSB. The prime minister said he had taken "quick action" to "maintain the stability of the financial system". But he said he also had proposals to end "irresponsible behaviour" in the money markets to prevent similar problems happening in the future.

Posted by sold out @ 03:11 PM 37 Comments

The real economy is suffering as much as the financial one

MoneyWeek: The real economy is suffering as much as the financial one

Its been a wild week in financial markets. But amid the havoc, there have been several reminders over the last few days that the 'real' economy is also getting markedly worse...

Posted by damien @ 02:50 PM 0 Comments

Speed of house price fall will help economy, says Bootle

Property Week: UK 'in recession and things will be grim', says economist Bootle

Managing Director of Capital Economics, Roger Bootle said the speed at which house prices were falling could potentially be 'healthy' for the economy and could result in things recovering more quickly.

Posted by peter whelp @ 01:14 PM 0 Comments

Morgan Stanley Boss: We need a merger partner or were not going to make it,

NJ Times: As Fears Grow, Wall St. Titans See Shares Fall

"Seeking to avoid the kind of fate that led Lehman and Bear Stearns to collapse, John J. Mack, Morgan Stanleys chief executive, made an unsuccessful effort on Tuesday evening to persuade Citigroups chief executive, Vikram S. Pandit, to enter into a combination, according to people briefed on the talks." Morgan Stanley approached Citigroup, Wachovia and several other banks.

Posted by mountain goat @ 01:00 PM 5 Comments

Are there any denialists or housing bulls out there still?

CNN Money: How We Got Here: It's Housing, Stupid

"I would hesitate to say the worst is behind us," Achuthan said. So even with perhaps hundreds of billions of tax dollars going to AIG, Fannie and Freddie, one expert said the only real solution to the housing problem is for the correction in housing to finish running its course.

Posted by crutchley @ 12:50 PM 18 Comments

We've got Loadsamoney

BBC: Surprise rise in UK retail sales

UK retail sales unexpectedly jumped in August, figures from the Office for National Statistics (ONS) show. High street sales rose 1.2% in August to stand 3.3% higher than a year ago. Analysts had expected a 0.5% drop after a swathe of gloomy surveys.

Posted by alan @ 12:18 PM 13 Comments

have your say

Yahoo: After HBOS - who's next?

They're folding like suitcases... Given the state of HBOS' stock, and the strength of Lloyds' bargaining position - and balance sheet - do you think 232p a share was too hefty a price? And who will be the next financial giant to go? Morgan Stanley?

Posted by mark @ 12:06 PM 3 Comments

Did I say $180bn? Old news, it's now $247bn!!!

Bloomberg: Central Banks Offer Extra Funds to Calm Money Markets

The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the 1920s.

Posted by tyrellcorporation @ 11:47 AM 3 Comments

The Logical American View - don't often write that...

The Renegade Economist: The Great Crash of 2008

Galloping sprawl, such as weve experienced in California in the last 16 years, has set us up for The Great Crash of 2008. Urban sprawl inflates the price demanded for nearly every square foot of land from the redwoods to Mexico. It contributes to cycles of boom followed by bust when inflated land values collapse, as now. If the process were simple, we would have mastered it long ago instead of constantly repeating it. Yet they do recur in a rhythm that is almost predictable.

Posted by neo-serf @ 11:37 AM 1 Comments

"I've heard of rearranging the deck chairs on the Titanic while it's sinking but not after the ship has already sunk,"

Evening Standard via SOTT: My anger over Lehmans' $5 billion 'betrayal' of London

The day after the fall of Lehman Brothers, Robert Daniels, a director and a senior departmental head at the Canary Wharf headquarters, is sitting contemplating his future over a stiff espresso when an incongruous email drops onto his BlackBerry. It is from Ravi Mattu, global head of research at Lehmans on Wall Street, and it says: "I am extremely pleased to announce that for the ninth year in a row, Lehman Brothers' fixed income research team is ranked number one in the annual institutional investor survey of 1,330 professionals at 490 institutions. This achievement is the direct result of a team effort and I want to congratulate the entire fixed income division for this tremendous honour."

Posted by malct @ 11:21 AM 9 Comments

What does the HBOS takeover mean for you?

MoneyWeek: What does the HBOS takeover mean for you?

"If you ever wanted to nationalise the banking system by the back door, you couldnt think of a much better way than by opening a state-guaranteed savings account, paying commercial rates of interest. The law of unintended consequences strikes again."

Posted by damien @ 11:10 AM 0 Comments

Create a larger Bank and create a greater funding requirement

Citywire: Concerns grow about funding for Lloyds/HBOS group

Shares in Lloyds TSB fell in morning deals as analysts fret about the risks inherent in the merger with HBOS. Market watchers fear the deal may take much longer to push through than hoped - distracting the management team from the key business of navigating the current market turmoil.Numis analysts said the bid does not solve the problem of structural weakness in the UK economy and what they think is likely to be a severe recession for eighteen months. 'The deal just creates a larger group with an even greater funding requirement,' they said.

Posted by jack c @ 11:10 AM 1 Comments

Sane, rational analysis

FT: How to meet the dangers facing Britain

Whilst all around are losing their heads, Martin Wolf's remains firmly screwed on. Here's his prescription for the UK.

Posted by james @ 11:04 AM 1 Comments

News about house prices

First Rung: House prices crash in the prime market - Knight Frank

Prices in the prime country house market fell by 4.0% during the third quarter of 2008, according to the Knight Frank Prime Country House Index.... The index has now fallen by almost 8% over the past 12 months. The most expensive properties have seen the smallest falls.

Posted by housebear @ 10:56 AM 8 Comments

New lending down by 12% from July and 36% lower than in August last year

BBC: Mortgage lending slumps in August

Mortgage lending continued its downward spiral in August, according to the latest figures from the Council of Mortgage Lenders (CML). The total value of new lending was 21.8bn, down by 12% from July and 36% lower than in August last year. The CML said it was the lowest monthly figure since April 2005 and the lowest August figure since 2002. It blamed the continued fall in mortgagee lending on "exceptionally low housing market turnover."

Posted by jack c @ 10:30 AM 9 Comments

...How about another $180,000,000,000 to keep you all ticking over for a few more days?

Bloomberg: Fed, ECB, BOJ Take Joint Action to Alleviate Tensions

The Federal Reserve, the European Central Bank and the Bank of Japan joined with their counterparts around the world to pump dollars into the financial system and head off a deepening crisis. The Fed said it authorized other central banks to auction $180 billion in dollar funds to financial institutions, in a statement on its Website. A joint release said that the Bank of England, the Bank of Canada and the Swiss National Bank also participated. ``The action is designed to address the continued elevated pressures in U.S. dollar short-term funding markets,'' the banks said. ``The central banks continue to work together closely and will take appropriate steps to address the ongoing pressures.''

Posted by tyrellcorporation @ 09:40 AM 18 Comments

So now is only Goldman... must be lonely

Reuters - Yahoo: Morgan Stanley in talks as fear grips financials

Morgan Stanley topped the list of major financial services firms scrambling to sell themselves as fear gripped global credit and stock markets, leaving the Russian bourse paralysed for a second day. Morgan Stanley was discussing a deal with U.S. regional banking powerhouse Wachovia, according to a source familiar with the matter, while CNBC said HSBC Holdings and China's CITIC Group were also eyeing the venerable Wall Street firm.

Posted by peter_2008 @ 09:36 AM 0 Comments

It's all good!

Telegraph: HBOS - Lloyds TSB merger likely to push up mortgage rates

Mortgage rates are likely to rise if Lloyds TSB takes over HBOS, according to personal finance experts. The merger will create Britain's biggest mortgage company, supplying more than one in four mortgages in Britain. advertisement Mortgage experts said the creation of such a big player would be bad for competition in the market, causing rates to increase.

Posted by tyrellcorporation @ 09:33 AM 5 Comments

Fed Runs Out Of Money

MARKETWATCH: Treasury to provide cash to Fed market liquidity operations

WASHINGTON (MarketWatch) -- The Treasury Department announced Wednesday that it would provide cash to the Federal Reserve to fund the central bank's operations to provide liquidity to financial markets. In a statement, Treasury said that it would raise the cash in a program of Treasury bill auctions, known as a temporary Supplementary Financing Program. The auctions would be kept apart from Treasury's current borrowing program. Agency officials gave no details of the timing, size and maturity of any bills to be auctioned.

Posted by seanb303 @ 07:51 AM 3 Comments

Sensible Indian Regulation Shows The West The Way Banks Should Be Run!

Money India: Banking in India, Past, Present & Future

Because Indian banks are heavily regulated in terms of the types of assets they can invest in, domestic Indian banks have largely been insulated from the credit contagion that is sweeping the globe.

Posted by ross travill @ 04:54 AM 3 Comments

Make plans for surviving the next 18 months.

Prisonplanet.tv: Nobel Prize Winning Economist: Crisis As Bad As Great Depression Or Worse

Two time Nobel-prize winner and former chief economist of the World Bank, Joseph Stiglitz has warned that the current financial crisis will continue for at least another eighteen months and in many ways represents a worse situation than the one faced by Americans during the great depression of the 1930s. This is an article to accompany the interview with Alex; radio interview.

Posted by planning4acrash @ 12:38 AM 13 Comments

Wednesday, September 17, 2008

Hedge Funds Attack Britain's Biggest Mortgage Bank

The Market Oracle: Hedge Funds Crash Halifax, HBOS Rescued by Lloyds TSB

Hedge funds over the last 3 days have been in relentless pursuit of Britain's biggest mortgage bank, Halifax Bank of Scotland (HBOS) as the next bank to be pushed over the credit crisis and housing bear market cliff, amidst an atmosphere of global defaults in the wake of Lehman's collapse on Sunday. In emergency action both sanctioned and sponsored by the Bank of England saw Lloyds TSB step in to buy the Bank before the Government was forced to step in and rescue the bank much as happened following the Northern Rock bust in September 2007.

Posted by nadeem walayat @ 11:39 PM 0 Comments

And it's a done deal

BBC News: Lloyds TSB seals merger with HBOS

Just like that! Two of Britain's Big Five banks have completed an agreement on a merger. Competition be damned. Can't believe how quickly this has gone through. Asking price 232p per HBoS share - a premium of 58% over their closing price today of 147p. No mention as to why Lloyds would want to pay over the odds for this toxic wastedump, though it's likely to that Darling et al are sweetening the deal via backhand channels.

Posted by little professor @ 10:38 PM 24 Comments

God Bless New Labour for they have also driven us to this situation

BBC: Britain 'faces power cuts threat'

Industrialists warn about a "fearful void" in this countries energy policy and that, "The current credit crunch is a head cold compared to the double pneumonia this country will suffer if we don't implement an energy policy urgently".

Posted by enuii @ 10:22 PM 10 Comments

Interesting article

bloomberg: Japan Banks, Insurers Have $2.4 Billion Lehman Risk

Lehman's collapse ``could be rubbing salt into the wounds for the regional banking sector.''

Posted by mark @ 09:14 PM 0 Comments

Deutsche Bank slamming the doors

Bloomberg: Deutsche Bank Limits Credit-Default Swaps Exposing It to Bank-Failure Risk

Well not exactly unexpected, but don't expect LIBOR to normalise anytime soon (AND THUS MORTGAGE RATES INCREASE), they are running for the hills after getting a wiff of that burning fuse.

Posted by yoss @ 09:08 PM 0 Comments

Merger could hit mortgage borrowers

Telegraph: HBOS - Lloyds TSB merger: mortgage rates to rise

Mortgage rates are likely to rise if Lloyds TSB takes over HBOS, according to personal finance experts. The merger will create Britain's biggest mortgage company, supplying more than one in four mortgages in Britain.

Posted by quiet guy @ 08:14 PM 11 Comments

More to go?

Bloomberg: Morgan Stanley, Goldman Plummet After AIG Takeover

'The end of investment banking' was the phrase used on Channel 4 news.

Posted by shipbuilder @ 07:29 PM 5 Comments

A possible merger?

Bloomberg: Morgan Stanley, Goldman Plummet After AIG Takeover (Update1)

Morgan Stanley and Goldman Sachs Group Inc., the biggest U.S. securities firms, tumbled the most ever in New York trading after a government rescue of American International Group Inc. failed to ease the credit crisis. The cost to protect against a default by the banks rose to a record. Goldman fell as much as 26 percent on the New York Stock Exchange and Morgan Stanley plunged 44 percent, leading financial stocks to the lowest level in five years. ``They're fish in the barrel, the short sellers have them targeted,'' said William Smith, whose firm Smith Asset Management Inc. in New York manages $80 billion, including Goldman stock. ``Morgan Stanley's probably going to wind up doing a deal, it's really a matter of survival.''

Posted by stevie dee @ 07:05 PM 0 Comments

Sinking Sentiment

Yahoo: Bank turmoil threatens more housing misery

Grenville Turner, chief executive of property services firm Countrywide said his biggest concern in the wake of Lehman's collapse was a drastic change in sentiment, which could prolong house price falls across the broader market."We had just started to feel a bit more relaxed that we had got through the worst of this. I have likened it to a motorway crash, where lorries pile up behind you and you just sit tight and wait for them to stop," Turner said "I got the sense that people were beginning to get back on the road again. But instead another two and maybe even three trucks have ploughed into the back of you," he said.

Posted by mytimeisnigh @ 06:57 PM 0 Comments

Lehman' collapse save UK banks (for now)!!

Reuters: BoE extends liquidity scheme as turmoil intensifies

The Bank of England will allow banks an extra three months to swap hard-to-trade assets for government paper because of the continuing turmoil in financial markets, extending a scheme that was set to close next month. How ironic!

Posted by peter_2008 @ 06:28 PM 0 Comments

The UK should not overreact to the turmoil on world markets: Cameron

FT: Cameron urges centre-right to back capitalism

Cameron states that the turmoil that forced HBOS into Lloyds TSB was due to imbalances in the UK economy caused by Gordon Brown. Growth in the UK had become too reliant on: housing, finance, government spending and immigration.

Posted by denzil @ 06:20 PM 6 Comments

London Scottish still loss making

Yahoo: London Scottish still loss making

Consumer finance group London Scottish Bank (LSE: LSB.L - news) said it remains loss making despite having made good progress in refocusing the group. The group said it is still in talks with interested parties, which may or may not lead to an offer being made for the company.

Posted by mark @ 04:54 PM 2 Comments

Reader's letter of the day

FT: Land behaves differently too

A good argument for Land Value Tax as a way of preventing house price/credit bubbles. By a chap from Lib Dems ALTER group (but let's not hold that against him...)

Posted by mark wadsworth @ 04:46 PM 5 Comments

in the absence of S2R1...

Bloomberg: Gold, Silver Climb as Credit Turmoil Spurs Demand for Haven

Gold climbed as some investors sought safety in precious metals on concern more financial institutions will fail as the credit crisis deepens. Silver jumped almost 4 percent.

Posted by cornishman @ 04:08 PM 25 Comments

Red or black: How much is HBOS worth? Have your say

Yahoo: Red or black: How much is HBOS worth? Have your say

check out the comments... I am really surprised we are not seeing queues of people waiting to cash out of halifax............

Posted by mark @ 03:32 PM 10 Comments

Russia suspends trading again

Yahoo: Russia suspends trading again

Russian regulators have halted trading on the country's two largest stock markets for the second day in succession as share prices continued to plummet.

Posted by mark @ 03:19 PM 0 Comments

More Light Relief

HBOS merger with Lloyds TSB may cost UK 40,000 jobs

Times Online: HBOS merger with Lloyds TSB may cost UK 40,000 jobs

That number leaves me speechless. Is this what to expect in the coming months?

Posted by edwardnh @ 03:08 PM 0 Comments

Just for a bit of light relief ...

The Sun: EU can smash bonkers rules

I suggest that you nominate The European Communities Act 1972 as the one we ought to get rid of first ...

Posted by mark wadsworth @ 03:06 PM 0 Comments

40,000 and the rest

Yahoo: HBOS Talks: '40,000 Jobs At Stake'

Halifax Bank of Scotland has confirmed that it is in advanced talks with Lloyds TSB about a possible takeover that could cost as many as 40,000 jobs.

Posted by mark @ 02:34 PM 8 Comments

Defaults on Derivatives

Market Oracle: Lehman's Bankruptcy the Ultimate Wall Street Derivatives Defaults Nightmare

We've lost count of how many times the authorities have virtually sworn on a stack of Bibles that "our financial system is fundamentally sound." But no one could possibly lose count of their recent desperate efforts to prevent the system's collapse actions which directly belie their words: One the coordinated efforts by central banks to flood the global economy with liquidity in the summer of 2007. Two the hasty bailout of Bear Stearns in March of this year. Three the giant Fannie and Freddie rescue announced just eight days ago. Each time they intervene, they say "we must not reward CEOs who deceive the public and walk off with multibillion dollar bonus checks." And each time they say it's the "last time we'll make an exception to that rule."

Posted by malct @ 01:54 PM 0 Comments

Daft Tabloid Rant

Daily Express: DONT LET THE SPIVS DESTROY BRITAIN

The "stupidity of spivs in high finance" is to blame they say. But naturally no mention of the cause of all this turmoil, a crashing housing bubble that THEY helped ramp up. Greed and stupidity got us here but not only the stupidity of the high and mighty Mr Daily Express Editor. Nearly everyone, and that is 90% of the country, bought into this house price Ponzi scheme.

Posted by mountain goat @ 01:48 PM 9 Comments

The rush to get away from Lehman has involved some of the world's biggest hedge funds

Naked Capitalism: Lehman Collateral Damage: Some Hedge Funds Have Assets Frozen

The Wall Street Journal tells us that some less-than-nimble-footed hedge funds wound up not moving their prime brokerage accounts quickly enough out of Lehman to avoid having those assets frozen in the bankruptcy. Late last week, many hedge funds scrambled to shift that business away from Lehman and to other so-called prime brokers, which provide trading and lending services to the funds. But some were caught up in the bank's move to file for bankruptcy protection on Monday, say lawyers and other industry specialists. As a result, they have found their holdings effectively frozen, with no indication of when they might be able to access them. Legal experts cautioned that it could be weeks or months before the mess is sorted out, leaving hedge funds unable to unwind positions at a time wh

Posted by malct @ 01:46 PM 0 Comments

Sung to 'you've got a friend'

SO here we are on the morning of D Day. The world's major couterparties on the $US455 trillion derivatives market go into technical default and no one is sure what is going to happen.

The Australian: Global banks brace for derivative blow-up

The likes of Warren Buffett would have it that the defaults triggered by Lehman's implosion would resound fearfully through the multi-trillion-dollar derivatives market, generating a global, capital-burning bushfire in global markets. Then there are those who believe the systemic risk in the $US455 trillion derivatives market has been overcooked. But even those who maintain a less cataclysmic view than Omaha's Oracle accept that a major default event like the collapse of the 158 year old Lehman will result in massive value burn. And there will be hot-spots in unexpected places -- like, for example, a sad selection of deluded Australian councils and public works authorities

Posted by malct @ 01:03 PM 1 Comments

The economy will plunge, despite the AIG rescue

MoneyWeek: The economy will plunge, despite the AIG rescue

Just days after leaving Lehman Brothers to collapse, the Fed has ditched its concerns about moral hazard and bailed out insurance giant AIG. So what does this mean for the wider economy? Nothing good, says John Stepek.

Posted by damien @ 12:50 PM 0 Comments

I recall reading Friday an analyst form Citigroup stating Merrill's liquidity position is strong and that exposure to volatile businesses is lower relative to its peers.

Information Clearing House: Bank of America, Merrill Bailout Disguised as Buyout?

If that's the case, then it looks like all the banks are on the verge of complete failure. When are these analysts going to stop with their lies? It appears as if we are witnessing government bailouts using taxpayer money that are being deceitfully disguised as buyouts. Not just with the Merrill buyout but also this newly established $70 billion emergency bank fund, set aside to help out banks with future problems. Where do you think this money is coming from? The banks certainly don't have it. You see, the banking cartel the guys that own the Federal Reserve have been given a blank check and will make it through this crisis. JP Morgan Chase is already dealing with Bear Stearns so now it was time to ask Bank of America to take over Merrill.

Posted by malct @ 12:49 PM 1 Comments

A raid on private pensions?

Information Clearing House: US Economy: Rudderless and Reeling From Direct Hits

Call centers, IT operations, back-office operations, and manufacturing have long been moved offshore. Now high-value-added proprietary activities such as research and development, engineering, product development, and analytical services are being sent offshore. All thats left is finance, and it is crumbling before our eyes. Independent broker-dealers are disappearing: Merrill Lynch, Bear Stearns, Lehman Brothers. These venerable institutions were too thinly capitalized for the risks that they took. Merrill Lynch is now part of the Bank of America, and Lehman Brothers is history. If we look realistically at the US economy, we see that what is not moved offshore is being bailed out.

Posted by malct @ 12:42 PM 0 Comments

Stiglitz is Nobel Memorial Prize in Economic Sciences (2001). The most cited economist in the world, as of June 2008. World Bank Chief for Economics.

Dr Paul is former head of the US Treasury, Father of Reaganomics, author of The Tyranny of Good Intentions.

another bank gone???

reuters: U.S. regulators try to find WaMu buyer

U.S. federal regulators recently called a number of banks asking if they would consider buying Washington Mutual Inc should it eventually falter

Posted by mark @ 12:40 PM 0 Comments

Discuss???

Timesonline: After Lehman Brothers: desperate City wives

I find it very hard to feel sorry for these people. They had their opportunities for huge wealth, at the expense of prudence and the well-being of the whole, in their search for more and more. They knew what they were doing, while 'most' of us were and are innocent victims of the greed and avarice of the City. I know what I am saying will be attacked by some, but even they have to admit that this is a sad, pity filled article, maybe not for the author herself, but for all her (formerly) -rich friends. Good luck to them all finding new work in fields which add 'value' to society.

Posted by bystander @ 12:34 PM 10 Comments

Lehman still costing taxpayers

Reuters: UPDATE 1-NY Fed repaid JPMorgan for $87 bln in Lehman financing

"The Federal Reserve Bank of New York took the unusual step of providing some $87 billion in financing to units of bankrupt Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) to prevent disruption in trading markets as customers flee, according to a filing on Tuesday." Who knows what would have happened without this money. Forget tin hats you would need a bomb shelter!

Posted by mountain goat @ 12:29 PM 0 Comments

fly away peter fly away paul

bbc news: Gatwick Airport put up for sale

The UK's second-largest airport, Gatwick, has been put up for sale by its owner BAA.

Posted by electrolil @ 12:26 PM 0 Comments

Many respected City figures openly comparing events with the Wall Street Crash of 1929.

London Telegraph via SOTT: Banking crisis: Is Britain heading for the worst recession since the 1930s?

Jonathan Loynes, chief European economist for Capital Economics, predicts a million job losses in the next two to three years and a further slump in house prices before recovery begins. "The collapse of Lehman Brothers will only prolong the uncertainty in the financial markets, meaning banks will remain reluctant to lend to each other and the credit crunch will continue for a long time to come," he said. "If people can't get loans the housing market will continue to fall and I think house prices have got a lot further to go before they hit bottom. They will probably keep coming down for another year or two. "We also think the economy will contract next year and around a million people will lose their jobs.

Posted by malct @ 12:24 PM 0 Comments

Can't afford a house - no job!

BBC: UK unemployment total rises again

The number of people out of work in the UK rose by another 81,000 between May and July, to 1.72 million, according to government figures. That took the official unemployment rate up from 5.3% to 5.5%.

Posted by alan @ 11:34 AM 4 Comments

72,000 Employees at HBOS

Wikipedia: HBOS

The Bank of Scotland is the UK's oldest commercial bank, by an Act of the Parliament of Scotland in 1695. Halifax was founded in 1853 as the Halifax Permanent Benefit Building and Investment Society, which demutualised in 1997 to become a plc.[4] The merger of the Bank of Scotland and Halifax occurred in 2001[2] during a wave of consolidation in the UK banking market which began in the late 1990s. The Bank of Scotland played a key role in the process, firstly by launching a hostile takeover bid for NatWest, although the bid failed to a rival offer from the Royal Bank of Scotland. It later investigated a merger with Abbey National, when Halifax approached with an offer to merge. The merger created the fifth largest bank in the UK by market capitalisation.

Posted by stevie dee @ 11:04 AM 0 Comments

David Blanchflower opposed keeping rates on hold at 5%, voting for a half point cut

BBC: Bank voted 8-1 to hold UK rates

Bank of England policymakers voted 8-1 in favour of the status quo at their interest rate-setting meeting earlier this month. Minutes of the meeting earlier in September show only David Blanchflower opposed keeping rates on hold at 5%, voting for a half point cut. The Monetary Policy Committee (MPC) considered both raising and cutting rates before deciding to hold rates. The MPC had not changed its outlook on inflation, which rose again in August.

Posted by jack c @ 10:01 AM 8 Comments

Troubled mortgage giant HBOS has become the subject of speculation that it could merge with rival Lloyds TSB.

press association: HBOS 'could merge with Lloyds TSB'

HBOS 'could merge with Lloyds TSB' 4 hours ago Troubled mortgage giant HBOS has become the subject of speculation that it could merge with rival Lloyds TSB. Earlier, shares in the group plunged for a third day in a row amid funding fears, diving as much as 50%, but recovered to 7% down after the report from the BBC. The broadcaster said HBOS and Lloyds TSB were in "advanced" talks over a combination. Asked about the discussions, an HBOS spokesman declined to comment. now announced on bbc

Posted by malct @ 09:50 AM 10 Comments

Jonathan Davis HPC

newsletter.co.uk: Premium Article ! Your account has been frozen. For your available options click the below button. Options Premium Article ! To read this article in full you must have registered and have a Premium Content Subscription with the News Letter site. Subscribe

Speaking to the News Letter, Jonathan Davis repeated his prediction of 18 months ago that the average house price in Northern Ireland would fall by 50 per cent but said that some of the most overvalued houses would plunge much further. I remember being on the Nolan Show on a Wednesday night a year-and-a-half ago and saying the market would fall 50 per cent I was pretty well laughed off," he said. "I'm pretty comfortable in saying that the average fall in Northern Ireland will be 50 percent which means that some properties could fall 70 or 80 per cent. "It wasn't used, but I said on camera to ITV six months ago that the region in the country which would have the worst crash would be Northern Ireland because it went up the most prices went up by 400 per cent in 15 years in Northern...

Posted by housebear @ 09:28 AM 11 Comments

Lloyds to Rescue HBOS?

BBC News: HBOS in merger talks with Lloyds

Lloyds TSB is is in advanced merger talks with HBOS to create a giant UK super retail bank, the BBC has learned. Under the deal, the valuation of HBOS shares would be closer to its closing price last week of 300 pence rather than its current level of around 100p.

Posted by crashwatcher @ 09:28 AM 0 Comments

Shares in Halifax Bank of Scotland have fallen by more than 40% as the lender remains in the market's spotlight.

Sky News: HBOS Shares Fall Heavily Again

Before trading Britain's biggest mortgage lender and savings institution had seen around 3bn wiped of its market value as the fallout from the collapse of Lehman Brothers continued. Statements from both HBOS and the city regulator Financial Services Authority assured investors that the bank's finances were sound.

Posted by malct @ 09:15 AM 27 Comments

"Debt Crunch" far from over!

Chicago Tribune: Jump in London rate to hit U.S. housing

The biggest jump in the London interbank lending rate in at least seven years could wreak further havoc on the U.S. housing market, and there's nothing the Federal Reserve can do about it. "U.S. home prices probably will tumble through 2010, Freddie Mac said in a forecast Monday." "If the Libor market seizes up and stays that way, it's going to complicate everything," said Bill Fleckenstein, president of Fleckenstein Capital in Seattle. "What you are seeing is the unwinding of the financial system as we know it."

Posted by stevie dee @ 08:32 AM 1 Comments

A nice potted read

Telegraph online: Capitalism - it's painful, but it works

After a year of grim financial news, it would be easy to dismiss the collapse of Lehman Brothers as just another bad day at the office. Easy, but wrong. This is a rare defining moment, when regulators call the bluff of those who say that the demise of such an important bank will ruin our economic infrastructure. It is the day of reckoning.

Posted by stever @ 07:36 AM 0 Comments

The Federal Reserve bails out AIG

Credit Writedowns: The Federal Reserve bails out AIG

The Fed has lent to AIG. Thank god. I was thinking that Man U was going to have to change its kit

Posted by edwardnh @ 02:35 AM 4 Comments

Federal Reserve - not the Treasury - buys up AIG

Mish's: Nationalization of AIG: Treasury to get 80% stake in return for $85 billion

In an extraordinary turn, the Federal Reserve was close to a deal Tuesday night to take a nearly 80 percent stake in the troubled giant insurance company, the American International Group, in exchange for an $85 billion loan, according to people briefed on the negotiations. All of A.I.G.s assets would be pledged to secure the loan, these people said, and in return, the Fed would receive warrants that would give it an ownership stake. Stock of existing shareholders would be diluted, but not wiped out.

Posted by drewster @ 02:21 AM 12 Comments

Tuesday, September 16, 2008

Hold the front page.

Reuters: AIG hires law firm to draw up bankruptcy papers: report

American International Group Inc has hired law firm Weil Gotshal to draw up bankruptcy papers, the New York Times reported on Tuesday. AIG could file for bankruptcy as soon as Wednesday if a financing solution is not reached.

Posted by gardeniadotnet @ 11:58 PM 4 Comments

Yep, he gets my vote

Yahoo: Who Killed the Economy? So Far, Greenspan's the Popular Choice

If this week's Wall Street meltdown and the general decline of the American economy have a villain, Portfolio.com may have fingered him: In an interactive story first posted in June, the site's readers have overwhelmingly picked former Fed chief Alan Greenspan as the culprit.

Posted by mountain goat @ 09:39 PM 4 Comments

The Dow just went from Minus to Plus

Bloomberg: Fed Said to Reverse Stance, Consider AIG Loan Package

The Federal Reserve is considering extending a ``loan package'' to American International Group Inc., the insurer facing a cash shortage, according to a person familiar with the negotiations. The stance by federal regulators is a reversal from a position they held as late as last night, and people with knowledge of the talks are ``cautiously optimistic,'' said the person, who declined to be identified because negotiations are confidential.

Posted by alan @ 09:21 PM 8 Comments

UK's greatest PM

BBC Newsnight: Who has been UK's greatest post-war PM?

Newsnight wants you to help decide the UK's greatest and worst post-war prime minister. Find out more about the 12 PMs below, then use the form to rank them in order of greatness.

Posted by ash4781 @ 07:26 PM 14 Comments

US Rates held at 2% despite anticipated cut

Bloomberg: Fed Keeps Rate at 2%, Rebuffing Call for Cut to Soothe Markets

The Federal Reserve left its main interest rate at 2 percent, rebuffing calls by some investors for a cut after Lehman Brothers Holdings Inc.'s bankruptcy shook markets worldwide. ``Downside risks to growth and the upside risk to inflation are both of significant concern,'' the Federal Open Market Committee said in a statement in Washington. ``The committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability.''

Posted by jack c @ 07:20 PM 7 Comments

There she blows!

Forbes: Banks Can't Help AIG. Will Uncle Sam?

American International Group continues to plead for assistance in a meeting at the Federal Reserve Bank of New York Tuesday with time running out and prospects fading for a private bank-led rescue. "No one was willing to step up," the source said, adding that the sums are just too staggering without any participation from the government.

Posted by paul @ 07:06 PM 1 Comments

But why AIG and not Lehman's?

Bloomberg: Greenberg-Led AIG Investors Consider Taking Control

The "Big Boys" have really been caught with their pants down. American International Group Inc. investors led by former Chief Executive Officer Maurice ``Hank'' Greenberg may consider taking control of the insurer through a proxy fight or buyout. The investors also are considering acquiring New York-based AIG's subsidiaries or making loans to the company. They disclosed their options today in a regulatory filing. Greenberg may be seeking to rescue the insurer that is struggling to raise cash amid losses tied to U.S. mortgages and credit downgrades. Greenberg, who was ousted in 2005 amid a regulatory probe into accounting, controls about 11 percent of the company through personal holdings and companies he heads.

Posted by stevie dee @ 06:48 PM 0 Comments

Why the Land Registry doesn't tell the true picture

Motley Fool: Who can you trust on house prices? See comment from Indianopolis

The major problem with the Land Registry data is the sample size. This does not seem to have been picked up much in the press. The LR uses a methodology that they term 'repeat sales regression'. Monitoring when a property is exchange twice and recording the change between the two dates. This is all fine in practice but the LR has only been recording sale price in the registry since around 2000, which they estimate is around 2% of the total housing stock. This is already a low sample but on top of this for a property to be registered in the index it has to have been exchanged twice between 2000 and today. In a market when numbers of transactions have collapsed by around 70%, the LR sample size each month must be incredibly low to the extent that it's statistically meaningless.

Posted by mrs boodle @ 05:59 PM 0 Comments

Shares fall -21%....

Reuters: S&P cuts HBOS PLC counterparty credit ratings

S&P said it is cutting ratings on HBOS and its main operating subsidiary Bank of Scotland to 'A+' from 'AA-', the fourth-highest investment grade. The outlook remains stable, said S&P...."The U.K. housing and mortgage markets are in a period of "severe strain" and are unlikely to recover in the near term, said the analyst.

Posted by whostolemyendowment @ 05:25 PM 0 Comments

Bradford & Bungle......against the wall?

mortgagestrategy: Moody's downgrades ''weakly capitalised'' B&B

Bradford & Bingley has been downgraded by Moodys Investors Services in the face of weak capital and a dependence on funding from the Bank of England....Another area of concern for Moodys is that 85% of B&Bs loan book is focussed in buy-to-let and self-cert. The ratings agency says the quality of the loans within these sectors has deteriorated much more quickly than similar asset classes held with rival lenders. Also - see share price decline at http://uk.finance.yahoo.com/q/bc?s=BB.L&t=1y

Posted by whostolemyendowment @ 05:19 PM 0 Comments

How to decide on your next home

HIP-Consultant.co.uk: Deciding on the house

Deciding on the house is part of our guide to buying your next home and potentially one of the biggest decisions you are ever likely to make. There are a number of factors to consider, this will differ from person to person but there are key themes than run throughout any search be it for a one-bed flat or five-bed detached.

Posted by hip-consultant.co.uk @ 04:57 PM 0 Comments

Will the unthinkable happen?

FT: AIG has a day to stay afloat

Listening to the pundits today, the view was that AIG really is too big to fail, and if it did the result would be "catastrophic". This article and the problems with some ETFs suggest that disaster might just be looming.

Posted by letthemfall @ 04:07 PM 19 Comments

Lehman Stock certificates do have some value!

Telegraph.co.uk: Lehman Brothers: Angry staff sell off company memorabilia on eBay

"The only importantish docs I have now are my Lehman stock certificates, which I plan on using to warm my apartment this winter when I can't afford the heating bill."

Posted by landedgentry @ 03:44 PM 2 Comments

Lehman had derivative contracts with a face value of $738bn

Guardian: Wall Street crisis: Is this the death knell for derivatives?

Buffett made a gloomy prediction half a decade ago. "The derivatives genie is now well out of the bottle, and these instruments will almost certainly multiply in variety and number until some event makes their toxicity clear," he said. "Central banks and governments have so far found no effective way to control, or even monitor, the risks posed by these contracts."

Posted by malct @ 03:44 PM 4 Comments

World's strongest economy still has the beginnings of HPC

Propertywire: China facing property crisis as prices fall and transactions plummet

The average prices of residential and commercial real estate in China are falling, having peaked earlier this year and the number of transactions have plunged, according to industry observers. * I wonder what exposure Chinese backs have had to USA 'troubles'.....you can bet your bottom $ they had their fingers well and truely in the pie....but will not want to lose face by admitting it!....just yet.

Posted by whostolemyendowment @ 03:21 PM 0 Comments

No sh1t Sherlock!

BBC: Fall in house prices is confirmed

The fall in house prices during the past year has been confirmed by the government's own house price index. Published by the Communities and Local Government department (DCLG), it shows that prices in July were 0.3% lower than a year ago.

Posted by whostolemyendowment @ 03:16 PM 4 Comments

Gold purists warned about this

citywire: AIG-backed ETF Securities products plummet

I was wondering what the hell was going on with some of my crashing ETFs and then found this article. "Among the worst-hit products are ETFS Livestock, which has plunged 81.06% since yesterday's close, while ETFS precious metals and ETFS petroleum have dropped 50.68% and 51.01% respectively."

Posted by mountain goat @ 02:49 PM 26 Comments

ETFs now worthless

ETF securities: Commodity Securities and AIG

Trading just stopped on london stockexchange of ETF securities. Commodity ETFs have gone up in smoke - are they now worthless? does that mean AIG are bankrupt?

Posted by sharpe @ 02:44 PM 1 Comments

Central banks try to lift markets

FT.com: Central banks try to lift markets

The fact that these guys couldn't hit a button and find out their exposures tells you all you need to know. Throughout this set of bail-outs have they been rushing around calculating exposures and reducing risk? Have they b*llocks. Finally the chips are allowed to move and if these people who have to justify their existence can stop meddling for a few moments more then along with the horrific destruction that will occur ( well.. i didn;t sanction a decade of Moral Hazard did you?) .. will also occur the necessary invention, innovation , creation and efficiency that is ALWAYS a necessary part.

Posted by whiteknight @ 01:44 PM 2 Comments

Errrrm... Kaboom?

Ft.com: WaMu ratings downgraded to junk

Washington Mutual, the largest US savings and loan institution, has had its credit ratings cut to below investment grade. Can anyone get in and post the detail of this article for people to read? You require a logon and mine has expired.

Posted by beartil2010 @ 01:38 PM 5 Comments

Same thing going on over here

Bloomberg: Mortgage Seekers Find Rates Are Down, Credit Standards Tighter

What is a house worth if no bank will lend any money? I guess if this continues and they want 30% deposits or will only lend 3X income, then presto average house prices will drop down to 3X average income.

Posted by ontheotherhand @ 01:30 PM 4 Comments

House Prices Rise In July

Times Online: House Prices Rise In July

So are Halifax and Nationwide customers better at negotiating prices down?

Posted by basil bell @ 01:12 PM 0 Comments

A splurge of info, he gets going about 1/4 of the way in.

The International Forecaster: Hyperinflation, Bailouts and Moral Hazard

Watching the future of America as debts pile up,Unloading US dollars could be detrimental to the economy, efforts to manipulate gold continue, 100 billion in losses already written off, South America heats up the Cold War, Saudi walks out of OPEC, WOHA, SAUDI WALKS OUT OF OPEC?! Just to give you a prospective of banking health, they have already written off more than $100 billion. They made $5 billion in the second quarter down from $30 billion plus quarters in recent years. - On dollar manipulation: "This Thursday, the USDX futures posted a gargantuan 94,021 contracts, shattering the previous all-time high by 35,426 contracts, an increase of more than 60%." the FDIC has one-cent in reserves for every dollar it is responsible for.

Posted by planning4acrash @ 01:02 PM 0 Comments

LIBOR Doubles overnight!!!

Bloomberg: Overnight Money-Market Rate for Dollars Doubles, BBA Says

No real article here but WOW! The cost of borrowing in dollars overnight more than doubled to 6.44 percent, its biggest jump, according to the British Bankers' Association. The London interbank offered rate, or Libor, increased 333 basis points from yesterday, the BBA said today.

Posted by tyrellcorporation @ 12:36 PM 24 Comments

What does the Lehman collapse mean for you?

MoneyWeek: What does the Lehman collapse mean for you?

As markets take a hammering following the collapse of Lehman Brothers, John Stepek examines how to protect yourself from the fallout. Is gold still an attractive choice amid the carnage?

Posted by damien @ 12:09 PM 1 Comments

BoE/Treasury Explains the inflation cock up

HM Treasury: Chancellors Inflation Open Letter

The Treasury's response to the Bank of England's open letter

Posted by jason @ 11:59 AM 7 Comments

BoE/Treasury Explains the inflation cock up

Bank of England: BOE Inflation Open Letter

The Bank of England's open letter explaining why CPI inflation is above 3%

Posted by jason @ 11:59 AM 0 Comments

Erm...house prices anyone? Just a thought...

Firstrung: UK house prices now lower than this time last year according to government statistics

UK house prices were 0.3 per cent lower than in July 2007. - The mix-adjusted average house price in the UK stood at 217,171 in July 2008 (not seasonally adjusted). - UK house prices fell by 0.5 per cent in the quarter ending July 2008. This compares with a fall of 1.3 per cent for the quarter ending April 2008. - Annual average house prices increased in Scotland (+3.6 per cent), but fell in England (-0.3 per cent), Wales (-0.8 per cent) and Northern Ireland (-10.3 per cent). -

Posted by converted lurker @ 11:54 AM 6 Comments

Rooney: Shirt Alert!

Bloomberg: AIG Credit Rating Cut Threatens Quest for Funds, Roils Markets

American International Group Inc. had its credit ratings cut by Standard & Poor's and Moody's Investors Service, threatening efforts to raise funds to keep the company afloat and roiling global financial markets. S&P lowered AIG's long-term counterparty rating three grades to A- because of ``reduced flexibility in meeting additional collateral needs and concerns over increasing residential mortgage-related losses,'' the rating company said yesterday.

Posted by alan @ 11:29 AM 10 Comments

CBI forecasts 1% Interest Rate Cut this year! Oh boy.

The "Independent": CBI predicts 'shallow recession' and 2m jobless

The CBI's economists say that the Bank of England should have scope to cut interest rates after inflation peaks this autumn, at around 5 per cent, and is clearly on a downward path. The CBI envisages a bold cut of 0.5 percentage points in November, followed by two quarter percentage point cuts in "early 2009", which would leave Bank Rate at 4 per cent.

Posted by planning4acrash @ 11:20 AM 1 Comments

Credit will get tighter, banks will default, unemployment will soar and GDP will shrivel.

Information Clearing House: Capital Punishment: Lehman on its way to the Gallows?

Some variation of the "Forbes solution" will probably be enacted, but, let's be clear; this is really no solution at all. It's just a way of buying time by rolling-over debt to avoid the ugly consequences of accounting for the massive losses. In other words, it is cheaper to keep burning up capital to prop up moribund assets than take the loss and make a genuine effort to restructure the dysfunctional system. Here's how former Fed chief Paul Volcker summed it up just two weeks ago: "This bright new system, this practice in the United States, this practice in the United Kingdom and elsewhere, has broken down.

Posted by malct @ 11:07 AM 0 Comments

As Lehman's demise and Merrill's acquisition make clear, a business model built on ramping up risk and leverage simply doesn't work.

CNN: The end of Wall Street

NEW YORK (Fortune) -- Rumor has it that Lehman Brothers CEO Dick Fuld recently wanted to turn off the firm's signature Jumbotron, the giant panels that flash the Lehman name day and night at its headquarters in New York's theater district. Running the lights, the story goes, was costing Lehman (LEH, Fortune 500) $500,000 a year. But New York City rejected Fuld's plea, since buildings in the Times Square area are required to keep their facades aglow to create the arcade effect that dazzles the tourists. The lights are still on at Lehman HQ, but they're going out both for the 158-year old firm and for the Wall Street business model that it represents.

Posted by malct @ 10:57 AM 1 Comments

The end of moral hazard

FT: The Short View: Moral hazard

John Authers strikes me as one of the few commentators who is not peddling a company line. Banks can no longer take huge risks and expect to get away with it. A turning point of some kind, though not one that leads up.

Posted by letthemfall @ 10:37 AM 0 Comments

Alt-A, the Next Shoe to Drop

This is Money: UBS set for new writedown of $5bn

So, bigger than the sub-prime lending is Alt-A, which we have talked about here for some time. Well, it looks like the 'chickens are coming home to roost'. The bank is also expected to post a loss in the second half of the year, according to Swiss weekly newspaper SonntagsZeitung. Subprime losses account for $1bn of the writedowns, while Alt-A loans - one step up from subprime in credit terms - represent another $1bn. UBS's investments in bond insurers will make up the rest of the writedown. Wonder who else has been exposed to Alt-A?

Posted by layers @ 10:33 AM 0 Comments

Squeaky wheels always get the oil Even when the machine has seized

The Renegade Economist: The Masters Have Lost Their Universe

Whinging bankers, and their lobbyists, dont like the British governments plans for future bail-outs. With Lehman Brothers now added to the list of bankrupts another victim of reckless speculation in real estate - the terms on which they may be rescued from their own folly is of no little consequence to taxpayers who are being forced to clean up the mess.

Posted by neo-serf @ 10:27 AM 0 Comments

Hewlett-Packard says 24,600 jobs to go

Yahoo: Hewlett-Packard says 24,600 jobs to go

LONDON (ShareCast) - Computer titan Hewlett-Packard (HP) has announced plans to slash its global workforce by 24,600, 7.5% of all staff,

Posted by mark @ 09:54 AM 3 Comments

Up Up and away

BBC: Inflation up to 4.7%

The UK's annual rate of inflation has risen to 4.7% in August, its highest level since records began in 1997. The Retail Prices Index (RPI) - often used in pay negotiations - fell to 4.8% from 5%.

Posted by little professor @ 09:39 AM 11 Comments

Banks hoarding cash = higher mortgage rates

FT: Nervous mood sees interbank lending dry up

There seem to be some dullards in the press thinking that the worst is now over and "♩ things can only get better ♩". Sorry, but its a zero sum game and the tab has still not been paid yet.

Posted by paul @ 09:38 AM 2 Comments

Soft Landing ???? No Chance !!

independent.co.uk: Hamish McRae: Lehman's fall is not all bad news

This must be the turning point in the global financial crisis "must" in the sense that, if there are greater financial collapses in the coming weeks, then the world economy itself really will be threatened. However the downward swing of the real economy has only just begun and, while there are still good reasons to believe that it will not be as deep as that of the 1980s or 1990s, the recovery is likely to be a very drawn-out affair, one made more protracted by the events of the weekend.

Posted by housebear @ 09:15 AM 4 Comments

Boooooom.........Bust

guardian.co.uk: This week the crash went nuclear, and Britain will feel the worst of the fallout

It was Black Monday. Banks going bust. Stock markets in turmoil. A nosedive in the share price of HBOS, Britain's biggest mortgage lender. The brainboxes who come up with complex models of how financial markets work say that these sorts of things are supposed to happen only once in a blue moon. But at the moment it is a case of another week, another crisis.

Posted by housebear @ 09:10 AM 12 Comments

A $62 TRILLION market, boomed a month ago, is now paused?! Or, is it like Monty Python's parrot?!

Wall Street Journal: Credit Protection Costs Soar In Stunned CDS Market

Activity in the $62 TRILLION credit default swaps market is non-existent to decent, depending on the index and name, according to market participants. Index flows are thin, for instance, while there is decent volume in financial companies, according to one participant. "The market is in a state of paralysis, and there is a sense the street is in shock," said Lindsey Spink, investment-grade trader at AXA Investment Managers in Greenwich, Ct., regarding the CDS market.

Posted by planning4acrash @ 01:16 AM 2 Comments

Goldman Sachs and Morgan Stanley next? Or is it the entire investment banking industry?

Market Watch: Fate of remaining big independent brokers in focus

The collapse of Lehman Brothers and the sale of Merrill Lynch have left questions about the future of the last two major, independent Wall Street brokerage firms, Goldman Sachs and Morgan Stanley, experts said Monday. We are now worried about the fate of the investment-banking industry. The days of the all-in-one global investment bank may be nearing an end

Posted by planning4acrash @ 01:12 AM 1 Comments

"It looks as if the prophets of doom may have been right after all. "

The Times: Hank Paulson has turned a drama into a crisis

"we are now unquestionably in the worst financial crisis since the Great Depression" Let's not all jump for joy...

Posted by jonathan @ 12:31 AM 4 Comments

Carving Turkey's Up - And it isn't even Christmas Yet!

New York Times: Fed Takes Steps to Aid A.I.G.

The Federal Reserve has asked two investment banks, JPMorgan Chase and Goldman Sachs, to put together at least $70 billion in loans to help prop up the American International Group, the giant insurance company, a person briefed on the matter said Monday.

Posted by stevie dee @ 12:27 AM 0 Comments

Monday, September 15, 2008

There is hope if people can understand the underlying problems and appropriate solutions.

Ron Paul's Campaign for Liberty: What the Financial Crisis Proves

Mortgage megaliths Fannie Mae and Freddie Mac are being taken over by Uncle Sam. Lehman Brothers is wrecked. John McCains answer to the crisis his answer to almost everything, in fact, including the problem of free speech is to demand more government control. But an increasing number of Americans are realizing that McCain is wrong and that Ron Paul was right all along about the consequences that must follow the malinvestment brought about by the Federal Reserves monetary meddling.

Posted by planning4acrash @ 10:01 PM 1 Comments

Veiled Threats in Election Year!

Bloomberg: Chrysler May Cut More Costs, Jobs Without U.S. Loans

Chrysler LLC may need to cut more jobs and trim other costs should U.S. lawmakers fail to approve $25 billion in loans to help the auto industry develop fuel-efficient vehicles, Chief Executive Officer Bob Nardelli said. ``If we don't get the funding, we will continue to have to resize and reduce our fixed costs,'' Nardelli said in an interview in New York on Sept. 12. ``We'll have to make some tough, gut wrenching trade-offs,'' which may include eliminating jobs, he said. Nardelli joins United Auto Workers leaders and some lawmakers in saying jobs will be threatened without the loans.

Posted by alan @ 09:51 PM 1 Comments

Here's something to stir your noodle

BBC Radio 4: What next for the credit crunch?

Cracking programme, not necessarily because everyone's telling the truth, or got the right end of the stick, but excellent for hearing some intelligent and provoking trains of thought. Well worth a listen-again and a think twice (and perhaps even noting who gets cut off in that special BBC way that keeps broadcasts on message and prevents sheeple getting confused).

Posted by dohousescrashinthewoods @ 09:50 PM 6 Comments

Please Sir, can I have some more? (apologies to Dickens)

Bloomberg: New York Governor Says AIG Can Access $20 Billion

American International Group Inc., the largest U.S. insurer by assets, has been given special permission to access $20 billion of capital in its subsidiaries to free up liquidity, New York Governor David Paterson said. (Next comes the Automakers, Airlines etc)

Posted by alan @ 09:34 PM 2 Comments

And Oil down around $5 - No Dominoes Today

Yahoo - AP: Stocks fall sharply following Lehman bankruptcy, Merrill sale; Dow falls more than 500 points

A stunning makeover of the Wall Street landscape sent stocks falling precipitously Monday, with the Dow Jones industrials sliding 500 points in their worst point drop since the September 2001 terrorist attacks. Investors reacted badly to a shakeup of the financial industry that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co.

Posted by stevie dee @ 09:26 PM 0 Comments

On tonight at 21:00

Channel 4.com, TV listings: The price of Property - Living the Dream

Britain has become a nation obsessed with the price of property: will prices spiral upwards again or is the market about to crash?

Posted by mytimeisnigh @ 09:00 PM 1 Comments

So what's caused this Sunday afternoon throat slitting?

BBC via SOTT: Lehman, AIG, Merrill: Is this December 1930?

Paul Mason BBC Mon, 15 Sep 2008 10:39 EDT Grand Theft Economics US: New York governor sees Wall Street losing up to 30,000 jobs UK: 4,000 City jobs axed as Lehman folds America 's Financial Apocalypse Heralds Decade Long Depression Lehman, AIG, Merrill: Is this December 1930? Lehman Files Biggest Bankruptcy Case as Suitors Balk Nightmare on Wall Street I am writing this in Washington at 3.33 am GMT. There's been a dramatic day on Wall Street and it's not even open (actually they had to open trading this afternoon to clear the decks for tomorrow's potential meltdown). Here's what we know so far:

Posted by malct @ 08:47 PM 1 Comments

sixteen months ago greedy make hay - Lehman Brothers in $8.7 billion bonus payout

Times Online: Lehman Brothers in $8.7 billion bonus payout - Article from Dec 2006

Article from Dec 2006 Lehman Brothers said it would pay its average member of staff $335,441 (170,933) this year as it reported a record fourth-quarter profit of $1.0 billion, capping its most profitable year ever. The US investment bank is paying its 25,936 staff a total of $8.7 billion in salary, bonuses and other benefits for 2006 on the back of a 23 per cent rise in net income to a record $4.0 billion.

Posted by jaffa100 @ 08:19 PM 4 Comments

Paragoing.....You'd have thought they'd have snap their hands off!

Sharecast: Paragon rejects offer, ends talks

LONDON (SHARECAST) - Buy-to-let mortgage specialist Paragon said it has terminated all current discussions about a possible takeover of the company, having rejected a 125p per share cash offer.

Posted by whostolemyendowment @ 08:14 PM 5 Comments

You may have missed this important news today!

Channel 4 news: Woolwich cuts mortgage rates

Rates trimmed down...but you'll need 40% deposit.....!

Posted by whostolemyendowment @ 07:59 PM 2 Comments

European woes are almost insignificant

Bloomberg: Colonial Agrees to 7 Billion-Euro Debt Restructuring

Inmobiliaria Colonial SA, once Spain's second-largest real-estate company, fell to a five-year low after agreeing to a 7 billion-euro ($10 billion) debt reorganization. Colonial, which had a total 9 billion euros of debt as of the end of June, will sell stakes in French unit Societe Fonciere Lyonnaise SA and builder Fomento de Construcciones y Contratas SA, and all of Rofisa SA, it said in a statement today. As part of the agreement with lenders including Goldman Sachs Group Inc., the Barcelona-based company will also sell 1.4 billion euros of bonds convertible into shares at a discounted stock price.

Posted by alan @ 07:25 PM 0 Comments

Hedge Funds Target HBOS as Shares Crash 30%

The Market Oracle: Hedge Funds Target Halifax, HBOS as Shares Crash 30%

Following on from the collapse of Lehman Brothers during the weekend, the financial sector was expected to be hit hard and to drag the overall market lower by some 5%. Whilst most of the big UK banks experienced falls in the order of 15%, Britain's biggest mortgage bank, Halifax Bank of Scotland (HBOS) crashed by over 30% as clearly hedge funds targeted the bank as a candidate for financial collapse, along the lines of Northern Rocks bank bust in Sept 07.

Posted by nadeem walayat @ 06:20 PM 0 Comments

Lehman's Bankruptcy the Ultimate Wall Street Derivatives Defaults Nightmare

The Market Oracle: Lehman's Bankruptcy the Ultimate Wall Street Derivatives Defaults Nightmare

In the wake of Lehman's demise, Fed Chairman Bernanke and Treasury Secretary Paulson will try to put out the word that it's no great trauma. But it's a lie and they know it. If they openly admitted that the Lehman collapse will paralyze Wall Street, torpedo the stock market and sink the economy, they'd have to pony up $100 billion or more to support it. Instead, their agenda was to push big banks to put up the money. And they failed to do so.

Posted by nadeem walayat @ 05:21 PM 0 Comments

This $150 billion gap, leveraged 14.5 times (the average gearing for the industry), translates to a $2 trillion reduction in liquidity

The Economist: Nightmare on Wall Street

With these developments the crisis is entering a new and extremely dangerous phase. If Lehman's assets are dumped in a liquidation, prices of like assets on other firms' books will also have to be marked down, eroding their capital bases. The government's refusal to help with a bail-out of Lehman will strip many firms of the benefit of being thought too big to fail, raising their borrowing costs. Lehmans demise highlights the industrys inability, or unwillingness, to rescue the sick, even when the consequences of inaction are potentially dire. Hence the severe shortage of credit and predictions of worse to come. Indeed, most analysts think that the deleveraging still has far to go. Some question how much has taken place.

Posted by malct @ 03:33 PM 13 Comments

Already battered, Washington Mutual shares fall as potential rescuers' attention is diverted.

CNN: Is anyone left to save WaMu?

After this weekend's turmoil, however, WaMu has fewer places to turn if it needs another injection of capital beyond the $7 billion it raised in April. No one stepped in to save Lehman and Bank of America will now be busy digest Merrill.

Posted by mark @ 03:32 PM 2 Comments

HBOS is the biggest faller in a shattered banking sector, shedding almost a third of its value as investors bail out of the stock

Moneyweek: London midday: Rout continues

The Bank of England has stepped in to provide an additional 5bn of funds for three days in a bid to settle the short-term money markets. The move follows a morning of carnage in the London stock markets following the collapse of US investment bank Lehman Brothers and the run for cover by "The Thundering Herd", Merrill Lynch, into the arms of Bank of America. Meanwhile, the Financial Services Authority has said it will ask for UK banks to provide it with details of their liabilities with Lehman.

Posted by malct @ 02:36 PM 2 Comments

don't expect Washington to take this lying down

Market Oracle Mike Stathis: America 's Financial Apocalypse Heralds Decade Long Depression

President Bush's attempts at a recovery have been so horrendous they've actually led to the current recession, which will turn out to be the worst in decades. I would venture to guess he is desperately pleading with officials to come up with even more gimmicks to hide the full realities of the economy so the worst will be reported only after he leaves office. It's highly unlikely the rest of the world will be able to escape the pain caused by Washington 's Three Stooges because the dollar-oil link is used to hold every nation financial hostage. China will feel the effects as will India ; and yes, even Brazil . Unlike America 's fate, these developing nations will mount a full recovery. But don't expect Washington to take this lying down. In fact, it might eventually lead to a major -

Posted by malct @ 02:08 PM 3 Comments

Can HBOS ad RBS survive the market turmoil?

Credit Writedowns: Lehman fallout: HBOS and RBS are getting slaughtered

The question now is about liquidity for these two as they are coming under selling pressure. The near term looks very volatile for them. I wonder if UK authorities will do something to calm the nerves.

Posted by edwardnh @ 01:58 PM 2 Comments

Gulf sovereign investors in "wait-and-see" mode

reuters: Gulf sovereign investors in "wait-and-see" mode

Top Gulf Arab sovereign investors have been sidelined by volatility in U.S. financial markets with one key fund, Abu Dhabi's Mubadala, saying on Monday it would not bail out any troubled banks.

Posted by mark @ 01:39 PM 0 Comments

The largest government bailout of private companies in world history

Information Clearing House: Record Corporate Bailout Reveals the Bankruptcy of American Capitalism

Over the past several months, global investors, including central banks and government investment funds, primarily in Asia and Russia, have been dumping their vast holdings in mortgage-backed securities issued by the US government-sponsored firms. Fannie Mae and Freddie Mac have a combined liability of $5.3 trillion in mortgage-backed securities which they own or guarantee. The run on their assets has not only intensified the crisis of the two companies, which are massively leveraged and have suffered billions of dollars in losses as a result of the collapse of the US housing market, it has thrown into question the status of all US government debt, including US Treasury bonds. It currently imports $1 trillion in foreign capital every year, or over $4 billion every working day.

Posted by malct @ 01:38 PM 0 Comments

Credit Default Swaps Worries on Lehman

FT Alphaville: CDS report: Protection costs jump, but traders frozen

This is a big threat to the CDS markets as a whole, which is truly scary because that was the last liquid market, said one hedge fund trader. Here, were all wondering whether Lehman might have blown up the market. There was uncertainty about whether the the special US trading CDS session on Sunday to help mitigate the effects of a potential Lehman collapse would have done any good because news of the banks filing came one hour after the midnight deadline after which any deals struck were due to expire.

Posted by mountain goat @ 01:07 PM 7 Comments

We have to believe the numbers, " he said. "If we can't, we can't restore confidence

Telegraph: Lehman collapse means all bets for the financial system are now off

According to experts, Lehman has $150bn of debt outstanding. By comparison, US telecoms group WorldCom - the largest debt default until today - had $23bn to $30bn (depending on whose estimates you use) when it went bust in 2002 Fears about other banks' exposures to Lehman and renewed uncertainty as to where the crisis may strike next will freeze the wholesale markets up again. The crunch is back with a vengeance. It's not hard to see why. Lehman's collapse into bankruptcy protection is the biggest corporate debt default in history and, in the complex interwoven world of modern banking, no one properly understands where the risks lie. In other words, about $70bn of Lehman debt held by other institutions has been wiped out.

Posted by malct @ 01:01 PM 6 Comments

ECB Supporting the Eurozone money markets

CNNMoney: 4th UPDATE: ECB Monitoring Money Market Conditions Very Closely

FRANKFURT -(Dow Jones)- The European Central Bank allocated EUR30 billion in a one-day liquidity-providing operation Monday, as it sought to help euro-zone money markets function in an orderly manner after tensions rose due to fresh trouble in the U.S. banking industry. "The ECB continues to closely monitor the conditions in the euro-area money market," the bank said. "The ECB stands ready to contribute to orderly conditions in the euro money market." The action "raises the possibility of the ECB participating in coordinated rate cuts, if they were to take place," analysts at RBS said in an earlier note to clients.

Posted by plato @ 12:58 PM 2 Comments

A.I.G. will be the next test. Ratings agencies threatened to downgrade A.I.G.s credit rating if it does not raise $40 billion by Monday morning

NY Times: Wall St. Banks Falter; Markets Shaken

But even as the fates of Lehman and Merrill hung in the balance, another crisis loomed as the insurance giant American International Group appeared to teeter. Staggered by losses stemming from the credit crisis, A.I.G. sought a $40 billion lifeline from the Federal Reserve, without which the company may have only days to survive. A.I.G. will be the next test. Ratings agencies threatened to downgrade A.I.G.s credit rating if it does not raise $40 billion by Monday morning, a step that would crippled the company. A.I.G. had hoped to shore itself up, in party by selling certain businesses, but potential bidders, including the private investment firms Kohlberg Kravis Roberts and TPG, withdrew at the last minute because the government refused to provide a financial guarantee for the purchase.

Posted by malct @ 12:50 PM 3 Comments

HBOS leads bank fall as Lehman stokes funding worry

yahoo: HBOS leads bank fall as Lehman stokes funding worry

"We are particularly cautious on HBOS given its exposures and funding structures," Cazenove said.

Posted by mark @ 12:34 PM 2 Comments

All participating banks intend to use this facility beginning this week

China Daily: Banks roll out $70 billion loan program

New York - A group of global banks and securities firms announced late Sunday a $70 billion loan program that financial companies can tap to help ease a credit shortage that threatens global financial markets. The ten banks, which include JPMorgan Chase & Co. and Goldman Sachs Group Inc., said they were committing $7 billion each for the pool. The pool would act as a signal to the marketplace that banks, brokerages, and other financial companies can lean on the fund to take care of borrowing needs. The banks said the program will be available to participating banks which can get a cash infusion up to a maximum of one-third of the total size of the pool. The size of the loan program might increase as "other banks are permitted to join."

Posted by malct @ 12:31 PM 0 Comments

if only they could sell houses..lol

yahoo: STOCKS NEWS EUROPE-Rightmove falls after UBS cuts to "sell"

Its fortunes are very much tied to any housing market recovery and with transactions likely to be lower in 2009,' the broker adds.

Posted by mark @ 12:29 PM 0 Comments

"the next president will be inheriting a budget and economic outlook that is far worse than most people realize."

SOTT: Signs Economic Commentary for 15 September 2008

Since the Bush administration announced on Sunday the US government takeover of mortgage finance giants Fannie Mae and Freddie Mac, in the largest corporate bailout in American history, developments have underscored the profound and systemic nature of the crisis that precipitated the action. The decay of American capitalism has produced an economy that is drowning in debt and is dependent on massive inflows of capital from abroad for its survival. Now, the assumption by the government of the debt of the mortgage companies, carried out to protect the financial interests of banks and big investors, has placed a question mark over the solvency of the US government itself.

Posted by malct @ 12:24 PM 3 Comments

Bankers not bailing out bankers?!

International Herald Tribune: Frantic day on Wall Street as banks fall

"In one of the most dramatic two days in Wall Street's history, Merrill Lynch agreed to sell itself to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, filed for Chapter 11 bankruptcy protection." I like this bit: "The bankers were told that the government would not bail out Lehman and that it was up to Wall Street to solve its problems." - The government doesn't own or control the Feral Reserve, so, the bankers did not say that the bankers told the bankers (themselves) that they could not bail themselves out, because their crazed financial alchemy has put the bond insurers and derivatives market into a thermonuclear meltdown.

Posted by planning4acrash @ 12:02 PM 2 Comments

We Are Already In A Recession

guardian.co.uk: CBI sees mild UK recession in H2 2008, early 2009

The CBI expects GDP to contract 0.2 percent on the quarter in the three months between July and September and 0.1 percent in the fourth quarter, with contraction probably spilling over into next year before the economy starts to recover. "Having experienced a rapid loss of momentum in the economy over the first half of 2008, the UK may have entered a mild recession that will hopefully prove short lived," the CBI's Director-General, Richard Lambert said [...] The CBI forecasts showed unemployment breaching the 2 million mark in 2009, with a jobless rate of about 6.5 percent. Housing, construction, retail and durable goods sectors, particularly furniture, were seen suffering most job losses, McCafferty said.

Posted by disillusioned @ 11:48 AM 1 Comments

Get in quick- housing doubling in price!

Reuters: Search for safety revives Baghdad housing market

If things weren't bad enough for the citizens of Iraq - now they have to pay more for their housing too. This is of course reported as good news.

Posted by acidrob @ 11:24 AM 1 Comments

Lehman: the bank that wasn't too big to fail

MoneyWeek: Lehman: the bank that wasn't too big to fail

Many people assumed Lehman was 'too big to fail' - that there would be another government bailout. But no - this time the market will have to deal with the mess itself. And as Lehman's bones are picked over, it will become clear to us all just how badly damaged the financial system is.

Posted by damien @ 11:21 AM 2 Comments

a view of the Britain's credit crunch from overseas

The Star - Toronto newspaper - Canada: Britain's credit crunch

An economic boom that lasted a generation and saw none of the windfall set aside for a rainy day has ended with the United Kingdom falling into recession. Though good news is desperately scarce throughout the economies of the West, one can take small solace in the fact that none of us is the Prime Minister of Britain, where a long, cold winter of discontent now seems assured with the arrival of recession. Interesting article on the perception of Britain's credit crunch from overseas.

Posted by ikpeba87 @ 11:11 AM 1 Comments

No Bailout for Lehman as Fed Awakens to Bond Market Crash Risk

The Market Oracle: No Bailout for Lehman as Fed Awakens to Bond Market Crash Risk

Noises emanating from Hank Paulson at the US Treasury department over the weekend of having drawn a line against an effective bailout of the bankrupt investment bank, this will not live up to bidder expectations of providing tens of billions of tax payers money so as to enable a relatively risk free takeover by other banks, this therefore results in suitors in advanced talks such as Barclays now declaring their withdrawal from a possible weekend bid for the bank and indicates that Lehman's is now heading directly towards bankruptcy

Posted by nadeem walayat @ 10:02 AM 2 Comments

former investment banker, Registered Financial Principal with the N.A.S.D. and a Broker/Dealer, Securities Underwriter, Real Estate Developer, Insurance Broker and Publisher

conscious media network: 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? A "MUST READ" book for understanding how the economic fraud really affects you and what you can do about it:

Posted by malct @ 09:35 AM 2 Comments

Video Roubini: Goldman Sachs and Morgan Stanley Next

Bloomberg: Roubini Says U.S. Financial Industry Facing `Disaster'

Goldman Sachs and Morgan Stanley won't be able to remain independent because broker dealers business models are flawed, need to merge with larger financial institutions or go bust from toxic "assets".

Posted by mountain goat @ 09:19 AM 0 Comments

Let's see if Stevie Dee was right about the domino effect ...

BBC: Lehman Bros files for bankruptcy

The fourth-largest investment bank in the US, Lehman Brothers, says it will file for bankruptcy protection, amid a growing global financial crisis. Lehman had incurred losses of billions of dollars in the US mortgage market. The move threatens to deal a further blow to the global financial system, as banks unwind their deals with Lehman. Merrill Lynch, also stung by the credit crunch, has agreed to be taken over by Bank of America in a dramatic weekend of events for Wall Street.

Posted by mark wadsworth @ 07:29 AM 11 Comments

Approaching tipping point

FT: Wall Street banks fight for life

Wall Street was in turmoil on Sunday as Merrill Lynch found shelter in a $44bn takeover by Bank of America and Lehman Brothers said it would file for bankruptcy

Posted by gardeniadotnet @ 06:55 AM 25 Comments

Phrophetic Words by Ruby

RGE: If Lehman collapses expect a run on all of the other broker dealers and the collapse of the shadow banking system

It is now clear that we are again as we were in mid- March at the time of the Bear Stearns collapse an epsilon away from a generalized run on most of the shadow banking system, especially the other major independent broker dealers (Lehman, Merrill Lynch, Morgan Stanley, Goldman Sachs). If Lehman does not find a buyer over the weekend and the counterparties of Lehman withdraw their credit lines on Monday (as they all will in the absence of a deal) you will have not only a collapse of Lehman but also the beginning of a run on the other independent broker dealers... Then this run would lead to a massive systemic meltdown of the financial system.

Posted by stevie dee @ 01:39 AM 0 Comments

If you show me yours, I'll show you mine

Market Watch: Derivatives session to reduce risk from Lehman bankruptcy

The International Swaps and Derivatives Association Sunday said it had organized a "netting trading session" to reduce risk from a potential Lehman Brothers bankruptcy. The session began at 2 p.m. Sunday and was slated to run until 4 p.m., New York time. All trades are contingent upon a bankruptcy filing at or before 11:59 p.m. Sunday, the association said in a statement on its Website. If there is no bankruptcy filing by then, the trades will cease to exist.

Posted by gardeniadotnet @ 01:26 AM 0 Comments

Sunday, September 14, 2008

It's a sign of the times Gromit.

Telegraph: Cost of cheese up 10 per cent in a week

Many processors have put up the prices paid to farmers in recent weeks in recognition of cost increases on farms. Farmers are struggling because of factors including the high cost of fuel.

Posted by gardeniadotnet @ 11:46 PM 20 Comments

Another one bites the dust

New York Times: Bank of America to Buy Merrill Lynch

Bank of America is in advanced talks to buy Merrill Lynch for at least $38.25 billion in stock, people briefed on the negotiations said on Sunday, as a means to preserve that investment bank while Lehman Brothers looks likely to collapse. The move suggests a desperate effort at triage on Wall Street, as Bank of America works to shore up the likely next victim of the credit crunch. [The whole financial system is imploding! 100% correct, guaranteed!! Protect yourself!!!]

Posted by little professor @ 10:36 PM 5 Comments

Bad Business Models in OZ

Sydney Morning Herald: Reality hits property funders

A LITTLE over a year ago, stung by criticism following the collapse of Fincorp, Australian Capital Reserve and Bridgecorp, the corporate regulator issued a list of other risky, unrated mortgage schemes.Today, that list is a who's who of who's gone bust.

Posted by alan @ 09:49 PM 6 Comments

Washington Mutual could be next in line

Financial Times: Deposit insurance system may face WaMu test

Most people are talking about Lehman Bros at the moment, which probably only has about 3 hours left to live, but that's mostly of immediate concern only to people in the City. Washington Mutual going down would be like Nationwide going down here, and I don't think you could underestimate how much of an impact that would have.

Posted by jonb @ 09:39 PM 5 Comments

Bankrupt by midnight

bloomberg.com: Wall Street Prepares for Potential Lehman Bankruptcy (Update1)

Sept. 14 (Bloomberg) -- Wall Street prepared for a potential Lehman Brothers Holdings Inc. bankruptcy after Barclays Plc said it pulled out of talks to buy the firm and the government indicated it wouldn't provide funds in a resolution.

Posted by sold out @ 09:04 PM 5 Comments

US Government Tells Wall Street to Take the Hit on Losses

NY Times: Lehman Heads Towards Brink as Barclays Ends Talks

The US government has finally called Wall Street's bluff and told the bankers to absorb the losses on Lehman's collapse by themselves: "Both Barclays and Bank of America expressed interest in buying Lehman and were negotiating hard, initially insisting that the government provide financial support. But federal officials were adamant that no public money be used a big point of contention because many of the top Wall Street executives believe that their banks, which have each written down tens of billions of dollars in assets, do not have the capacity to lead the rescue on their own. The prospects of a deal involving Bank of America appeared to fade as talks progressed Saturday and it became clear that the government would not stray from its position."

Posted by an bearin bui @ 08:43 PM 0 Comments

Any last requests?

Bloomberg: Wall Street Prepares for Potential Lehman Bankruptcy

Wall Street prepared for a potential Lehman Brothers Holdings Inc. bankruptcy after Barclays Plc said it pulled out of talks to buy the firm and the government indicated it wouldn't provide funds in a resolution. Banks and brokers today held a session for netting derivatives transactions with Lehman, or canceling trades that offset each other, in case the New York-based firm files for bankruptcy before midnight New York time.

Posted by stevie dee @ 08:38 PM 3 Comments

Rogers remained extremely pessimistic on the dollar and said it is a terribly flawed currency.

Business Standard: Govts' moves can't halt commodity rally: Rogers

Govts' moves can't halt commodity rally: Rogers Newswire18 / Mumbai September 13, 2008, 3:31 IST Trying to cut out speculators from the commodity futures trade will only decrease liquidity and will not halt a price rise as supply problems persist, investor James B Rogers, popularly known as Jim Rogers, said on Friday. Also Read News Now Paper Specials - WKLY TECH ANALYSIS: Buying activity may boost Sensex - UFBU strike against financial sector reforms unjustified: Govt - Anil Ambani eyes premier league team Everton : Report - RBI asks banks to enhance credit flow to SMEs - WB hikes Singur land compensation by minimum 50% - Govt moots large-scale plantation of bio-diesel on wasteland

Posted by malct @ 07:44 PM 2 Comments

One key source of pressure on Lehman is its debt ratings.

yahoo: Barclays pulls out of Lehman bidding

By Dan Wilchins and Glenn Somerville Reuters - 39 minutes agoNEW YORK/WASHINGTON (Reuters) - Regulators and bankers resumed a third day of talks on Sunday in a desperate attempt to reach a deal to sell Lehman Brothers and prevent the struggling investment bank from flooding jittery financial markets with toxic assets at fire sale prices. (Advertisement) Barclays, which had appeared to be the frontrunner to take over Lehman -- excluding its bad mortgage-related assets -- pulled out of the bidding early in the afternoon, according to a person familiar with the matter.

Posted by malct @ 07:30 PM 1 Comments

Barclays peered into the abyss and felt a bit queasy

cnn: Lehman endgame: Barclays out

Barclays took a look at Lehman and didn't like what they saw. Somebody's got to clear up the mess, but the toilet down which the 'bad' 'assets' are dumped is very expensive to build and the US Treasury is running out of funds and credibility.

Posted by icarus @ 07:00 PM 2 Comments

Yes, but leave it a year at least !!

firsthomebuyer.co.uk: Is gazundering ethical?

"Don't shoot till you see the whites of their eyes"

Posted by doomwatch @ 06:43 PM 6 Comments

No Surprise there!

Bloomberg: Barclays Withdraws From Lehman Talks Over Credit Guarantees

Barclays Plc, the U.K.'s third- biggest bank, pulled out of talks to buy Lehman Brothers Holdings Inc. because it could not agree on terms to ring fence troubled assets at the U.S. investment bank. Barclays dropped out of discussions to buy all or parts of New York-based Lehman because it could not secure guarantees from the U.S. government or agree on terms to mitigate potential losses in the firm's investment banking division, a London-based spokesman for Barclays said in a telephone interview today.

Posted by stevie dee @ 06:22 PM 1 Comments

Wall Street suffered from the illusion that it could make beautiful bonds out of piles of dubious mortgages.

CNN: Putting lipstick on a pig

If nothing else, we've learned recently that if you put lipstick on a pig, it's still a pig. Presumably that has always been true - unless of course the pig in question was a subprime mortgage derivative, circa 2006. Then it was quite possibly a "runaway bargain," a "great time to buy," or an "opportunity in a market that's only going to go up." Still a pig, you say? Well, how is it that no one noticed the legions of bankers, ratings agencies, and real estate professionals bearing lipstick?

Posted by mark @ 03:36 PM 1 Comments

Express in non-ramping shocker

Express: SORRY GORDON, BUT THE WRITING'S ON THE WALL FOR HOUSING MARKET

GORDON BROWNS multi-billion pound rescue package for the mortgage market was in tatters last night as industry experts warned it would not stop Britains property price slump. A spokesman for the CML told the Sunday Express it was highly unlikely to reverse the current fall in house prices in the medium term. House prices are predicted to fall by 25 to 30 per cent before bottoming out, but ministers fear rock bottom could be even lower, leaving millions more families in negative equity. If rock bottom resulted in current house prices being slashed in half, Labour would be facing a political catastrophe no Government could hope to survive. But many industry experts want the Government to let the mortgage market correct itself.

Posted by little professor @ 03:20 PM 14 Comments

"stand by for the next leg of the credit crunch"

Observer: British banks to start fire sales in commercial property meltdown

" 'A lot of property people thought they were geniuses,' observed one of the industry's best-known tycoons. 'Perhaps they're reassessing that view right now.' " Too many geniuses in this world.

Posted by letthemfall @ 12:02 PM 5 Comments

Let's hear it for Mervyn King

Independent: The last thing our housing market needs is to be propped up

"Lower house prices will be good for all of us. " Hear, hear, we all say.

Posted by letthemfall @ 11:27 AM 11 Comments

This Agent is one desperate chappie.

guardian: Sellers 'guarantee' home values

Leaf said he was advising one client trying to sell a 900,000 house to consider an interested buyer's suggestion that compensation be paid if the property's value fell by much more than 5 per cent in a year. 'The buyer is prepared to buy the house if its value falls by 5 per cent, but if it fell by another 10, the vendor would have to pay,' said Leaf. Such novel and creative methods employed by estate agents and sellers show the extreme lack of confidence in the housing market.

Posted by suzyandjoe @ 08:15 AM 5 Comments

Sub-prime Fall-out?

Independent: Scramble to save Wall Street

Three of Wall Street's best-known institutions were huddled behind locked doors this weekend in frantic talks with US authorities and bankers to either sell their businesses or put together rescue packages. Lehman Brothers, AIG, the giant insurer, and Washington Mutual, America's biggest savings and loans company, were all in negotiations with prospective buyers or bankers.

Posted by alan @ 08:04 AM 23 Comments

God working with Bush to help sub-primers of Texas

Houston Chronicle: Bush declares Texas a disaster area after Ike

On Wednesday, before the storm hit, the president issued an emergency declaration for parts of Texas and ordered federal aid to supplement state and local response efforts. The president's disaster declaration Saturday meant federal aid would supplement state and local recovery efforts in 29 counties. Assistance includes grants for temporary housing and home repairs, low-cost loans to cover property that was not insured and other programs to help citizens and business owners recover. Federal money also is available to the state government, eligible local governments and some private nonprofit groups on a cost-sharing basis.

Posted by stevie dee @ 12:55 AM 0 Comments

Saturday, September 13, 2008

Another Week-end Rumour

Telegraph: Barclays considers Lehman Brothers bid

Barclays Capital, its investment banking arm, is understood to be most interested in making an offer for Lehman's core investment bank in a scenario that would see the 158-year-old US bank split into three. Such a deal would propel Barclays into the top-tier of investment banks around the world, something that Bob Diamond, BarCap's president, is known to covet.

Posted by alan @ 10:22 PM 9 Comments

Looks who's wailing now

Daily Mail: Gazundered! The unscrupulous practice is back

In the housing market, this dishonourable - but perfectly legal - practice is known as 'gazundering'; a light-hearted term which belies the abject misery its ruthless practitioners are causing to thousands of hard-pressed families - not to mention the damage they are inflicting on England's battered housing market. Such stories are becoming wearily familiar to Chris Wood, presidentof the National Association of Estate Agents. "It's like the argument that shoplifting from big stores is acceptable because no one really suffers. It's tosh."

Posted by little professor @ 08:25 PM 25 Comments

When things rip they rip all the way through.

LandlordExpert: UK tenants worried about affording rising rental costs

This article points out that more than half of UK tenants are worried about being able to make future rental payments. Of course, they needn't worry as they live in the most beautiful socialist country in the world, and losing their job will actually gain them better accomodation than they already have ! Every coin has heads and tails though, and I am guessing that the landlords are worried about the tenants not being able to pay their rent, leading to troubles for those BTL landlords who borrowed to buy (...). Unemployment will be picking up dramatically towards Christmas apparently.

Posted by stillthinking @ 07:59 PM 7 Comments

Can house builders fool the banks?

The Spectator: Who are housebuilders trying to fool?

The price of new build house has risen by 1% whilst the rest of the property market has fallen by double digits. Is this slight of hand? Me thinks so.

Posted by mikelivingstone @ 06:18 PM 0 Comments

we have all the makings of the next great depression

Ludwig von Mises Inst.: How to Avoid Another Depression

"Great Depression" is a strong term, but what exactly does it mean? Depressions are a normal part of a business cycle that are now often called recessions, downturns, or corrections. They occur in any economy where the financial markets are based on fractional-reserve banking. The year 2008 marks the beginning of the next recession, correction, or depression. All the statistical indicators are pointing in that direction. All market indicators point in that direction as well. Ask any noneconomist and you will get that same answer. We only have to wait for the folks at the National Bureau of Economic Research to officially confirm what we already know. The reason for the depression is the bust in the housing market we all know that too.

Posted by malct @ 03:47 PM 12 Comments

It feels like I am at the epicenter of the biggest financial crisis in history

MoneyNews: Whitney: Worst is Yet to Come for Banking

Meredith Whitney, the Oppenheimer & Co. analyst who called Wall Street's mortgage market meltdown last fall, now says the worst is yet to come for the global financial industry. "What's ahead is much more severe than what we've seen so far," Whitney told Fortune magazine. She submits that banks are facing dramatically larger credit losses than they have reported so far and thinks the economy is about to sink into an "early 1980s-style recession," that will "devastate 10 percent of the population," which became financially overextended during the housing boom. "It feels like I am at the epicenter of the biggest financial crisis in history," she says. Sales of apartments in both Beijing and Shanghai are off over 50 percent

Posted by malct @ 03:42 PM 1 Comments

Coming soon to the UK: Choosing who to help

New York Times: U.S. Holds the Whip Hand in Modifying Mortgages

"The extraordinary government intervention in Fannie Mae, Freddie Mac and a growing number of banks puts federal agencies in the powerful, and awkward, position of deciding which borrowers will receive help and who will lose their home". "To make matters worse, a large number of mortgages made during the recent housing boom are unsalvageable because borrowers cannot afford even the terms of modified loans"!

Posted by alan @ 02:19 PM 0 Comments

Do you want to sell your house?

Telegraph: Sarah Beeny: 'It's simple. If you really want to sell, you have to drop the price'

Sarah Beeny's new website to help people get on with their lives. What a sensible lady. "And, she believes, the current crisis could have been predicted. It is perhaps no coincidence that her company has not added to its buy-to-let portfolio since 2005, although it still renovates properties. "Three years ago it was really obvious that this was about to happen," she says. "It's very frustrating that you just have to sit back and hope that the Government or banks will sort it out.""

Posted by cornishman @ 12:44 PM 25 Comments

Lewes plans to print 10,000 notes and issue about 5,000 today

Bloomberg: Totnes Pound, Brixton Brick Challenge U.K. Sterling (Update1)

As U.K. inflation accelerates at the fastest pace since 1991 and the pound trades near a record low against the euro, Totnes is leading a drive among communities to create alternatives to sterling. Supporters say the currencies will keep money in local economies and bolster stores' sales. The Totnes pound started circulating last year. The town of Lewes, in southeast England, will introduce the Lewes pound today. London's suburb of Brixton has used the ``Brixton brick'' on a trial basis and plans full implementation of the currency in 2009.

Posted by malct @ 10:30 AM 23 Comments

Many sounded dazed. "It's over, man...unless we get bought out in the next 24 hours, it's over,"

Wall Street Journal via SOTT: Possible Lehman buyers want the US government to socialize the risks

MATTHEW KARNITSCHNIG, CARRICK MOLLENKAMP, SUSANNE CRAIG and ANNELENA LOBB Wall Street Journal Fri, 12 Sep 2008 12:37 EDT The investment bank Lehman Brothers Holdings Inc. spent Thursday energetically shopping itself to potential buyers -- among them Bank of America Corp. -- just a day after insisting it had found a way to patch up its massive real-estate-related losses.

Posted by malct @ 10:16 AM 3 Comments

As Merrill's stock declines, however, it will be harder for the bank to raise capital.

Reuters via Truthseeker: Merrill Lynch shares catch Lehman bug

Merrill Lynch & Co Inc's shares fell nearly 17 percent on Thursday as worries over Lehman Brothers Holdings Inc's future raised questions on which investment bank may be next to face questions about its survival. "I think the market's telling you that if Lehman is going to go away, Merrill is probably the next victim," said Malcolm Polley, chief investment officer at Stewart Capital Advisors. Merrill fell $3.87 to $19.43 on the New York Stock Exchange to their lowest level in nearly 10 years. The decline reflected investor concerns that the bank's commercial mortgage exposure might cause more write-downs.

Posted by malct @ 08:12 AM 0 Comments

The "experts'" predictions were so wrong...

FT: Northern Rock one year on

Charlie Bean, the Bank of Englands deputy governor, this week put his finger on the reason why every economic forecast made around the time of Northern Rocks implosion has turned out to be so badly wrong. We thought a year ago, when this crisis first emerged, it might be over by Christmas rather like World War I, he told the Treasury committee on Thursday. But as its gone on we realised there are far deeper problems that will take longer to unfold." (Deep problems in the financial system? No sh*t Sherlock!)

Posted by drewster @ 04:04 AM 8 Comments

No sign of improvement across the pond

Bloomberg: U.S. Foreclosures Hit Record in August as Housing Prices Fell

US foreclosure filings rose to a record in August as falling home prices made it harder to sell or refinance homes to pay off the mortgage. Owners of 303,879 properties, or one in 416 US households, got a default notice, were warned of a pending auction or foreclosed on last month. "The chickens have come home to roost,"' Jim Croft, founder of the Mortgage Asset Research Institute in Reston, Virginia, said in an interview. "Real estate inflation bailed out an awful lot of bad loans". The worst housing slump since the 1930s shows little sign of abating. Home prices in 20 US metropolitan areas declined 15.9% in June from a year earlier, according to the S&P/Case-Shiller index. There are 3.9 million unsold existing single-family homes, the most since at least 1982.

Posted by drewster @ 03:45 AM 4 Comments

Foxtons in the news - for all the right reasons ;)

FT: Doomsday scenario underplayed Foxtons woe

BC Partners underestimated the scale of the housing market meltdown by half in the doomsday scenario the private equity group drew up last year to stress-test the worst-case outcome of its acquisition of Foxtons estate agents. The buy-out group measured its 360m acquisition of Foxtons in May 2006 against a potential 30 per cent drop in property sales. But even this proved hugely optimistic, as sales have since fallen 50-70 per cent, according to people close to the deal.

Posted by pdp @ 02:28 AM 1 Comments

Friday, September 12, 2008

And I thought the Bears feared a re-run of the Great Depression!

Bob Chapman's International Forecaster: Mortgage Failures Will Drive Gold And Silver Buying

Resident economics correspondent to the Alex Jones Show discusses the background to and implications of Freddy and Fanny nationalisation. "In order to understand what is transpiring in todays financial world you have to understand financial history. What you are seeing and experiencing has happened many times in the last thousand years. The upheaval we are in today could well be as bad if not worse than those of the collapse of the Lombard System in 1348 and the fall of the Hanseatic League in the 1600s. The current debt-based, fiat-money global economy is in the process of collapse and accompanying manipulation will soon come to an end. No fiat currency has ever survived and when it does it will be catastrophic." Oh boy!

Posted by planning4acrash @ 11:56 PM 5 Comments

The Candy brothers: Riding high above the economic turbulence

Evening Standard: What downturn? We only deal with the ber-rich

On Wednesday, the sharply-suited duo, Christian, 34 and Nick, 35, were on best behaviour, hosting a fund-raising dinner for the Royal Parks Foundation, which helps fund London's eight royal parks, including Hyde Park, by their new apartment complex on the site of the former Bowater building in Knightsbridge. Their success is not to everybody's taste. Critics accuse them of turning areas of London into billionaire ghettos they're widely seen as riding the property boom, for even being partly responsible for driving the frenzy that has gripped London. There's no doubting they have a knack, however. On De Vere Gardens, site of two former hotels in Kensington, they made 250 million in just 18 months. They bought it for 69 million in 2006 and sold it earlier this year for 320 million.

Posted by sold out @ 11:09 PM 2 Comments

Bank of America circles the dying beast

Evening Standard: City jobs at risk in US bank crisis

US analysts said Lehmans was horribly damaged by its vast exposure to the American mortgage market "and may or not make it". "The bank's management has launched a desperate rescue plan, including the sale of more than 2 billion worth of UK mortgages but this has done nothing to restore confidence".

Posted by alan @ 09:56 PM 0 Comments

Corporate Ethic?

Times: Flight prices surge on back of XL collapse

Travel companies hoping to cash-in on the XL collapse have been bidding on XL keywords with search engines, in order to attract click-throughs from desperate holidaymakers. Travel companies are reporting a surge in flight prices as customers struggle to rebook their holidays following the collapse of XL Leisure. Yes. slaught them why they are down.

Posted by peter_2008 @ 06:11 PM 7 Comments

blanchflower is at it again

the independent: MPC at war over way to fight slump

Open warfare broke out within the Bank of England's Monetary Policy Committee yesterday as its members offered wildly varying views on how to handle the economic downturn.

Posted by waitingtobuy @ 06:11 PM 15 Comments

Fasten Seat Belts? Please

Bloomberg: British Airways May Eliminate Hundreds of Managers

British Airways Plc, Europe's third-largest carrier, will offer incentives to quit to as many as 2,000 managers as it seeks to slash the wage bill amid an economic slowdown and higher fuel costs. About 300 managers are expected to accept the terms, Chief Executive Officer Willie Walsh said today in a Bloomberg Television interview. Walsh said he is ``accelerating'' job eliminations planned by March and will require managers to decide by Dec. 31. Severance packages will be offered to managers including senior executives, Michael Johnson, a spokesman for the London-based carrier, said today.

Posted by stevie dee @ 04:48 PM 0 Comments

Inner cities become the preserve of immigrants, poor people, and childless couples.

BBC News: Compact and bijou - the slums of tomorrow?

New homes in England are being built smaller than almost anywhere else in Europe, a new exhibition reveals. Are the gleaming new apartments buildings of the past decade the inner-city slums of tomorrow?

Posted by matt @ 01:46 PM 23 Comments

some info about company

wiki: XL Leisure Group

Interests in Xtra Airways and SkyWest, Inc. - Established in 1987, Xtra Airways is a charter airline based in Nevada, USA. It now has bases at Cincinnati/Northern Kentucky International Airport, Louisville, Kentucky, New York (John F. Kennedy International Airport)and Boston. It is owned by CXP Management, and XLLG holds a 19% share of the airline. Prior to XLLG's acquisition of 19% interest in Xtra Airways in summer 2005, the airline was known as Casino Express. The rebranding to Xtra Airways reflects a close relationship between Xtra and XL, which also includes similar aircraft liveries. Skywest is an Australian regional airline, which began operations in 1963 as part of Ansett Airlines. It is now owned by Advent Air, in which XLLG hold a 5% share.

Posted by mark @ 01:14 PM 10 Comments

Another sunny day across the pond

CNN: August foreclosures hit another record high

NEW YORK (CNNMoney.com) -- Foreclosures hit another record high in August: 304,000 homes were in default and 91,000 families lost their houses

Posted by holding out @ 12:55 PM 2 Comments

And so it gets worse and worse

Home.co.uk: House Price Falls Accelerate

Asking Prices for homes on the market in England and Wales fell by 0.9% this month. Monthly falls were observed in 8 out of 9 English regions and in Wales. Asking Prices in England and Wales have fallen 2.0% over Q3. Greater London registered a fall of 2.0% since August thus reducing the average asking price by nearly 7,000. Every English region, Scotland and Wales registered mix-adjusted average Asking Price falls over Q3.

Posted by tinecu @ 12:07 PM 11 Comments

RICS accuses Govt of 'tinkering round the edges' of the housing market crisis

Property Week: Twisted Logic

The property industry believes Treasury tinkering is unlikely to help a market that is on the skids, as the RICS shows. It was a long time coming and hopes were, perhaps, unreasonably high. But as the dust settles on the governments 1bn rescue plan for the housing market, the industry has been left feeling distinctly underwhelmed.

Posted by peter whelp @ 10:47 AM 5 Comments

FT's index plays catch up

FT: House prices show sharpest monthly fall since 1992

The FT House Price Index recorded a drop of 1.3 per cent in August, the single largest monthly fall since October 1992, according to the latest figures released on Friday. The decline marks the sixth consecutive drop in the Index, and is in line with the general trend seen in other closely-watched indices of house prices from the nations largest lenders. However, the year-on-year decline in house prices shown by the Index, a drop of 2.2 per cent, is far more modest than that suggested by other indices which are now showing declines of 10 per cent or more. According to the Index, house prices peaked in February 2008 and are currently 4.0 per cent below that. (Note: their index must be badly out of sync, in February 2008 nobody was paying top prices any more!)

Posted by drewster @ 10:40 AM 11 Comments

Interesting read.

FT: The 'Japanification' of Wall Street

The unfolding crises at Lehman Brothers, Washington Mutual and Bear Stearns have some eerily familiar patterns that evoke those days when Japans banks seemed physically incapable of calling a bad loan a bad loan, when absurd schemes were hatched in the belief they would reassure investors; and when the dead hand of Japanese bureaucracy seemed to be move silently behind every financial crisis. The similarities are too striking to ignore. First, you get denial banks that were foundering insisting they were in a fine state of health. Then there is obfuscation, via weasel words. Next come all sorts of ingenious plots and plans to remove toxic waste from balance sheets. Then finally comes the official government "helping hand."

Posted by little professor @ 10:18 AM 8 Comments

This guys thinks major drama is expected next week

Market Oracle: Perverse US Dollar Rally Prelude to Financial System Collapse

"On the week of September 15 thru 19, some initial events are anticipated to occur. An important event schedule will be initiated. The party and celebration and corrupt raids should come to an end abruptly. Many possible events are offered in conjecture in the September Hat Trick Letter, due out late this weekend. In all, 13 powerful shock wave events are suggested as possible. Foreigners are watching the tainted party, viewing it as staged atop the heavily listing Titanic vessel. The four pillars of insolvency, plus the looming credit derivative roof crumple, seem not to matter. The entire global playing field, related to commerce and finance, is soon to be reshaped, with the Untied States becoming a bit player, or not invited. The turkey carving is nigh"

Posted by sold 2 rent 1 @ 10:10 AM 59 Comments

Lord Oakeshott: House prices are still far too expensive

Property Week: House prices are still far too expensive

Last week Alistair Darling suspended 1% Stamp Duty for a sixth of homebuyers. Thats a whole 16 days worth of house price falls. Yet again he has showed that this government just does not get to first base in understanding how markets work.

Posted by peter whelp @ 10:05 AM 4 Comments

The social costs are hideous - wherever the blame lies

Motley Fool: When Debt Turns To Despair

Sadly, the terrible impact of the credit crunch is becoming more and more obvious. Several stories were published this week about desperate debtors who have committed suicide (not to mention murder) after failing to see a way out of their financial troubles. And those are just the people we hear about. There may be many other thousands if not millions of people who are suffering in silence.

Posted by renting2 @ 09:41 AM 0 Comments

Employment is sound.

BBC: Holiday firm XL in administration

Tens of thousands of Britons are stranded abroad after the country's third largest package holiday group went into administration.

Posted by peter_2008 @ 09:34 AM 3 Comments

The joys of Buy to Let!

Telegraph: Britain's Dirtiest Flat?

What sort of a return do you need to have to deal with this sort of thing?

Posted by james @ 09:28 AM 2 Comments

XL gone into adminstration - All flight cancelled

XL Leisure Group PLC: XL Travel Group PLC

As of 12th September 2008 XL Travel Group PLC, The Companies entered into Administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding. The Joint Administrators cannot continue trading the business and therefore all flights operated by the Companies have been immediately cancelled and the aircraft grounded. Going forward, the Joint Administrators are unlikely to be able

Posted by debt-free @ 09:04 AM 0 Comments

Mervyn King refuses the mortgage lenders

Telegraph: Bank of England cannot save mortgage market, warns Mervyn King

"The Governor provided the market with the first details of the structure of its much-anticipated new funding system, but warned that the Bank was powerless to rescue the mortgage market." ... "He said central banks should not be regarded as a "magical piggy bank" for mortgage lenders, and that guaranteeing the mortgage market would have profound economic and fiscal consequences for decades."

Posted by quiet guy @ 01:02 AM 7 Comments

Homeowners with flexible mortgages are having the flexibility taken away

Mish's: Home Equity Line Of Credit PUT Play

Translation from the American jargon to British English: "Dear Mish, One of my colleagues received a letter from his bank this week saying that the credit limit on his MEWing facility (Mortgage Equity Withdrawal) has been reduced effective immediately. He was upset about this and the fact that reduction was immediate. My colleague said he would have taken the maximum loan if had it not been immediate. I was perplexed - do people like to borrow money even if it puts them in negative equity" Mish replies: "Consider things from the point of view of the bank. Those customers MEWing have exactly the wrong risk profile that the bank wants. Is it any wonder that banks are cutting back, even going so far as to pay customers to take away the MEW facility?" Now remember, US today = UK in 6-9 months.

Posted by drewster @ 12:44 AM 5 Comments

Thursday, September 11, 2008

The fightback starts here?

Independent on line: Brown energy package 'too little, too late'

"An industry spokesman warned that "the bill to some extent always ends up with the customer", while ministers admitted they were powerless to stop companies passing the cost. The row threatens to overshadow Labour's annual conference this month as the party's MPs joined the attack and unions vowed to hoist it to the top of the agenda". Mervyn Kohler, special adviser at Help the Aged, said: "This is a flimsy and failing package which does little to help older people struggling to cope with soaring fuel bills." (what will Brown do next to "help" house prices)?

Posted by alan @ 08:57 PM 4 Comments

Have just received an unsolicited invitation and thought I'd share it (LOL)

The Property Investor Show: Welcome to The Property Investor Show 2008...

Why are market conditions perfect for serious property investors?...Looking for an investment bargin?...Looking for property to add to your portfolio?... Looking for an overseas investment or holiday home? if yes, make sure you visit... The Property Investor Show, ExCeL, London Docklands, 19-21 September 2008. Assetz have a stand if anyone cares to attend and ask Stuart a few direct questions

Posted by jack c @ 06:56 PM 4 Comments

So will we see a stand off between BoE and Treasury?

FT: UK should not take US lead in mortgage guarantees

In the case of mortgage guarantees, it would be a grave mistake if the UK took the US lead and added implicit, let alone explicit, guarantees to mortgage lending in an effort to unjam the credit market.

Posted by peter_2008 @ 06:24 PM 1 Comments

Nouriel, Mohamed El-Erian, Gretchen Morgenson

Charlie Rose Show: Fanny Mae and Freddie Mac

Who was to blame, where we go from here, and why the rest of the world will no longer support the USA as enthusiastically as they always did? Will US treasuries get dumped in future? Why does the US need to be nice to China & Russia? Where is the bottom? Soon, 40% under water leading to "jingle mail".

Posted by alan @ 05:56 PM 0 Comments

Nothing like hyping up the past ...

Times Online: The 20 best places to buy a property in Britain.

Just received this, thought it was good for a laugh. Or a cry. "you might not think this is the best time to buy, unless you really have to. Get the location right, however, and you should have nothing to worry about" ...

Posted by fahrenheit451 @ 05:06 PM 4 Comments

Once Upon A Time In Cookoo Land......

Stroud&Swindon: The 1,000,000 First-Time Buyer Home

This is hilarious......I just can't stop looking back at these ridiculous claims that were being made only last year. These people should be publicly ridiculed for such outrageous and quite frankly, irresponsible past predictions. These are the sort of press releases that scared the living daylights out of many FTBs and encouraged them into buying a shoe box for 250k. (I know its old, so sorry if its been posted before)

Posted by hash browne @ 05:06 PM 10 Comments

He also points to the SLS being extended to include new mortgages though for less time

BBC: No let up in inflation warns King

The Governor of the Bank of England has warned MPs that inflation, now at 4.4%, is set to exceed targets once again.

Posted by holding out @ 02:12 PM 14 Comments

The re-distribution of wealth has created filthy rich equal society....

The Renegade Economist: Nothing Has Succeeded Like This Failure

Banking bonuses are partly responsible for the current global financial problem. There is no real counter argument and the ones bandied about all boil down to the same mindless excuse that international arms dealers use: If I didnt do it someone else would. A vast proportion of bonuses were awarded for reckless lending. The painful irony is that these bonuses will be reinvested for yet higher returns, creating more bubbles that will eventually burst spectacularly leaving the taxpayer to - once again - get out the mop bucket. This collateral damage is the cost of war - albeit economic.

Posted by neo-serf @ 12:57 PM 3 Comments

The public have no faith in the MPC sticking to, and achieveing, what they are mandated to do.

The FT: Britons expect prices to keep rising

...The survey is closely watched by the Banks Monetary Policy Committee which sets interest rates. Bank Governor Mervyn King, who will answer questions on inflation on Thursday morning before the Treasury Select Committee, has said that it is necessary to set monetary policy that not only addresses inflationary pressures today but expectations of it in the future as well... If this is to be believed it can only mean strong interest rate hikes.

Posted by another alan @ 12:43 PM 2 Comments

If USD stays strong -> deflation, if USD drops again -> inflation

Market Oracle: US Dollar Rally Signals a Severe Deflationary Depression

Maybe this article over-simplifies things but it seems to make good sense, especially the last few paragraphs. Sorry if you find it off topic. I find the deflation/inflation discussion important to how I try maintain my savings before buying a house in a few years time. "Therefore, anyone with a one-way bet on deflation could be wiped out if we experience one or two highly-inflationary periods along the way."

Posted by mountain goat @ 12:41 PM 18 Comments

Two families have warned of the dangers of entering into sale-and-rent-back property agreements.

BBC News: Families' property scheme warning

The dangers of sell and rent back:- People ending up homeless, and being asked for 27k fee while being owed 18k by Home Assured Limited.

Posted by fly by night @ 11:52 AM 6 Comments

The government can't stop the recession but it can make it worse

MoneyWeek: The government can't stop the recession but it can make it worse

The only way out of the credit crunch is for us all to stop spending and save more but that's the last thing the Government wants, says John Stepek. The trouble is, history shows that when governments try to buck the market, they usually make things worse.

Posted by damien @ 11:26 AM 5 Comments

Some lovely Graphs to look at..

BBC: The downturn in facts and figures

This is a nice graphical representation of the collapse of a nations economy

Posted by george monsoon @ 11:22 AM 10 Comments

1 Billion to 300M - WOW

The EC expects the UK to shrink by 0.2 per cent in two successive quarters

Times Online: Europe predicts UK will fall into recession

"The EC's forecast tallies with the Organisation for Economic Co-Operation and Development (OECD) which recently singled out Britain as the only G7 economy that will fall into recession duing the second half of 2008. Economists have said the downturn could continue into next year. Howard Archer, chief UK and European economist at Global Insight, said: " We expect the UK economy to contract modestly for three successive quarters from the third quarter of 2008." "

Posted by disillusioned @ 10:27 AM 0 Comments

A nice summary: "the clear message is prices are going down."

myfinances.co.uk: Where is housing market heading?

Hometrack HPI - August: House prices fall 0.9%. Annual house prices fall 5.3%. Halifax HPI - July: House prices fall 1.8%. Annual house prices fall 10.9%. House prices continued to decline in August Nationwide HPI - August: Property prices slip by 1.9%, falling for the ninth consecutive month. Land Registry - July: Annual house price growth declined to -2%, the 11th monthly fall in a row in July. Rightmove HPI - August: Asking prices fell 2.3%. Rightmove says number of new sellers hits historical August low Bank of England lending figures - July: Number of mortgages approved falls to new low. Rics - In August, 81% percent more chartered surveyors reported a fall than a rise in house prices, a decrease from 83.1% in July. it's hard to see prices going anywhere but down well into '09

Posted by disillusioned @ 10:20 AM 7 Comments

Roll Up! Roll Up! Free Capital Growth!?

Belfast Telegraph: Buy a Donegal holiday home... get a Bulgarian apartment free

Northern Ireland people buying a holiday home in Donegal are being offered a free apartment in Bulgaria in an amazing buy one get one free deal. It is a unique position for any buyer to be in suddenly becoming the owner of a holiday investment property which has the potential for income and capital growth in the medium term. Desperate measures for desperate times !

Posted by nargog @ 09:27 AM 0 Comments

The destruction of private home ownership is happening right before your eyes

Workers World: Govt gives away billions to big mortgage bankers

Technically, the government has set up a conservatorship that has the option to buy almost 80 percent of the common stock at low prices and manages the business. About 20 percent of the stock is still privately owned, but its value has decreased drastically in the past year. Entire working-class communities have been destroyed as the tidal wave of foreclosures continues to surge across the country, leaving boarded-up windows and for sale signs in its wake. But the federal government has done absolutely nothing of substance to help the millions of workers affected by foreclosures. Meanwhile, over the past year, the government has rushed to the aid of nearly every investment bank and financial institution affected by the housing market meltdown.

Posted by debtfree @ 08:35 AM 0 Comments

2009 should be interesting

Chicago Tribune: Consumer debt defaults looming large

With more people out of work, that likely means many are having a tougher time paying their bills. If that leads to a surge in defaults on debt assets beyond just mortgages, such as credit cards, auto loans and more, we can forget about the credit crisis being over any time soon. Of particular concern is what happens with the more than $2 trillion in consumer debt. That may be a fraction of the more than $12 trillion in residential mortgage loans, said Zandi, but it still is large, comparable with all the goods and services produced by France in 2007.

Posted by debtfree @ 08:23 AM 0 Comments

Nowhere to live in a 1st world country

This is Hull and East Riding: Council's three-year plan to tackle record-high waiting list for homes

Another classic example of how Labour, property developers and the BTL brigade are destroying the lives of thousands. Is this what they want ? Gillian Blackburn, 52 could not afford to rent a place of her own after her marriage broke up so she is having to rent a property with her eldest son, 37-year-old Mark Shepherd. Her younger son, 32-year-old Paul Shepherd, lost his home after being made redundant by a house building firm and is now also on the council's waiting list. Melton council house tenant Trevor Hulse, who is vice-chairman of the East Riding Tenants' Forum, warned housing problems are reaching crisis point. He said: "There will be a crisis with all these repossessions because there is nowhere to put people." !!!!!

Posted by debtfree @ 08:16 AM 5 Comments

Wednesday, September 10, 2008

Stuff the neighbours you can now build that extension without planning consent.

Telegrath: Householders can convert lofts and extend homes without planning permission

No need to buy that 4-bed house now as from next month, extensions of up to two storeys will not require planning consent as long as they extend no more than 10ft from the back of an existing property enough for a small kitchen or spare bedroom. A Loft conversions can add that 5th bedroom and will also be allowed without planning consent, as long as they are no more than 50 cubic metres in size roughly the equivalent of a room 18ft by 12ft. I

Posted by enuii @ 11:30 PM 9 Comments

Watch US Banks fail in real time!!!

feedba.cc: Bank Closure Map

Posted by mountain goat @ 10:32 PM 5 Comments

USA leads where UK will surely follow....

FT: In search of a floor: Is Americas house price crash at last bottoming out?

For Leon Belenky, the low came at the beginning of summer. Everybody was sitting on the sidelines, says the Florida real estate broker. They were waiting to see what was going to happen and no one was buying. *Long article, but worth a read, and nice graphs.....The same trend to happen here in the UK?

Posted by whostolemyendowment @ 07:16 PM 4 Comments

At the sharp end

Times: Price of auctioned homes down 25% in a year

The price of houses sold at auction has fallen by almost a quarter during the past year, according to figures highlighted by the Liberal Democrats. The average price of the 3,993 houses sold by auction between June and August this year was 130,400 23.4% lower than the 170,300 average achieved last year. Matthew Oakeshott, the Liberal Democrat Treasury spokesman, said: These dramatic figures show just how fast house prices are falling at the sharp end."

Posted by little professor @ 06:37 PM 4 Comments

Roubini Attacks F&F Bailout

RGE Monitor: Comrades Bush, Paulson and Bernanke Welcome You to the USSRA (United Socialist State Republic of America)

"For the last twenty years after the collapse of the USSR, the fall of the Iron Curtain and the economic reforms in China and other emerging market economies the world economy has moved away from state ownership of the economy and towards privatization of previously stated owned enterprises. This trends was aggressively supported the United States that preached right and left the benefits of free markets and free private enterprise. Today instead the US has performed the greatest nationalization in the history of humanity."

Posted by mountain goat @ 04:23 PM 19 Comments

Cantor Spreadfair, the housing spread betting firm latest

mortgagestrategy: Cantor predicts 19% house price fall by 2010

Cantor Spreadfair, the housing spread betting firm which allows investors to bet on the Halifax House Price Index, is predicting house prices will fall 19% by 2010. It predicts the average UK and Greater London house price will be 141,500 in December 2010, a 19% drop on the current 174,178 average on the Halifax index. This represents a drop in value of approximately 33,000 over the next 27 months.

Posted by jack c @ 03:57 PM 9 Comments

Could this be the big Bank failure Kenneth Rogoff (former IMF chief economist) predicted back in August

Citywire: Lehman Brothers to restructure after $4 billion loss

Lehman Brothers, the fourth largest US investment banking group, has announced plans to restructure its business as it reported a massive third quarter net loss of nearly $4 billion and slashed its dividend.The third quarter loss compared with Lehman's net loss of $700 million in the second quarter.Lehman shares fell 45% after Tuesday's news it had lost backing from the Korean Development Bank, forcing the investment bank to bring forward its third quarter results statement. The news prompted credit ratings agency S&P to put the banking group's single A credit rating on creditwatch negative.

Posted by jack c @ 03:19 PM 3 Comments

"stamp duty suspension may well prove to be yet more useless tinkering"

Citywire: Property: Stamp duty holiday - tonic or poisoned chalice?

The governments stamp duty holiday is a misdirected response to the problems in the housing market that is set to benefit only a small proportion of home-buyers. While there is no doubt that the stamp duty freeze announced last week by chancellor Alistair Darling will be welcomed by first-time buyers, lenders and intermediaries, it is doubtful whether it will do much to kick start the market while prices are still falling.

Posted by jack c @ 03:07 PM 0 Comments

Moral breakdown in the US property market

theTRUMPET.com: Economic Breakdown: Result of Moral Breakdown?

I love their term "buy and bail", referring to people who buy another house cheaply and then abandon their existing mortgage, along with its negative equity. Its not just the homeowners, though, Fannie and Freddie have been up to their own shenanigans.

Posted by nubbers @ 02:39 PM 6 Comments

Quick market reaction?

Guardian: Insurance boss quits after $135m Fannie and Freddie losses

The chief executive of Old Mutual, the FTSE 100listed insurance group, resigned unexpectedly this morning after it admitted losing $135m through the nationalisation of Fannie Mae and Freddie Mac.

Posted by peter_2008 @ 02:38 PM 0 Comments

Steady Eddie (George) former BOE chief now telling us that UK is "fundamentally sound"

moneymarketing: Ex BoE governor Eddie George says UK financial system is sound

Former Bank of England governor Edward George says the response to the Northern Rock crisis was well judged but further regulation risks strangling the financial system. In a new pamphlet from think tank Politeia titled Banking on Stability, Lord George explains what has happened to the financial world and what course is best to restore financial stability.According to the former governor, the official reaction to Northern Rock was well judged to calm the system without setting a dangerous precedent. He says the system itself has adjusted and is fundamentally sound but warns that further regulation risks throttling the system: The buck, must stop with management and shareholders he says.

Posted by jack c @ 02:37 PM 1 Comments

the solar cycle , boom n bust

market oracle: solar cycle

The govenor is sleeping now so come back after lunch gentleman.

Posted by campin @ 02:01 PM 0 Comments

nothing to do with HPC but a good lesson on how to handle money aimed at Mr Brown

usa today: Oil boom creates millionaires and animosity in North Dakota

"I don't have a lot of wants," says Lystad, a retired science teacher with a well on his property "I don't want a lake cabin in Minnesota. I don't want to travel to Tibet." His biggest splurge: a new two-car garage. "These are cautious, conservative people who are used to having good years and bad years and know you have to save for the bad years," Gjovig says "They're not spending money wildly."

Posted by mark @ 01:57 PM 0 Comments

Where does the federal fund machine end ?

USA Today: States running out of money in jobless funds

The sharp rise in joblessness is draining unemployment insurance trust funds in many hard-hit states, setting the stage for a federal bailout to keep the funds solvent. The unemployment rate reached a five-year high of 6.1% in August, putting the number of jobless people at 9.5 million, up 2.4 million from a year earlier. About one-third of the jobless collect unemployment insurance from state governments.

Posted by debtfree @ 12:55 PM 5 Comments

was that the R word?

yahoo: EC Slashes UK Growth Forecast

The European Commission has slashed its UK economic growth forecast for 2008 and warned that the nation is headed for recession this year. The Commission cut its UK forecast from 1.7% to 1.1%, while the Europe-wide prediction was revised from 2% to 1.4%. Its interim report predicted that the British economy would shrink in the third and fourth quarters of 2008. Germany and Spain were also tipped to enter recession this year.

Posted by mark @ 12:17 PM 5 Comments

The bank is in talks with BlackRock Inc to sell a package of British real estate assets

Reuters via truthseeker: Lehman uncertainty weighs on world shares

World stocks headed for last week's two-year low on Wednesday as worries over the fate of U.S. investment bank Lehman Brothers grew after Korean Development Bank said talks on investment had ended in disagreement. The low-yielding yen trimmed losses while safe-haven government bonds also pared losses after KDB said it has ended talks for now with Lehman because of disagreement over terms and its assessment of financial market conditions. Lehman, a casualty of the one-year-old credit crunch, is bringing forward the release of quarterly results and key strategic initiatives to 1130 GMT after its shares sank to a decade low on Tuesday on growing concern over its ability to raise capital.

Posted by malct @ 12:15 PM 5 Comments

Inflation? I don't get it, but this guy does

Seeking Alpha: Stagflation or Deflation?

The Federal Reserve obviously wants to hide how much liquidity they are flooding into the market. One thing is sure. The explosion of total money will result in an explosion of inflation. It must.

Posted by gardeniadotnet @ 11:56 AM 23 Comments

Are auctions a sign of what's to come?

The Guardian: Housing: UK property auction prices slump 23%, while loans to first-time buyers hit record low

The average price of the 3,993 homes sold at auction between June and August was 130,400 - down 23% from 170,300 in the same period a year ago according to a LibDem survey. "Auctions are the sharp end of the housing market where real deals show the prices paid by real buyers. The published house price indices are well behind the game."

Posted by ontheotherhand @ 11:45 AM 5 Comments

Lawz Kru back in town

MoneySense: A new level of madness: holiday home remortgaging

'Just as we thought that the nation was gradually coming to its senses about property, a press release arrives from a "specialist property finance broker" Assetz Finance. It suggests that those wishing to raise funds in the UK to buy property or to "help their children buy their first home" do so by taking out mortgages on any foreign properties they own.'... I love Merryn's sarcastic quote marks :-D

Posted by crutchley @ 11:16 AM 5 Comments

Para-going, Para-going, Para-gone

FT: Paragon seeks new cashflows

Paragon has insisted it is not looking for a buyer but it is continuing to seek new funding avenues. John Heron, managing director of the buy-to-let specialist lender, said Paragon had entered into discussions previously with parties interested in buying the firm but it was not actively seeking out a buyer. He said Paragon was "absolutely" intending to return to the market - "It is very important to us to get back into the market in due course. What we require is a return in confidence to the market in the UK. We absolutely believe the competitive market will return." Mr Heron said while he expected the number of buy-to-let loans to fall further in the third quarter of 2008 he believed the market would begin to stab

Posted by jack c @ 10:56 AM 3 Comments

Madness!

Barratt homes has said it said it won't pay a full-year dividend due to a 13% drop in pretax profit.

Property Week: Barratt cuts dividend as homebuyers remain gloomy

Housebuilder Barratt Developments today said it would not pay a full-year dividend after revealing a 13% drop in pretax profit to 392.3m. When one-off items such as impairment of goodwill and intangible assets were taken into account profits dropped 68% to 137.3m. The company said that forward sales at 30 June were 697.6m, a 51% drop on the year before. -

Posted by claire @ 09:34 AM 0 Comments

I see he's

Reuters: Chancellor attacks financial sector bonus culture

In a speech to a trade union conference in Brighton, Darling said excessive bonuses were one of the main causes of the current market turmoil.

Posted by matt_the_hat @ 09:17 AM 14 Comments

London Courts Threat to Status as Finance Center

Bloomberg: Bloomberg

Sept. 10 (Bloomberg) -- London can't say it wasn't warned. Over the past year, people have been arguing that the rising tax and regulatory burden of doing business in the British capital threatened its status as a world financial center.

Posted by cantonf @ 08:41 AM 0 Comments

More chav fodder

Mirror: Record slump in first-time buyers

The housing crisis lurched from bad to worse yesterday as the latest figures revealed a record slump in first-time buyers.

Posted by matt_the_hat @ 08:34 AM 10 Comments

Why not just drop the price?

Telegraph: Barratt to shield homeowners from falling house prices

Housebuilder Barratt has said it is prepared to shield homebuyers from a fall in house prices in a desperate bid to inject some life into Britain's slumping property market. The struggling builder this morning unveiled an unprecedented offer of paying up to 15,000 of stamp duty for buyers - as well as two other incentives offering a part-exchange plan and a three-year guarantee 'price promise.' Under the shared equity scheme, the buyer bears 75pc of the cost and the housebuilder gives out a 10-year interest-free loan worth 25pc. Under the price promise, if a house sells for less than it was bought for within three years, Barratt will refund up to 15% of the difference. Barratt has been forced to write down the value of its land bank by 208.4m, and profits fell 68%.

Posted by little professor @ 08:12 AM 27 Comments

Barratt still making profit, but for how long?

BBC News: Barratt profits hit by downturn

UK housebuilder Barratt Developments has reported a steep fall in profits as the property slump begins to bite. The firm, which is cutting more than 1,000 jobs, said profit before tax totalled 137.3m in the year to 30 June, down 68% from a year earlier. But Barratt said in light of "the extremely challenging market", the results were satisfactory.

Posted by webmaster @ 08:05 AM 2 Comments

Fannie and Freddie Bailout Doomed, Lessons from UK Northern Rock Bust

The Market Oracle: Fannie and Freddie Bailout Doomed, Lessons from UK Northern Rock Bust

One of the aims of the take over of the Fannie and Freddie by the US Government is to stabilize the housing market by taking over and providing liquidity to the mortgage market is doomed to fail. In the UK we have the example of the Northern Rock bank bust of Sept 07 and what subsequently transpired over the last 12 months as a possible guide of key assumptions being made now in the US that could prove to be wrong.

Posted by nadeem walayat @ 07:14 AM 1 Comments

The dollar is in the midst of a multi-year bull run, believes Win Thin, senior currency strategist at Brown Brothers Harriman

cnbc: Dollar in a Multi-Year Bull Run: Analyst

The dollar is in the midst of a multi-year bull run, believes Win Thin, senior currency strategist at Brown Brothers Harriman

Posted by big chris @ 07:02 AM 25 Comments

Worst house sales in 26 years in New Zealand

stuff.co.nz: House sales plunge

We are starting to set records here in NZ too. Prices down 5.7% and worst sales in 26 years. Can we catch the Poms up?

Posted by andyh @ 06:42 AM 2 Comments

What is it like to be an estate agent?

BBC: What is it like to be an estate agent?

Would n't you like to know !! It used to just be a question of throwing properties out there and seeing who catches them ..... Not anymore it aint !

Posted by frustrated gardener @ 12:01 AM 4 Comments

Tuesday, September 9, 2008

To counter the ridiculous Channel 4 headlines...

Telegraph: First-time buyers suffer as deposits climb

First-time buyers now have to put down the largest deposit since the early 1980s in order to step onto the property ladder, new figures have revealed. The Council of Mortgage Lenders (CML) said that the average first-time buyer needed to raise a 15pc deposit of 19,400 in July, up from 13pc in the previous month. Beleaguered first-time buyers borrowed an average of 110,000 to buy a home worth 129,400, according to the CML.

Posted by tyrellcorporation @ 11:34 PM 7 Comments

Lehman Brothers Worth A Big Fat ZERO?

The Market Oracle: Lehman Brothers Worth A Big Fat ZERO?

Lehman is getting crushed today. It may not be long for this world. Bloomberg is reporting Lehman Shares Fall After Talks With Korean Bank End . Lehman Brothers Holdings Inc. fell 35 percent in New York trading after talks about a capital infusion from Korea Development Bank ended. The Wall Street firm is continuing to negotiate with other potential investors, a person briefed on the matter said.

Posted by nadeem walayat @ 11:22 PM 0 Comments

BANKRUPT Banks Wiped Out by Tulip Backed Securities, Is China Cheap?

The Market Oracle: BANKRUPT Banks Wiped Out by Tulip Backed Securities, Is China Cheap?

The US governments takeover of the bankrupt Fannie Mae and Freddie Mac on Sunday is reminiscent of the UK governments nationalization of Northern Rock Bank, albeit the scale of Sundays takeover is of several orders of magnitude larger. Still the result is the same, total loss of capital for the shareholders. I won't repeat the dynamics of what has transpired on Sunday as the volume of similar articles speak for themselves.

Posted by nadeem walayat @ 11:21 PM 1 Comments

The great mortgage robbery

Independent: The great mortgage bail-out

"Pressure is already growing for the US's unprecedented rescue of the mortgage market to be replicated in the UK, despite some concerns about its long-term effectiveness." Only days after the US nationalises Fannie Mae and Freddie Mac, our bankers and politicians are thinking about doing the same with our tax money.

Posted by quiet guy @ 10:46 PM 9 Comments

HPC front page chart referred to in Fintag's daily Newsletter on 9 September

fintag.com: Fintag Daily News Letterhttp://fintag.com/

This newsletter is sent out to the Hedge Fund Community. "Fintag says This is quite obvious as house prices need to revert to mean. Take a look at this chart from housepricecrash.co.uk. It is obvious that prices are at least 25% if not 40% above what is normal."

Posted by cash buyer @ 05:27 PM 1 Comments

Lehman is next

Reuters: Lehman sinks as much as 40 percent on liquidity worries

Lehman Brothers Holdings Inc shares fell as much as 40 percent to their lowest level in nearly a decade on Tuesday on growing concern that Wall Street's fourth-largest investment bank would be unable to raise needed capital.

Posted by mountain goat @ 05:18 PM 2 Comments

Good summary article of recent housing news

Thisismoney: Homebuyers hit by triple property whammy

Homebuyers were dealt a triple blow today following the release of three new reports, each painting a grim picture of a British housing market in deepening crisis.

Posted by whostolemyendowment @ 05:03 PM 0 Comments

From the channel that brought you property porn

Channel 4 news: Mortgage rates 'continue to fall'

If you have 25% deposit, and don't mind stumping up the arrangement fee, then the rates are falling....but then again if you've got plenty of money then wait a while longer, cut out the middlemen, and buy cash! If the average house price is say 175K, the average joe is unlikely to have +43K sloshing around. If you already have a house which you wish to sell to release the equity to put as a deposit on another 'better / bigger / smaller / urban / rural...pad - delete as applicable - then selling it is your first hurdle! I thought the reason for wanting a mortgage was that you needed 'a loan' to buy a house, obviously reducing the loan amount by putting in a deposit that you could afford without swallowing up all your liquid assests......or am a I wrong?

Posted by whostolemyendowment @ 04:57 PM 0 Comments

Interest rates on the way down soon .....

DailyFX: British Pound Experiences Heavy Volatility Trading in Massive 500 Point Range

The DailyFX reckons the record falls in factory input and output prices are causing futures markets to price in large IR cuts by the BoE. "Thus, from a fundamental perspective, downside risks remain for the British pound. However, the currency is also greatly oversold, and as Senior Strategist Jamie Saettele notes, the British pound could be nearing a turning point." But the softening economy and broke banks should put paid to any house price rebound. Unless Gordon starts fiddling with the Special Liquidity Scheme of course....

Posted by voiceofreason @ 04:42 PM 10 Comments

Shopping blues

CNN: Shopping blues

Another recession indicator: Bankruptcydata.com reports that 15 major retailers have filed for bankruptcy this year, compared with seven in all of 2007. Here's a sample of recent victims.

Posted by mark @ 03:43 PM 0 Comments

Arguable?

The Daily Mash: US Becomes World's Biggest Council Estate

With the nationalisation of the country's biggest mortage companies, Washington can now begin painting all the front doors the same colour and filling the gardens with rubbish.

Posted by lukeskywalker @ 03:40 PM 0 Comments

US federal government will run a record deficit in 2008

Associated Press: Estimates say fed budget deficit nearing $407B

And this is before the F&F bailout. That will go on next years budget deficit, estimated at $482 billion. Now tell me again all the reasons for the $ rally?

Posted by mountain goat @ 03:33 PM 10 Comments

Like the Sun, the Mirror now also calls it........." A CRASH"

Mirror.co.uk: House sales crash to 30-year low

House sales have crashed to a 30-year low as the mortgage famine worsens.

Posted by housebear @ 02:29 PM 7 Comments

Sterling being seen as a dodgy currency

Bloomberg .com: Totnes Pound, Brixton Brick challenge Sterling

Local communities are starting their own currencies as they are worried about the stability of Sterling. In Totnes they are even considering issuing their own credit cards based on their local currency. A sign of things to come ? 'The next step is find someway to back the currency with something other than sterling ' Perhaps Gold ? one for the gold bugs out there. I can see this taking off . Wonder what the exchange rate to the Euro will be ? Any jokes about the Brixton Brick going up in smoke will be quashed ..

Posted by timbuk3 @ 01:56 PM 3 Comments

The credit crunch has caused house prices to dropped by 3.4 per cent over the last year, according to the latest figures from estate agents Chesterton.

FT: Prices fall across all regions and all property types

The Chesterton House Price Poll of Polls for August, compiled by the Centre for Economics and Business Research (CEBR), revealed house prices fell in all regions and across all property types in August. The average price of a residential property in England and Wales fell to 188,431 in August, down 1.1 per cent from July. Meanwhile, a year ago the average house price was 195,192. Terraced houses suffered the biggest decrease, experiencing a 0.7 per cent drop in month-on-month prices. Meanwhile, the average house price in London was 0.9 per cent lower than in August 2007.

Posted by jack c @ 12:43 PM 0 Comments

July 2008 mortgage lending down 51% on July 2007

BBC: Mortgage lending steady in July

Mortgage lending steadied in July, according to the latest figures from the Council of Mortgage Lenders (CML). That month 47,000 new loans were made to home buyers, the same as in June. However that was still 51% fewer than a year ago, reflecting the slump in mortgage lending due to the international credit crunch. The CML said first-time buyers were still being squeezed out of the market, having to put down larger deposits and less able to borrow as much money.

Posted by jack c @ 11:29 AM 16 Comments

New plea for Brown to save house market

Thisismoney: New plea for Brown to save house market

Gordon Brown is under growing pressure to follow America's example and rescue the British housing market. The US Government's dramatic weekend decision to bail out its biggest mortgage companies set off a surge in share prices around the world. It also exposed the timidity of the British government when faced with the meltdown at Northern Rock and the collapse of property sales. - Check out the comments below the article, is seams the real 'plea' from the public is for him to NOT save the housing market and stop MEDDLING.

Posted by alanl @ 11:13 AM 10 Comments

Fannie and Freddie bail-out: a great opportunity to sell

MoneyWeek: The US bail-out is a great opportunity to sell

Stock markets' 'relief rally' on the back of the Fannie and Freddie bail-out is premature, says David Stevenson. The rescue won't cut US house prices and it won't help unemployment. And in Europe, companies have their own set of problems to deal with...

Posted by damien @ 11:04 AM 5 Comments

nice to see some honesty (do you hear me Gordon)

cnn: Fannie, Freddie rescue won't end housing woes

Baker added that even with home prices declining at a rate not seen since the Great Depression, the housing bubble hasn't completely deflated yet. In fact, some argue that considering the rise in home prices during 1996 to 2006 when compared to inflation, incomes and rents during the same period, home values need to fall another 50% in order to get back to normal.

Posted by mark @ 10:44 AM 0 Comments

More gloom from the EAs

RICs: RICS UK housing market survey, August 2008

Always good to read the EA comments at the end of the survey - My best laugh of the month

Posted by wdbeast @ 10:09 AM 4 Comments

I do love an understated headline

MarketWatch: A $75 trillion fright fest Eight megahorror debts chilling America

America's out of control, drowning in debt, gorging: $75 trillion and getting worse. Now we're dumping Fannie and Freddie on America's balance sheet. Every year we pile trillions more on future generations.

Posted by gardeniadotnet @ 09:29 AM 4 Comments

They actually call it what it is.......A crash !!

The Sun: House prices to 'crash by 25%'

HOUSE prices could plummet by as much as 25 per cent, according to the UKs biggest building society.

Posted by housebear @ 09:12 AM 20 Comments

Fannie and Freddie Bailout Destined to Fail

The Market Oracle: Fannie and Freddie Bailout Destined to Fail as US Debt Doubles

With Sunday's announcement of the most massive federal bailout of all time, it's now official: Fannie Mae and Freddie Mac, the two largest mortgage lenders on Earth, are bankrupt. Some Washington bigwigs and bureaucrats will inevitably try to spin it. They'll avoid the "b" word with vengeance. They'll push the "c" word (conservatorship) with passion. And in the newspeak of 21st century bailouts, they'll tell you "it all depends on what the definition of solvency is."

Posted by nadeem walayat @ 09:04 AM 1 Comments

Estate Agents report worst figures since reporting began

Property Week: RICS: Housing sales fall further

The average number of completed house sales per surveyor fell further in August as a lack of mortgage finance continued to stifle the ability of buyers to access the market said the RICS. In its UK housing market survey published today it said that 81% more surveyors reported a fall than a rise in house prices, a decrease from 83.1% in July. While the average number of transactions recorded per surveyor for the past three months is at 12.7 which is the lowest figure since the survey began with some estate agents in a number of regions reporting less than one sale per week.

Posted by peter whelp @ 08:30 AM 0 Comments

china crisis looming?

the new york times: Main Bank of China Is in Need of Capital

It has been on a buying binge in the United States over the last seven years, snapping up roughly $1 trillion worth of Treasury bonds and mortgage-backed debt issued by Fannie Mae and Freddie Mac. Those investments have been declining sharply in value when converted from dollars into the strong yuan, casting a spotlight on the central banks tiny capital base. The banks capital, just $3.2 billion, has not grown during the buying spree, despite private warnings from the International Monetary Fund.

Posted by sold out @ 08:26 AM 22 Comments

Nu Term for Zanu Labour

Times online: Gordon Brown's gang goes back to school

It was the first day of the new school year at St Titanic's and all the senior boys and girls went on an away-day to Birmingham wearing their best suits, new haircuts and we will survive smiles.

Posted by sold out @ 08:16 AM 3 Comments

The American actions have cleared the way for Darling to do as he pleases

Times: Chancellor Alistair Darling ready to act on mortgage market

"Alistair Darling is preparing to intervene to stimulate Britain's dormant housing finance market, according to senior government officials. Key elements in the Crosby report that Mr Darling is considering most closely are those to renew or extend the Bank of England's Special Liquidity Scheme (SLS) and another to create a government guarantee for high-quality mortgage securities. The latter could help to create investor demand for the quasi-government bonds, assisting lenders to sell on their loans and so increase the supply of finance for lending." ----- Now that the Americans have showered the bankers with taxpayers money, Darling thinks this has made it ok for him to do the same.

Posted by drewster @ 02:46 AM 4 Comments

More pwnage from RICS

Telegraph: Estate agents struggle to sell one property a week

The slump in the UK property market continued in August, with some estate agents selling fewer than one home per week in the past three months. That meant that sales were running at levels 47% lower than in August last year. The Royal Institution of Chartered Surveyors (Rics) said sales were at their lowest level since its monthly survey started in 1978. The balance of surveyors saying prices fell exceeded those reporting gains by 81 percentage points, compared to a downwardly revised 83 percentage points in July. RICS called on the Government to take more action to restore the confidence in the housing market.

Posted by little professor @ 01:46 AM 10 Comments

30 years, 40 years, 50 years..and on and on

BBC: Home sales at lowest for 30 years

The slump in the UK property market continued in August, with some estate agents selling fewer than one home per week in the past three months.

Posted by peter_2008 @ 01:43 AM 2 Comments

Received wisdom says house prices will keep rising because of all the immigrants. What if the immigrants leave?

Times: Like house prices, immigration could fall too

Most of today's papers talk about Fannie & Freddie, but here's an article less obviously related to house prices. "WE NOW LIVE IN AN ERA of high mobility and rapid demographic change, and - like house prices - what has gone up can come down. For example, the migration assumptions underlying government predictions [...] are very probably too high. Already about half of those economic migrants who came to Britain from Eastern Europe after 2004 have left. The number of applications for work entries fell by more than 20 per cent between comparable periods in 2007 and 2008. You don't have to be Nostradamus to realise that the coming recession will see that drop further, possibly dramatically. The predictions, then, are pretty worthless."

Posted by drewster @ 01:13 AM 1 Comments

Monday, September 8, 2008

Who is pulling the strings on this rapidly done deal?

Times: Nationwide is not the lender of last resort

The deals are being rushed through by way of a clause in the Building Societies Act, under which society boards can forgo the normal process of consulting their members if they get the blessing of the Financial Services Authority (FSA). Despite pressure from regulators to get a deal done, Nationwide did not automatically agree. We made it clear to the FSA we could walk away, Mr Beale, who has been chief executive since April last year, said.

Posted by enuii @ 10:49 PM 5 Comments

Anti-Property-Porn

Channel 4: The price of property

In this four-part landmark series, journalist Jon Henley embarks on a journey around the UK to discover how the pursuit of property ownership has changed the country. Combining archive material with aerial footage to show the impact of property on the landscape, The Price of Property reveals the social history that has shaped the housing market and explores the profound effect this has had on the face of Britain.

Posted by peter_2008 @ 10:09 PM 4 Comments

Squeaky bum time?

FT: US move triggers CDS default

One of the largest defaults in the history of the $62,000bn credit derivatives market has been triggered by the US governments seizure of Fannie Mae and Freddie Mac, raising questions about how dealers will unwind billions of dollars worth of contracts. Although the $1,600bn of debt issued by the troubled mortgage groups is regarded as safe after the US governments move to take control of the companies, their move into conservatorship counts as the equivalent of a bankruptcy in the credit derivatives market.

Posted by eyes_wide_open @ 08:20 PM 0 Comments

You simply could not make this stuff up

Yahoo Finance: US Is "More Communist than China": Jim Rogers

Fraternal greetings comrades from the Soviet Socialist States of America.

Posted by trendinvestor @ 08:17 PM 0 Comments

The pound may be ``massively overvalued against the dollar,''

bloomberger: `Overvalued' Pound to Fall 20% as Darling Despairs (Update3)

Currency traders are starting to take the British government at its word, putting the tumbling pound on course for the worst year since 1992. The pound is about 20 percent too strong against the dollar, even after falling more than 10 percent this year, according to New York-based International Foreign Exchange Concepts Inc., the world's biggest currency hedge-fund company. Futures traders became more bearish on the U.K. currency than at any time in the past 16 years.

Posted by malct @ 08:05 PM 11 Comments

Biggest US Savings & Loan Corp dumps CEO

Bloomberg: WaMu Ousts Killinger After Losses; Fishman Named CEO

Financial institutions worldwide have racked up more than $500 billion in credit losses and writedowns. WaMu said in July that rising delinquencies on option adjustable-rate mortgages will contribute to mortgage losses near the top end of its $12 billion to $19 billion range predicted in July.

Posted by alan @ 07:23 PM 0 Comments

More crooks exposed!

Money Marketing: FSA issues warning about broker Swati Patel

The FSA has issued a consumer alert warning customers not to take advice from Leicestershire-based mortgage broker Swati Patel. Patel is a broker for Mortgage Deals 4 U Ltd, which is an authorised representative of Manchester-based network Mortgage Broking Services Ltd.

Posted by whostolemyendowment @ 06:56 PM 0 Comments

The Credit Crunch: Part II

Marketwatch: Fannie, Freddie bailout triggers credit default swaps

This news (in my humble opinion) heralds the collapse of the so called "shadow banking" system. Credit default swaps are simply a type of insurance that investors buy to protect against a bond defaulting. Given that half of the US mortgage market has defaulted and hence been bailed out by the Fed, this will likely trigger a ten-digit payout from those that saw writing this sort of insurance as free money only 18 months ago.

Posted by jackas @ 06:41 PM 13 Comments

Jean-Paul Flintoff of the Sunday Times reviews Paul Grignon's film Money as Debt. The comments read just like an HPC thread!

Times Online: No hope for the planet unless we reform economy

I've asked it before, and I'm asking it again: can we ever hope to achieve a truly sustainable civilisation while our economy depends on endlessly recycling money as debt - and on constant growth, to repay the interest? As this film (embedded) spells out, it's almost impossible for us to make a significant difference to environmental problems by installing solar panels or growing our own vegetables as long as we leave the debt-based money system unreformed.

Posted by the spaniard @ 05:49 PM 0 Comments

Party Like Its 1999!

BBC News: Housing: a Bust to Come?

SORRY if people have seen this before or indeed remember it??? BUT its very interesting how BEARISH the BEEB were once upon a time!! 8 years later and the harsh memories of the last crash have all but DISAPPEARED! or have they??

Posted by hash browne @ 05:48 PM 10 Comments

Not everyone thinks the end of the world is coming....

FT: Risk appetite returns after US rescue

...and I'm not talking about the LHC: "World equities markets surged higher on Monday and the cost of protecting corporate debt from the risk of default tumbled in the wake of the US governments decision to take control of mortgage guarantors Freddie Mac and Fannie Mae. The rescue removed the threat of the two twin giants of the US mortgage market defaulting and helped restore confidence in the global financial system." Time will tell.

Posted by jayk @ 05:43 PM 0 Comments

25% fall by 2010?

BBC NEWS: House prices 'to reduce by 25%'

The chief executive of the Nationwide Building Society has told BBC News that he thinks house prices could fall as much as 25% from their peak. This prediction implies that 2.5 million homeowners could be pushed into negative equity. Graham Beale also said he does not expect to see signs of recovery in the housing market until 2010.

Posted by sold out @ 05:23 PM 24 Comments

and it starts again...

CNN: Paulson changes the rules of the capital game

Treasury Secretary Henry Paulson has tamed the two-headed housing-market beast known as Fannie Mae and Freddie Mac - but not without adding to the uncertainty swirling through the financial sector.

Posted by mark @ 04:39 PM 1 Comments

have your say about fannie and freddie

Yahoo: When Fannie met Freddie

Does the bailout of the US mortgage giants herald a turning point in the credit crunch? What does it mean for the UK housing market?

Posted by mark @ 03:20 PM 2 Comments

So the day is saved ?

Yahoo: Mortgage takeovers 'may boost UK'

British mortgage experts have welcomed the historic US government takeover of mortgage giants Fannie Mae and Freddie Mac. The move will inject some confidence into the falling UK housing market.

Posted by peter_2008 @ 02:21 PM 0 Comments

Mortgage and borrowing levels - realistic?

HIP-Consultant.co.uk: Mortgage and borrowing levels - realistic?

We have all read and heard the recent news stories of families that are in difficult mortgage related positions, some of which immediately entered into a negative equity position. We look at realistic mortgage and borrowing options and how to formulate what amount of money can be borrowed and more importantly be repaid

Posted by hip-consultant.co.uk @ 01:52 PM 0 Comments

Nationwide Merger with Cheshire and Derbyshire Building Societies

Nationwide: Mergers of Nationwide with The Derbyshire and The Cheshire Building Societies

I reported on this on Sunday. Since then the merger has actually happened. What you won't read in the Nationwide statement, however, is that they were pressured into this by the FSA and that members of the two building societies will get no upside. See commentary here: http://www.creditwritedowns.com/2008/09/nationwide-looking-to-buy-targets-in-uk.html

Posted by edwardnh @ 01:18 PM 0 Comments

Not a shred of nobility amongst them...

The Renegade Economist: 14 Nobel Laureates

Bloomberg news reports that 14 Nobel Laureates met on August 21 2008, and two of them, at least, said in their muted academic tones and vague metaphors that the credit squeeze would inflict more pain on the economy. Good for them, but it would be more impressive if they had spoken up more timely and with more specifics.

Posted by neo-serf @ 01:17 PM 0 Comments

Hadron particle crash?

Guardian: Will the world end on Wednesday?

I'm being a bit mischievous posting this. But it does give me an idea for the ultimate up-side bet. 100-1 the Universe will survive on Wed. Anyone like to bet me, say, a quid I'm right? I look forward to reading the comments below.

Posted by letthemfall @ 12:13 PM 65 Comments

Madonna and the super-rich will start feeling the power of the crunch!

Property Week: Madonna and the super-rich hit by falling house prices

Prices for prime central London residential property dropped by 1.3% in August, the fourth consecutive month of price falls - meaning prime central London property suffered negative annnual growth for first time since 2003

Posted by peter whelp @ 12:13 PM 0 Comments

FTSE 100 up nearly 4 per cent in early trade but now "stuck" @ 5,440.2

Times: London halts trading on 'connectivity' fault

Trading on the London Stock Exchange (LSE) was halted this morning due to a "connectivity issue" on one of the busiest days of the year following America's bailout of Fannie Mae and Freddie Mac. The LSE suspended connection to the exchange before 9.00 am after some customers experienced problems. The operator admitted it was unsure when trading will restart while the cause of the problem is not yet known. The shutdown comes amid a day of frenzied trading as dealers responded to last night's 110 billion rescue deal by the US Government for Fannie Mae and Freddie Mac, the loss-making mortgage giants.

Posted by jack c @ 11:58 AM 15 Comments

More of the same but good article from Reuters - You couldn't write this stuff!

Reuters: U.S. seizes Fannie, Freddie, aims to calm markets

WASHINGTON (Reuters) - The U.S. government on Sunday seized control of mortgage finance companies Fannie Mae and Freddie Mac, launching what could be its biggest federal bailout ever, in a bid to support the U.S. housing market and ward off more global financial market turbulence. *What would you expect with a serial bankrupt having been in the Whitehouse for two terms!

Posted by whostolemyendowment @ 11:56 AM 1 Comments

It is not contained: America is going Japanese

NY Times: The Power of De

Paul Krugman, who has studied the impact of financial crises in the past, particularly in Japan, suggests that while the Fred/Fan bail-out was a necessary evil, it is taking American down a very Japanese path, straight into debt deflation. It is becoming clearer now that none of the Fed's actions are having any effect so the financial crisis is starting to get out of control, like Japan in 1990.

Posted by an bearin bui @ 11:38 AM 2 Comments

Halifax house price latest

mortgagestrategy: House prices up 76% in Liverpool

House prices in Liverpool have increased 76% since being named the European Capital of Culture for 2008 in June 2003 with some areas seeing a 188% rise. Halifax says the average price in the city has rocketed up from 79,886 to 140,842 and outstripped both the average house price growth across the North West (69%) and England (50%).

Posted by jack c @ 11:35 AM 11 Comments

The Fannie and Freddie bail-out: bad news for us all

MoneyWeek: The Fannie and Freddie bail-out: bad news for us all

'Over in the US, theyll happily let their regional banks fail. Northern Rock wouldnt have stood a chance. But while the free market ethos might be applied in some instances, the US is more than happy to invoke the too big to fail clause when it wants to.'

Posted by damien @ 11:26 AM 3 Comments

Everything you need to know about the impact of the FM deal

MISH: Paulson Rolls The Dice At Taxpayers' Expense

Mike Shedlock's view on this. I really enjoy his blog, he's an American who really knows his stuff and is well placed to comment on this. Thoroughly researched, with all the details of the costs and implications. $320 billion immediate cost. Enjoy.

Posted by beartil2010 @ 11:26 AM 0 Comments

Another worm found in the rotten woodwork!

Mortgage Introducer: FSA censures mortgage broker

The Financial Services Authority (FSA) has censured Coventry-based mortgage broker, Mr Mohammed Habib, who traded as MAH Mortgage and Finance, for failing to ensure that his customers received suitable advice.

Posted by whostolemyendowment @ 11:16 AM 0 Comments

With all the FMae+FMac in the media - this one could get missed

FT: Republican red faces as regulators close bank

A bank with ties to the family of John McCain was shut down by federal regulators on Friday, marking the 11th US bank failure this year and threatening to cause ripples across the presidential election campaign.

Posted by whostolemyendowment @ 11:10 AM 2 Comments

Grasping at straws

Arsetz: The awareness is growing of discrepancies between house price indices

Following my last blog entry on the rather worryingly large differences between different house price indices ranging from plus 0.3% to -10.9% the FT have taken up the argument and there is a very interesting podcast at http://podcast.ft.com/, just select the September 4 2008 Money Show in which I was interviewe

Posted by housebear @ 09:09 AM 17 Comments

will be -200 by the end of the day

telegraph: FTSE 100 jumps after America bails out Fannie Mae and Freddie Mac

Only in the city could they think this is good news

Posted by matt_the_hat @ 08:45 AM 16 Comments

Fall in New Zealand house prices accelerates

stuff.co.nz: House pices slide continues

Somethings are just the same wherever you live. Like house prices falling. And of course VI's trying to pretend they aren't. In NZ if your a VI house prices 'ease' they don't 'fall'. LOL.

Posted by andyh @ 03:01 AM 0 Comments

Freddie and Fannie taken over by US government

Credit Writedowns: Freddie and Fannie taken over by US government

The US government has finally stepped in to stop the bleeding. Fannie Mae and Freddie Mac, the two giant government sponsored enterprises have been taken into conservatorship and are now government property.

Posted by edwardnh @ 02:14 AM 0 Comments

Robert Peston - The BBC's answer to Max Clifford

BBC News: Fannie, Freddie, Cheshire and Derbyshire

The Credit Crunch (part 2 the sequel - Freddie Mac does Fanny Mae) is newsworthy copy and that's something Peston does best. Not satisfied with virtually starting the run on Northern Crock, auntie Beeb's answer to a Norfolk Terrier, Robert Peston has his finger on the pulse "Well there's the continued decline in the US housing market, the sorriest housing market on the globe" & "Bad news, except perhaps for our own Chancellor of the Exchequer, Alistair Darling - since the Fannie and Freddie rescue costs may well make the potential losses for the taxpayer from Northern Rock seem almost modest" - He seems to think because the FED have to potentualy print zillions to support half there mortgage market we're all right spending our GDP for year proping up the banking system and property prices!

Posted by nooneo @ 01:57 AM 11 Comments

The banks have simply stopped lending

Independent: The world depends on the two Fs

If Freddie and Fannie had been allowed to go under, what we have seen of the credit crunch thus far would have been a mere prelude to a much more profound slump - one comparable to the Great Depression of the 1930s, the last time the banks simply stopped lending. Global financial turmoil would have been the beginning of it.

Posted by gardeniadotnet @ 01:37 AM 4 Comments

No consensus

MarketWatch: Fed officials differ on inflation outlook

Two senior Federal Reserve officials differed sharply Thursday on whether the economic slowdown and the recent drop in the price of oil and other commodities would cool inflation in the months ahead and allow the central bank to avoid raising interest rates.

Posted by gardeniadotnet @ 01:02 AM 0 Comments

Sunday, September 7, 2008

The 'D' word appears with increasing regularity

MSNBC: Shiller: Housing slump may exceed Depression

Yale University economist Robert Shiller, pioneer of the widely watched Standard & Poors/Case-Shiller home price index, said theres a good chance housing prices will fall further than the 30 percent drop in the historic depression of the 1930s.

Posted by gardeniadotnet @ 11:56 PM 4 Comments

I wonder what Stuart Law is going to say?

Times Online: Video: House price crash or soft landing?

Opinion is divided on the extent of the malaise in the housing market. Here we ask two property experts to debate the future direction of the property market. Stuart Law, of Assetz, a property investment company, argues that we are heading for a soft landing while Seema Shah, of Capital Economics, a research consultancy, says there's going to be a major crash.

Posted by nooneo @ 11:24 PM 7 Comments

Fannie (bride of chucky) and Freddie (nightmare on wall street) the ins and outs

CNN: What rescue means for mortgage rates

"We may have more stringent standards over the next few weeks because of the continued deterioration," he said. "We don't know where the bottom is yet. It's a falling knife." To top of page Maybe they should ask savills they know where the bottom is.........

Posted by mark @ 08:47 PM 0 Comments

Nationwide looking to buy targets in UK mortgage market

Credit Writedowns: Nationwide looking to buy targets in UK mortgage market

Investors may not be able to reap the rewards of the swoon in shares of financial services companies but some companies like Nationwide are putting their money to good use and looking for cheap assets In Cheshire and Derbyshire it looks like Nationwide might find what it's looking for.

Posted by edwardnh @ 07:07 PM 2 Comments

What?????

The Independent: Housebuilders 'in denial' as new-home prices rise and buyers stay away

"Housebuilders are still increasing prices despite complaining of falling sales and seeking government aid." ........One rule for us...etc etc.

Posted by bystander @ 06:26 PM 11 Comments

They've been and gone and done it

CNN: U.S. seizes Fannie and Freddie

Federal officials unveiled an extraordinary takeover on Sunday of troubled mortgage giants Fannie Mae and Freddie Mac, signaling the most dramatic move to date aimed at shoring up the nation's housing market.

Posted by holding out @ 05:20 PM 24 Comments

USA Northern Crock???

Bloomberg: ulson Engineers U.S. Takeover of Fannie, Freddie

Isn't this the same as Nationalising Northern Rock, and if so which way should the dollar be heading now? I seriously doubt it will though. Will this be painted as a positive, and does this not endanger the US taxpayer to almost 3 trillion dollars worth of risk??? Excuse my ignorance.

Posted by bystander @ 04:54 PM 6 Comments

The rise and fall of an unskilled estate agent.....

The Sunday Times Business Section: Dream Job Turned To Dust

LAST September estate agent Simon Scott-Nelson celebrated. The 33-year-old had been headhunted by Knight Franks Exeter office to sell expensive waterfront properties in Devon, Cornwall and Dorset.........

Posted by pond321 @ 02:52 PM 5 Comments

Slightly off message - but still relevant to cash strapped sheeple

Firstrung: Credit card debt could take up to 31 years to repay

In the last 12 months, the Minimum Repayment Index from uSwitch.com reveals that the average repayment required has fallen from 2.65% to 2.54% (-0.11%). With over one in ten credit card holders (11%) making the minimum repayment each month, this small reduction could make providers an additional 437 million in interest...

Posted by whostolemyendowment @ 01:34 PM 0 Comments

Read the reason behind sale..lol pure spin and rubbish, why relocate if you are selling business???

startinbusiness: Estate Agent in Shropshire For Sale

It is only now being placed onto the market due to their strong desire to relocate. The business, which is run and managed by our clients with the assistance of staff, achieves a very respectable annual turnover of 60,000, which is derived from offering first class property sales services to a growing customer base. The business has seen excellent growth levels in the first year of trading and is set to increase its turnover further, ====================================================== Ha ha ha ha ha ha ha

Posted by mark @ 01:27 PM 13 Comments

Insipid article, but some top notch comments below it

BBC: 'Another 18 months of crunch'

Hornby says that two-thirds of wholesale funding traditionally received by UK banks comes from overseas, with the bulk of that coming from the US. And he fears that these US money-market investors won't resume the channelling of money to UK banks for mortgage-lending until US house prices start to recover.

Posted by gardeniadotnet @ 01:04 PM 3 Comments

Take-over update from the US

Wall St Journal: Treasury Outline Fan-Fred Plan

"The Federal Housing Finance Agency, Fannie and Freddie's regulator, is to use its legal powers to put the companies under conservatorship. Those powers allow the FHFA to run the companies indefinitely, under certain conditions, such as when the regulator finds that they are likely to be unable to meet their financial obligations. Fannie and Freddie have run up combined losses totaling about $14 billion over the past four quarters and face heavy additional losses amid the worst surge in U.S. home-mortgage foreclosures since the 1930s".

Posted by alan @ 12:39 PM 19 Comments

Squeal piggy! Squeal!

Guardian: Time to intervene to save the housing market

"The fear of recession has loomed for months, but economic facts that emerged last week alone give real cause for alarm. The London stock market fell by 7 per cent; August car sales were the lowest for 40 years; year-on-year house prices have fallen by 12.7 per cent; mortgage approvals were down by two-thirds. Optimistic forecasts suggest the economy is stagnating; it might already be shrinking." ... "Laissez faire might seem attractive as a position of ideological purity, but the theory of letting the market punish profligacy ignores the real danger of economic meltdown and the appalling social consequences that would follow. State intervention carries risk. But the apparent alternative - doing nothing to avert a national catastrophe - would be morally bankrupt."

Posted by quiet guy @ 12:33 PM 11 Comments

Are London prices actually showing the biggest reversal?

Firstrung: London house prices show negative annual growth for the first time since 2003

Prices for prime central London residential property dropped by 1.3% in August, the fourth consecutive month of price falls, according to the Knight Frank Prime Central London Index. As a result annual growth for the sector is now negative for the first time since 2003, with homes now worth 1.6% less than a year ago... The super-prime sector (10m+) has become completely detached from the rest of the market, with prices rising by 2.9% in August alone, contributing to annual growth of 19.0%. Properties in Mayfair are also weathering the storm better, with annual growth still registering at 10.3%. The cheaper the property, the more vulnerable it is to price falls - properties worth under 1m are now worth 9.2% less than a year ago.

Posted by converted lurker @ 12:31 PM 0 Comments

hear that Gordon it backfires

CNN: Housing fix backfires

Back in February, Congress passed into law a quick fix for the housing market. Unfortunately, it hasn't done much good.

Posted by mark @ 12:16 PM 0 Comments

Cartoon

Telegraph: Black hole experiment ...

One to brighten Sunday morning, and amuse both the economists and catastrophists amongst us.

Posted by letthemfall @ 10:28 AM 13 Comments

UK Banks esp. HBOS in trouble

Observer: A fifth of home loans head for negative equity

Britain's banks may have to write off 38bn of mortgage debt as plunging house prices send almost a fifth of the home loans on their books into negative equity, according to leading City analysts. Write-offs on that scale will dwarf the cost of the Nineties housing depression

Posted by mken @ 09:44 AM 0 Comments

Australia Is Next - Aussie Home Loans 8 x Earnings!

Money AU: Sydney Homes Most Expensive In World

Despite a rate cut last week Australia's housing stock in key metro's are still vastly over-valued meaning a similar UK style crash is on the cards.

Posted by ross travill @ 03:05 AM 0 Comments

Saturday, September 6, 2008

Gordon should have taken advice from this man

The Sunday Times: Lenihan to let house prices fall

There will be no reduction in stamp duty for housebuyers in next months budget, because the government has decided not to prevent the downward correction in house prices. Income tax rates are also likely to remain unchanged despite pressure on Brian Lenihan, the finance minister, to compensate for falling tax revenues from the housing and retail sectors by finding new sources of finance. Lenihan and Brian Cowen have been stressing that a downward correction is under way in the Irish housing market and that no intervention on their part should impede that process. The message from government is that builders who want to shift stock should drop their prices, said one senior political figure. Nothing that will interfere with house prices will be done in this budget.

Posted by bufferbear @ 11:44 PM 4 Comments

Nothing wrong with gazundering

The Sunday Times: House sellers hit by race to gazunder

The practice of gazundering, in which homebuyers slash the price they are willing to pay just before contracts are exchanged, has returned, say estate agents. In some areas half of all sales are being hit by gazundering, according to the National Association of Estate Agents (NAEA). We have seen a pickup in gazundering across the county and with sales of all values, said Peter Bolton King, chief executive of the NAEA. The government should stamp it out by introducing e-conveyancing and online transfers. John D Wood, the estate agent, recently sold a property in Wimbledon, southwest London, initially on the market for 3.7m, for about 500,000 less than its asking price. The agreed price was

Posted by bufferbear @ 11:31 PM 7 Comments

More negative sentiment, apart from Foxtons

The Sunday Times: Where is the housing market surviving the downtown?

Despite the government rescue plan, it may be 2011 before the housing market picks up. Is there any good news? Its official: summer is over. The children are back at school, your tan is fading fast and sandy beaches are a distant memory. Normally, the first hint of autumn chill means the housing market bursts back into life after the holiday lull. Not this year. Instead, estate agents are drumming their fingers on their desks or shutting up shop completely. Normally, the first hint of autumn chill means the housing market bursts back into life after the holiday lull. Not this year. Instead, estate agents are drumming their fingers on their desks or shutting up shop completely.

Posted by bufferbear @ 09:54 PM 6 Comments

Are first home buyers ruthless enough to exploit this market fully?

First home buyers: Rent back - buy someone's home cheap, kick them out

FirstHomeBuyer.co.uk is encouraging first home buyers to take advantage of sellers seeking a rent back scheme. Their strategy suggests that the buyer can exploit the seller for a big discount, on the understanding that the seller won't have to move. The first time the financially distressed seller misses a rent payment, the first home buyer can evict them and have a home of their own. Is this ruthless or what? When the original owner finally get's evicted out into a cardboard box, the first home buyer might even get to keep the expensive lounge suite and wide screen TV purchased interest free during the good old days.

Posted by ruthless_buyer @ 08:30 PM 0 Comments

A little bit biger than NR

Bloomberg: Paulson to take control of Fannie and Freddie

CEO's sent packing, Paulson taes charge

Posted by yoss @ 06:11 PM 2 Comments

The state we're in

Wiki: State capitalism

State capitalism is a term that is used interchangeable with state monopoly capitalism to describe a system where the state is intervening in the markets to protect and advance interests of big business. This practice is in sharp contrast with the ideals of free market capitalism.

Posted by harold @ 04:16 PM 1 Comments

Cheaper houses for all. Negative equity or not!!

telegraph.co.uk: Negative equity threat stalks housing downturn

The threat of negative equity stalks the worst housing downturn in 15 years, writes Philip Aldrick Negative equity. No two words strike more terror into the heart of the average homeowner. Unfortunately, they are words the British public had better get used to again. According to analysts at Bernstein Research, as many as 1.3m households with mortgages worth 220bn face negative equity over the coming year or so. That's one in ten of all UK mortgage holders. To get there, house prices need to fall 35pc from their peak. Given that they have already collapsed at record speed, 12.7pc, since August last year, according to the Halifax, it's far from inconceivabl

Posted by housebear @ 03:33 PM 5 Comments

What SOS ???

The Times: SOS has gone unanswered

In the unlikely event that I am ever on a sinking ship with Gordon Brown, I will remember not to rely on him to throw me a life jacket. The Prime Minister's much-heralded rescue package for the housing market announced this week was the equivalent of sending a canoe to save the Titanic. Yet much of the debate focused not on the inadequacy of the plans, but whether the Government should do anything at all. There are people who believe that Mr Brown should simply allow house prices to fall to a more affordable level. While this is superficially appealing, it ignores the relationship between the housing market and the wider economy and the awful spectre of negative equity.

Posted by housebear @ 03:25 PM 11 Comments

Btl Bargain Anyone??

houseladder: for sale 3000

There is a very good opportunity here for anyone interested in acquiring this property for a very small amount of money

Posted by waitingtobuy @ 01:55 PM 16 Comments

Savills Says.......

Daily Mail: The map that reveals how long you will have to wait until your house price recovers

Overall, Savills expects average house prices to be nearly 50 per cent higher than last year's peak by 2020 - at an average of 323,240. This is more than 100,000 higher than they were in 2007 when the average price was 220,000.

Posted by yoyo1 @ 01:49 PM 18 Comments

Won't be as bad as the 90's will it?

FT: Negative equity could hit 1.3m, says study

Up to 1.3m households could be plunged into negative equity if house prices fall by 25-35 per cent, according to a report. A study by City analysts at Bernstein said fears of negative equity were growing because house prices had fallen 12 per cent this year and significant further falls were expected, according to the index collated by HBOS. Banks such as HBOS have predicted that house prices will fall 15-20 per cent by the end of 2009. Bruno Paulson, analyst at Bernstein, believed prices could fall by up to 35 per cent from their peak in 2007 with the extent of the drop depending on the depth of any 2008-09 recession.

Posted by bufferbear @ 01:17 PM 0 Comments

They might bottom out by these years, the add 10 years to fully recover....

daily mail: The map that reveals how long you will have to wait until your house price recovers

House prices could take until 2016 to rebound to the levels they reached at their peak last year, researchers say. The findings by Savills will depress Britons who bought houses recently and face living in negative equity for up to eight years. * Still - it will give time for wages to catch up.....for those still lucky to be in work that is.

Posted by whostolemyendowment @ 11:42 AM 0 Comments

The human cost of HPC

Telegraph: Suicide of father worried by mortgage repayments

Recording a suicide verdict at the inquest in Llangefni, Dewi Pritchard-Jones, the North West Wales Coroner, said: It is becoming an increasingly common feature in cases like these for there to be mortgage problems because of the economic situation.

Posted by quiet guy @ 11:35 AM 19 Comments

Fannie Mae and Freddie Mac to be placed under federal control

New York Times: U.S. Rescue Seen at Hand for 2 Mortgage Giants

Senior officials from the Bush administration and the Federal Reserve on Friday called in top executives of Fannie Mae and Freddie Mac, the mortgage finance giants, and told them that the government was preparing to place the two companies under federal control, officials and company executives briefed on the discussions said. Henry M. Paulson Jr., the Treasury secretary, and Ben S. Bernanke, the Federal Reserve chairman, were involved in the takeover of Freddie Mac and Fannie Mae.

Posted by mm99 @ 11:21 AM 1 Comments

Straw for the VIs

FT: Indices diverge on house prices

The operative word in this article is "skewed". Rather than demonstrating confusion, the figures from the different indices show how useful it would be to have the data made publically avbl (won't happen of course). Then others could take a closer look at the reasons for the differences. Since the FT index includes purchases without mortgages, I suspect there are a good few high value houses in their figures; and any statistician will tell you the effect of outliers on an average. Still, the VIs will seize on anything to pretend that house prices can rise to infinity (see the dumb reasoning by that twerp we all deride).

Posted by letthemfall @ 10:59 AM 1 Comments

Brown (a historian whose maths is weak) tries to silence Clarke (an economist and mathematician)

Financial Time: No easy way out of the morass for Brown this autumn

"Gordon Brown knew Charles Clarke was trouble waiting to happen. The prime minister spent part of last year trying to find the former Labour home secretary (one of his most outspoken critics) obscure jobs to get him out of the way."

Posted by sneaker @ 10:21 AM 2 Comments

House competition?

guardian.co.uk: Fancy a 1m home for 25?

After failing to find a buyer, a Devon couple are raffling their country estate. Is it a scam, or a genuine way to beat the property slump? Patrick Collinson and Ben Steele report

Posted by ash4781 @ 10:05 AM 8 Comments

Well Said Andy

BBC NEWS: Credit crunch 'to last into 2010'

The credit crunch is likely to last well into 2010, the head of the UK's largest mortgage provider has warned. HBOS chief Andy Hornby told the BBC it would take 18 months before US house prices started to rise again.

Posted by renting2 @ 09:46 AM 7 Comments

Prices are falling and sellers hope in a rebound that will never happen

Telegraph: Rental property: London to let

turned to letting after finding themselves left stranded by falling prices. Su Coney is currently offering her father's four-bedroom house in Foskett Road, close to the Hurlingham Club in Fulham, for sale at 999,950 or to rent at 950 per week through Wellingtons. "We actually spent 26,000 doing it up and had it valued last year at 1.25 million, but then the market changed and we face a substantial loss," she says. "So we have decided to let it and we hope it will appeal to a family or to people who can't afford to buy. We can wait for two or three years until the market changes again."

Posted by confused76 @ 09:21 AM 7 Comments

Silver Street: Bank linked to MCain is 11th failure in US

Credit Writedowns: Silver State Bankruptcy: Another FDIC Friday Night Special (update)

This is going to definitely be campaign fodder in the US. That makes 11 banks this year and 13 since the credit crisis began. The UK only has the Rock to worry about so far.

Posted by edwardnh @ 04:14 AM 1 Comments

DEBT-GORGED hedge funds are the next ticking bomb in the global credit crisis as they liquidate their positions in equities and commodities ahead of an expected spike in quarterly redemptions by investors throughout September.

australian: Hedge funds ready to blow as positions liquidated

Other hedge funds are expected to topple as investors seize an opportunity to withdraw their poorly performing investments at the end of the September quarter. If there are too many redemptions, it will cause a run on hedge funds and create mayhem.

Posted by big chris @ 03:30 AM 1 Comments

Slightly Optimistic Headline!

Guardian: Housing: Property market will bounce back in 2010, report predicts

Yesterday Britain's biggest estate agency, Spicer Haart, put a two-bed town house in Middlesbrough into auction at a guide price of 15,000 as it launched a new platform for selling repossessed homes, called mustbesold.com. Auctioneers report that cash-rich buyers have returned to auction rooms now that competition from amateur landlords armed with cheap buy-to-let finance has faded away.

Posted by stevie dee @ 01:31 AM 2 Comments

Robbing Peter to pay Paul

Guardian: Revealed: Brown's 1bn power windfall

Rising energy prices are on course to net the government a windfall of over 1bn thanks to a little-known scheme designed to promote the development of renewable energy. The disclosure of the substantial sums made through the scheme comes as Gordon Brown has been piling pressure on power companies to plough some of the profits they have made through increased prices into helping cash-strapped consumers. At least the pensioners will get some money for Christmas!

Posted by stevie dee @ 01:24 AM 0 Comments

For Effing Sake!

WSJ: U.S. Near Deal on Fannie, Freddie

The plan is expected to involve a creative use of Treasury's authority to intervene in the two companies, which it won earlier this year. One option under serious consideration would be to put the companies into the conservatorship of their regulator, the Federal Housing Finance Agency, said two people familiar with the matter. That would amount to a government takeover.

Posted by stevie dee @ 01:13 AM 0 Comments

Estate agents said sellers of very desirable properties in parts of London had accepted offers as much as a third below their asking price.

FT: Gazundering in housing slump price cuts

Gazundering, the phenomenon whereby homebuyers take advantage of the housing slump to cut the price of properties at the last minute, is reaching new extremes, with estate agents reporting hundreds of thousands of pounds being slashed from offer prices just hours before exchange. Estate agents said sellers of very desirable properties in parts of London had accepted offers as much as a third below their asking price.

Posted by stevie dee @ 01:03 AM 3 Comments

"I won't have it!" Don't worry, you're not gettin' it.

The Times: Job losses and falling house prices send FTSE spiralling towards 5,000

Hugh Johnson, the founder and head of Johnson Illington, the US fund manager, said: Todays data shows that we are almost certainly in a recession. It suggests very strongly that the economy is contracting in the third quarter and that that is likely to continue into the fourth. I knew the economy was doing really poorly, but todays figures are still a bit of a surprise. Listen fella, you're at least a year behind the curve....or are you bluffin'?

Posted by gardeniadotnet @ 12:32 AM 1 Comments

Friday, September 5, 2008

Time to Take it on the Chin!

Economist: How bad is it?

"That the British economy has serious problems is pretty obvious. Britains housing bubble was more dangerously inflated than most countries; its households are more indebted; financial services account for a bigger share of its economy; and its government, thanks in large part to Mr Brown, spent with both hands during long years of unremitting economic growth, leaving little scope for fiscal fine-tuning now". The nine most terrifying words in the English language, Ronald Reagan is held to have said, are: Im from the government and Im here to help. If only Gordon Brown had listened".

Posted by alan @ 10:30 PM 2 Comments

Ouch!

Mortgagestrategy: GMAC cuts 5,000 jobs in USA

GMAC, parent company of GMAC-RFC, is cutting 5,000 jobs from its ResCap business and closing 200 branches in the US. The cuts will affect 60% of ResCaps workforce, but it's UK lending arm GMAC-RFC stresses that the job losses wont have any impact on its operation. implode-o-meter now stands at 206, with Homecomings Financial at 279.

Posted by whostolemyendowment @ 06:05 PM 0 Comments

Long article but well worth the read...

MT.com: Agony of an estate agent

With mortgages rationed and house prices going backwards, real-estate brokers are suffering a catastrophic fall in business that could decimate the sector. Oliver Bennett visits Manchester, a buy-to-let blackspot.

Posted by whostolemyendowment @ 05:56 PM 0 Comments

Who said the US was "Bottoming Out"?

Bloomberg: U.S. Mortgage Foreclosures, Delinquencies Reach Highs

"Foreclosures accelerated to the fastest pace in almost three decades during the second quarter as interest rates increased and home values fell, prompting more Americans to walk away from homes they couldn't refinance or sell. New foreclosures increased to 1.19 percent...."

Posted by alan @ 05:23 PM 3 Comments

They are actually using the

Fist Rung: When is a house price crash not a house price crash and how low can UK house prices fall?

The last recognised house price crash took three years, from 1989-1992, to reach a fifteen percent fall. This collapse (if the current trend continues) will have reached that point inside one year - 2008. The current fall reveals a drop of 25K on the average house value. The fifteen percent figure (if achieved) would represent a loss of equitable value in excess of 30K by the year end and whilst mainstream market commentators continually attempt to find excuses for the collapse, citing amongst other reasons; public sentiment, inflation, interest rates, dithering on stamp duty decisions and poorly timed Chancellor gaffs... surely the single over riding reason for the dramatic collapse is the lack of speculative mortgage credit

Posted by housebear @ 05:21 PM 12 Comments

Internet fraud falling, but sales are up

Usercart: Internet fraud lowest since records began

According to this Usercart as we approach a recession and inflation is on the increase, we can always turn to goods sold over the internet for a bargain. This website claim that internet fraud is falling and that it is lower since record began. Is it possible that as we all have less to spend this xmas with the combined effects of the credit crunch and higher inflation that the next assest class is going to be the Internet Boom Part II.

Posted by debt-free @ 04:34 PM 0 Comments

"the vast majority of properties up for sale are simply gathering dust"

BBC: Properties 'on market for longer'

Most properties for sale in the UK have now been on the market for more than 90 days without finding a buyer, according to property website Globrix. Its research shows that this year's fall in prices has gone hand-in-hand with stagnating sales. The proportion of properties unsold after 90 days has risen from 25% at the start of the year to 53% in August. The UK's largest mortgage lender, the Halifax, said that UK house prices had dropped by 11% in the past year.

Posted by jack c @ 03:33 PM 1 Comments

Forget sub-prime, now prime mortgages begin to hit the buffers

Moneymarketing: HBOS prime RMBS arrears rocket

Arrears on HBOS prime Residential Mortgage Backed Securities have rocketed as overall prime RMBS arrears rise by a third. According to Moodys rating agency, delinquencies in prime RMBS rose to 0.9 per cent in the second quarter of 2008, up from 0.6 per cent in Q2 2007. It says this is the highest average delinquency rating since the current Master Trusts programmes were created. But it was Mound, Bank of Scotland's Master Trust, that is suffering worst of all the UK prime RMBS with arrears of 4.1 per cent. This was followed by Northern Rocks Granite which has 1.3 per cent arrears and HBOS other RMBS Master Trust, Halifax's Permanent, which came in third with 1.2 per cent delinquencies as of Q2 2008.

Posted by jack c @ 03:24 PM 1 Comments

Halifax has expressed its concern over national media coverage of its House Price Index figures

moneymarketing: Halifax expresses concern over media use of its figures

Yesterday, the Halifax House Price Index revealed that house prices had fallen by 10.9 per cent since August 2007. This figure is created by taking a three-month average of prices and then comparing that to the similar average the previous year. But several news networks, including The Times, Sky News, The Daily Telegraph and The Guardian today chose to instead calculate the percentage change in the individual figures, creating an annual house price dip of 12.7 per cent.

Posted by jack c @ 03:19 PM 21 Comments

Cluttons' Battersea office - Riverside rentals latest

mortgagesolutions: London Riverside rents falling

Tenants are now taking the opportunity to live the dream in a riverside home, as landlords of penthouse and top end riverside apartments in London are adjusting their rents as they face up to a more realistic lettings market, according to Cluttons..................

Posted by jack c @ 03:10 PM 1 Comments

Back to the 3 day week

Yahoo: Bentley cutbacks add to car sector woes

More than one third of Crewe-based Bentley's staff are to start working a three-day week, the luxury car maker announced today. About 1,400 of the Volkswagen subsidiary's staff will also have their working week cut from four to three days.

Posted by mark @ 03:10 PM 2 Comments

House prices down 12.7% yoy. This definitely looks like levelling off to me.

Findaproperty: House Price Falls Levelling Off

"Halifax attributes much of the slowdown to inflated food and fuel prices, which have risen by 12 per cent and 17 per cent respectively over the last year." .......oh yes, affordability has nothing to do with this slowdown.

Posted by bystander @ 02:46 PM 5 Comments

The bells The bells The bells

Yahoo: Alarm As US Hit By Jobless Jump

The US has been rocked by a huge jump in unemployment last month, sending alarm bells ringing for the global economy. Figures show that more than 84,000 people lost their jobs in August as the rate shot up from 5.7% to 6.1%. Labor Department officials said the rate was the highest since December 2003.

Posted by mark @ 02:36 PM 1 Comments

They will change this date soon, I reckon 2015

Yahoo: Housing recovery 'unlikely' before 2011

We'll have to wait until 2011 before a return to consistent house price growth, upmarket estate agent Savills warned today. It pointed to the July report by the head of the Financial Services Authority suggesting restrictive mortgage conditions will persist through to the end of 2010. ========================================= Bets now being taken on dates.... Also will it snow this xmas......lol

Posted by mark @ 02:33 PM 5 Comments

Next it will be free house and petrol with your shopping

Yahoo: Free petrol stunt 'dangerous'

this shows how desperate people are for petrol

Posted by mark @ 02:29 PM 0 Comments

Put another jumper on (that makes 3 now ) and hunker down, it's gonna b-b-b-be c-c-c-cold this w-w-w-winter !

The Times Online: Struggling Gordon Brown accused of betrayal

Gordon Brown faced further threats to his faltering premiership today as a Labour MP and a union leader joined a chorus of criticism from his own side. Like a rabbit caught in the headlights, he appears to be totally out of touch with what is actually going on. His assertion that fuel poverty would be reduced (while actually doing nothing to prevent that scenario) is just more hot air. The only situation that comes close to this level of "head in the sandness" was after the poll-tax riots in March 1991 when cabinet ministers had to actually spell it out to Thatcher what her policy had acheived (the virtual destruction of a square mile of the capitals west end) !

Posted by nooneo @ 01:29 PM 8 Comments

Don't use Fed as a 'magical piggy bank'

cnn: Don't use Fed as a 'magical piggy bank'

Greenspan says Congress needs to give the government new powers to handle troubled companies to minimize any potential losses to American taxpayers. A self-described libertarian Republican, Greenspan has a reputation for being wary of giving the government extra powers. However, in crisis situations, there needs to be a clear process for handling bailouts, rather than depending on the Fed to do so, he reckons.

Posted by mark @ 01:08 PM 1 Comments

London crashing!

Primelocation: July 2008 prime property prices

This is generally a good report. It was suppressed in May and June to avoid talking the market down. But now that the EA mantra has become "set realistic prices"... "July has witnessed a large fall in prime London prices with an average of 3% across the capital. The annualised growth rate of prime London asking prices has reduced further to 5.51% from 6.88% in June and 9.6% in May. Prime London sales stock levels have increased further and are now 48% higher than in July 2007. Weekly rental values have dropped for the fourth successive month by 2.1% as stock continues to remain empty. The rising stock levels are a direct result of reluctant landlords. Agents are also reporting a decline in demand from corporate tenants while some agents have reported double the amount of rental stock"

Posted by confused76 @ 12:50 PM 1 Comments

20% more down - So more good news for the UK

Tech Ticker: U.S. House Price Decline Could Be Worse than Great Depression, Economist Shiller Says

Eight years ago, Yale superstar professor and MacroMarkets chief economist Robert Shiller famously called the top of the stock market in his book Irrational Exuberance. Then, a year before the housing bubble peaked, he predicted the colossal bust we are now experiencing. If you recognize Shiller's name, its because the Standard & Poor's/Case-Shiller home price indexes, which he developed with Wellesley College economist Karl Case, have become the nation's most authoritative source for home price trends.

Posted by stevie dee @ 12:21 PM 0 Comments

Why Gordon Brown has got it wrong on the British economy

MoneyWeek: Why Gordon Brown has got it wrong on the British economy

Gordon Brown says he is 'cautiously optimistic' about the economy. But indicators are at record lows and our banking system is being propped up by the Bank of England. The only way out, is the hard way.

Posted by damien @ 11:34 AM 18 Comments

The merry-go-round slows as the ECB becomes the first to consider wielding the axe

FT.com: Banks drag FTSE lower

It is now becoming public knowledge that the ECB is supporting banks and keeping them afloat, thanks to the ECB saying they are going to tighten their regulations on borrowing. People realise that perhaps the BoE will do the same, and everyone will realise that UK banks are borrowing off them to the tune of 200 billion. FTSE starts to crash, 4% yesterday and today already.... is this the next leg down?

Posted by beartil2010 @ 11:04 AM 8 Comments

Fifth night destruction continues

The Telegraph: House prices falling at fastest rate in 25 years

Home owners have been dealt a double-whammy of doom, as figures showed that house prices were falling at the fastest rate in at least 25 years and the Bank of England failed to cut interest rates

Posted by sold 2 rent 1 @ 10:45 AM 39 Comments

Poor Saatchi and Syrocco

This Is London: Half London homes on market for longer than 3 months

Phil Smith, 32 and his wife Amber, bought their two bedroom fat in Wimbledon three years ago for 234,000. They spent 8,000 renovating it, and put it on the market five months ago at 335,000. They still haven't had any offers, and have had to lower their asking price to 295,000, which would give them a profit of only 61,000. Aw diddums. Mr Smith said: "It's a nightmare scenario."

Posted by little professor @ 10:31 AM 24 Comments

Going mainstream

Bloomberg: House Price Slump May Leave 1.3 Million in Negative Equity

U.K. house prices will drop by as much as 35% from their peak last year, leaving as many as 1.3 million households with mortgages worth more than their property, analysts at Sanford C. Bernstein & Co. said. The amount of properties in negative equity will rise to about 18% of U.K. mortgages by value, and may trigger as much as 38 billion in losses for U.K. banks

Posted by little professor @ 10:14 AM 9 Comments

Food Crisis?

BBC: UK food prices show 8.3% increase

Food prices in UK supermarkets and shops have risen by 8.3% since January, a new index compiled for the BBC shows. Meat and fish - up 22.9% - registered the biggest price increases for any one category in the survey, with fresh fruit and vegetables up 14.7%. People can't afford to eat, let alone house and heat themselves. Also take a look at the other links on the news page with food news around the world.

Posted by renting2 @ 10:07 AM 1 Comments

Video: House price crash?

The Times: News Article

They are taking your name in vain! But doesn't Stuart look sexy?

Posted by orwell @ 08:29 AM 2 Comments

UK Housing Market Crash Continues

The Market Oracle: UK Housing Market Crash Now at Minus 12.8% For August

Britain is facing the the PERFECT STORM of DEFLATION as the housing bear market erodes home owner equity by several thousands of pounds every month, and INFLATION in the input and output prices surging to 20 year highs. This has meant that instead of taking action to save the economy, save the housing market, the Bank of England has been paralysed since April of this year into inaction.The fact is the Bank of England does not have a clue of what to do so seeks to do nothing

Posted by nadeem walayat @ 08:29 AM 0 Comments

Is There no Limit to Property Scams?

Motley Fool: A Dangerous Way To Buy Your First Home

Rent now buy later! the leaflet screams in big, bold type. Are you sick and tired of paying rent and would like to own your own home now? ...I can help. Move into your own home today without a mortgage. Try before you buy!

Posted by renting2 @ 07:45 AM 1 Comments

Could be the housing market: depressed sales, depressed residual values, cheap offers and margin pressure. He added that some mainstream used prices had fallen 10 per cent in two months.

Times: Car sales crash as economy hits skids

Yet more problems caused by the absorbtion of credit to fund flawed house purchases.

Posted by growler @ 07:41 AM 14 Comments

HBOS has tapped the ECB via its Irish operation

bloomberg: U.K., Spanish, Irish Banks' Costs to Rise as ECB Tightens Rules

Article interesting as it shows how HBOS is borrowing undisclosed amounts from the ECB via its operations in Ireland. The ECB, lent 467 billion euros last week. If banks are bust they should be allowed to crash. Instead bankers are all still in their jobs and flying to NY first class for afternoon meetings etc. effectively on our money. The "market forces" that closed down so much of UK industry (including e.g. coal) seem not to apply here.

Posted by mken @ 03:58 AM 0 Comments

A house, a home or a piggy bank ?

Guardian: Crisis? What crisis?

Tumbling house prices are sending politicians into a panic. But this could be the perfect opportunity to rethink Britain's attitude to bricks and mortar. A home should be something we live in, not something we speculate on.

Posted by nooneo @ 02:09 AM 12 Comments

Thursday, September 4, 2008

Crash Gordon maintains he is the man best-placed to lead Britain through the choppy economic waters ahead.

Sky news: Brown 'Keeps Focus On UK Economy'

Gordon Brown today said Britain faced "the first great financial crisis" of the "global age" as he sought to shrug off betrayal at the hands of former Home Secretary Charles Clarke. Mr Brown claimed the British economy is "better placed to weather any economic storm than it was in the 1970s, 80s or early 90s" because of sound monetary policy and "the most flexible labour market in Europe" which was keeping employment close to record highs.

Posted by jack c @ 09:55 PM 19 Comments

Dow Jones @ Closing bell down 345 points on the day (a walloping 3%)

BBC: Economy worries hit world markets

European and US shares have fallen sharply on further fears over the state of the US economy and the prospect of slower growth in the Eurozone. London's FTSE 100 index closed 2.5% down while German and French markets each lost about 3% and key US markets were trading 3% lower. The slides came after US data showed sluggish shop sales and mounting unemployment claims. The European Central Bank also cut its 2009 growth forecast from 1.5% to 1.2%.

Posted by jack c @ 09:33 PM 9 Comments

The mortgage merry-go-round stops and prestige car sales plummet

Birmingham Post: UK new car sales at lowest point for 40 years

Now mortgage equity = no nice new care, Business Registrations down 36.7%, Private Registrations down 23.6%, Land Rover sales down 58%, BMW sales down 39%, Mini sales down 32%, Jaguar down 41%.

Posted by enuii @ 09:13 PM 8 Comments

Classic New Labour leak a story, wait, then Non-Event

BBC: One-off fuel payment is ruled out

The government who had planned to unveil a package to alleviate soaring gas and electricity bills this week are now 'looking at "long-term" savings', i.e. doing nothing.

Posted by enuii @ 07:04 PM 2 Comments

Indeed Thank you, but no thanks!

BBC: Brown defends UK economic record

Britain is well placed to weather the "first financial crisis of the new global age" thanks to Labour's handling of the economy, Gordon Brown has said.

Posted by peter_2008 @ 06:44 PM 3 Comments

Now Blunkett tells us work until we drop and use equity release to fund your own long term care

Guardian: Work after retirement, says Blunkett

Older people should be prepared to work after they reach retirement age for as long as they are physically able to, former cabinet minister David Blunkett said today. Blunkett said that as the number of older Britons continues to rise, it was wrong to assume that the government should have "prime responsibility" for elderly care. Blunkett disputed the government's admission of a 6bn "black hole" in funding elderly care and called for more older people to use equity release schemes to fund their care.

Posted by jack c @ 06:41 PM 18 Comments

Oh Gordy - If only we could wind the clock back...

Telegraph: Brown to sell half UK gold reserves

A bit of a blast from the past

Posted by madtechtrading @ 06:07 PM 3 Comments

Breaking new - US cars are rubbish

CNN: Big Three bailout may be around corner

Automakers seek $50 billion in low-interest loans to convert plants from trucks to fuel efficient cars; presidential election could help their chances.

Posted by holding out @ 05:06 PM 11 Comments

We work longer than almost anyone to pay for RIP-OFF Britain

BBC News: UK work week among EU's longest

UK workers are among the hardest working people in Europe, with only Romanians and Bulgarians putting in longer hours - Yes, we must work longer to pay for our overpriced property, both rented and bought, the stealth taxes the guv'mint charge us and so that we can keep our sorry heads above water and the exorbatant prices of nearly everything from food to fuel to beer and fags. SHORTEST WEEKLY HOURS France - 37.7, Italy - 38.4, Denmark - 38.6, Portugal - 38.8, Belgium - 38.8 LONGEST WEEKLY HOURS Bulgaria - 41.7, Romania - 41.7, UK - 41.4, Czech Republic - 41.2, Austria - 41.1 - Remember this when you're told by the shower of a guv'mint, to work harder.

Posted by nooneo @ 04:23 PM 19 Comments

Relationshp between Gold and House prices since 1930...

The Scotsman: Business Blog: Still on Course for a House Price Crash

A peak to trough average fall of between 20 and 25 per cent is the current consensus. But according to a chart put together by Tom Fischer of Herriot-Watt University which plots the long term relationship between house prices and gold, we cADVERTISEMENTould be in for a further 75 per cent fall. Yes, it's not a mis-print - 75 per cent

Posted by george francis @ 04:06 PM 2 Comments

Even less demand for houses!

Independent: The Victorian solution that's letting Britons cover the cost of living

The notion of an extended family living under one roof may be reminiscent of the Victorian era. But thanks to a combination of pension underfunding, the spiralling cost of childcare and residential care for the elderly, pressure on incomes and rising house prices, a radical change is taking place in the way British families live.

Posted by whostolemyendowment @ 04:01 PM 4 Comments

Current political lightweights will not be able to cope even if Brown goes....

Independent: The lessons of past economic downturns

It is a sobering thought that nearly two-thirds (62 per cent to be precise) of the members of Parliament only entered the House of Commons in 1997 or after. In other words, not only have they known no other life than under a Labour government but they have known only the good times in the economy.

Posted by whostolemyendowment @ 03:56 PM 0 Comments

How things look from across the pond

International Herald Tribune: U.K. plan for first-time home buyers is sure to fail

LONDON: A plan by Britain to cut taxes and offer incentives to first-time home buyers is sure to fail and smells a bit of Ponzi. Britain announced this week a 1 billion package of measures including eliminating a 1 percent tax paid by buyers of homes costing less than 175,000, or $312,000, and a program to give interest-free 30 percent down payment loans to first-time buyers with moderate incomes. Ponzi schemes attempt to use the money of new investors to pay unsustainably high returns to existing ones, but at their heart have no actual business or productive enterprise.

Posted by housebear @ 02:27 PM 12 Comments

That confirms our suspicions ...

The Independent: Ex-Governor George says Bank deliberately fuelled consumer boom

This article is a year and a half old, but I didn't stumble across it until very recently. Those who say that BoE always cut interest rates when HPI went below 9% are pretty spot on.

Posted by mark wadsworth @ 02:17 PM 23 Comments

Is this only possible if the Special Liquidity Scheme is being used by banks to subsidise new lending and allowing them to swap turds for polished gemstones at the taxpayers expense - which they all said it wouldn't.

BBC: Mortgage rates 'continue to fall'

The Abbey is the latest lender to reduce mortgage interest rates during the most prolonged period of cuts since the start of the credit crunch. Is this only possible if the Special Liquidity Scheme is being used by banks to subsidise new lending and allowing them to swap turds for polished gemstones at the taxpayers expense - which they all said it wouldn't.

Posted by tyrellcorporation @ 02:02 PM 7 Comments

Norwich Union slashes policy payouts by 10%

yahoo: Norwich Union slashes policy payouts by 10%

NU's changes mean a 25-year 50 a month mortgage endowment maturing 1 September 2008 will pay 42,885, less than the 46,829 if the policy had matured in January 2007.

Posted by mark @ 01:51 PM 3 Comments

Yuk!

BBC: Clarke issues fresh Brown warning

In a period where the proverbial is hitting Gordon Brown's fan at a rate of knots, ex home secretary Charles Clarke lets rip and adds to the deluge.

Posted by denzil @ 01:44 PM 3 Comments

Panders to the VI's, but won't stop the rot...

North-West Evening Mail: Will 175,000 tax threshold kick-start house sales?

THE announcement to raise the threshold at which stamp duty has to be paid by house buyers has been broadly welcomed by Furness estate agents....But while stamp duty has been seen as a heavy burden for first-time buyers in the past, the tax now pales in comparison to the huge deposits people need to find in order to buy a home.

Posted by whostolemyendowment @ 12:46 PM 0 Comments

Merrill waves goodbye to its UK mortgage lender

Mortgagestratergy: Merrill axes Wave

Rumours are rife in the industry that Merrill Lynch has shut down its remaining UK specialist mortgage lender Wave.

Posted by whostolemyendowment @ 12:38 PM 0 Comments

Why the banks are on borrowed time

MoneyWeek: Why the banks are on borrowed time

Britain's banks are broke. The Bank of England's rescue package will soon end, and the banks must repay up to 200bn. They will have to find that money elsewhere but not all of them can. And that's very bad news for Britain, says David Stevenson.

Posted by damien @ 12:27 PM 7 Comments

Domestic Energy Assessor (DEA) and Home Inspectors numbers updated

HIP-Consultant.co.uk: Domestic Energy Assessor (DEA) and Home Inspectors numbers updated

The Government periodically announces combined numbers of Domestic Energy Assessors and Home Inspectors and breaks the figures down into the stage they have achieved at the time of reporting. The numbers continue to rise from the last published figures on the 6th March 2008.

Posted by hip-consultant.co.uk @ 12:14 PM 0 Comments

MPC holds UK interest rates at 5%

BBC: Bank keeps UK interest rate at 5%

The Bank of England has kept interest rates on hold at 5% for a fifth month as it struggles to deal with a slowing economy and soaring inflation. But with reports signalling the economy is heading for recession, expectations are rising that the cost of borrowing will be cut by the end of the year. Economic growth ground to a halt in the second quarter of this year, its worst performance since the early 1990s. However, inflation is more than double the Bank's target of 2%.

Posted by jack c @ 12:04 PM 17 Comments

UKs infamous regulatory 'light touch' of financials means actions like this will never happen here!

BBC: US bankers facing fraud charges

Two former Credit Suisse bankers have been charged with fraud for allegedly deceiving clients over the value of debt tied to sub-prime mortgages. Julian Solov and Eric Butler are accused of selling "auction-rate securities" on the pretence they were as safe and risk-free as cash. In reality, they were backed by high-risk investments and generated large commission payments for the duo.

Posted by tyrellcorporation @ 11:53 AM 1 Comments

Fancy a house next to Julie Cristie?

Mail: Gang warfare on the streets of London as Asian and black youths battle outside Julie Christie's house

I actually looked at a flat in this area last year....the fact that celebrities like Julie Christie living there was considered a big plus ....really glad I didn't bother now..

Posted by hpwatcher @ 11:46 AM 9 Comments

They just continue to get away with it...

The Renegade Economist: Accountability of the Money Men

Lobbyists expect to escape the consequences of their actions. Only politicians are held accountable by being sacked at elections. But we need to find new ways to hold to account the organisations that influence government.

Posted by neo-serf @ 11:30 AM 0 Comments

Too Late..................

BBC News: Grim backdrop to UK rate decision

''...The looming threat of recession has left the Bank of England under intense scrutiny as it prepares to announce its latest interest rate decision. The Bank's Monetary Policy Committee is expected to keep rates on hold at 5% on Thursday despite evidence the economic outlook is fast deteriorating...''

Posted by hpwatcher @ 11:28 AM 3 Comments

No-one at the CTFC was immediately available for comment.

reuters: Regulators probing oil supply data: report

Regulators are concerned that companies may be reporting inventory levels that benefit their own trading positions but may not be accurate, the paper said, citing people familiar with the probe. The report noted a company could theoretically underreport barrels in its tanks to suggest oil is scarcer than it really is, and then sell its physical oil at a premium when oil prices jump on misleading news. (Reporting by Saumyadeb Chakrabarty in Bangalore; Editing by David Holmes)

Posted by malct @ 11:08 AM 8 Comments

the full blown banking collapse and the deep recession are not yet manifest.

321gold schiff: In The Eye of The Storm

We have long warned our readers of a coming real estate crash which would then lead to a credit crunch, and eventually a major round of bank failures. We have argued that these developments would be the precursors to a major recession, and perhaps a depression. As predicted, the collapsing values of bonds backed by subprime mortgages did indeed lead to a collapse of the entire mortgage market, a bank liquidity crisis, a credit crunch and a steep fall in consumer confidence. This was the first leg of the storm, but the full blown banking collapse and the deep recession are not yet manifest. The conventional wisdom holds that the bullet has been dodged.

Posted by malct @ 10:59 AM 6 Comments

"The future of mortgage bank Bradford & Bingley hangs in the balance"

FT: Tough times ahead for B&B, claims analyst

The future of mortgage bank Bradford & Bingley hangs in the balance as the current economic turbulence tests its buy-to-let business model, according to a leading analyst. Alex Potter, banks analyst for Collins Stewart, said: "It is going to be touch and go for Bradford & Bingley as an entity, because the buy-to-let market has never really been tested in an economic cycle quite like this. "It has got a very, very tough time ahead and its own underlying business is not looking in great shape. It has clearly been a bit naive in taking on so many of these mortgages."

Posted by jack c @ 10:50 AM 0 Comments

That looks like down 12.2% y-o-y to me.

Halifax: August report

As ever, The Halifax have waited until the morning of the MPC meeting to spew out their report.

Posted by mark wadsworth @ 10:45 AM 14 Comments

Anti BBC spin

times: House prices plunge 12.7% ahead of rate decision

House prices fell by 12.7 per cent in the year to August, it emerged today, as the Bank of England's Monetary Policy Committee (MPC) prepared to announce its interest rate decision at midday. Today's figure is above the 10.5 per cent annual fall recorded by Nationwide last month. Halifax said today that house prices in the three months to August 2008 fell by 10.9 per cent, compared with same period last year, However, comparing August this year with the same month last year shows a much steeper drop of 12.7 per cent.

Posted by matt_the_hat @ 10:33 AM 5 Comments

GMAC to cut 5,000 mortgage related jobs

cnn: GMAC to cut 5,000 mortgage related jobs

Lender GMAC Financial Services said Wednesday it will close all of its 200 retail offices and lay off about 5,000 employees as part of plan to reduce its mortgage lending and servicing because of the housing market downturn. Dont this company also trade in the UK?

Posted by mark @ 10:22 AM 2 Comments

UK Interest Rates on Hold for Final Month?

The Market Oracle: Bank of England Keeps UK Interest Rates on Hold for Final Month?

The pressure is building on the Bank of England to start cutting interest rates with immediate effect as the UK economy plunges over the edge of the cliff, taking with it any hopes of a labour election victory. During the weekend Gordon Browns Darling chancellor finally showed signs of cracking-up under the strain of continually toeing Gordon Browns party line of ignoring the financial and economic fundamentals by painting a repetitively rosy picture for the British economy and financial system.

Posted by nadeem walayat @ 10:21 AM 0 Comments

Halifax report biggest price fall since records began

Guardian: House Prices Fall Record 12.7%

The Halifax has reported that house prices have dropped by more than 25,000 since August 2007. Average price now inside the 175,000 stamp duty threshold at 174,178

Posted by ossigeno @ 09:42 AM 0 Comments

YAWN, YAWN - will they ever learn? Rate cuts will not save us this time

MSN: Unions call for interest rate cuts

Why are these articles even getting print? So the solution to a debt problem is more debt??? And the solution to no money in the banking system is rate cuts??? I am am very worried that there is no one in authority with any sense in the UK now. Last one out turn the lights off please ..lol!

Posted by waitingfor hpc @ 09:19 AM 3 Comments

Good news from Halifax

BBC: UK House prices fell at an annual rate of 10.9% in August say Halifax

UK house prices in August were 10.9% lower than the same month a year ago, according to the Halifax. The lender said that property prices dropped 1.8% in August compared with July, leaving the cost of an average home in the UK at 174,178. It said market conditions would remain "challenging" in the months ahead, despite government help for buyers. House prices dropped across the UK, but some surveys have shown the Scottish market to be the most resilient.

Posted by crutchley @ 09:15 AM 33 Comments

Job for BTLers - And another sorry legacy

Telegraph: Prostitutes in London offer sex for 15

It is a relevant article as in the days of plenty of cash, escorts and these brothels were earning "Top Dollar"! Paying Landlords & thus pushing up house prices. A number of premises offered "very young girls" though they did not explicitly admit to having underage girls available, trafficked women's charity the Poppy Project report said. The charity said its investigation exposed the "disturbing prevalence" of prostitution across the capital.

Posted by stevie dee @ 09:14 AM 2 Comments

But but the service sector is the future!!

Herald: Latest service sector survey fuels fears of UK recession

Historically, manufacturing tended to be more open to international trade and competition than services. As a result, there has been a tendency for the first economies to industrialize to come under competitive attack by those seeking to industrialize later, e.g. because production, especially labour, costs are lower in those industrializing later. The resultant shrinkage of manufacturing in the leading economies might explain their growing reliance on the service sector. However, currently and prospectively, with dramatic cost reduction and speed and reliability improvements in the transportation of people and the communication of information, the service sector now includes some of the most intensive international competition, despite residual protectionism.

Posted by matt_the_hat @ 08:16 AM 6 Comments

No inflation here, nothing to see

Bloomberg: Bank of England May Keep Rate at 5% After Inflation Accelerated

Governor Mervyn King's nine-member Monetary Policy Committee will leave its key rate at 5 percent at 12 p.m. in London today, according to all 61 economists in a Bloomberg News survey. I wonder if these so called economists will be sacked if their predictions are wrong?

Posted by matt_the_hat @ 08:11 AM 9 Comments

Steady as she goes

Reuters: Bank of England set to hold rates steady

With inflation more than double the central bank's 2 percent target...The Bank of England looks set to keep interest rates at 5 percent for a fifth month running

Posted by matt_the_hat @ 08:05 AM 0 Comments

Oil has dropped but inflation is now an import business

FT: Sterling takes a royal pounding

The UK is exposed in three ways to the aftermath of the credit squeeze. It has heavily overvalued housing, the most indebted consumers in the world and an economy that is peculiarly reliant on financial services.

Posted by matt_the_hat @ 08:00 AM 0 Comments

Bit of Sanity in a Crazy World

FT: Intelligent ways of repairing the UK home loan market

Doing away with stamp duty would be a good idea regardless of the state of the housing market. Stamp duty is a stupid tax, which penalises transactions in housing. It taxes labour mobility. If the government wants to tax wealth, let it tax wealth, but not transactions in specific assets.

Posted by stevie dee @ 04:44 AM 0 Comments

Cheer up #2

Times: Anatole Kaletsky: A falling pound means that the only way is up

Now for two items of good news that had nothing to do with the Brown package but will prove far more important to the British economy. First, there is more and more evidence that the housing slump will do less damage to the British economy than is expected at present. Secondly, Britain is in generally better shape to deal with a mortgage and housing crisis than any other important European economy. Consider what the US economy's strong performance may mean for Britain. First, it suggest that the impact of falling house prices and a mortgage famine on highly leveraged economies are not necessarily as crippling as widely believed. Secondly, American experience points up clearly the built-in stabilisers that exist in a well-managed market economy.

Posted by drewster @ 01:19 AM 13 Comments

Cheer up #1

Telegraph: Is the economic gloom lifting? Inflation and interest rates hold the key

No one needed the OECD or our depressed Chancellor to tell us which way the wind blew for the British economy. The pound had pipped them to the post, falling by 10pc in a month against the dollar. If we are not already in recession, then it's clear we soon will be. The supporting evidence for the most serious economic retreat since 1991 is mounting. Tumbling house prices are taking their toll, with mortgage approvals at their lowest for 15 years. Unemployment could top 2 million. The OECD says that Britain, uniquely among the leading industrialised nations, will fall into recession in the second half of this year. The doom-mongers at Capital Economics now expect an entire year's downturn in 2009.

Posted by drewster @ 01:16 AM 2 Comments

Wednesday, September 3, 2008

How Can the Banks Be in Such Bad Shape ?

Financial Sense Uni: Chancellor Darling Pushes Crumbing

The banks in their greedy wisdom racked up huge profits during the credit boom years through the use of highly leveraged derivatives products where small movements on the underlying asset, for instance US house prices would translate into huge returns as many banks went beyond the traditional fractional reserve banking ratio of 10X assets to above X30. Some banks went even further in their eagerness to pay directors and top employees huge bonuses in plucking valuations out of thin air, thus overly inflated balance sheets saw huge leaps in profitability on the basis of figment mark to market valuations as open markets for the OTC derivatives does not exist .

Posted by malct @ 08:16 PM 2 Comments

9.5% food inflation in comparison to 100% house price inflation

times online: Food inflation

I wonder if the ritz is running the same % rise as netto, the mail said 10% the manchester rag 7, what is really happening in the fields,where is the king? this is worse than a house price crash. its not yet zimbabwe or iran but winter is coming.....

Posted by campin @ 06:34 PM 4 Comments

Slowdown fears knock stocks

CNN: Slowdown fears knock stocks

"With oil and all the commodities down over the last few days, you would think this would be one big party for the market," said Greg Church, president of Church Capital. "But there are fears about a recession and the decline in oil prices is adding to those fears."

Posted by mark @ 06:14 PM 0 Comments

Falling house prices makes divorce less affordable

BBC: Housing dip 'slows divorce rate'

The Office of National Statistics says that the divorce rate in England and Wales is at a 26-year low, with 11.9 divorcing people for every 1,000 of the married population.

Posted by mountain goat @ 04:59 PM 8 Comments

Total Madness North Of The Border

BBC: Salmond confirms council tax plan

"The Scottish Government has set out its plans for the next year, including scrapping the council tax in favour of a local income tax of 3p in the pound." If you think it through, the real winners from this will be landlords and the real losers will be tenants.

Posted by mark wadsworth @ 04:20 PM 15 Comments

more to go soon, watch this blank space of (gordon brown)

Yahoo: 600 More Job Losses Across Britain

The British employment slump got worse today amid news of office closures that are expected to result in 600 job losses. Insurance firm Pearl Group is expected to cut up to 500 jobs when it closes its Glasgow and Peterborough offices. A further 180 redundancies are expected when High Street travel giant Thomas Cook shuts its Glasgow call centre.

Posted by mark @ 03:05 PM 3 Comments

How house prices could fall by 75% from here in gold terms

MoneyWeek: How house prices could fall by 75% from here in gold terms

UK houses now cost the equivalent of around 400 ounces of gold. A house bought in the 1930s or late 70s would cost 100 or less. If sterling continues its current free-fall and gold goes on another bender, we could see house prices of just over 85 ounces of gold. And that might not be so bad a thing, says Dominic Frisby.

Posted by damien @ 12:18 PM 10 Comments

keep chopping, timberrrrrrrrr, crash

reuters: Job axe to fall harder on banks into year end

Blood-letting in the financial sector is set to accelerate towards the end of the year, with the final headcount cull due to the credit crunch likely to reach around 40,000.

Posted by mark @ 12:08 PM 0 Comments

No news here carry on now

reuters: BoE expected to hold interest rates steady at 5 pct

All 67 analysts polled by Reuters predict the central bank's Monetary Policy Committee will keep interest rates unchanged again

Posted by matt_the_hat @ 10:31 AM 9 Comments

Aid or band-aid?

Guardian online: Aid for first-time buyers and repossessions rescue

Cut-price mortgages for thousands of first-time buyers and more generous state help for people struggling to pay their home loan bills were among the other measures outlined by ministers yesterday in an attempt to revive the housing market.

Posted by whostolemyendowment @ 10:28 AM 2 Comments

Crisis Crisis part II

Market Oracle: Credit Crisis Financial Armageddon

Nobody will escape the wrath of this deleveraging, and that is why I call it Credit Crisis II. Credit Crisis I was only the preliminary roundCredit Crisis II is characterized by the realization that the gigantic losses of capital cannot be purged from the financial system , even with big public bailouts. And that this deleveraging cannot be stopped. There are too many interlinkages. And, without writing a book on this, the next victim when Credit Crisis II unfolds, will be massive world currency instability. This will make any of the banking and currency crises we have seen since WW2 look like child's play. It is not clear when Credit Crisis II begins but it is threatening already.

Posted by sold 2 rent 1 @ 10:05 AM 35 Comments

Phil clutches for something positive

Garrington (Phil Spencer): Market Comment: Inconsistent Indices

Phil pretends to not understand the time lag between land registry and other sources and hopes his readers will come to their own conclusion that it is some kind of reverse vested interest of surveyors that is fooling us things are worse than they are.

Posted by ontheotherhand @ 09:44 AM 7 Comments

History - Is it beginning to repeat itself?

German history of currency: INFLATION

A brief outline of what happened with Germany in the 1920's - are we about to go down the same road but on a global scale, with no bailout this time...

Posted by george monsoon @ 09:15 AM 52 Comments

Good advice from Merryn Somerset Webb

MoneyWeek: Don't listen to Hazel Blears. Don't buy a house

"Imagine an environment in which house prices had fallen 10.5% in a year. An environment in which the risks to the market were considered to be so extreme that even the biggest lenders in it were too frightened of negative equity to lend money to anyone without a 30% deposit. ... Now imagine buying a house in that environment. You might laugh. But there is someone out there doing just that - Communities Secretary Hazel Blears."

Posted by cornishman @ 08:45 AM 10 Comments

Commercial Energy Performance Certificates

HIP-Consultant.co.uk: Commercial Energy Performance Certificates

You will have heard of the residential Energy Performance Certificates or EPCs that were instituted last year as part of the Home Information Pack legislation, but did you know that there is a Commercial Energy Performance Certificate that is currently being rolled out?

Posted by paul @ 08:14 AM 0 Comments

Government Tempting First Time Buyers Into Negative Equity

The Market Oracle: UK Housing Market Rescue Plan Will Fail as Government Seeks to Lasso First Time Buyers

Whilst house prices are tumbling at the rate of 2% a month, the labour government finally revealed its feeble attempt to interfere with market forces by suspending the 1% stamp duty taxed on house purchases on properties up to a value of 175,000 for a period of 1 year.

Posted by nadeem walayat @ 07:38 AM 4 Comments

The chavs have spoken

Mirror: FAILURE OF DUTY

It is part of a package of measures aimed at boosting the market - and Labour's popularity. But the National Federation of Builders dismissed it as "little more than a political sticking-plaster". A "sticking-plaster" that raised their share price

Posted by matt_the_hat @ 06:27 AM 0 Comments

Lets real the last lot in

FT: Measures unlikely to lure more buyers

the number of hits on Rightmove, the property website, rose 10 per cent yesterday

Posted by matt_the_hat @ 06:20 AM 2 Comments

A maggots eyelash

telegraph: Going for bust - the Government can't afford a proper bail-out

Darling's actions reveal just how impotent this Government is. He can't use the tax system in any meaningful way to give the property market an artificial boost because he simply can't afford it

Posted by matt_the_hat @ 06:18 AM 3 Comments

Banks are in worse shape than expected

Telegraph: Lenders may have tapped Bank of England scheme for 200bn

Troubled lenders in the UK may have tapped the Bank of England's emergency funding scheme for as much as 200bn, according to investment bank UBS - double the most aggressive estimates. When Bank Governor Mervyn King first unveiled the Special Liquidity Scheme in April he indicated that it might be used for 50bn, while debt specialists forecast a total take-up of 90bn-100bn by the time the scheme closed on October 20. UBS believes banks are using the scheme to replace maturing funding lines, as well as to fund future lending and past lending that would normally have already been syndicated. Such action would tally with assertions by Sir James Crosby in his recent mortgage report for the Treasury that "the shortage of mortgage finance will persist throughout 2008, 2009 and 2010".

Posted by drewster @ 01:39 AM 14 Comments

Not sure I understand the logic behind this

Telegraph: Falling UK house prices keep marriages together

Homeowners may despair as turmoil in the property market slashes value off their houses, but new research shows they could have the weak economic climate to thank for helping them hang on to their spouse. Data from the Office of National Statistics suggests that an unforseen consequence of falling house prices is a lower rate of divorce among married homeowners over the past 10 years. Researchers from property experts Savills analysed property market fluctuations and divorce rates, finding a "strong correlation" between high house prices and high divorce rates. "When house prices rise home owners undoubtedly feel wealthier and they also feel able to divorce. Now struggling couples may choose not to split up a household because they will have less equity in their property to share."

Posted by drewster @ 01:36 AM 1 Comments

"Myopic analysis in the media and politicians' propensity to meddle don't serve the market, or those who need a home"

Guardian: Simon Jenkins: No need to panic. Falling house prices are good news.

At last, a glimmer of sanity. Faced with what is said to be the greatest collapse in the housing market of modern times, the government has decided to do virtually nothing. Excellent. Housing policy brings out the idiot in politicians - and journalists. Ministers should not waste public money to make houses cheaper when prices are already falling. The purpose of government policy should be to achieve some market stability, not to drive prices lower by increasing supply. Yet this government is doing just that, in the same way as it drove up prices during the boom by hyping demand. As for the "bringing forward of old money" for social housing, the term "social" simply means the state giving a tiny group of lucky qualifiers what amounts to a one-off lottery win for life.

Posted by drewster @ 01:20 AM 5 Comments

The latest measures do not address the underlying problem

Independent: Leading article: The best hope for housing is a continued fall in prices

One solution offered yesterday, that overstretched owners could sell all or part of their home to a council or housing association and rent it back, is an idea that owes much to the imaginative thinking broached by the Liberal Democrat Treasury spokesman, Vincent Cable. It is a good idea, and one that is least likely to distort the market. The same cannot be said of the interest-free loans for first-time buyers. It looks like a sop to overstretched construction companies complaining about being stranded with unsold stock. What is happening in the UK housing market is a correction [not yet a crash?]. This correction might be painful for existing home-owners, and the many branches of the economy that fed off the bloated market. But it is the best possible development for first-time buyers.

Posted by drewster @ 01:10 AM 3 Comments

And now for rising unemployment

Times: Economy takes its toll on construction and City job markets

The deteriorating economy is beginning to inflict a toll on the jobs market, in which recruitment has fallen at its fastest rate for seven years, according to new figures. The number of permanent jobs filled fell in August at the sharpest rate since November 2001, while temporary placements declined at a survey-record pace. Hays, the staffing company, said yesterday that it has detected a fall in demand for permanent staff, particularly in the construction sector and in the City of London. Alistair Cox, the chief executive of Hays, said The market has gone from being pretty buoyant to quite tough in just six months. We are turning our resources towards the government sector, which is still growing, but it doesnt account for the dramatic fall-off in construction and finance."

Posted by drewster @ 01:04 AM 0 Comments

Even industry experts think it's a bad idea

Times: 1.6bn rescue package for home buyers will not work and may do harm, say industry chiefs

Gordon Brown attempted to revive the flagging housing market - and his own political fortunes - yesterday with a 1.6 billion rescue package that included a surprise suspension of stamp duty, but experts said the move was merely sticking plaster and some even thought it could make things worse. The announcement backfired after Alistair Darling, the Chancellor, refused to say how the Government would finance the 600million cost. Alex O'Connor, the head of London real estate at the law firm McGrigors, said: "Until problems in the mortgage market are resolved these kinds of measures are just sticking plasters. Until mortgage flow increases, I can't see the situation improving. His comments were echoed by housing experts across the board.

Posted by drewster @ 01:04 AM 0 Comments

Tuesday, September 2, 2008

After the House Price Crash will we have the Pension Crash

BBC: More pension schemes are rescued

The Pension Protection Fund has taken on 57 insolvent Pension Schemes since it's inception in 2005, surprisingly last month it had to take on another 15 insolvent pension schemes with another 210 failed company schemes being assessed.

Posted by enuii @ 11:36 PM 1 Comments

Mrs. Watanabe is about to get burned. She's in a situation like the Miami condo "flipper" who found himself with the maximum amount of debt at precisely the wrong time a few summers ago. Or the dot-com day trader who was trading stocks on margin back in 2

dailywealth: The Next Big Bubble to Burst

It will end badly, without a doubt. The only question is when. Here's the story...

Posted by big chris @ 10:32 PM 1 Comments

I'm not sure if this is real or satire

Number10.gov.uk: PM launches 1 billion housing package

"The Prime Minster has launched a major Government initiative aimed at making the housing market fairer for all. The 1 billion Homeowners Support Package includes a one-year holiday on stamp duty for all properties costing 175,000 or less, a move that will see around half of all house moves exempt from duty over the next twelve months. The Government will also extend its shared equity assistance to help more first-time buyers onto the property ladder." As we well know, The Tories tried a Stamp Duty holiday in 1991, which didn't work. They spent 2 billion in a single day on trying to prop up sterling, which didn't work. UK property values are falling at around 1 billion per day, who in their right mind thinks that this will 'work'?

Posted by mark wadsworth @ 09:55 PM 13 Comments

Yup. It's that simple.

Guardian: Readers' letters

"Alistair Darling's "Clueless in Lewis" interview is more alarming for the fact that the Conservative opposition has even less idea and that this lack of basic economic understanding has been around for decades. You cannot lower interest rates to stimulate demand without cheap credit being diverted into house-price rises and then bubbles. The answer is to block the credit going into housing with a tax. As the inflationary element in the price of a house is the land underneath, that is what you tax. It really is as simple as that. DBC Reed, Northampton"

Posted by mark wadsworth @ 09:49 PM 6 Comments

OECD significantly revises up its forecast for US growth this year

FT: OECD slashes forecasts for UK and eurozone

During a period where forecasts of UK growth are being revised downwards at a rate that would appear to be declining faster than Gordon Brown's popularity the OECD significantly revise upwards their forecast for US growth this year.

Posted by denzil @ 09:25 PM 4 Comments

But... but... it's different here!

Bloomberg: Edinburgh House Prices Fall for First Time in 37 years

Edinburgh house prices fell last month for the first time in at least 37 years as the number of purchases slumped and sellers lowered their expectations. Prices in August fell 6.5 percent from a year earlier to an average of almost 202,000, as the number of sales dropped 59%, the ESPC said. In July prices were up 7.4 percent from a year earlier to an average of 245,000.

Posted by little professor @ 07:47 PM 9 Comments

Ireland, Germany, New Zealand, Denmark, Latvia, Lithuania, Estonia, Malta, ....

Guardian: House price crash goes global

The property crash that began in the US is spreading across the globe, according to international estate agents Knight Frank, which said today that steep declines are now taking place across Europe and into Asia. Even countries where prices have not fallen are witnessing a rapid deceleration in price growth. In South Africa the rate of house price inflation has collapsed from 15.5% to 3.8%, and is expected to be negative soon. In France, Spain and Greece price growth has halved and is running below 3.2%. The only countries to have bucked the trend (so far) are Bulgaria, Slovakia, Cyprus and the Czech Republic, where house price growth has accelerated. (According to a separate note from Knight Frank, British investors have recently been selling their Bulgarian properties too.)

Posted by drewster @ 07:06 PM 2 Comments

Is this the dead cat bounce about to start or just an indicator that the BOE is going to cut?

Reuters: Average 2-year mortgage rate back at pre-crunch levels

LONDON (Reuters) - The average rate on popular two-year fixed mortgages has fallen back to pre-credit crunch levels, easing the financial pressure on some overstretched homeowners, financial data group Moneyfacts said on Tuesday. The average rate for two-year fixed loans is now 6.39 percent, "around the same level seen just prior to the onset of the credit crunch," in August last year, Moneyfacts analyst Michelle Slade said in a statement.

Posted by crutchley @ 07:02 PM 6 Comments

A good analogy to the global currency devaluation is a slow-moving hurricane that, once over warm water, gains energy.

SOTT: Signs Economic Commentary for 1 September 2008

Right now the global inflation is a huge storm, slowly circling off the proverbial coast where it is gathering strength from the hundreds of billions of dollars being fed into it by governments desperate to avoid economic collapse... and from pricing decisions being made by everyone from manufacturers to local shopkeepers looking to cover rising costs. At this point the skies are dark, the wind is rising, and the torrential rains are beginning to sweep in. The radio is broadcasting warnings to move to higher ground, but the hurricane has yet to hit the shore. But when it does, it will be a Category 5 and maybe worse. wouldn't want to be New Orleans mayor today.

Posted by malct @ 06:58 PM 0 Comments

The same group of economists that led the economy into this catastrophe still has its hands on the wheel.

SOTT: The Villains of the Housing Crisis Are Denying All Responsibility

How did we get here? The centerpiece in this story is the United States allowed an $8 trillion housing bubble to grow unchecked. Between 1996 and 2006, house prices rose by more than 70 percent, after adjusting for inflation. In the previous century, from 1896 to 1996, house prices had just kept even with the overall rate of inflation. When there is suddenly a sharp divergence from a long-term trend like this, it is reasonable to look for an explanation. Was there some fundamental factor on either the supply or demand side that was suddenly causing house prices to skyrocket?

Posted by malct @ 06:55 PM 4 Comments

"Do todays gubbmint measures help?"

BBC Radio 4: Call You and Yours - Housing Market

Programme asks "Do todays gubbmint measures help?" ...And it's got Krusty denying she n' Phil ever helped 1st time buyers to get into future strife through her property porn scaremongering and showing their "clients" higher priced houses than they could afford whilst asking "can you stretch that little more?". I've been a lurker on this site for a while, but first post! I also got onto the call-in (Notts Engineer 10 mins in) I thank you.... ;-)

Posted by kingwowns @ 06:24 PM 1 Comments

CNBC Video on the role of the Federal Reserve

Big Picture: The Federal Reserve & Moral Hazard

"The Job of Federal Reserve is to create Moral Hazard" say Harvey Rosenblum, 38 Year veteran of the Fed, and now head of Research of the Dallas Fed. Fascinating stuff.

Posted by mountain goat @ 06:16 PM 2 Comments

Crux of the matter

Guardian: 'What we need is confidence to give 100% mortgages'

This time last year if a couple came in looking for a mortgage with a 5% deposit there would have been 600 options for them. Now there are just two mortgages available at exorbitant rates. The housing market is not going to be affected by stamp duty. It is down to lenders getting cold feet."

Posted by gardeniadotnet @ 05:50 PM 5 Comments

Edinburgh Estate Agent Truth outrage

BBC News: Edinburgh house prices down 6.5%

EAs admit Edinburgh prices are falling. It's now considered just possible that Scotland is not really immune to economic cycles, bad weather or asteroid strikes. Yes, it's very different up here with our "offers under" system...

Posted by termsandconditions @ 05:18 PM 0 Comments

Citywire article pulls no punches - "the housing market has stalled because prices are too high, and they need to come down. A lot."

Citywire: Desperate stuff from a desperate government

Any lingering faith in the ability of this government to tackle the challenges facing the UK economy surely evaporated this morning. Todays package of measures designed to kick-start the housing market is not only too little, too late, but if anything is likely to make matters worse in the long term by further distorting a housing market that was only just starting to revert to some sort of sanity. This is desperate stuff from a desperate government.

Posted by jack c @ 05:07 PM 8 Comments

Not impressed

Citywire: Desperate measures from a desperate government

"Todays package of measures designed to kick-start the housing market is not only too little, too late, but if anything is likely to make matters worse in the long term by further distorting a housing market that was only just starting to revert to some sort of sanity."

Posted by a peroni @ 03:53 PM 0 Comments

Another run on a bank?

BBC: Chancellor remains optimistic on economy

After 4 minutes 50 seconds. Nick Robinson talks about a "Run on the Bank" yesterday and "Appears the case today". Which bank is Nick Robinson talking about?

Posted by stevie dee @ 03:02 PM 2 Comments

Britain's fundamentals stand alone

Telegraph: UK is the only major economy to face recession this year, OECD warns

The UK's economy is now shrinking and will continue to do so into next year, the Organisation for Economic Cooperation and Development said

Posted by holding out @ 02:26 PM 16 Comments

Stamp duty INSIGNIFICANT cut

Guardian.co.uk: Government announces stamp duty holiday for homebuyers

Stamp duty will be suspended for a year on houses costing less than 175,000, the Treasury announced today. But the measures sparked accusations that the government was trying to "bribe" people into buying homes as the housing market nosedives.

Posted by conrad @ 01:49 PM 0 Comments

King Canute strides into Downing Street

Defaqto: Investment and Business News from Defaqto

This is the problem with the government scheme. It wants to provide loans to would-be first-time buyers to get them on the property ladder. They have to start repaying the loan after five years, but of course by then, goes the logic of the argument, it wont matter because house prices would have picked up. First-time buyers will have been able to use the rise in the value of their equity to pay off their loan. Similar logic justified the 105 per cent mortgages Northern Rock used to offer. So, in a way, the government scheme is a kind of Northern Rock II. This is all based on the premiss that the inevitable course of house prices is up. That rising house prices is a good thing. But supposing house prices fall 30 per cent, and then take ten years to rise back to the 2007 level?

Posted by michael baxter @ 12:52 PM 1 Comments

Well its all hunky dory according to Aunty BEEB

BBC: Home buyers weigh up aid measures

Looks like the BBC has been out getting the unbiased opinion of people who would vote Labour even if told to jump off a cliff. Nice solid BBC unbiased reporting as usual. When are we going to ditch this propaganda organ of the Labour Politburo.

Posted by last_days_of_disco @ 12:48 PM 19 Comments

More bail-out plans announced by the communities secretary, Hazel Blears

Guardian: Struggling homeowners to become tenants under new scheme

Thousands of families struggling to keep up with their mortgage payments will lose their homes to housing associations in return for their debt being written off, under the housing rescue package announced by the government today.

Posted by mountain goat @ 12:35 PM 8 Comments

Is it me or do all these measures just make it easier for people to overstretch their finances again??

Property Week: Government unveils 1bn rescue package for ailing housing market

Offering 10,000 first time buyers frozen out of the mortgage market the chance to get onto the property ladder through a new 300m shared equity scheme. Buyers, whose household income is under 60,000, can apply for an equity loan of up to 30% of the value of the house, co-funded by the government and the developer and which will be free of charge for five years.

Posted by peter whelp @ 12:28 PM 2 Comments

Now way they can cut rates now

BBC: Sterling hits new lows

The pound has fallen to a record low against the euro and a two-and-half-year low against the US dollar amid fears about the health of the UK economy. Against a basket of currencies used by major trading partners, the pound is now at a 12-year low.

Posted by little professor @ 12:03 PM 22 Comments

Gordon Take note: Resign or commit hari kari

cnn: Japanese stocks fall after prime minister quits

Japanese stocks fall on worries about political stalemate following Fukuda's resignation

Posted by mark @ 10:36 AM 7 Comments

The proposed measures are for NEW BUILD ONLY

Citywire: Housebuilders gain on government plans to buy back landstock

Housebuilders stormed higher again Tuesday morning as prime minister Gordon Brown's proposals to ease the pain in the UK look set to exceed even the most optimistic outlook and lifting hopes that the standstill in house sales can be put to an end. Taylor Wimpey led the sector higher, up 5.5p at 61.50p, while Persimmon was up 24.75p at 410p with Bovis, Barratt and Bellway also making solid gains. A spokesperson for the Department of local gvernment and communities confirmed reports this morning that Gordon Brown will be announcing a three-point plan including a 1bn package to build and acquire more social housing later this morning.

Posted by jack c @ 10:20 AM 5 Comments

Wow, no-one expected this - Ho, ho, ho

BBC news: UK recession this year, OECD says

The UK economy is likely to fall into recession this year, according to the Organisation for Economic Cooperation and Development (OECD). This could take te shine off the Blubbermints announcements. Remember only two or three months ago our economy was going to grow by 1.7% this year. Remember it was GORDON BROWN who said we were in the best shape to tackle the economic difficulties ahead (he should know he put us here) !

Posted by nooneo @ 10:12 AM 3 Comments

Darling Stabs Brown in the Back

The Market Oracle: Chancellor Darling Pushes Crumbing British Economy Over the Edge

Gordon Browns Darling chancellor finally showed signs of cracking-up at the week-end as the strain of continually toeing Gordon Browns party line of ignoring the financial and economics fundamentals by painting a repetitively bright picture for the British economy and financial system finally got to him. He commented: "Economic times are arguably the worst they've been in 60 years I think it's going to be more profound and long-lasting than people thought".

Posted by nadeem walayat @ 09:40 AM 4 Comments

It's the only thing we do

BBC: Stamp duty is axed below 175,000

Stamp duty is to be axed for a year on properties costing less than 175,000 in an effort to kick start the ailing housing market.

Posted by holding out @ 09:19 AM 61 Comments

The share of foreign governments in the U.S. state debt widened from 52.6 percent in 2003 to 73.9 percent in 2007.

Truthseeker / Kommersant: Russia Is One of 10 Biggest Creditors of the U.S.

odd state of affairs. economic security anyone? Russia ranks the eighth in the list of the U.S. creditors, according to Finance magazine. The RF share in the U.S. state debt was 2.5 percent ($65.3 billion) as of June 30, 2008. Japan ($583 billion) and China ($503 billion, less the debt to Hong Kong and Macao) are the key creditors for the United States, accounting for over 40 percent of the state debt on aggregate. Whats more, the debt to China goes up by 25 percent a year. Other major creditors of the United States are Britain, Luxembourg, Hong Kong, Switzerland, states of Caribbean offshore zone and the oil-exporting states, including Venezuela, the United Arab Emirates, Ecuador, Iran, Iraq, Kuwait, Oman and others.

Posted by malct @ 08:39 AM 0 Comments

Where's the money coming from???????

Bloomberg: Brown to Pledge 1 Billion Pounds to Spur U.K. Housing Market

"The program would offer help to thousands of first-time buyers earning less than 60,000 pounds a year for up to a third of the value of a newly built property, the people said." ....well that's just about everyone then.

Posted by bystander @ 07:18 AM 30 Comments

Dying embers of the property ramping articles

Times: Top 10 university towns to buy property

IN PREVIOUS YEARS it was a no-brainer for parents with enough cash to buy a flat for their son or daughter to live in while at university, as the rising property market promised good returns on the investment. However, with house prices crumbling and the credit crunch in full swing, parents of students beginning a degree course this year will be thinking hard before following the same well-trodden path. Below is a table showing the towns that have seen the biggest rises over the last five years. Although, as everyone should know by now, past performance is no guarantee of future success.... House price increases in the last 5 years: Belfast 105%; Dundee 101%; Bangor 100%; Aberdeen 95%; Bradford 94%; Swansea 87%; Paisley 86%; Salford 81%; Hull 79%; Middlesborough 79%.

Posted by drewster @ 01:00 AM 8 Comments

Gordon Brown tempts FTBs to buy into a crashing property market

BBC News: 'Free loans' offer to homebuyers

The government is to promise first-time buyers in England "free" loans of up to 30% of their home's value, in an effort to reinvigorate the housing market. Yes the long awaited comeback is nothing more than a get poor quick scheme to tempt FTBs into a crashing property market that can only fall. NuLabour NuDebts NuNegativeEquity !

Posted by nooneo @ 12:51 AM 26 Comments

Monday, September 1, 2008

Property developers offering cash and other perks committing organised fraud

Times: Fraud focus on deals to boost home sales

Property developers committing organised fraud as incentive driven artificially high valuations meant that buyers, particularly in newly built city centre developments, had found themselves in negative equity immediately after completion.

Posted by enuii @ 11:35 PM 0 Comments

Bradford and Bingley downgraded

Thomson Financial News: Bradford & Bingley's long-term IDR cut to 'BBB+'; outlook negative - Fitch

MUMBAI (Thomson Financial) - Fitch Ratings said it has cut UK-based Bradford & Bingley Plc.'s (B&B) long-term issuer default rating to 'BBB+' from 'A-' after its 2008 results announcement, citing the agency's view of the deterioration in the bank's underlying performance.

Posted by ash4781 @ 10:41 PM 1 Comments

Gordon Brown can only fool some of the people some of the time

Times: Government attempts to offset credit crisis met with cynicism

Surprise, surprise; the majority of the UK public believes that any measures announced by Gordon Brown to help house buyers and offset winter energy bills will make little or no difference to them and their families and has lost more than 49% of former Labour voters.

Posted by enuii @ 10:38 PM 0 Comments

Just let prices fall!

Times: How to help first-time homebuyers

Why would you want to invest in half a house now when, if you wait for a year or two, you will be able to afford the whole house? Why should you want your taxes used to bail out feckless homeowners who borrowed too much during the boom? Why buy now and save 1per cent in stamp duty when house prices possibly still have a further 30 per cent to fall? None of the measures announced today will genuinely be in the interests of first-time buyers. In reality, they are a crude attempt to buy the votes of those who already own property and are sick at the diminishing value of their investments. If the Government were to replace the money that has been lost from the housing market, they would have to double income tax or close the NHS.

Posted by little professor @ 09:30 PM 9 Comments

Mark Caisely the new Mike Nesmith

BBC Radio 4: Driving into Debt (audio)

Mark Caisely has worked as a repossession man for more than ten years. As the economic downturn accelerates, business is booming in his sector. However, today's casualties of the credit crunch, hit by spiralling card debt and mortgage arrears, make his job a tough one. Mark has been chased, attacked and even threatened with a shotgun. From a new BBC series on the credit crunch

Posted by mken @ 08:51 PM 0 Comments

Darling sends pound crashing

Evening Standard: Darling sends pound diving

"The pound crashed to a record low today as the City reacted to Chancellor Alistair Darling's warning on the economy." The print version had "crashing" rather than "diving" - why the difference?

Posted by dohousescrashinthewoods @ 08:46 PM 7 Comments

Raw Facts Of Average House Price History

house price crash website: n/a

If you take the data from the average house price graph, There are hidden clues as to how far house prices will fall. It would appear that in both previous house price crashes that occured between 1980 - 1982 and 1989 - 1986, the period of time taken between the house prices rising from min to max and back again is roughly the same length of time. Equally, (and using unorthodox maths), both previous occurances of the prices rising and falling. the difference between the two lowest points is 15% on both occasions. Therefore I would like to be brave and forcast that the current trend will continue for the next 7 years and the house price crash will bottom out when the average house value reaches 88,000! I just hope that for once the facts do actually lie!

Posted by darren @ 07:56 PM 4 Comments

New rules to stop mortgage fraud

BBC NEWS: New rules to stop mortgage fraud

New rules have come into force to stop mortgage lenders becoming the victims of over-inflated property valuations. From now on, developers and builders must reveal if they have offered buyers incentives, such as cash-backs, fitted kitchens or paid-for legal fees.

Posted by landedgentry @ 05:19 PM 0 Comments

Section 106 agreements -

Newcastle Journal: Homes slow-down hits (North East) region hardest

THE house-building slowdown is hitting the North East harder than anywhere else in the country, The Journal can reveal.New figures last night revealed more than a thousand planned projects had been shelved. And developers warned the regions councils could be left millions of pounds out of pocket as a result.The Government statistics showed a 6% drop in the number of new homes and businesses planned for the region, the largest decrease in England.Most new developments in the region are only approved on the condition the developer will either build something which contributes to the community Known as Section 106 funds, they are an essential way for the North Easts cash-strapped councils to pay for much needed improvements.

Posted by jack c @ 04:54 PM 0 Comments

Latest personal debt stats - 01/09/2008

creditaction: Total UK personal debt

Total UK personal debt at the end of July 2008 stood at 1,449bn. This has increased 6.9% in the last 12 months which equates to an increase of ~ 93bn. Personal debt has forged ahead of UK GDP which, according to latest available data, currently stands at 1,410bn having increased by 5.1% over the past year. Total secured lending on dwellings at the end of July 2008 stood at 1,218bn. This has increased 6.9% in the last 12 months. Total consumer credit lending to individuals at the end of July 2008 was 231bn. This has increased 6.8% in the last 12 months and 10.1bn in the first 7 months of 2008. "Today in the UK" Stats are very interesting....

Posted by jack c @ 04:23 PM 4 Comments

Things must be bad politicians are telling the truth

MoneyWeek: Things must be bad politicians are telling the truth

Believe it or not, recession is a natural part of the business cycle. And just as recessions clear out a lot of the bad, unproductive investments that should never have been made, it can also be a chance to perform a similar clean-up on the household balance sheet. And people won't have to worry about keeping up with the Joneses anymore, because the Joneses will be too busy trying to stay ahead of the bailiffs...

Posted by damien @ 02:13 PM 8 Comments

Hedging against house prices

The Register: Bet against the bubble - how to head off a subprime crisis

There were any number of people in 2005/2006 saying that these house price rises simply couldn't go on, that we were in an unsustainable bubble. But there was no way for such people to actually influence the market. You can bet on houses going up by buying one. But currently there's no good way to bet on their falling. You can't go short houses. But as we know from stories like Galton's Ox and Surowiecki's Wisdom of Crowds, you only end up with a realistic estimation if all of the crowd can have their say. In housing we could only hear, in the market itself, the voices of the bulls. The bears couldn't make themselves heard.

Posted by kernow @ 11:10 AM 11 Comments

RICS latest proposals to prop up UK housing market

Citywire: Rics offers 15-point plan to save the housing market

The Royal Institution of Chartered Surveyors (Rics) has published a 15-point action plan for the government to kick-start the housing market. Short-term solutions from the government are not the answer to the property markets problems, warned Rics who called for a shake-up of home ownership in the UK. Rics has called for a raft of measures to support first-time buyers including ..... read on......

Posted by jack c @ 10:01 AM 49 Comments

Latest mortgage figures from the Bank of England hit a new record low

BBC: Mortgage approvals hit fresh low

The number of new mortgages approved for home buyers fell in July to just 33,000 - down by 71% on a year ago. The figures from the Bank of England are a new record low and highlight the sharp slump in mortgage lending in the course of the past year. The credit crunch has forced banks and building societies to ration their lending to only their most creditworthy borrowers. Lenders say house prices have fallen by 10% since the start of 2008.

Posted by jack c @ 09:53 AM 11 Comments

Hometrack - latest survey + property table

Telegraph: House prices fall as buyers scent bargains

House prices fell for the eleventh month in a row in August, in the latest sign that the housing slump is deepening. Average prices dropped by 0.9pc over the month, following a 1.2pc slump in July, according to Hometrack. Its measure of house price inflation dipped to 5.3pc year-on-year, the lowest level since the survey began. However, buyer interest is growing on the back of lower prices and reductions in the cost of mortgages, according to Hometrack director of research

Posted by jack c @ 09:49 AM 4 Comments

Estate agents averaging one sale per week

Property Week: Government must act as housing market on its knees, says RICS

Housing market 'On it's knees' say estate agents aft er they report an average of one house sale per week

Posted by peter whelp @ 08:39 AM 7 Comments

Government urged to revive housing market

Independent: Government urged to revive housing market

"The government needs to kick start the housing market with a packages of rescue measures and reforms, property professionals said today."

Posted by becky @ 08:03 AM 9 Comments

Chancellor Darling Considers Doubling Rate Of Stamp Duty, and other spoof stories

theVoiceofReason.co.uk: House Crisis Worsens... a nation's media reports

Satire: A spokesman from Number 11 has dropped a hint that one of the options Chancellor Darling is now considering is to drop hints that he is about to double the rate of stamp duty on house purchases in an attempt to get the recently stalled housing market back on its feet again. The housing market is said to have stalled when Darling, 6ft 1in, refused to rule out that he was considering scrapping stamp duty for a limited period when it was hinted at by a Radio 4 presenter last week. A spokesman for the Estate Agents Association said that doubling the rate of stamp duty would definitely put the fear of god into anyone who has been moaning on the telly about the chancellor possibly scrapping it soon.

Posted by gary smith @ 07:56 AM 3 Comments

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