October 2008 Archive

Thursday, October 30, 2008

the Bonnie and Clyde of mortgage fraud

Bloomberg: Maid-Turned-Realtor Ran Vegas Mortgage Scam, Prosecutors Say

Las Vegas couple allegedly arranged fake sales on some houses five times. Then, according to the indictment, they walked away from the mortgages, leaving lenders in the lurch. stashing the cash in 80 bank accounts.

Posted by mountain goat @ 11:09 PM 0 Comments

Great If Your Emigrating To Australia

watoday: Dollar dive: 40 US cents warning

The Australian dollar may fall to a record low next year, possibly dipping below 40 US cents for the first time, as slowing growth in emerging markets cools demand for the raw materials exported by the nation.

Posted by big chris @ 10:33 PM 0 Comments

Don't worry, there'll be plenty of jobs down t' pits soon...

The Oil Drum: Will the UK Face a Natural Gas Crisis this Winter? (Part 1 of 2)

In recent years, the UK has become increasingly dependent on natural gas as its primary energy source. However during the last three years, UK nat gas production has declined at an annual rate of 8-10%, which many energy analysts expect will continue.

Posted by drewster @ 09:37 PM 7 Comments

First came the mortgage crisis. Now comes the credit card crisis.

NYTimes: Consumers Feel the Next Crisis: Its Credit Cards

After years of flooding Americans with credit card offers and sky-high credit lines, lenders are sharply curtailing both, just as an eroding economy squeezes consumers. The pullback is affecting even creditworthy consumers and threatens an already beleaguered banking industry with another wave of heavy losses after an era in which it reaped near record gains from the business of easy credit that it helped create. Lenders wrote off an estimated $21 billion in bad credit card loans in the first half of 2008 as more borrowers defaulted on their payments. With companies laying off tens of thousands of workers, the industry stands to lose at least another $55 billion over the next year and a half, analysts say. Currently, the total losses amount to 5.5 percent of credit card debt outstanding,

Posted by lvmreader @ 09:06 PM 3 Comments

Long article...but worth a read....Globalisation - becomes Realisation.

New Statesman: Europe's looming crisis

It all started with sub-prime loans in the United States. Or did it? As the IMF is called in to bail out failing economies, the scale of European exposure to toxic debt is becoming clear

Posted by whostolemyendowment @ 08:33 PM 0 Comments

Maybe, if a sh@g off the latest bond girl was thrown in as well....


DESPERATE estate agents are giving away free Bond-style cars in a last ditch bid to get cash strapped Brits to buy houses.

Posted by whostolemyendowment @ 08:18 PM 4 Comments

Barclays Capital cancels Xmas party

guardian: Barclays Capital cancels Xmas party

Oh yeh and Jonathon Ross has been suspended, thought this was very important news...lol

Posted by mark @ 08:03 PM 12 Comments

We are DOOMED without the banker bonuses

FT: Closing doors

The CEBR estimates bonuses in London will fall 60 per cent this year, while New York State says a 50 per cent drop is likely. The mix between shares and cash is also set to change. There will be fewer people earning the really big money, says Nick Studer from Oliver Wyman, a consultancy. Moreover, many of the investment banks that paid the biggest bonuses are now grafted more tightly on to retail banks, where compensation tends to be lower. New York and London are forecast to shed nearly 100,000 banking-related jobs by the end of 2009 and banks that survive are unlikely to return to this decades dizzying profit levels any time soon. But even those who believe change is in the air wonder how long the restraint will last.

Posted by lvmreader @ 07:38 PM 1 Comments

I guess guaranteeting Lehman employees $1bn in bonuses was not so smart

Forbes: Nomura in red in Q2, hit by trading losses

Nomura Holdings Inc, Japan's largest brokerage, posted its third consecutive quarterly net loss on Tuesday as financial market turmoil led to big trading losses and discouraged companies from issuing shares or making deals. Nomura, which last month bought Lehman Brothers (nyse: LEH - news - people )' operations in the Asia-Pacific region, Europe and the Middle East, also warned of potential losses on exposure to crisis-hit Iceland and further write-downs on its stake in Fortress Investment Group (nyse: FIG - news - people ). The outlook for Japan's brokerage sector remains bleak with the benchmark Nikkei average sliding to a 26-year low this week, depressing trading commissions and demand for capital raising, mergers and other fee-generating deals.

Posted by lvmreader @ 07:34 PM 0 Comments

The company says it will eliminate 10% of its global workforce to cope with adverse economic conditi

CNN: AmEx to cut 7,000 jobs

Don't these have UK offices in Chester?

Posted by mark @ 06:59 PM 4 Comments

The bankers NEED their mansions more than you need food

Dailymail: Goldman Sachs ready to hand out 7bn salary and bonus package... after its 6bn bail-out

Goldman Sachs is on course to pay its top City bankers multimillion-pound bonuses - despite asking the U.S. government for an emergency bail-out. The struggling Wall Street bank has set aside 7billion for salaries and 2008 year-end bonuses, it emerged yesterday. Each of the firm's 443 partners is on course to pocket an average Christmas bonus of more than 3million. The size of the pay pool comfortably dwarfs the 6.1billion lifeline which the U.S. government is throwing to Goldman as part of its 430billion bail-out.

Posted by lvmreader @ 05:33 PM 22 Comments

Where are Japanese savings going next?

FT: Beware the unwinding of the yen carry trade

Japan has a $15,000bn pool of savings, the deepest in the world and worth more than the annual economic output of the US. In the past days, as spectacular moves in global currencies reveal, the carry trade has been violently unwound. With last weeks panic retreat from risk assets of almost every description came a dramatic rise in the yen, partially reversed in the past two days on rumours of a Japanese interest rate cut.

Posted by mountain goat @ 05:11 PM 3 Comments

A welcome return for prudence

FT: Interest-only mortgages blocked

Debt charities have accused banks of failing to uphold Gordon Browns promise that repossession would be a last resort for insolvent homeowners. Cheltenham & Gloucester, part of Lloyds TSB, has attracted criticism by announcing that borrowers cannot move from repayment mortgages to interest only loans, which offer lower monthly payments. However estate agents and brokers said restricting interest only loans was prudent. Falling house prices mean borrowers who do not reduce the size of their loan through repayment mortgages are at risk of negative equity and could have difficulty refinancing their property in the future.

Posted by musn't grumble @ 05:09 PM 16 Comments

Welsh auction - 74 lots - 3 bids - no sales

Rat and Mouse blog: The most embarrassing auction in the west

Seventy-four lots, 100 attendees... err... three bids, and no sales. Welsh estate agents Peter Alan have been blamed for overpricing the properties, but reports suggest that apartments that had at one time seen valuations of 200,000 were offered at 30,000; yet, still no takers.

Posted by ledhouse @ 04:19 PM 3 Comments

FLASHBACK - BBC Under Threat - Comedy not the only problem

Guardian: WTO: open public services to market

A government consultation report released last week says the UK faces demands to 'remove all establishment restrictions on hospital and social services, rest, convalescent and old people's homes'. Other demands include the removal of distinctions between postal and courier services and calls for Britain to end subsidies to broadcasting organisations. This could have massive implications for the BBC. Nick Mathiason The Observer, Sunday October 13 2002 Article history But under Gats, commitments are irrevocable. Countries will be locked in, which is incompatible with democracy.'

Posted by malct @ 03:01 PM 14 Comments

With economists like this, no wonder the banks are in a mess ...

BBC: Reaction to falling house prices

From the quotes: JAMES KNIGHTLY, ECONOMIST AT ING: "This wealth destruction, coupled with growing concerns about negative equity, is likely to keep consumer confidence very weak." Wot? When a house burns down, that is wealth destruction. If its market value changes, that is neither wealth destruction nor wealth creation.

Posted by mark wadsworth @ 02:53 PM 12 Comments

This is why we should not rely on China for cheap goods..

cnn: 6 Chinese knock-offs

Off topic but relevant in a way... For many years we have been borrowing money, buying cheap imported goods, in the end we get screwed for both, we should borrow less and be more self reliant as a country, grow our own foods, etc.... After all do we know if we are buying the real thing, look at the recent milk scare, are the goods really organic? Are the eggs real, etc we rely on honesty from countries with so much corruption they simply make copies and knock offs of the real things... This article is a new level even for China

Posted by mark @ 02:40 PM 7 Comments

The average property price in Cornwall is now more than 14 times the average wage

This Is Cornwall: Cornwall

"Statistics in the report show that the average salary in Cornwall is just 16,484 yet the income needed to be able to get a mortgage to buy a home in Cornwall currently stands at 63,128. The average house price in Cornwall is 232,578." -Still a long way to fall then! "There are areas in the South West which are among the most unaffordable places in the country to buy a home and we also have the highest proportion of second homes." -Well that is already starting to change. If you look on Rightmove, a large number of Holiday lets are starting to come back on to the market, a trend that in my opinion will accelerate as holiday belts tighten.

Posted by kernow @ 02:35 PM 3 Comments

and waiting and waiting

bbc: Saver still waiting for 24,000

A saver is still waiting for a 24,000 transferral from the UK arm of an Icelandic bank to appear in his bank account three weeks after making it. Rhys Livsey, 29, from Cardiff, withdrew the money from Kaupthing Edge a day before it was taken over by ING Direct after a financial crisis in Iceland. In an email the company told Mr Livsey his money "had been held up". A spokesman for ING Direct said the administrators were working on clearing payments from prior to the takeover. Mr Livsey, who works as a PA, told BBC News he had decided to move his money, a total of 24,067, after reading some reports of problems with the bank on the internet.

Posted by mark @ 01:32 PM 9 Comments

more freebies

Wales Online: Buy a house get an Aston Martin free

As an incentive to drive up interest, the company is now offering two V8 Vantage models of the Aston Martin, worth about 90,000 each, to buyers who secure the house keys. The company said purchasers this weekend would automatically own the vehicle and the idea came on the back of tomorrows release of the latest James Bond film, Quantum of Solace, which features the 190mph DBS version of the Aston Martin.

Posted by sold out @ 01:15 PM 17 Comments


bloomberg: Maid-Turned-Realtor Ran Vegas Mortgage Scam

Eve Mazzarella was a Las Vegas success story. The high-school dropout and former housemaid moved to the Nevada city in 2000 from Seattle, got a certificate from the ABC Real Estate School and started selling houses in what would become the hottest market in the country. In 2006, Mazzarella recorded sales of $13.8 million and made the National Association of Realtors'

Posted by mark @ 12:46 PM 0 Comments

Mr Angry

ASSETZ: Mervyn King must resign - Base rates must be cut by 2% now

Another comedy classic "We need a lion and not a mouse to lead us through these turbulent times. Next Thursday's MPC meeting should end with an announcement of a 2% base rate cut and the end of the Mervyn King era. Mervyn King should resign."

Posted by sold out @ 12:45 PM 19 Comments

35% drop by end 2009

Guardian: Auctions point to steeper fall in house prices

"The average price of a property sold at auction dropped nearly 30% over the past 12 months leading analysts to predict that house prices in the general market have a lot further to fall."

Posted by letthemfall @ 12:44 PM 1 Comments

Consumers are defaulting at high levels on their credit cards, they contend, while banks bleed tens

cnn: Groups seek credit card debt forgiveness

This is getting annoying now, the next boom i am going to borrow as much as I can and then ask if someone can bail me out or forgive me for my debts, why should i save and get nothing...

Posted by mark @ 12:40 PM 3 Comments

HBoS accepts state guarantee

BBC: HBOS: Breaking the bank

The take over of HBOS by Lloyds TSB will create the biggest ever British bank with more accounts and mortgages than any of its high street rivals. Only a year ago a merger on this scale would have been unthinkable, but a year is a long time in banking.........

Posted by jack c @ 12:32 PM 6 Comments

Inflation could make a comeback sooner than you think

MoneyWeek: Inflation could make a comeback sooner than you think

"...we borrowed lots of money - arguably too much - and now we have to pay it back, regardless of what the worlds governments and central banks would like us to do. Its not that hard to understand. Lots of people dont seem to like the idea, because it sounds moralistic. But its no more moralistic than pointing out that if you throw an apple into the air, at some point it will fall back down again."

Posted by damien @ 12:32 PM 0 Comments

I have had hedge fund managers literally in tears on the phone

Telegraph: Porsche and VW share row: how Germany got revenge on the hedge fund 'locusts'

how financial predators became the prey in the audacious multi-billion takeover of VW by Porsche While "hedgies" bet on VW shares falling because of the global economic downturn, regarded by some as "the safest play in town", Porsche had been secretly building up a 74.1 per cent stake in VW through intermediaries. When Porsche showed its hand, it sent the VW share price rocketing and exposed the hedge funds to breathtaking losses. "I have had hedge fund managers literally in tears on the phone," said one London-based analyst yesterday. Others likened the Porsche disclosure to a "nuclear bomb going off in our faces", describing the resulting losses as "a bloodbath".

Posted by malct @ 11:28 AM 24 Comments

Bulgaria - Better returns in towns and cities


Recent news reports seem to indicate that the property market in Bulgaria is now at a complete stand still.

Posted by canada dry @ 10:19 AM 0 Comments

here we go, now we are paying for the money we lent to banks!!

yahoo: arling warns taxes may rise

Britons have been told to prepare for higher taxes and lower spending after the next election as Chancellor Alistair Darling effectively did away with Gordon B

Posted by mark @ 10:12 AM 18 Comments

how jobs have gone so far in the UK???? anyone got a time map?

yahoo: Domino Printing to cut 200 jobs

Cambridge-based company whose products are used to print 'best before' dates and barcodes.

Posted by mark @ 10:09 AM 0 Comments

BIG news - US to guarantee mortgage loans with taxpayers money. Pity those without a home eh?

Bloomberg: Treasury, FDIC Said to Consider Guarantees to Stem Foreclosures

Scheme coming to UK very soon I'm sure. All it does is push the problem into the future. The U.S. Treasury and the Federal Deposit Insurance Corp. are considering a program that may offer about $500 billion in guarantees for troubled mortgages to stem record foreclosures, people familiar with the matter said. The plan, which might put as many as 3 million homeowners into affordable loans, would require lenders to restructure mortgages based on a borrower's ability to repay. Under one option, the industry would keep lower monthly payments for five years before raising interest rates, the people said.

Posted by tyrellcorporation @ 09:12 AM 22 Comments

Apparently if you alter your accounting rules everything actually is fine... Unbelievable!

Bloomberg: Deutsche Bank Posts Profit as Rules Limit Writedowns

WHERE'S THE TRANSPARENCY? Surely this makes the situation worse not better? ``Earnings were better than feared and the use of new accounting rules helped,'' said Thomas Koerfgen. WTF?!?

Posted by tyrellcorporation @ 09:08 AM 1 Comments

Nationwide: UK house prices down 14.6%

Credit Writedowns: Nationwide: UK house prices down 14.6%

Fionnula did put her positive spin on this but the annual rates of decline are accelerating to 14.6% from 12.4% and 10.5% in the two previous months. With the UK in recession, Earley's ability to spin this positively are limited. Let's look for rate cuts is about all she can say. That's what I heard her say on Bloomberg TV.

Posted by edwardnh @ 09:01 AM 0 Comments

The Full Gory Details

Nationwide: October press release

Even Fionnula can't think of any way of spinning this.

Posted by mark wadsworth @ 07:47 AM 22 Comments

Nationwide: -1.4% Mom, -14.6% YoY

BBC: Low sales drive house prices down

UK house prices continued falling in October and are now nearly 15% lower than a year ago, says the Nationwide. The building society's latest survey says property prices fell by 1.4% this past month, pushing the annual rate of fall up from 12.4% to 14.6%. This means the price of an average house was 158,872 - 30,000 less than a year ago.

Posted by little professor @ 12:19 AM 6 Comments

Wednesday, October 29, 2008

Feds last throw of the dice

money and markets: Fed rate cut a DUD! Fed rescues go WILD!

Mr. Bernanke cannot drop interest rates below zero! He cannot force banks to lend money! He cant compel consumers to borrow, or make people spend. Nor can he turn back the clock to undo decades of financial sins or repeal the law of gravity and stop investors from selling.

Posted by sold out @ 11:48 PM 1 Comments

The Blanchflower Formula

The Times: Federal Reserve slashes US rates to 1%

The Federal Reserve acted last night to stave off a severe US recession, cutting American interest rates to 1 per cent, matching the lowest levels of recent decades and paving the way for further cuts to unprecedented lows ... Pressure on the Bank of England to take aggressive action was ratcheted up by David Blanchflower, an external member of its rate-setting Monetary Policy Committee.

Posted by quiet guy @ 11:04 PM 4 Comments

A quick stroll through Foreclosure Alley in Socal

KCET: Foreclosure Alley

Depressing but interesting video about how repossessions are executed in South California (12:27)

Posted by quiet guy @ 09:45 PM 0 Comments

Danny Must Really Want a Deep Cut!

BBC News: Bank insider warns of recession

"The current financial crisis may be more far-reaching than even the 1929 crash, a Bank of England policymaker has warned."

Posted by renting2 @ 09:16 PM 0 Comments

As Expected-UK Next Week, or Sooner?

Wall Street Journal: Fed Cuts Rates by Half Point Amid Economic Deterioration

"Central banks around the world have unleashed a new assault on the global economic downturn, with authorities in the U.S., China and Norway announcing interest rate cuts and several others lining up to follow in the days ahead." So, What and When will GB/AD do?

Posted by renting2 @ 08:38 PM 1 Comments

Risky pound

Bloomberg: Pound Posts Biggest Two-Day Advance Against Dollar in 23 Years

Losses by the pound also reflected ``extreme levels of risk aversion,'' Paul Robinson, a currency strategist in London at Barclays Capital, said in a Bloomberg Television interview. The currency may trade at $1.55 in three months, he said. But for today stocks and GBP riding high, yay

Posted by mountain goat @ 06:22 PM 5 Comments

they have run out of money..

bbc: Grants cut over funding

Shame this takes second place over Ross and Brand, as this is much more important than a joke....

Posted by mark @ 06:02 PM 16 Comments

What about defaulting landlords?

MyFinances: Buy-to-let landlords warned of defaulting tenants

Landlords are being warned the coming recession will bring higher numbers of tenants falling behind on their rent. Unemployment is set to rise in the coming year as the economy contracts, and landlords are being urged to protect themselves.

Posted by whostolemyendowment @ 04:34 PM 3 Comments

You heard it first in the SUN....well, probably elsewhere as well.

The Sun: World bank is going bust

THE worlds bank the International Monetary Fund is going BUST and must be bailed out, Gordon Brown warned last night. ***Hope there is some left when we need it....

Posted by whostolemyendowment @ 04:29 PM 10 Comments

Stock market rally - unfreezing money markets ...?

Bloomberg: European Stocks Climb as Credit Costs Ease; RBS, Daimler Rally

European stocks gained for a second day as falling credit costs spurred a rally in financial shares, while higher commodity prices pushed up oil and metals producers. //...// The drop in money-market rates "shows that the system is beginning to unclog,'' said Charles Mackinnon, chief investment officer at London-based Thurleigh Investment

Posted by 51ck-6-51x @ 03:01 PM 2 Comments

Maybe arsettzzz might find this a relief..

boston news: Area's rents up 4.2% in one year

Rents in the Boston area spiked 4.2 percent over the past year, the biggest increase in seven years, while rising foreclosures and a slumping housing market pushed more people into apartment living.

Posted by mark @ 02:03 PM 0 Comments

but we don't have a problem do we gordon?

bloomberg: Credit `Tsunami' Swamps Trade as Banks Curtail Loans (Update2)

Richard Burnett's lumber company had started loading wood onto ships heading for China. More was en route to the docks. It was all part of an order that would fill 100 40-foot cargo containers. Then Burnett got a call from his buyer at Shanghai VIVA Wood Products Co. The deal was dead. He told Burnett, president of Cross Creek Sales LLC in Augusta, Georgia, he couldn't get a letter of credit to guarantee payment for at least six months.

Posted by mark @ 01:52 PM 4 Comments

666 interesting number!!

bbc: China cuts interest rates again

The rate cut, which will come into effect on Thursday, will see rates fall from 6.93% to 6.66%.

Posted by mark @ 01:26 PM 17 Comments

Lend For America Plan

Mish: White House: "Banks Need To Stop Hoarding Money"

Here is an important announcement from the President Bush "Banks Need To Stop Hoarding Money". "Start lending money. In fact we demand it. ...Taxpayers will make billions when this plan succeeds. It's a 'win-win can't fail' situation. The more money banks lend the more money banks will make. It never fails. And the beauty of the plan is taxpayers benefit. If it looks like the plan is not working it's only because banks are not lending enough."- press secretary Dana Perino.

Posted by mountain goat @ 01:05 PM 6 Comments

Why the government should be grateful to BP

MoneyWeek: Why the government should be grateful to BP

BP's huge profits are good for our pension funds and good for the public coffers. Rather than calling for windfall taxes, the government should be grateful that at least one British company is making money...

Posted by damien @ 12:17 PM 3 Comments

He can run but he can't hide....

The Renegade Economist: Gordon Brown's Cover Up

Crash Gordon's Cover Up Has Begun -

Posted by neo-serf @ 12:13 PM 6 Comments

How much interest did argos earn from this?

mirror: Argos double charges 190,000 customers leaving many in the red

They found their debit and credit cards had been charged double for items. Thousands of furious customers could now be plunged into the red and face hefty bank charges.

Posted by mark @ 11:31 AM 0 Comments

I'm often in Manchester and there are scores of these future slums!

Guardian - Joe Public blog: Shiny new investments are turning into potential slums

My landlord, "William", is an unlikely property tycoon. He was generally affable and usually reasonable, even if he delegated repairs to me. I only recently discovered that he had accumulated 12 buy-to-let properties but still worked full time.

Posted by whostolemyendowment @ 11:12 AM 0 Comments

Turning Japanese

Telegraph: The bigger the party, the longer it takes to clear up the mess

An interesting discussion point in an unusually subdued style for Jeff Randall. Nothing particularly new, but a reminder that stock markets can do nothing for more than 20 years.

Posted by letthemfall @ 11:09 AM 1 Comments

another ones bites the dust

bbc: Icelandic-owned airline bankrupt

Up to 700 passengers have been left stranded at London's Gatwick airport after an Icelandic-owned airline said it would file for bankruptcy.

Posted by mark @ 11:05 AM 2 Comments

Yeh yeh, spend 70million so you can lay off staff..

bbc: 'Temporary lay-offs' at car plant

it told employees that up to 800 of the factory's 2,000 staff would be temporarily laid off in December due to the economic climate.

Posted by mark @ 11:02 AM 0 Comments

more jobs to go

reuters: CSR to cut 40-50 UK jobs as volumes fall

British bluetooth specialist CSR Plc (CSR.L: Quote, Profile, Research) said on Wednesday it would cut 40-50 jobs in the UK in a drive to save $20 million of costs in 2009, in reaction to the consumer downturn hitting its markets.

Posted by mark @ 10:59 AM 0 Comments

Ain't no oil behind this hedge

reuters: Lufthansa's fuel hedging hit by Lehman crisis

Airlines use hedging to protect themselves against sharp rises in jet fuel costs, one of their biggest expenses. Lufthansa's fuel costs in the first nine months rose 48.9 percent from the year-earlier period.

Posted by mark @ 10:57 AM 0 Comments

Time for layoffs

cnn: Magazine publisher Time Inc. set for layoffs

Time Inc., a major magazine company that publishes People, Sports Illustrated and Real Simple, will cut jobs as part of a restructuring to reduce costs and centralize the company's business units.

Posted by mark @ 10:52 AM 0 Comments

"British homeowners WERE paying off more of their existing mortgages than they WERE getting new ones

Sky News: Mortgage Approvals: Surprise Hike

The Bank of England said mortgage approvals rose to 33,000 last month from a record low of 32,000 in August, the first rise since June 2007. Mortgage lending last month was more than twice market forecasts - but it followed a downward revision to August which showed the first net repayment since the series began in 1993, the BoE said. // ... // Consumer credit rose by just 251 million pounds in September, the weakest rise since February 1994 - supporting anecdotal and survey evidence that consumer spending is weakening.

Posted by 51ck-6-51x @ 10:14 AM 15 Comments

Fed considers another rate reduction to cushion pain from credit, financial crises

Assoc. Press via Yahoo: Fed weighs another rate reduction to limit fallout

Yahoo!My Yahoo!Mail Make Y! your home pageYahoo! SearchSearch:Sign In New User? Sign UpFinance Home -Help Welcome [Sign In] To track stocks & more, Register Financial News Enter symbol(s) BasicPerformanceReal-time MktDetailedChartResearchOptionsOrder Book Symbol Lookup AP Fed weighs another rate reduction to limit fallout Tuesday October 28, 5:03 pm ET By Jeannine Aversa, AP Economics Writer Fed considers another rate reduction to cushion pain from credit, financial crises WASHINGTON (AP) -- Disappearing jobs, burrowing consumers and skittish companies are reasons for the Federal Reserve to ratchet down interest rates and brace the tottering economy. Fed Chairman Ben Bernanke and his colleagues opened a two-day meeting Tuesday

Posted by malct @ 09:27 AM 0 Comments

Who said capitalism was dead

Guardian: BP quarterly profit hits record $10bn

BP was at the centre of a huge row yesterday after unveiling record quarterly profits of $10bn (6.4bn) - a rise of 148%

Posted by matt_the_hat @ 09:03 AM 3 Comments

If you won@t spend your money the government will do it for you

BBC News: Darling to reassure on borrowing

With the government planning to increase borrowing and spend its way out of an expected recession, the chancellor will say fiscal policy must support efforts to shore up the economy.

Posted by matt_the_hat @ 09:01 AM 2 Comments

They should pass a new law - no saving

thisismoney: Rate cuts not 'magic bullet' for recovery

Monetary Policy Committee member Tim Besley said the Bank has 'limited' power to ease the cost of borrowing. Commercial banks are reluctant to lend to each other, meaning the BoE is finding it hard to transmit rate changes into the broader economy.

Posted by matt_the_hat @ 08:59 AM 7 Comments

Global markets rallly on prospect of more debt

BBC News: Rate cut hope lifts global shares

The Federal Reserve is widely tipped to cut US rates later on Tuesday. Many analysts expect the Bank of England and European Central Bank to follow suit next week.

Posted by matt_the_hat @ 08:57 AM 0 Comments

How bad does the state of the nation have to get before we will be advised it's okay to panic?

Huffingtom Post News: The Next Great Depression Is Here... If We're Lucky

Don't panic this is just a speed bump. You want to ride this one out. Think long-term. It's a marathon, not a sprint. Keep your money where it is trust the market. The worst thing you can do is panic. Reassuring words, which can all be traced, ultimately, to the same dudes who ringed our noses and walked us to the edge of this particular ravine in the first place Collectively and individually, we are already enslaved to a diminished future by decades of unrestrained gluttony and greed. And we are getting fatter, stupider, and more indebted by the moment. I'm not being judgmental; that's just a sober read of the stats.

Posted by malct @ 08:30 AM 1 Comments

finding new employment in factories and other businesses serving the domestic Chinese market

the International Herald Tribune via TS: Chinese exporters feel the pinch as demand slows

GUANGZHOU, China: From manufacturers of chain saws to producers of stereo headphones, and makers of practically every product in between, exporters in China are running into trouble as demand slows in the United States and Western Europe. As the world's largest export fair opened here Wednesday, executives from across China complained of rising costs and falling sales. "Most of the suppliers are disappointed with this financial crisis - it's a disaster," said Kevin Cao, the export manager of the HuangYang Bronze Company, a producer of aluminum wire that has seen its exports drop by nearly half since July and that has had to cut its work force by a quarter.

Posted by malct @ 08:20 AM 0 Comments

Lloyds turns on house price gamblers

The Times: Lloyds TSB blocks interest-only mortgage switch

Lloyds TSB, one of Britains biggest mortgage lenders, came under fire yesterday after it emerged that it was stopping borrowers switching from repayment mortgages to interest-only deals. The lower monthly repayments of interest-only mortgages are often a lifeline for hard-pressed borrowers.

Posted by quiet guy @ 07:23 AM 13 Comments

4 years of decline

Economist: US house prices: Still no end in sight

On Tuesday October 28th the S&P/Case-Shiller index of house prices for ten cities showed a record decline of 17.7% in the year to September.

Posted by mken @ 02:01 AM 4 Comments

Tuesday, October 28, 2008

Taking the p1ss

Times: London public toilet sells for 403,000

Amid cries of negative equity and stalling property sales, a public lavatory in South West London has triumped in the face of adversity and sold for almost four times its asking price. Walham Green Toilets on North End Road, Fulham went for an astounding 403,000 at auction on Monday after a competitive bidding war pushed its asking price through the roof. The two-storey toilet block was initially advertised in the Bricks & Mortar section of The Times last week with a guide price of 90,000. This was however elevated to 130,000 by the estate agents, Savills, prior to the auction.

Posted by little professor @ 11:34 PM 7 Comments

It is very nice to see cracks in the unity. I think they plunged it too far to get their NWO!!

Minneapolis Federal Reserve Bank: Minneapolis Fed Challenging Claims Made by the National Fed

Facts and Myths about the Financial Crisis of 2008" examines these four arguments: 1. Bank lending to nonfinancial corporations and individuals has declined sharply. 2. Interbank lending is essentially nonexistent. 3. Commercial paper issuance by nonfinancial corporations has declined sharply, and rates have risen to unprecedented levels. 4. Banks play a large role in channeling funds from savers to borrowers.

Posted by planning4acrash @ 10:10 PM 5 Comments

Krustie turns her hand to.....

Press Association: TV presenter launches gas campaign

Its all for "cherity mate". So THATs what shes up to.

Posted by techieman @ 04:32 PM 8 Comments

US consumer confidence falls to record low

BBC: US consumer confidence nosedives

US consumer confidence has fallen to a record low in October, as global stock markets fall, homes are repossessed and firms lay off workers. The Conference Board said the monthly consumer confidence index fell to 38, down from a revised 61.4 in September and below analysts' expectations of 52. It is the lowest since the board began tracking consumer sentiment in 1967.

Posted by charlie brooker @ 04:30 PM 0 Comments

The Perfect Storm: Peak Baby Boom Spending Collides With Peak Oil/Commodity Prices in 2009-2010

A New Book By: Harry S. Dent, Jr.: The Great Depression Ahead

Between mid to late 2009 and mid to late 2012, the U.S. will see the next Great Depression and the deflation of the three bears, bubbles in stocks, housing, and commodities. This occurrence will represent the de-leveraging of the greatest credit bubble in history and will have much greater effects than we have seen thus far on banking and financial systems. Americans will see the first and last Great Depression of most of our lifetimes. Most people simply are not prepared for this coming dramatic change in our economy. Aging Baby Boomers will see the worst of the economy in their retirement years, much as the Bob Hope generation saw the worst in their early years in the 1930s and in World War II on an 80-year generational cycle.

Posted by sold 2 rent 1 @ 03:45 PM 37 Comments

Isn't the plan to torch the house BEFORE you sell it to the Insurance Company?

Telegraph: Stock trader arrested over arson hours after selling house

Internet trader Richard Hardy, 55, told neighbours he faced repossession of his home in Upton St Leonards, near Gloucester. The blaze started in the early hours of Friday morning, less than 12 hours after Mr Hardy exchanged contracts with a new owner, a married father-of-three. Neighbour Martin Atkins, 51, said: "Richard had lived here for 12 years, I've been here for just over 11 years.

Posted by lvmreader @ 03:44 PM 3 Comments

So that's why they wanted our money!

Business Scotsman: RBS silent on claims it faces a 10bn hit on toxic assets from ABN deal

WRITEDOWNS at the Royal Bank of Scotland are set to blast through the 10 billion barrier this year, analysts warned last night. The new blow to the beleaguered bank comes as the international banking crisis continues to dissolve the value of its toxic assets. Analysts yesterday estimated that the effect of this on RBS would be to force it to write down a further 6.8bn in assets and investments when it releases details of its latest effort to shore up its finances later this week. That figure will be in addition to the 5.9bn writedowns announced in the first half.

Posted by malct @ 02:39 PM 1 Comments

So that's why they didn't take our money!

Scotsman Business: QIA 'to raise its Barclays stake'

BARCLAYS yesterday declined to comment on reports that Qatar Investment Authority was set to up its stake in the bank as part of a 2 billion rescue bid. The QIA could subscribe to 1bn of new loans stock in the bank, in which it already holds an 8 per cent stake, with another 1bn being taken up by the bank's institutional shareholders, according to reports. The reported plan could help Barclays to recapitalise without help from the UK government's banking rescue plan.

Posted by malct @ 02:33 PM 1 Comments

In Defence of Currency (4) - Romania at 900%!!

IFA Online: IMF may need to "print money" as crisis spreads

Moves by Hungary, Ukraine and Belarus to seek emergency loans from the IMF have now set off a dangerous chain reaction across Eastern Europe. Romania had to raise overnight interest rates to 900pc on Wednesday to stem capital flight, recalling the wild episodes of Europe's ERM crisis in 1992. The CDS spreads on Ukraine's debt have topped 2,800, signalling total revulsion by investors.

Posted by lvmreader @ 02:31 PM 4 Comments

In Defence of Currency (3)

FT.com: Iceland lifts rates to 18% from 12%

Dorothy, Iceland, Bye Bye Icelands central bank lifted interest rates on Tuesday to 12 per cent from 18 per cent on the orders of the International Monetary Fund, highlighting the dramatic impact the organisation will have on the countrys ability to control economic policy. The move is an attempt to support the Icelandic krona, which has lost 70 per cent of its value during the crisis before trading in the currency halted. It is due to re-float within a matter of weeks, a development that is regarded as a key step in restoring Icelands international credibility.

Posted by lvmreader @ 02:27 PM 1 Comments

The rush to rescue those in debt is cruel on us savers

The Independent: The rush to rescue those in debt is cruel on us savers

"Why save up for a house, holiday, umpteenth pair of shoes, if you could buy at once, confident that the same item would soon cost more and, in the case of a house, that it would probably make you more money over the same time-scale than most people could ever earn from work."

Posted by becky @ 01:42 PM 1 Comments

Still no lending, bailouts to banks going under their matress

NY Times: One Day Doesnt Make a Trend

The dirty little secret of the governments $250 billion handout to nine banks to get them lending again is this: So far, they have stuffed it under their mattress like the rest of us. Need a mortgage? An auto loan? If you are a business or consumer, its almost as hard to get a loan this week as it was last. It doesnt matter how much Hank Paulson gives us, said an influential senior official at a big bank that received money from the government, no one is going to lend a nickel until the economy turns. I bet UK banks are no different, despite the little clause that makes banks lend at 2007 levels in the UK bailout agreement.

Posted by mountain goat @ 01:28 PM 11 Comments

It also tells us something about the scale of the economic downturn we're facing.

bbc: The 5,000bn bailout

If I were you, I wouldn't get too worked up by the Bank of England's estimate that credit-crunch losses now total 1,800bn on an assortment of financial assets, such as mortgage-backed securities and corporate bonds. Of course it's a big number - rather bigger than the annual economic output of the UK. not recommend to those of a nervous disposition, is its estimate that 5,000bn has implicitly or explicitly been made available by central banks and governments since April 2008 to support wholesale funding by banks.

Posted by malct @ 01:20 PM 0 Comments

Dropping like a stone

Land Registry (pdf): House prices down 2.2% MoM, 8% YoY

For so long the Land Registry figures showed ongoing growth whilst the Haliwide indices showed prices tanking. Nice to see the 'official' government figures catching up with reality. That's a huge monthly drop, and for the annual figure to reach -8% when it was YoY positive not so long ago is amazing.

Posted by little professor @ 11:42 AM 18 Comments

1/2 million bargain homes soon to drive down house prices

Mail Online: Repossession threatens 500,000 families as cost of credit crunch hits 1.8trillion

The number of families at risk of losing their home could rise nearly fourfold as the credit crunch bites, the Bank of England has warned. In a bleak analysis, it says that more than half a million households could fall three months or more behind on their mortgage payments - putting them at risk of repossession.

Posted by athom @ 11:31 AM 5 Comments

House prices down - repossessions up

BBC: Repossession total 'is up by 71%'

The number of people losing their homes after failing to meet their mortgage repayments climbed sharply, says the UK's financial watchdog. The number of repossessions in the second quarter of the year was up 71% compared with the same period a year earlier, at 11,054. The Financial Services Authority said the number of consumers struggling to clear their home loan arrears was up. This comes after the Bank of England predicted more woe for homeowners.

Posted by jack c @ 11:03 AM 2 Comments

Iceland now facing complete financial collapse

BBC: Iceland's interest rate up to 18%

Iceland's central bank has raised its key interest rate to 18% from 12% as the country battles against a complete financial collapse. The increase comes less than two weeks after it cut rates from 15.5%. News of the rise came as Iceland's prime minister said the country needed another $4bn (2.6bn) in loans. Iceland has been struggling to avoid collapse since it was forced to take over its three biggest banks, which had been hit by the credit crunch.

Posted by jack c @ 10:36 AM 16 Comments

Another -ve eqty headline

PropertyWeek.com: 1.2m face negative equity says Bank

"About 500,000 home owners are already in negative equity after a drop in house prices of almost 15% from last summers peak, the Banks figures indicate. An identical fall in prices would push another 700,000 of Britains 11.7 million mortgage holders into negative territory, it says.

Posted by 51ck-6-51x @ 10:19 AM 7 Comments

Even if you want to dive in, someone stole the springboard!

Mortgage Introducer: 23 per cent of mortgage products withdrawn in last week

moneysupermarket.com comments on the number of mortgage products pulled by lenders in the week to 27th October 2008

Posted by whostolemyendowment @ 08:53 AM 2 Comments

An Old Fashioned Way Of Punishing Bankers?

Guardian: News Article

Now how do you deter the greedy ones? ... Talk about kids, they are no problem. It's those who set the example...

Posted by orwell @ 08:50 AM 0 Comments

What happens if other countries decide that selling the Dollar is the way forward?

Bloomberg: Indonesia Plans `Response Policy' to Boost Currency

Indonesian stocks are headed for their worst yearly performance on record and the country's bonds are the weakest performer in Asia as a global credit crisis prompts investors to flee from the nation. Indonesia was one of three countries in the region to seek a bailout from the International Monetary Fund during the Asian financial crisis a decade ago. ``The most effective measure would be'' the central bank selling dollars, said Aldian Taloputra, an economist at PT Mandiri Sekuritas in Jakarta. ``But this problem is of global scale, so what the government could do is to minimize the impact of the outflow.''

Posted by flintster1994 @ 08:50 AM 0 Comments

And the numbers just keep on growing exponentially

Telegraph: Toxic debt losses now 1,800bn, say Bank

The Bank's estimates on the size of writedowns facing banks, insurers and hedge funds published today in its Financial Stability Report have more than doubled since its last update in April, and raise the spectre of massive new provisioning by Britain's troubled lenders. Royal Bank of Scotland, for one, is expected to reveal another 4bn of writedowns on Friday. In the UK, the Bank calculates, "mark-to-market losses" have hit 123bn compared with the 63bn estimated in April. To date, Britain's lenders have collectively written down less than 20bn, though the Bank conceded that the market may be overstating the losses by reflecting "substantial discounts for uncertainty".

Posted by flintster1994 @ 08:42 AM 6 Comments

dropped by nearly 90 percent since 2007 with pic

TheOnion: Swaggering Down 87%

NEW YORKAccording to an alarming new study published Monday in The Journal Of Applied Behavioral Science, the time-honored American activity of swaggering, an extremely arrogant manner of walking, has dropped by nearly 90 percent since 2007. The severe economic turmoil of recent weeks and the United States' diminished credibility and moral standing on the world stage are just two of the major factors named in the study as contributing to the precipitous decline in self-important locomotion.

Posted by malct @ 08:17 AM 1 Comments

Persimmon suffers as homebuyers walk away

The Times: Persimmon suffers as homebuyers walk away

Cancellation rates at Persimmon, the housebuilder, have risen to 35 per cent recently as market conditions scare off prospective buyers.

Posted by becky @ 06:43 AM 0 Comments

Radical plan being considered.

Telegraph: Bank of England: 1.2million face negative equity as property slumps

New Business Secretary Lord Mandelson warned that the scale of current financial crisis was "unparalleled". "I don't think people have yet realised what the impact is going to be on the real economy, on businesses and jobs back at home," he said Last night, it emerged that the Government is considering a radical plan to ensure some homeowners can hang onto their homes, with families selling their homes to an investment bank and renting them back at a reduced rate.

Posted by gardeniadotnet @ 05:28 AM 7 Comments

Another Ambrose classic.

Telegraph: IMF may need to "print money" as crisis spreads

The Fund is already close to committing a quarter of its $200bn (130bn) reserve chest, with a loans to Iceland ($2bn), Ukraine ($16.5bn), and talks underway with Pakistan ($14.5bn), Hungary ($10bn), as well as Belarus and Serbia. Neil Schering, emerging market strategist at Capital Economics, said the IMF's work in the great arc of countries from the Baltic states to Turkey is only just beginning.

Posted by gardeniadotnet @ 05:15 AM 3 Comments

NHS records project grinds to halt

FT.com: NHS records project grinds to halt

What on earth does this thing do does anybody know? Isn't it a few computers and a database? Sounds like it should be raising people from the dead at that price.

Posted by whiteknight @ 12:47 AM 13 Comments

Monday, October 27, 2008

Wasn't so long ago that this was supposed to have be a big deal for banks finances. D I T Ocean now!

BBC: Banks launch overdraft appeal

UK banks will appear in the High Court later to challenge a ruling that the Office of Fair Trading (OFT) can decide whether overdraft charges are unfair. Seven banks and the Nationwide building society will argue that the consumer contract regulations do not give the OFT the necessary powers.

Posted by flintster1994 @ 10:18 PM 2 Comments

homeowners continue to seek avenues to prevent the looming possibility of foreclosure

yourmortgageoryourlife: No Hope for Homeowners - Foreclosure Prevention Program Falters

As banks continue to line up for the taxpayer funded handouts designed to ease their withdrawals from years of dependence on high yields derived from ridiculously reckless lending practices, homeowners continue to seek avenues to prevent the looming possibility of foreclosure - typically cited as the root cause of the economic crisis that currently grips world financial markets.

Posted by malct @ 07:39 PM 1 Comments

Beijing is scrambling to loosen credit even as home prices plummet, buyers reconsider, and....

Business Week: The Housing Crisis Spreads to China

Across China, property sales fell 15% in August over the previous year. They're off more than 55% in Beijing and by 39% in Shanghai, reports the National Bureau of Statistics. Prices across the country registered a slight decline in August, the first time in years they haven't increased. In the south, where the downturn began last year, prices are off by 30% in the past 12 months. "There is a big likelihood that next year will be even lower," says Li Yong, general manager of real estate brokerage Century 21 China in Changsha, an industrial city located 700 miles west of Shanghai.

Posted by pdprav @ 07:17 PM 0 Comments

as it took orders for just 115 new lorries in the last three months.

thisismoney: Volvo truck sales plunge 99.7%

The depth of the recession was revealed today as truckmaker Volvo admitted demand across the Continent has crashed by 99.7% as it took orders for just 115 new lorries in the last three months. That compares to orders totalling 41,970 in the third quarter of 2007. Global orders for Volvo slumped 55% in the last three months while Scania, of which Volvo has majority control, said its western Europe truck orders collapsed by 69%

Posted by malct @ 06:27 PM 13 Comments

Things must be getting desperate...

Property Wire: Charity property competitions emerge as latest UK selling fad

Property competition fever is beginning to sweep across the UK as developers get involved in various schemes.

Posted by whostolemyendowment @ 06:16 PM 0 Comments

London not so immune after all

evening Standard: Monthly figures reveal huge fall in property prices

FRESH evidence of London's collapsing property market emerged today as new figures revealed prices in the capital fell almost nine per cent in the last month. Homes in Kensington & Chelsea lost an average of 13,000 last month alone, while those in neighbouring Hammersmith & Fulham fell by 7,700, Richmond by 7,500 and in Wandsworth and Merton by 6,000, the Hometrack figures reveal. To add to the gloom, data from the National House Building Council reveals that house building in London has hit an all-time low, with only 517 private homes started last month.

Posted by little professor @ 05:31 PM 12 Comments

Keynes is back

Telegraph: We now face Keynesian conditions and need truly Keynesian solutions

"This has raised a hornets nest of controversy, with people holding forth with much sound and fury and often signifying nothing." Nothing like that here of course.

Posted by letthemfall @ 05:03 PM 9 Comments

More changes in interest rates

Guardian: Argos card charges 222.7% interest

Argos have introduced a new store card with an interest rate of 222.7%. There previous card had a rate of 27.9%, so Argos customers certainly aren't going to benefit from the base rate cut.

Posted by jonb @ 04:22 PM 8 Comments

"If you depend on paper money you can lose everything"

International Herald Tribune: In Europe, crisis revives old memories

"I haven't forgotten history," says Gert Heinz, a tax adviser in Munich. "If you depend on paper money you can lose everything. We've learned that the hard way after two world wars." So when Chancellor Angela Merkel went on television recently to tell Germans that their bank accounts were safe, Heinz, who at 68 still remembers the rows of canned food that his mother hoarded in the attic, decided he would rather be safe than sorry. He converted another chunk of his savings into gold and stocked up on a six-month supply of rice, sugar, flour and a special brand of milk powder that lasts for half a century.

Posted by sold out @ 03:47 PM 6 Comments

After the 5.5% rise in USA old-home sales, now new home sales on the up

New York Times: Prices Decline but New-Home Sales Rose Last Month

Sales of new homes recorded an unexpected increase in September as median home prices dropped to the lowest level in four years. The (US) Commerce Department reported Monday that sales of new single-family homes rose 2.7 percent last month to a seasonally adjusted annual rate of 464,000 homes. Economists had expected sales would drop from the August level. If this sustains we may be next? At least the USA housing market may, just may, be bottoming out. Come back Anatole K, all is forgiven...

Posted by david oser @ 03:34 PM 1 Comments

Here we go ...

BBC: Building group in administration

A building company, which employs 320 workers, has gone into administration. The property downturn has been blamed for the move involving David McLean Holdings Ltd, of Flintshire. The company has house building, property development and contracting subsidiaries, with offices in Cardiff and Shrewsbury. Administrators Deloitte said McLean's house building division was continuing to trade as they seek a buyer. The contracting division is to close.

Posted by mark wadsworth @ 03:12 PM 0 Comments

Another statement from Property Ali

FT: UAE property prices set to fall

A real estate correction could happen, but UAE banks are cushioned... the banks are safe, Sultan Nasser al Suweidi, the central bank governor, said at a conference held by the Arab Monetary Fund in Abu Dhabi, the capital of the UAE.

Posted by whostolemyendowment @ 03:03 PM 2 Comments

Off message as far as pure HPC - but a good snapshot from the BBC

BBC: Financial crisis: World round-up

A look at the regions of the world most affected by the financial crisis, and what governments are doing to try to alleviate the financial turmoil.

Posted by whostolemyendowment @ 02:50 PM 0 Comments

Iceland, Hungary, Ukraine - who's next?

Economist: Eastern Europe. Who's next?

WILL an ex-communist country be the next Iceland?

Posted by whostolemyendowment @ 02:30 PM 2 Comments

1 in 20 homes sold at loss

MyFinances.co.uk: 1 in 20 homes sold at loss

Research by UKValuation for Financial Times shows the number of homeowners being forced to sell up remains low, but is no longer uncommon with a 200 million loss for sellers expected this year.

Posted by kaz @ 02:27 PM 0 Comments

North wales housebuilders bust

Contract Journal: David McLean in administration, contracting to close

Contracting and house building group David McLean has gone into administration.

Posted by mark @ 02:06 PM 0 Comments

Houses Sold at a Loss - Interative Map

FT: Locking in a Loss

One in 20 homes sold in August fetched less than it had the last time it was sold, an analysis for the Financial Times shows. The 5 per cent of owners nursing a loss when they sold their home has leapt up from only 1.4 per cent a year earlier. This is how the downward spiral begins. If this rate accelerates then real price drops occur as sellers are forced to lower prices. These stats show us that the process has already begun.

Posted by andrew @ 01:54 PM 2 Comments

Kaupthing default on debts

Telegraph: Kaupthing becomes first European borrower to default on samurai bond

Two holders of the Reykjavik-based bank's 50 billion yen in 1.8pc notes, who declined to be identified, said they didn't receive funds that were originally due on October 20. Kaupthing had a one-week grace period to make its payment, according to terms in the notes' sale prospectus. The default indicates Kaupthing, seized by Iceland's government on October 9 as the nation's financial system failed, may not honor all of its 17bn in outstanding bonds.

Posted by charlie brooker @ 01:52 PM 0 Comments

Comedy club chief coins phrase "cash-negative units"

mortgagestrategy: Student and holiday rentals shine through market gloom, says Assetz

Student accommodation, hotel rooms and UK holiday homes are proving increasingly popular with buy-to-let investors in light of falling rental incomes, says Assetz. Stuart Law, chief executive of Assetz, says that rising mortgage costs are forcing property investors to readdress the balance of their property portfolio. "re-balance or face the less attractive alternative of selling cash-negative units in their portfolio" - this must be a misprint - surely house prices can only go up

Posted by jack c @ 01:37 PM 5 Comments

Currencies take centre stage

Timesonline: G7 'preparing to drive down the yen'

Members of the Group of Seven (G7) nations may be considering a joint market intervention to prevent a further surge in the yen as the Japanese currencys sharp rise threatens the worlds second biggest economy and other Asian economies.

Posted by flintster1994 @ 01:23 PM 5 Comments

Golden Rules are Meant to be Broken

FT: Darling to scrap Browns fiscal rules

"Alistair Darling is planning new targets for cutting borrowing and formal external oversight of the public finances as part of proposals to replace Gordon Browns fiscal rules." .............."But the chancellor will make it clear he plans to ditch fiscal rules that are perceived as too rigid including Mr Browns golden rule only to borrow to invest over the economic cycle and which economists say have been already been bent."

Posted by renting2 @ 01:00 PM 4 Comments

More Of The Same From 'Mr Prudent'

MSN: Brown hints at further joint rate cuts

So he has found a way round the independant bank, just get everyone to cut rates together then inflation, and currency problems do not matter!

Posted by waitingfor hpc @ 12:46 PM 3 Comments

Surely they must start cutting costs soon!! Maybe staff reductions?

reuters: RBS faces more writedowns as turmoil persists

Royal Bank of Scotland (RBS.L: Quote, Profile, Research) could this week announce billions of pounds of fresh writedowns due to a further deterioration in the value of risky assets as the financial crisis deepens, analysts forecast. The forecasts for additional writedowns range from 1 billion pounds to over 3 billion pounds ($1.5 billion-$4.6 billion).

Posted by mark @ 12:24 PM 5 Comments

how long does woollies have?

reuters: Woolworths lenders appoint Deloitte as adviser

Bank of Ireland (BOI.L: Quote, Profile, Research) division Burdale Financial and GMAC Commercial Finance, which together lent Woolworths 385 million pounds ($600 million) in January..... valuing the group at just over 50 million pounds

Posted by mark @ 12:17 PM 1 Comments

Why sterling will fall even further

MoneyWeek: Why sterling will fall even further

Cutting interest rates wont get banks lending again, and spending more government money will just store up problems for the future. But both of these things will have some effect on the economy, says John Stepek. They will send the battered pound even lower.

Posted by damien @ 12:04 PM 0 Comments

House prices to flatten in 2010 then rise in 2010/11

Centre for Economics and Business Research: House prices 'to recover by 2013'

Phew, this house price crash will over and we'll see 20% rises in 2010 and 2011. The CEBR must have access to a crystal ball. Marvellous.

Posted by doom&gloom @ 11:19 AM 19 Comments

House price slide continues (2)

Metro: House prices may fall 25 per cent by 2010

This is just a rehash of the CEBR report, but all good stuff nonetheless. You do wonder who is daft enough to buy into this market.

Posted by mark wadsworth @ 09:43 AM 5 Comments

House price slide continues

Citywire: Persimmon prepares for further housing pain

Shares in house builder Persimmon were down in weak morning deals as the group said it is writing off 600 million of the value of its land to reflect weakening house prices. However, it said it is on track to meet full year expectations and to cut debt.Persimmon shares were down 0.25p, or 0.12%, to 217p after it said it is having to make the new provisions in the face of the increased downward pressure on selling prices. The group now anticipates a 10% reduction in selling prices, up from 5% at the half year stage.

Posted by jack c @ 09:09 AM 4 Comments

How far could the pound really fall?

Times: Shares plunge as pound buckles

Sterling plunged again against the dollar this morning, having fallen through $1.60 for the first time in five years on Friday. The pound lost a further 3 cents to $1.542 amid mounting fears of a prolonged UK recession. The same fears forced down the FTSE 100, which plunged 185 points, or 4.7 per cent, after the opening with banks and insurance companies leading the way. European stock markets were also down around 5 per cent, following big falls in Asia with Hong Kong's Hang Seng down more than 10 per cent and the Nikkei in Tokyo losing 6 per cent.

Posted by flintster1994 @ 09:02 AM 23 Comments

Now you tell us

Western Mail: Days of inflated house prices are over

THE credit crunch will prompt a return to old-fashioned housing market values, according to Cathy McLean, director of the Royal Institution of Chartered Surveyors Wales. She said the madness of the days of inflated house prices and five-times salary mortgages will never return. It was never sustainable, she said. It was madness that people thought prices were always going to go up. Everybody wanted everything today, rather than saving for it. People were just rushing into the property market thinking there was never ever going to be a problem." She attacked TV shows like Property Ladder for fuelling greed and an obsession with house prices

Posted by little professor @ 08:41 AM 8 Comments

This is looking dire not just for housing

TimesOnline: Nouriel Roubini: I fear the worst is yet to come

What does Roubini think is going to happen next? Rather worryingly, in London last Thursday he predicted that hundreds of hedge funds will go bust and stock markets may soon have to shut perhaps for as long as a week in order to stem the panic selling now sweeping the world.

Posted by v stor @ 08:27 AM 0 Comments

In an interview you wouldn't give him a job in a council never mind PM

BBC News: Brown to defend higher borrowing

They described a focus on public works projects and higher spending as "misguided and discredited". The latest quarterly public debt figures hit a record 37.6 billion - higher than the whole of the previous year. Following the zimbabwe model of economic managment.

Posted by matt_the_hat @ 07:17 AM 6 Comments

House price "downturn" gathers momentum in October

Independent: House prices fall to two-and-a-half-year low

Hometrack, which monitors the UK housing market, says that the fall in house prices increased faster in October, than in either August or September, adding that the supply of new homes coming to the market has also dried up.

Posted by matt_the_hat @ 07:14 AM 3 Comments

A bit too optimistic

Daily Mail: House prices will tumble 40,000 by end of 2009

The average price of a home will tumble by as much as 40,000 by the end of next year, experts claim today. A study shows a peak-to-trough fall in house prices of up to 20 per cent by December 2009, taking the figure back to 2004 levels. The figures come from the Centre for Economics and Business Research (CEBR), which predicts the market will not show any signs of stability until 2010. However, the organisation believes prices and sales will see a new boom in 2011 and 2012. The CEBR puts the average house price peak at 196,000 in 2007 with a predicted figure of 157,000 by next Christmas.

Posted by little professor @ 12:56 AM 39 Comments

Hometrack: -1.3% MoM, -7.3% YoY

Guardian: UK house prices fall at record pace in October

U.K. house prices fell at the sharpest rate on record in October both on the month and the year, and they look set to continue plunging, a survey by Hometrack showed Monday. House prices fell 1.3% from September and by 7.3% on the year. Both declines were the largest since the survey began in July 2000. In September, house prices fell 1.0% on the month and 6.2% on year. Richard Donnell, Hometrack's director of research said:"The expectation of a forthcoming recession and rising unemployment will further undermine demand for housing and continued price falls are inevitable in the months ahead." A separate report from the CEBR predicts the average property will fall in price by 50,000 by the end of next year to 2004 levels.

Posted by little professor @ 12:38 AM 0 Comments

Sunday, October 26, 2008

Countdown to zero!

Mail Online: Countdown conundrum: Carol Vorderman takes 800,000 off the price of her flat

Vorderman put the Thameside flat which overlooks parliament on the market in May for 5.75m. And she may have to settle for less as her most serious bidder is said to be offering just 3.5m.

Posted by mikedx @ 11:26 PM 3 Comments

44% drop in price - for a beach hut

East Anglian Daily Times: Small grey hut with 45,000 price tag

A tiny beach hut has gone on sale for 45,000 - even though the country is in the middle of its worst economic crisis for more than 70 years. The small grey building in Southwold, Suffolk, was put on the market after a similar one sold for over 80,000 in the summer before the financial woes. The estate agents involved are confident of finding a buyer despite a collapse in the market. Richard Leeming, a director of the estate agent, said: "Southwold is a special place in people's hearts and it is popular for holidays, holiday homes and people from the city with second homes. Life is tough at the moment for most people but maybe not all of them." Despite the optimism, Mr Leeming admits there has been a slight reduction in interest.

Posted by drewster @ 10:24 PM 6 Comments

Incredible arrogance or plain stupidity??

Mail: Brown predicts lower household bills as he says 'other countries should have listened to me on the world economy'

''Mr Brown said his only regret over his time as Chancellor was that other countries failed to heed his advice, which he claimed could have averted the world economic crisis.''

Posted by hpwatcher @ 08:38 PM 14 Comments

How property prices have plummeted in cash crash

News of the World: When the tabloids start using the "c" word it's game over

A SEASIDE flat which a year ago fetched 133,950 has now sold for a PITIFUL 15,500 as house prices across Britain nosedive, the News of the World can reveal. The staggering 88 PER CENT price drop is the starkest indication yet that the credit crunch has sent now the housing market into freefall. Our investigations turned up scores of propertiesmost of them repossessed by banks and building societies that are now worth a fraction of their previous value. A riverside apartment in BIRMINGHAM which fetched 157,000 a year ago, sold for just 68,000 at a London property auctiona price drop of 57 per cent. A smart, open-plan flat in PRESTON failed to sell, despite a reserve of just 80,000less than half its 199,995 sale price two years ago.

Posted by little professor @ 08:36 PM 13 Comments

One eyed snot gobbler continues to deny saying it.

BBC News: Brown on end of "boom and bust"

Video of said monster denying he ever said he had ended boom and bust. People with high blood pressure,heart problems or pregnant mothers should not click this link.

Posted by driver @ 08:17 PM 0 Comments

Sheeple central putting out mixed messages

Thisismoney: Up to our necks in the R-word

What a delightfully realistic, mixed-up mangle of inconsistency: "The Bank of England [...] has spent the past six weeks fighting a pretty desperate battle on the cliff-edge of a global panic; it now knows that a broad business recession is unavoidable as the aftershock of the banking crisis." "Obviously, house prices were allowed to rise far too high." "The Bank of England has in the past taken far too little interest in the housing bubble when setting interest rates. Yet now it is cutting interest rates, and will cut them further - perhaps down to 2.5% in the next 12 months. I suspect house prices are now the Bank of England's central concern as the bubble bursts." "The housing bubble led people into taking on too much debt in order to buy houses at a price they could not afford."

Posted by dohousescrashinthewoods @ 08:00 PM 3 Comments

Yet another set of Banks that need propping up

BBC: Ukraine set for $16.5bn IMF loan

The International Monetary Fund (IMF) is to offer a $16.5bn (10.4bn) loan to Ukraine to help it "maintain confidence and economic and financial stability". The country has been badly shaken by the global credit crunch, with stock markets and the Ukrainian currency tumbling and banks needing propping up. Internal political turmoil has also delayed economic development. The loan depends on Ukraine being able to balance its budget and make reforms to its banking sector.

Posted by jack c @ 07:58 PM 5 Comments

Gradually letting reality be known

Bloomberg: U.K.'s Darling to Say Crisis to Be Deeper, Longer Than Expected

U.K. Chancellor of the Exchequer Alistair Darling will say this week that the economic crisis will be deeper and longer-lasting that the government first predicted, the Sunday Times reported. The government hasn't lost control of the public finances, although the crisis has hurt its revenues, Darling will say in a speech at the annual Mais lecture in London on Oct. 29, the newspaper reported, without saying how it got the information.

Posted by dohousescrashinthewoods @ 07:45 PM 2 Comments

But it may be too late to undo the damage done by the credit crisis.

CNN: Throwing the bathroom sink at the economy

The Bank of Japan cut its benchmark rate to just about zero and left it there for much of the 1990s. But that did little to end a decade-long economic slump there. Rates in Japan today are 0.5% so Japan also has little room to cut.

Posted by mark @ 07:37 PM 1 Comments

Global financial crisis extends to the Gulf region - Kuwait to guarantee bank deposits

BBC: Economy worries hit Gulf shares

Shares in the oil-rich Gulf region have fallen sharply as investors worried about the impact of the global economic downturn on the region. Kuwait said legislation to guarantee deposits held in its banks would be introduced, prompting concerns about the state of financial institutions. It followed Kuwait's second largest lender, Gulf Bank, saying it had made losses on derivatives trading. And Saudi Arabia said it was making cash available to low-income citizens. The plan to put 10bn riyals ($2.7bn; 1.7bn) into the Saudi Credit Bank for interest-free loans to help people tackle financial difficulties intensified fears that the global financial crisis was extending to the Gulf region.

Posted by jack c @ 03:02 PM 4 Comments

How many shoes have dropped so far?

LA Biz: Calpers unloads stock

Yes, it's come down to this: The nation's largest public pension fund needs cash. As explained by the WSJ, Calpers has to meet commitments to various investors - among them private equity firms and real estate partners - and only 2 percent of its assets on hand is in cash. Thats not enough to cover its obligations, so a bunch of stocks are being sold - fast. This need to raise cash quickly could partially explain why stocks have fallen so sharply so quickly. Hedge funds face much the same problem because many of them are so highly leveraged. And because they don't have to file financial reports, no one knows how many more of their dominoes will fall.

Posted by gardeniadotnet @ 01:52 PM 1 Comments

Meanwhile, back at the house price crash...

Observer: Struggling vendors bow to the crunch and cut their prices

Another lurch downwards coming.

Posted by letthemfall @ 01:07 PM 10 Comments

While the world crashes keep cool and plan for the future

NY Times: How to Quell Financial Anxiety

Sticking to my resolution to stop posting only doom and gloom, here is a post on controlling anxiety in the face of economic armageddon. "Q. Day after day of economic turmoil is making it hard for you to concentrate on your work. You cant stop worrying about your job security, your retirement portfolio and your whole future. Is this normal? A. Its only natural to feel anxious during a financial crisis. But understand that anxiety can distort reality, disrupt thinking and erode performance unless you take steps to manage it...Yoga, meditation, exercising or simply taking a walk can help dispel symptoms, Dr. White said. "Any time youre really stuck in your mind, moving your body helps shift it, Dr. Wehrenberg said."

Posted by mountain goat @ 12:25 PM 12 Comments

Oi, glubbermint, NO!

Guardian: Economists blast Chancellor's plans

A group of senior economists have branded the Government's plan to spend its way out of the looming recession a "misguided and discredited" approach that could make things worse. [Sounds like these guys have heard than Keynes isn't good news]

Posted by dohousescrashinthewoods @ 12:24 PM 2 Comments

UK food production

EADT: (UK) Harvest breaks records despite the rain

Demand for food is unlikely to undergo a demand shock. According to this, 2008 was a bumper production year, up 28% (wheat) from 2007. I post this because it is related to food inflation and our excessive food import requirements and so onto the value of the pound. However, looking ahead to 2009, http://www.fwi.co.uk/Articles/2008/10/23/112774/cereal-growers-face-2009-losses.html , we are looking at more expensive food because unfortunately the farmers didn't have much choice about the timing of buying fertilisers and suchlike, and had to pay a heavy price. So the harvest of 2009 will not be so 'bumper' . You can't really know at this point though. Although the UK government think they have control of monetary policy our trading situation may prevent their reflationary policies.

Posted by stillthinking @ 11:43 AM 2 Comments

UKs biggest listed residential landlord suffers as house prices crash

nebusiness.co.uk: Grainger shares slump after pay-out offer to bondholders

Shares in the UKs biggest listed residential landlord Grainger plc slumped to an eight-year low yesterday after it offered an early pay-out to holders of bonds in exchange for a bigger stake in the company. The Newcastle company saw its value plunge by 44% to 70.75p a share after it unveiled the offer which could help cut its debts. Grainger, which had seen its share value sink from more than 600p just three years ago, has been keen to reduce its debts as its assets are largely tied up in residential property. British house prices are falling at record rates, down 12.4% year-on-year in September according to both Halifax and Nationwide, the two most closely-watched monthly surveys.

Posted by jack c @ 11:29 AM 1 Comments

Stag-Deflation !!

RGE Monitor: The Coming Global Stag-Deflation (Stagnation/Recession plus Deflation)

This one argues for a deflationary outcome based on the fact that globally, as well as the UK, there is a demand shock, people want less, prices will fall to clear stocks and there will be downward pressure on wages as fewer workers required. Against this, for an inflationary outcome is that they are associated with supply shocks and there aren't any supply shocks. Well, I think there was a supply shock earlier this year with oil and wheat etc but that does seem to have finished. Relating this to the previous article post I can see that specifically for the UK, dependant on imports, it is not impossible that we will induce a supply shock with a devaluation of sterling, which would lead us into inflation. Neither of them include any figures or evidence but I do feel ...(continued)

Posted by stillthinking @ 11:09 AM 4 Comments

Overcooked ?

TimesOnline: A weak pound wont solve all our problems

This is a commentary about the risk of overshoot for the falling pound. The argument is basically our trade balance won't be funded if sterling falls, and that the two are self-reinforcing. The other point made is that we will get inflation (in the price rising sense, not the monetary expansion sense) on our imports. I think our requirement on imported food and energy are going to mess us up in some way, perhaps this it. Goes on to suggest that this will anchor inflationary expectations as these price rises are so visible.

Posted by stillthinking @ 10:58 AM 2 Comments

From the 1945 UK Labour manifesto Let Us Face The Future

ICH: Down For The Count "The whole system is contracting"

"The great inter-war slumps were not acts of God or of blind forces. They were the sure and certain result of the concentration of too much economic power in the hands of too few men (who) felt no responsibility to the nation." The US Treasury and Federal Reserve are now underwriting the entire financial system. The free market has been abandoned altogether. Everything from commercial paper to money markets is now backed by the "full faith and credit of the United States". Without that explicit government guarantee, the credit markets would still be frozen and the system would crash. Foreign investors and central banks are no longer providing the capital to support the US $700 billion current account deficit. They have lost confidence in America's ability to bounce back

Posted by malct @ 08:44 AM 2 Comments

New labour spending machine turned on full power

Telegraph: Browns Keynesianism is bankrupt and will bankrupt us

But now, with the UK in the grip of the credit crisis New Labour has revealed its true statist colours. We are spending more to get the economy moving, said Brown last week. Thats the right thing to do. More spending from where - future earnings (tax) - previous earnings (inflation)

Posted by matt_the_hat @ 07:25 AM 17 Comments

No new code just Liebour spin

Guardian: It's not perfect - but this new code could say homeowners

Some good news at last for struggling homeowners? It seemed so from the headlines last week. The government announced a new set of rules - a 'pre-action protocol' - designed to tackle the growing number of repossessions, which, if they work, will make it hard for lenders to take borrowers who are in difficulties straight to court, as many do now. My prediction - won't make a jot of difference

Posted by matt_the_hat @ 07:21 AM 9 Comments

Save your savings whilst you can

Times: Turn a profit from sinking pound

NVESTORS are rushing to exchange sterling for safer currencies after it plunged to new depths. Sterling hit record lows against the euro falling to 1.22 and a six-year low against the dollar, trading at less than $1.53 on Friday.

Posted by matt_the_hat @ 07:19 AM 6 Comments

Repossession, repossession, repossession

Times: Banks exploit legal loophole to seize homes

According to the Ministry of Justice, 97,026 charging orders were granted by courts in England and Wales last year, a tenfold increase since 2000. They allow financial institutions to order the sale of a property to pay off unsecured debts on credit cards, personal loans, store cards and car finance. Some will have been used only to threaten the debtor, or to levy a surcharge on the mortgage to recoup the debts. Nationwide, the building society, and Northern Rock, which was nationalised earlier this year, are among the most aggressive in using the court orders. The rate at which the courts have granted charging orders has increased sharply in the past two months, according to Citizens Advice, National Debt-line and the Consumer Credit Counselling Service.

Posted by drewster @ 01:33 AM 8 Comments

Saturday, October 25, 2008

The financial crisis is spreading like wildfire across the former Soviet bloc

Telegraph: Europe on the brink of currency crisis meltdown

Currency pegs are being tested to destruction on the fringes of Europes monetary union. This is the biggest currency crisis the world has ever seen, said Neil Mellor, a strategist at Bank of New York Mellon. Experts fear the mayhem may soon trigger a chain reaction within the eurozone itself. The emerging market crash is a vastly underestimated risk. It threatens to become the second epicentre of the global financial crisis, this time unfolding in Europe rather than America. Exposure is 85pc of GDP for Austria, 50pc for Switzerland, 25pc for Sweden, 24pc for the UK, and 23pc for Spain. The US figure is just 4pc. America is the staid old lady in this round. Whether you realise it or not, your pension fund is sunk in Vietnamese bonds and Indian steel magnates. Didnt they tell you?

Posted by drewster @ 11:49 PM 8 Comments

Don't worry, the First Plus Loans and Countdown income will keep you going... oh wait...

Times: Carol Vorderman forced to slash 800,000 off asking price for her flat

Carol Vorderman is facing a financial countdown of her own after slashing the asking price for her Thameside penthouse by 800,000. Vorderman has been unable to find a buyer since putting the flat which overlooks the parliament buildings on the market in May for 5.75m. In a concession to the property slump, the price tag has now been reduced to 4.95m. It is possible Vorderman may have to settle for even less as her most serious bidder is understood to be offering just 3.5m.

Posted by little professor @ 11:12 PM 3 Comments

The bursting of the Tokyo financial bubble in 1990 brought profound social change

Times: How Japan learnt how to stop worrying and love the recession

After Japan's bubble, the very core of what it meant to be Japanese changed direction decisively, and by no means all for the worse. Views on economic right and wrong swerved left. Belief in the fast buck was replaced with tortoise v hare. Bubble-phobia became the underlying policy of successive Cabinets. Profit was OK, but excess profits became faintly disgusting. Japanese instinctively hoarded cash for a rainy day: financially and philosophically. Household risk aversion now commands cultish devotion: books about living on a fiver a day sell in millions, and TV programmes on the theme are primetime fare. Chains of upmarket second-hand stores suddenly arose for a public no longer obsessed with novelty and pristineness. Japanese companies became the most energy-efficient on Earth.

Posted by drewster @ 07:34 PM 16 Comments

the United States has used the U.S. dollar's hegemony to plunder the world's wealth,

reuters: U.S. has plundered world wealth with dollar: China paper

BEIJING (Reuters) - The United States has plundered global wealth by exploiting the dollar's dominance, and the world urgently needs other currencies to take its place, a leading Chinese state newspaper said on Friday. The front-page commentary in the overseas edition of the People's Daily said that Asian and European countries should banish the U.S. dollar from their direct trade relations for a start, relying only on their own currencies.

Posted by malct @ 06:54 PM 23 Comments

Slightly off topic ...


Can somebody explain why the underlying cause is global warming?

Posted by mark wadsworth @ 03:21 PM 21 Comments

How much of Gordon Brown's Economic failure is Blair's Legacy.

daily mail: Lord Mandy, his murky friends and the debasing of our democracy

The influence over the British political system by a relatively small and, in some cases, corrupt group of super-rich individuals is the single most poisonous legacy of Tony Blair's decade in government. It is well-documented that he allowed the corporate elite to dictate government policy and buy access to senior ministers - including the prime minister himself. Shamefully, Blair's priority was to put private greed above public duty. Until 1997, standards of public life in this country were a model for the rest of the world. Traditionally, meetings between business tycoons and ministers were carefully monitored by civil servants. Detailed notes would be taken of these encounters in order to ensure that nothing irregular happened.

Posted by malct @ 02:21 PM 16 Comments

A sober analysis of Brown's 'help' for homedebtors

Guardian: A matter of protocol

So what are we to make of Brown's statement? One housing barrister suggested to me it was simply a "layman's mistake", but others take a more sceptical view. The CJC should be mightily miffed that its hard work has been plucked away, bandied about the Commons and spun into something it's not by a prime minister desperate for an initiative to show he was "doing something" about the home loans catastrophe. If he was simply misinformed then he had better get on and really do something because a gentlemanly, voluntary, administrative protocol is not going to solve the housing crisis.

Posted by quiet guy @ 01:57 PM 1 Comments

A long article, but if you are having a slow Saturday - worth a read

New Statesman: A debt spiral we could have avoided

Who, five years ago, would have predicted the part-nationalisation of private banks, the UK Treasury considering abandoning its fetish of inflation targeting, and prudent Gordon Brown breaching the EU cap on government spending? ***Also from the NS back in ancient times of Sept 2003 www.newstatesman.com/200309010011 title: Coming soon: the new poor

Posted by whostolemyendowment @ 12:51 PM 7 Comments

Sounds very familiar

Economist: China's housing market - What goes up...

HOMEOWNERS in a middle-class district in northern Beijing are angry. The developer of their block of flats has slashed the prices of new flats now on sale. Chinas housing market, barely existent a decade ago, is undergoing its first big downturn after years of boom. The earlier buyers want their money back.

Posted by whostolemyendowment @ 12:36 PM 0 Comments

Is a pension a good investment though?

Scotsman: Scots urged to raise pension saving as house prices fall

Pension saving in Scotland is significantly down on the UK average, with 49 per cent not putting money into a pension scheme, compared with 41 per cent across the UK as a whole, according to research by adviser and broker Brewin Dolphin. Instead it revealed that 20 per cent of Scottish homeowners and seven million UK homeowners in total intend using their property to fund their retirement. As house prices fall, however, that strategy could backfire badly, warned David Rankin, assistant director of financial services at Edinburgh-based Bell Lawrie, a division of Brewin Dolphin.

Posted by quiet guy @ 10:54 AM 9 Comments

Is a 50% discount enough?

BBC News: House price falls mean bargains for some

Brief video about a first time buyer getting a one bedroom flat for 78K instead of allegedly original price of 150K. New builds are a bit risky for build quality but even so, the repayment must be close to rentals at that price. Let's hope we see more of this soon.

Posted by quiet guy @ 10:52 AM 15 Comments

Scope of this financial crisis is very worrying

The Market Oracle: Financial Crisis Turning Into an Economic Crisis

This situation is no ordinary financial crash, this is definitely on par with what happened in the Great Depression.

Posted by v stor @ 10:49 AM 1 Comments

Repossessions must form part of our climb out of the recession.

Telegraph: Property market: Word on the street

Though repossession is a harsh sentence, it is one most frequently handed down to those who have overextended themselves. Supporting them would only encourage people to borrow more in the future. Better instead to improve the support we give those who have lost their homes. Repossenssion is the best thing can ever happen to people who refuse to learn their financial reality through any other rational means.

Posted by peter_2008 @ 10:39 AM 11 Comments

Interest rates will have to be cut without delay

Evening Standard via SOTT: Shock in the City as UK economy falls off a cliff

Meanwhile, City Minister Lord Myners admitted the Prime Minister had failed to give the Bank of England sufficient powers to ensure financial stability. He said: "The Bank has been hampered by the limited instruments available to it, which is one of the reasons we're proposing new legislation."

Posted by malct @ 10:29 AM 1 Comments

The long-feared surge in bankruptcies in America is now under way

Economist via SOTT: Shutting up shop

THE Sharper Image store on Manhattans West 57th Street is sharp no more: its last state-of-the-art massage chairs and stylish humidifiers have been put in storage and its windows papered over. A few doors away, the assistant in the Sharper Image-like Brookstone shop seems unusually desperate to make a sale. In between, huge posters adorn the storefront of Metropolitan, an antique shop, proclaiming that it is Going Out of Business. The economic downturn has struck at the heart of the worlds shopping capital, and not even the influx of foreigners taking advantage of the weak dollar has been enough to save Sharper Image or its neighbour. source http://www.sott.net/articles/show/168022-Shutting-up-shop-The-long-feared-surge-in-bankruptcies-in-America-is-now-under-way

Posted by malct @ 10:26 AM 0 Comments

Lebanon politically, a Rolls-Royce without wheels manages to make ends meet

Robert Fisk Independent via TS: Financial doom and gloom is everywhere except Lebanon

Beirut's Blombank has just boasted a record 34 per cent rise in profits in the first three quarters of this year. The chairman of Audi Saradar Bank, who happens to be minister for the displaced in the Lebanese government, says that Lebanon is expected to record its highest GDP growth in many years. House prices continue to soar. And this in a nation that suffers a $45.5bn public debt. So out came the little leather-covered Fisk notebook this week to garner words of Lebanese wisdom from the men (few women) who know the secrets of the country's financial miracle.

Posted by malct @ 09:57 AM 2 Comments

Reality bites back....

FT.com: Hard times on home front

Even before unemployment started to jump, a sharply rising proportion of owners has been forced to sell up at a loss.

Posted by v stor @ 09:22 AM 0 Comments

Recession will be deep and long

Telegraph: Financial crisis: Recession to be 'worse than the 1990s', experts warn

Families must prepare themselves for a recession which could be deeper, more painful and longer-lasting than the early 1990s, experts warned after the economy shrank for the first time in 16 years. Roger Bootle, managing director of Capital Economics, said: "What we are going to see of the next two years is a contraction of the same magnitude [as the early 1990s]. That one lasted two years, but this one could go on for four or five years." Those at most risk are homeowners who have bought recently, and face negative equity, and those working in the finance or retail sectors, which are likely to be hardest-hit as consumers abandon the high street.

Posted by mytimeisnigh @ 09:09 AM 1 Comments

and I thought the Scots were often seen as 'frugal'..

Business Scotsman: Scots urged to raise pension saving as house prices fall

NEARLY half of all adults in Scotland do not save in a pension, a new study has found. Pension saving in Scotland is significantly down on the UK average, with 49 per cent not putting money into a pension scheme, compared with 41 per cent across the UK as a whole, according to research by adviser and broker Brewin Dolphin. Instead it ADVERTISEMENTrevealed that 20 per cent of Scottish homeowners and seven million UK homeowners in total intend using their property to fund their retirement.

Posted by studdymx @ 08:58 AM 0 Comments

Well, at least American housing slump over?

NY Times: Housing Resales Rose 5.5% in September

Monthly home resales rose the most in five years in September, according to figures released Friday, with the sales driven largely by bargain-basement prices on foreclosed homes. But the numbers probably do not reflect a permanent turn in the markets, because the credit crisis has intensified since these transactions took place, it says here... Also - we might add - a 5.5% rise on a very very tiny base makes a mockery of comparisons with the last 5 years!

Posted by mirmos192 @ 02:36 AM 0 Comments

Wondered why they kept coming up with new ways to describe it

Mail: BBC tells reporters: Don't mention the 'R-word'

"The BBC is facing claims that it is avoiding using the 'R-word' - recession - to avoid being too depressing about the gloomy situation. It has been alleged that reporters have been encouraged to opt for 'downturn'. Sources have suggested that those covering the story for the BBC World Service have also been given the phrase 'global financial crisis' to use. " Won't help the BBC's rep one bit, particularly considering repeated allegations of bias.

Posted by emily @ 01:17 AM 1 Comments

Friday, October 24, 2008

My nomination for Quote of the Day

Telegraph: Recession: just how bad can it really get?

Chancellor Alistair Darling said: Ive lived through the recessions this country saw in the 1970s, 80s and 90s. The difference is this time we are determined to do everything we can and as soon as we can to help people so that if they lose their jobs they can get back into work.

Posted by gardeniadotnet @ 11:28 PM 6 Comments

Happy 79th Anniversary - Not

Telegrath: Oct 24, 1929: Wall St crash

Today was the 79th Anniversary of Black Thursday, and will it be followed by another Black Monday. This time it appears that citizens have borrowed too heavily to invest in property the last paragraph says it all, just swap a few words.

Posted by enuii @ 10:51 PM 1 Comments

Was Darling lying?

FT: Transcript challenges UK position on Iceland

Was poor UK govt. also the final nail in the coffin for Icelandic banks? Was a run expedited by the actions and words of Alistar Darling and Gordon Brown? Brilliant, since Mandelson's return.anything that they do how ever bad seems to get a good press.

Posted by deepak @ 09:22 PM 3 Comments

Housing market shows improvement (??)

MSN Money: Housing market shows improvement

Why are the media permitted to publish such utter nonsense?

Posted by highland property bubble @ 08:47 PM 5 Comments

In Defence of Currency (2)

FT: Denmark lifts rates to defend krone

Denmarks central bank on Friday raised its key interest rate for the second time this month to defend the krone, demonstrating the cost to the country of staying outside the eurozone. The 50 basis point rise to 5.5 per cent stands in marked contrast to recent rate cuts in neighbouring Norway and Sweden, and threatens to push Danish housing prices down further and depress an already stagnating economy.

Posted by lvmreader @ 08:47 PM 3 Comments

Gordon Brown has a tantrum

Guardian: Gordon Brown launches attack on 'scandalous' Opec

Speaking to business leaders in Nottingham, Brown condemned the proposal to pump less oil in unusually strong terms. "I think it is absolutely scandalous that Opec is thinking of meeting in the next few days to cut oil production so they can push up the price of oil again and we will certainly try and prevent this happening," he said.

Posted by unplugged @ 08:31 PM 2 Comments

Small business loans are hard to get

Bloomberg: AIG Taps $90.3 Billion From Government Credit Line

American International Group Inc. has used $90.3 billion of a U.S. government credit line since it was bailed out last month, an amount exceeding the size of the original loan meant to save the insurer. AIG may need more than the $122.8 billion now available to the New York-based insurer, Chief Executive Officer Edward Liddy said Oct. 22.

Posted by alan @ 07:30 PM 2 Comments

Bad to worse for Buy-To-Losers

Mortgage Strategy: Woolwich drops B2L LTVs

Woolwich has dropped LTVs on its buy-to-let portfolio tracker to 50% from tomorrow.

Posted by whostolemyendowment @ 07:27 PM 24 Comments

Dedicated to all those bright young thing who think granddad malct is a grumpy old man

News Biscuit: Global financial meltdown averted as drunk points out It's all just made up numbers innit?

The Worlds Financial Crisis was dramatically halted yesterday thanks to the intervention of a drunken man in a pub with an analysis of simplistic logical brilliance that put the markets right back on track. Terence Bould, 43, also known as Tel the Smell due to his occupation as a sewage engineer, was returning from the toilets at shortly after 10pm in his local pub in East London when he proclaimed that the current financial meltdown was all a load of bo - ocks anyway as its just made up numbers and {other stuff}. sorry I thought we all needed some light refreshment - see you down the pub

Posted by malct @ 06:48 PM 5 Comments

Thousands of hedge funds are on the brink of failure as the global economy contracts

Telegraph: Thousands of hedge funds to close, says GLG chief Emmanuel Roman

Thousands of hedge funds are on the brink of failure as the global economy contracts with unexpected severity, according to the chief executive of GLG, Europe's biggest hedge fund Emmanuel Roman, of GLG Partners, said 25pc-30pc of the world's 8,000 hedge funds would disappear "in a Darwinian process", either going bust or deciding meagre profits are not worth their efforts. "This will go down in the history books as one of the greatest fiascos of banking in 100 years,"

Posted by malct @ 06:27 PM 3 Comments

More bad news

This is Money: Volvo truck sales plunge 99.7%

There will be less accidents on the M25

Posted by fjcruiser @ 06:18 PM 0 Comments

Thanks Gordon

The Mail: 'Worst financial crisis in human history': Bank boss's warning as pound suffers biggest fall for 37 years

'Worst financial crisis in human history':The pound suffered its biggest one-day fall for 37 years today after official figures revealed Britain is on the brink of recession. The economy shrank by 0.5 per cent between July and September, its biggest decline since 1990 and the first quarter of negative growth in 16 years. No more boom and bust in otherwords.

Posted by sovietuk @ 05:57 PM 4 Comments

Labour saved by Osborne?

Telegraph: Yes, PM: there should be an inquiry ... into Britains finances

The House of Osborne has been Mandelised. Windows of opportunity have been smashed and proceeds of opinion-poll growth dragged into the gutter. Having experienced the Mandelights of dining with a mortgage fiddler, Boyish George is struggling to pay a hefty bill for his not-so-free lunch. Heres the punchline: if Mr Osborne did not squeeze even a measly 50,000 from an oligarch over a boozy session in Corfu, yet still contrived to have the non-event become a national scandal, how can Tattons MP be the man to look after the public purse all 600 billion of it in a crisis? Says Jeff Randall

Posted by alan @ 05:45 PM 1 Comments

Detroit worst hit

guardian: For sale at $1,250: the Detroit houses behind the sub-prime disaster

Haley's firm, Prime Financial Plus, has homes on its books for as little as $649 (416). But these tend to be in poor shape, damaged by squatters, looters and vandals. For something a little classier, buyers will need to dig deep - by writing a cheque running into four figures.

Posted by mken @ 05:30 PM 4 Comments

Greenspan: 'Credit Tsunami Was Not My Fault'

Sky: 'Credit Tsunami Was Not My Fault'

Former US Federal Reserve boss Alan Greenspan has denied the nation's economic crisis was his fault - calling the banking chaos a "credit tsunami". [many typos, but there you go!]

Posted by 51ck-6-51x @ 04:50 PM 3 Comments

Iceland - 1st Western country to seek IMF assistance since 1976

BBC: Iceland asks for $2bn in IMF help

Iceland's government has said it has asked for $2bn (1.3bn; 1.58bn euros) of support from the International Monetary Fund (IMF). It is the first Western country to have made an approach to the IMF for such help since 1976. If approved, it will have immediate access to $860m, Iceland said. Iceland's financial system is close to collapse after the country was forced to take over three of its biggest, debt-laden banks this month.

Posted by jack c @ 04:31 PM 6 Comments

An alternative to pressure canners

CNN: Enough of the apocalypse already!

This doomsday business just gets old after a while, you know?

Posted by holding out @ 03:35 PM 13 Comments

Major US bank NCC sold 19% below market

Credit Writedowns: National City sold

PNC, down only 13% this year-to-date, very good for a bank stock, is acquiring beleaguered Ohio bank NCC for $5.5 billion. The price represents a huge discount to the prevailing market price before open today and NCC was down 34% in early trading.

Posted by edwardnh @ 02:53 PM 0 Comments

Finally, some good news ...

Guardian: Property slump claims 20% of Rightmove staff

Rightmove, Britain's biggest property website, announced a 20% cut in staff numbers yesterday as it warned the housing slump would last well into next year. The move, part of the portal's plans to cut costs by 5m, came as the British Bankers' Association (BBA) revealed that UK mortgage approvals in September were 57% down on the same month last year. About 60 of Rightmove's 300 staff face redundancy as the company scales back its overseas business in response to dwindling demand.

Posted by musn't grumble @ 02:27 PM 3 Comments

The most serious situation we've been in since the American Revolution?

PBS: Top Theorists Examine Rippling Economic Turbulence

PAUL SOLMAN: We sat down with Taleb and the man he calls his mentor, mathematician Benoit Mandelbrot, pioneer of fractal geometry and chaos theory. And even more than feeling vindicated, they're both scared. NASSIM NICHOLAS TALEB: I don't know if we're entering the most difficult period since -- not since the Great Depression, since the American Revolution. PAUL SOLMAN: The most serious situation we've been in since the American Revolution? NASSIM NICHOLAS TALEB: Yes. PAUL SOLMAN: Professor Mandelbrot, can that possibly be true? BENOIT MANDELBROT, Mathematician: It's very serious. PAUL SOLMAN: More serious than the Great Depression, possibly? BENOIT MANDELBROT: Possibly. I hope not. I think that we may be experiencing something that is vastly worse

Posted by malct @ 02:01 PM 22 Comments

The mess we're in in 6:06

BBC News: Audio Slideshow: A guide to the credit crunch

It seems as though the term 'credit crunch' is becoming common parlance. But do you know what it actually is - or how it came about? Spend a few minutes with the BBC's Business Editor Robert Peston, as he explains why we are in the middle of a global financial crisis.

Posted by matt @ 01:54 PM 0 Comments

the biggest net redistribution of funds from the poor to the rich in all of human history

Craig Murray: The Balding Butt Plug

Britain's outspoken Ex Ambassador to the Central Asian Republic of Uzbekistan I was depressed lately partly by the problems over getting the book published, but mostly by despair over the "Bailouts" in the US and UK. This incredible misuse of taxpayers' money represents the biggest net redistribution of funds from the poor to the rich in all of human history. The lack of real analysis in any of the media is what plunged me in to gloom so deep it was not even much relieved by cont.

Posted by malct @ 01:36 PM 2 Comments

Bank no longer a creditor of Taggart

irishtimes: Bank no longer a creditor of Taggart

A leading Northern Ireland businessman warned yesterday that the collapse of Taggart could leave the region's construction industry in "meltdown". Brendan Cunnane, secretary of local lobbying organisation the Construction and Property Group (CPG), said the failure of Taggart meant the end of the road for many other building firms, and pointed out that the industry in the region was effectively in the banks' hands. "I would say that over half the developers in Northern Ireland are waiting for a call," he said.

Posted by mark @ 01:27 PM 1 Comments

Gold Standard

Moneyweek: Why the gold standard could make a comeback

To invest in gold, I recommend you buy physical gold and keep it hidden on your property. Pick up the yellow pages and look for gold brokers or coin dealers. Ask them what price they charge on gold bullion coins. Buy from the broker with the lowest price and the longest history of doing business in your town. One more thing, don't buy it right now. Physical gold is in short supply and prices are at rip-off levels

Posted by sold out @ 01:20 PM 16 Comments

EU to set up phone service for financial emergencies

irishtimes: EU to set up phone service for financial emergencies

FINANCE MINISTERS facing market meltdown have a new number to call day or night for help as part of EU efforts to avoid ill-thought responses that could upset neighbouring states and break the bloc's rules.

Posted by mark @ 01:19 PM 0 Comments

FTSE in meltdown, and now the pound crashes

MoneyWeek: Latest: FTSE in meltdown, and now the pound crashes

As if a stock market crash, banking collapse and impending recession weren't enough, the UK is now in the midst of a currency crisis. So what does this mean for Britain?

Posted by damien @ 12:56 PM 15 Comments

Deflation/inflation debate

Money and Markets: Important change in our outlook

A deflationary outlook, with a short opinion on the direction of gold. Does anybody really know?

Posted by p. doff @ 12:41 PM 17 Comments

The Light at the End of the Tunnel has been turned off.

The Times: Panic over hedge funds 'could close markets'

Regulators could be forced to shut down markets for as long as a fortnight in order to stanch the panic beginning to beset the hedge fund industry, a leading expert predicted yesterday. Nouriel Roubini, a professor at New York University, told a London conference that hundreds of hedge funds are poised to fail as frantic investors rush to redeem their assets and force managers into a fire sale of assets. He said: We've reached a situation of sheer panic. Don't be surprised if policymakers need to close down markets for a week or two in coming days.

Posted by debtfree @ 12:13 PM 11 Comments

Remember the last recession?

bbc: Remember the last recession?

Although the UK was technically out of recession by the time it left ERM on so-called Black Wednesday in September 1992, its effect continued to be painfully felt, especially in areas that remained in negative equity. Sarah Stewart, now 48, believes it cost her marriage. Three years after buying her flat in Newcastle for 18,000 in 1991, she moved south to start a new job and tried to sell it but it was now worth less than she paid for it. An offer came in for 15,000 but the lending bank - as many did at the time - said that was too low. Meanwhile it was regularly getting broken into, so repair costs were mounting. "I handed back the keys because I couldn't cope with it anymore," says Ms Stewart, who is now a city councillor on the south coast.

Posted by mark @ 11:53 AM 1 Comments

Oil at $64.62

The Press Association: Oil producers to slash output

Oil cartel Opec has agreed to cut production in a move that is likely to halt the recent slide in UK petrol prices

Posted by sold 2 rent 1 @ 11:43 AM 12 Comments

He said that a necessary condition for the crisis to end will be a stabilization in home prices

Assoc. Press via sott: Greenspan: 'Once in a century credit tsunami' to have severe impact

He said that a necessary condition for the crisis to end will be a stabilization in home prices but he said that was not likely to occur for "many months in the future." In his testimony, Greenspan put the blame for the subprime collapse on overeager investors who did not properly take into account the threats that would be posed once home prices stopped surging upward. "It was the failure to properly price such risky assets that precipitated the crisis," he asserted.

Posted by malct @ 11:42 AM 0 Comments

Ryanair to close base in Valencia

bbc: Ryanair to close base in Valencia

The move will affect 750,000 passengers a year and 750 jobs in the region will be lost, according to the airline.

Posted by mark @ 11:41 AM 0 Comments

China is being hit over the head by both the global crisis and the domestic slowdown

SOTT brings you USA TODAY: Economy rocks China as factories close by the thousands

River Dragon shut down on Oct. 7. Tao and Yan have vanished, leaving behind more than $290 million in debt and a lot of anger in this city 140 miles south of Shanghai in the Yangtze River Delta. The company's demise put 4,000 workers on the street and jilted hundreds of suppliers and creditors. The speedy rise - and speedier fall - of River Dragon is a depressingly familiar story in China these days. Thousands of Chinese factories have shuttered in the past year, done in by:

Posted by malct @ 11:33 AM 1 Comments

Smells like panic at the BBC.

BBC "News": Downturn snapshot: Day's events

What's the real impact of the economic slowdown? In a special day of coverage BBC News is taking the temperature across the UK.... They make it sound like it's something that will be gone tomorrow. I hope those folks at the BBC have got plenty of spare underwear because this has only just started.

Posted by eyes_wide_open @ 11:32 AM 0 Comments

How the hedge fund squeeze will push stocks even lower

MoneyWeek: How the hedge fund squeeze will push stocks even lower

If you think the market's bottomed, you're wrong, writes David Stevenson. Hedge funds who bought shares with borrowed money are being forced to deleverage which means dumping stocks. And that's going to drive prices down further...

Posted by damien @ 11:32 AM 4 Comments

UK contracts, firms suffer, China says outlook grim

reuters: UK contracts, firms suffer, China says outlook grim

Markets expect the Federal Reserve to cut U.S. rates sharply next week to help head off a sharp recession. To that end, investors will scrutinise U.S. home sales data due later.

Posted by mark @ 11:26 AM 0 Comments

Makes me wonder if Lucy was at the dinner party.

FT.com: Ask Lucy: Should I be ashamed for being an investment banker?

At a dinner party last Saturday I was asked by a fellow guest what I did and I said I was an investment banker. I might as well have said I was a paedophile. Suddenly the whole table all friends of my wife from the art world turned on me with such venom I was really taken aback. I tried to defend myself by saying that I had nothing to be ashamed of in the work that I do in M&A, but the more I argued the more hostile the other guests became. Next time this happens and I fear there will be a next time should I accept guilt for what isnt my fault, or should I lie and say Im a librarian? Investment banker, male, 42

Posted by lukeskywalker @ 10:11 AM 14 Comments

Renting classes forgotten

Economist: A helping hand to homeowners

no-recourse home loans, which are standard in America (though not elsewhere). If a borrower defaults, a bank can claim back the property used as collateral, but nothing more. When the value of a home drops below the size of the mortgage, a borrower has a reason to default to escape his negative equity.

Posted by matt_the_hat @ 08:20 AM 0 Comments

After backtracking from -5% capital economics again assumes bear status

Home Move: Capital Economics predict 35% fall in house prices

Previously, the organisation had forecasted that prices would fall 35% by 2010, but in the wake of the economic downturn, the fall will be much quicker. The fall means that approximately 65,000 will be wiped off the average property with the average home costing 120,000. At the peak of the property boom last summer, the average home was worth 186,000. Earlier this week, Knight Frank estate agents said house prices in the UK will fall 30% from their high of summer 2007 and fall to levels of September 2003.

Posted by matt_the_hat @ 08:17 AM 2 Comments

Collapse in house prices predicted by BBC

BBC News: Plunge in house prices predicted

Welsh house prices predicted to fall 38% from their peak just over a year ago. The average number of people out of work by the end of this year is also expected to be 10% higher than in 2007.

Posted by matt_the_hat @ 08:13 AM 3 Comments

Whaaa... this crash is not stopping

Telegraph.co.uk: Financial crisis: Asia suffers further stock market slide

Tokyo's Nikkei 225 average led the charge, a morning slump continuing into the afternoon, finally closing 811.9 or 9.6pc at 7,649.08, its lowest level since May 2003. If it falls much further, it will start to hit figures not seen for a quarter of a century.

Posted by v stor @ 08:04 AM 0 Comments

Phew. The ultimate bear. But he's been right on the money now for over 50yrs!

The International Forecaster: Insider profiting will bring the hyperinflation juggernaut

M3 continues to rampage, will manifest as hyperinflation 6 months/1 year, pressure to bail out of treasuries will reach critical mass and the whole world is going to run for the exits at once. Then all those parked and hoarded dollars will come back to haunt us with a vengeance, and we will be completely, utterly and immediately Weimarized as everyone tries to grab as many tangible, real US assets as they can get their hands on. We will literally be awash in dollars, as if a dollar tsunami had just been unleashed by a Force 10 earthquake. We also expect to hear more threats from OPEC nations to break dollar pegs as the price of oil continues its downward spiral, and this could be the straw that breaks the camels back. If you don't own gold and silver, you will be wiped out.

Posted by planning4acrash @ 07:58 AM 42 Comments

Should be rewritten for today: "Greenspan, Entourage Demolish HOUSING WITH CREDIT BUBBLE"

The Onion: Greenspan, Entourage Demolish Hotel Room

LOS ANGELESFederal Reserve Chairman Alan Greenspan once again found himself in legal trouble Monday, when he and several members of his extensive entourage were arrested for allegedly destroying a penthouse suite at the Beverly Hills Hotel.

Posted by sneaker @ 01:37 AM 0 Comments

Thursday, October 23, 2008

Business failures inevitable, say banks

FT.com: Business failures inevitable, say banks

But the British Bankers Association, the industry group, said commercial realities made it inevitable that some businesses will not survive the recession. There simply is nothing that needs to be added to this article; the bankers now "safe". (well they think they are but lets just leave it there for now) ... now get down to the real business of ensuring everybody else has to play by the "rules" and go to the wall if necessary. .... as aided and abetted by the government. Other people are running businesses that cannot survive the environment you understand.. so they must go out in the cold.

Posted by whiteknight @ 10:20 PM 9 Comments

That's big of you Al

CNBC: Greenspan: I Was 'Partially' Wrong On Credit Crisis

Former Federal Reserve Chairman Alan Greenspan told Congress on Thursday he is "shocked" at the breakdown in U.S. credit markets and said he was "partially" wrong to resist regulation of some securities.

Posted by alan @ 09:17 PM 22 Comments

Interesting Broadcast

Number 10: Financial Stability

It is actually quite a good speech.

Posted by stevie dee @ 08:41 PM 4 Comments

Food sales fall in the Land of Debt

Telegrath: Food sales fall for first time since 1986

The Office for Nobbled Statistics reveals that food sales have effectively dropped over the summer with M&S meat sales down 28%. Analysts expect High Street retailers to be hit hard as hard pressed consumers increasingly shop online, whilst serious bargain hunters are turning to 2nd hand goods with internet searches for such items up 22 percent.

Posted by enuii @ 07:53 PM 5 Comments

Government's Rugg report recommends licenses for landlords

Times: Is this the end for the amateur buy-to-let investor?

Landlords will need a licence-to-let and a business plan to take out a mortgage, under proposals published by the Government today. In a report that could sound the death knell for amateur buy-to-let investors, independent housing policy experts recommended a raft of measures that would turn letting property into a business rather than a bit of cash on the side. The licence, which could operate a bit like a drivers licence, would mean that landlords who fail to measure up could have points deducted or lose their licence altogether and be banned from letting property.

Posted by little professor @ 07:20 PM 19 Comments

JCB staff vote for shorter week

bbc: JCB staff vote for shorter week

Thousands of JCB staff have accepted a shorter working week in order to save about 350 jobs across the UK. The GMB union said 2,500 of its members in the UK had accepted a 34-hour week by a two-thirds majority. The firm, based in Rocester, Staffordshire, had said 500 jobs could be axed if the plan was not accepted and 150 jobs will still be cut. JCB has 11 factories across the UK and said fewer working hours had been its preferred option.

Posted by mark @ 07:16 PM 3 Comments

Peston points out the countries which are seeing capital flight. We are not far behind.

BBC News: Now there are runs on countries!

First the money markets close, then banks collapse, now whole countries collapsing as credit unwinds. Of course Iceland has already gone, now it's S Korea, Hungary. Watch and learn - the currencies collapse, and the stockmarket collapses. LINE UP AND WATCH WHOLE COUNTRIES FALLING. Luckily, IMF has funds to support the early fallers, but no organisation has enough funds to bale out a country the size of the UK or US. "And now we're seeing a massive flight of capital out of economies perceived to have been living beyond their means - either because they have a substantial reliance on foreign borrowings, or because they are net importers of good and services, or both." This means us soon, here in UK. Get ready....

Posted by doom&gloom @ 06:18 PM 25 Comments

Useful info

Yahoo: Find Out How Safe Your Bank Is

n Spot Banks Before They Go Bust, I explained the usefulness of credit default swaps (CDSs) in terms of measuring risk. CDSs provide insurance on debt, guaranteeing a holder's money will be covered if a company goes under. The riskier a bank, the more expensive it is to insure its debts. CDSs are measured in basis points (one hundredth of a percentage point). If a bank has a CDS of 100, insuring a 1 million investment would cost 10,000. To put things into perspective, CDSs in Icelandic banks were trading near 3,000 basis points before they went bust.

Posted by mark @ 05:55 PM 0 Comments

He's been on the money so far.

Bloomberg: Roubini Says `Panic' May Force Market Shutdown

Oct. 23 (Bloomberg) -- Hundreds of hedge funds will fail and policy makers may need to shut financial markets for a week or more as the crisis forces investors to dump assets, New York University Professor Nouriel Roubini said.

Posted by gardeniadotnet @ 05:43 PM 2 Comments

Builder bail out by another name!

Public Finance Magazine: RSLs rush to snap up private homes for social housing

A third of the 200m set aside by the government to buy unwanted private homes has been allocated to housing associations in just three months. Since July, more than 2,000 homes built by developers before the mortgage crisis have been snapped up by associations using 70m of public funds, it was announced this week.***by the way Registered Social Landlord (RSL)

Posted by whostolemyendowment @ 05:19 PM 3 Comments

Fed Liquidity Efforts 'Hyper-Inflationary': Video

Bloomberg: Bianco Calls Fed Liquidity Efforts 'Hyper-Inflationary': Video

Smart guy talking about credit problems. Housing problems have blown a hole in the banking system. Fed actions are hyperinflationary. But "if we shrink the real world to the size of the financial system we get Great Depression II."

Posted by mountain goat @ 05:02 PM 1 Comments

Gee - you mean they don't know what may happen?

WSJ: Banks face another Wild Card

This financial crisis has shown that history is an unreliable guide for gauging future losses. Banks relying on historical models were fooled when it came to potential mortgage hits. They similarly miscalculated with structured-debt products. Now, the same may hold true for credit cards. Banks and big card issuers have seen card losses climb and are projecting that things will worsen in 2009.

Posted by lvmreader @ 04:55 PM 3 Comments

Crash Course Chapter 20: What Should I Do?

Chris Martenson.com: Crash Course Chapter 20: What Should I Do?

Here it is, the last in the excellent 20 part series by Chris Martenson.

Posted by soundman74 @ 04:51 PM 2 Comments

First you get ripped off, then the sucker who defrauded you dies

WSJ: The Auction-Rate Securities After-Party: Lehman Gets an Invite

M. Brian Maher and Basil Maher sold their familys billion-dollar shipping business and invested some of the proceeds with Lehman. After the auction-rate market collapsed, they lost access to $286 million that was tied up in the securities. Brooklyn Prosecutors are probing whether Lehman put the securities into the brothers and other customers accounts despite knowing the market could collapse. A spokeswoman for a unit of Barclays PLC, which bought Lehmans core U.S. business following its bankruptcy, declined to comment, as did a spokesman for the U.S. attorneys office in Brooklyn. In a statement, attorneys for the Maher family said it is aware of and is cooperating with an investigation of Lehman Brothers by the U.S. Attorneys Office for the Eastern District of New York.

Posted by lvmreader @ 04:25 PM 0 Comments

Goldman's is the least bulky of all the bulge bracket firms

Bloomberg: Goldman Sachs May Slash 3,200 Jobs as Credit Turmoil Worsens

Oct. 23 (Bloomberg) -- Goldman Sachs Group Inc. plans to eliminate about 3,200 workers, adding to more than 125,000 job cuts across the securities industry this year. Goldman will cut about 10 percent of its 32,500 workforce as the credit crisis worsens, said a person briefed on the plans who declined to be identified. Paul Kafka, a spokesman for Goldman in London, wouldn't comment. Banks worldwide are shelving deals and cutting employees as the unprecedented turmoil in credit markets spreads and spurs concern the global economy may fall into a recession. Goldman, the top-ranked adviser on mergers and acquisitions this year, has dropped by almost 50 percent in New York trading this year, and plans to convert into a bank from a securities firm.

Posted by lvmreader @ 04:17 PM 0 Comments

Who needs a stock market anymore?

International Tribune: Argentina nationalizes $30 billion in private pensions

Argentina's government said Tuesday that it would seek to nationalize nearly $30 billion in private pension funds to protect retirees from falling stock and bond prices.

Posted by yoyo1 @ 04:17 PM 2 Comments

And Australia thought it was OK?

Sydney Morning Herald: New South Wales in the Red.

And I bet they have not found the majority of losses yet NSW suffered its first monthly deficit in eight years in August as a result of weak property and financial markets. And it barely managed to record a surplus for the 2007/08 financial year. The continued budget pressures point to a savage mini-budget, due to be introduced on November 11, as the Rees Government seeks to squeeze spending across the board.

Posted by lvmreader @ 04:14 PM 0 Comments

So Mahatir was right all along those 10 years ago

Straitstimes: Mahathir sees no end to crisis

FORMER Malaysian leader Mahathir Mohamad, the leader who steered Malaysia through the 1997-98 Asian financial crisis, said that the current global turmoil is far from ending and will soon spread to the region's export-dependent economies, in an interview with Bloomberg News. 'The worst is not over yet. We do not even understand what is happening,' Tun Dr Mahathir, who stepped down as prime minister in 2003, said in a Bloomberg Television interview yesterday in Putrajaya, Malaysia. 'Asian countries are going to feel the pinch of a world where the market has collapsed.'

Posted by lvmreader @ 04:12 PM 1 Comments

House price falls will intensify next year

citywire: Big rate cuts will not prevent 20% house price falls in 2009, economist warns

"House price falls will intensify next year even if the Bank of England slashes interest rates to as low as 2.5%, a major economics consultancy has warned. " I'm a so called vulture, ready to buy a house chain free - for the right price. Found the house of my dreams but so did someone else too. How do i get them to realise they are paying too much...

Posted by suzyandjoe @ 04:00 PM 0 Comments

There are many Pension Funds about to lose bigtime

Bloomberg: CDO Cuts Show $1 Trillion Corporate-Debt Bets Toxic

Investors are taking losses of up to 90 percent in the $1.2 trillion market for collateralized debt obligations tied to corporate credit as the failures of Lehman Brothers Holdings Inc. and Icelandic banks send shockwaves through the global financial system. The losses among banks, insurers and money managers may spark the next round of writedowns on CDOs after $660 billion in subprime-related losses. They may force lenders to post more reserves after governments worldwide announced $3 trillion in financial-industry rescue packages since last month, according to Barclays Capital. ``We'll see the same problems we've seen in subprime,'' said Alistair Milne.

Posted by lvmreader @ 02:17 PM 14 Comments

In defence of currency!

Telegraph: Crisis mounts in East Europe after shock 3pc rate rise by Hungary

The fast-moving crisis echoes the final days of the Exchange Rate Mechanism in 1992, when Britain, Italy, and Sweden raised rates to extreme levels to defend their currencies despite economic recession, with little success. Hungary's premier Ferenc Gyurcsany said the county was left with no choice as the forint went into a free-fall. It has dropped 16pc against the euro since the start of the month and is now at the bottom of its ERM band. "There is still an exceptionally large speculative pressure on the forint. We will take every measure necessary," he said. It is unclear whether the move will prove enough to prevent a forced devaluation. The treasury had to cancel a bond auction yesterday as buyers stayed away.

Posted by lvmreader @ 02:07 PM 11 Comments

Candy Brothers done over by Taxpayers

Evening Standard: Candy Bros in talks to sell Chelsea Barracks stake

Sources have told the Standard that the brothers, who have pioneered developments for the super-rich, are in negotiations to get their cash out of Chelsea Barracks which has been beset by planning rows, a revolt by wealthy local residents and claims that the brothers and their partners paid far too much for the 12.8-acre site. Project Blue the joint venture set up between the Candy brothers and investment group Qatari Diar paid almost 1billion for the plot when it was sold by the Ministry of Defence last year at the height of the property boom. There is justice after all. I don't suppose these two will be sleeping in the back of a van though. Shame

Posted by dr ray @ 01:45 PM 0 Comments

expect major layoffs

bbc: Carmakers fear hard times ahead

Carmakers have forecast a tough year ahead, as the financial crisis takes its toll on the car industry. Italian carmaker Fiat said in a worst-case scenario its 2009 profits could fall by 65%, while global demand for its products could drop 10 to 20%.

Posted by mark @ 01:40 PM 3 Comments

If you are wondering why gold is going down in price

Telegraph: Financial crisis: hard-up consumers are selling jewellery for cash

People are selling their gold jewellery because the price of gold is so high, and they have no money. Not in the Krugerand coin form preferred by speculators, but still shows why gold is going down in price, not up.

Posted by jonb @ 01:40 PM 10 Comments

Their nervous central bankers now want real assets rather than more paper.

ICH: Maybe U.S. Needs Yard (garage) Sale

October 22, 2008 "Toronto Sun"-- At the end of Second World War the British Empire still ruled nearly a quarter of the globe. But the war bankrupted Britain. Its once mighty empire quickly collapsed and the United States inherited much of the British Imperium. Six decades later the United States is close to bankruptcy thanks to a national orgy of borrowing, the replacement of manufacturing by financial manipulation, ruinous foreign wars and a government whose stunning incompetence and arrant stupidity was exceeded only by its reckless imperial arrogance. Bankrupt people, companies and nations have to sell assets to meet their debt obligations. China and Japan alone hold over $1.5 trillion of U.S. (IOUs). Their nervous central bankers now want real assets rather than more paper.

Posted by malct @ 01:19 PM 3 Comments

Shackles after the crash

London Evening Standard: The iPod generation has the most to lose in a global recession

"... I cannot overemphasise how much trouble responsible young people may be in. The property bubble was a transfer of wealth between the generations. Pensioners who took a windfall profit sold on to young or youngish couples who saddled themselves with enormous loans. The mortgages did not look extravagant when the property market was roaring ahead and they could dream of selling on, too. After the crash, their debts have turned from investments into shackles."

Posted by doomwatch @ 01:18 PM 6 Comments

Beginning with Margaret Thatcher's election in 1979, government after government -- and party after

Emoire Burlesque via SOTT Perception Management: The God That Failed

Perhaps the most striking fact revealed by the global financial crash -- or rather, by the reaction to it -- is the staggering, astonishing, gargantuan amount of money that the governments of the world have at their command. In just a matter of days, we have seen literally trillions of dollars offered to the financial services sector by national treasuries and central banks across the globe. Britain alone has put $1 trillion at the disposal of the bankers, traders, lenders and speculators; and this has been surpassed by the total package of public money that Washington is shoveling into the financial furnaces of Wall Street and the banks. The effectiveness of this unprecedented transfer of wealth from ordinary citizens to the top tiers of the business world remains to be seen.

Posted by malct @ 01:00 PM 26 Comments

This is where the mortgage payments come from!

Mortgage Introducer: Household bills going unpaid as the crunch starts to hurt

"The amount of electricity bills that have gone unpaid in the past six months has jumped from 1.31 million to 1.96 million and approximately 1.61 million Brits missed a gas bill compared to 1.16 million in the final six months of 2007."

Posted by renting2 @ 12:36 PM 5 Comments

Taxpayers to pay to get own money back

Telegraph: Northern Rock staff could get bumper bonuses

Northern Rock's 4,000 staff will be paid extra if they help the bank pay back its 26 billion Government loan on time. Those enjoying the possible bonus include chief executive Gary Hoffman, who could get an extra 420,000 on top of his 700,000 salary. Ho hum I'll get my wallet.....sigh

Posted by dr ray @ 12:35 PM 0 Comments

Tick Those Boxes!

The Guardian: Alphabet of Global Downturn

When I first joined the site, the predictions page was at that time door-stopped by the seemingly 'out-there' views of financier Jim Mellon. But how right he was. Worth re-reading in full. It's three years old now, but for some people this is still going to come as hot off the presses news. 'In short, within three years the world economy will be in a significant downturn, and the correction process for the Anglo-Saxon economies will last as long as a decade. Pay, and therefore living standards, will have to adjust to the effect of Chinese competition. Stock markets will collapse, house prices in the over-extended markets of the UK and the US will fall by up to 50 per cent, and major investment banks and other financial institutions will go bust.'

Posted by lierbag @ 11:57 AM 2 Comments

Latest on Mortgage approvals

FT: Mortgage approvals drop 56.6 per cent

The number of mortgages approved for house purchase dropped by 56.6 per cent in the year to September 2008, the latest British Bankers Association (BBA) statistics show. In September this year, 23,422 mortgages were approved for house purchase compared with around 54,000 in September 2007. The number of mortgages that were approved for house purchase in September 2008 however, rose by 8.8 per cent to 23,422 compared with 21,342 approvals the previous month. Remortgage approvals also lifted in September compared with August from 51,523 to 47,260.

Posted by jack c @ 11:33 AM 0 Comments

Debt deflation

FTAdvisor: Leaviss predicts deflation for UK and Europe

I think it is certain we are now in debt deflation, as people cannot clear their debts through liquidating assets. The main thing to watch now is the actions of the UK government, and to try and see in advance which way existing (and currently reducing) wealth is going to be transferred. Mortgage holders would certainly benefit from partial government ownership, and in effect would have won themselves subsidised council housing. As there has never been a successful escape from debt deflation in the past (WWII not counting as a success) I think the key issue now is not the fundamental economics which have made their effect abundantly clear, but the correct anticipation of the actions of a socialist leaning New Labour government, in particular what level of debt they consider ...

Posted by stillthinking @ 11:22 AM 2 Comments

Are we about to be taken over by Libya?

reuters: Libya eyes European, US equities after price drop

"We are going more towards (sectors) ... such as pharmaceuticals, telecoms, utilities and food manufacture," he told reporters on the sidelines of a conference in Cairo.

Posted by mark @ 11:00 AM 1 Comments

Goldman Sachs to cut about 3,260 jobs

reuters: Goldman Sachs to cut about 3,260 jobs

LONDON, Oct 23 (Reuters) - Goldman Sachs Group Inc (GS.N: Quote, Profile, Research) plans to cut about 3,260 jobs, a source familiar with the matter said on Thursday.

Posted by mark @ 10:57 AM 1 Comments

Wolseley to close 86 U.S. branches and cut 3,000 jobs

reuters: Wolseley to close 86 U.S. branches and cut 3,000 jobs

LONDON (Reuters) - Wolseley (WOS.L: Quote, Profile, Research) said on Thursday it planned to restructure its loss-making U.S. building materials business by closing branches, leaving some states and cutting another 3,000 jobs. The company, which says it is the world's largest specialist trade distributor of plumbing and heating products

Posted by mark @ 10:54 AM 0 Comments

Do you think they are also considering supporting UK manufacturing - guess I'll be disappointed.

FT (Westminster Blog): Time to nationalise the housebuilders?

It has been described by one former cabinet minister as the ultimate Keynesian move - the nationalisation of the housebuilding industry.

Posted by whostolemyendowment @ 10:23 AM 24 Comments

The number of foreclosure notices dipped from a record high in August, but was still up 21% from las

cnn: 81,312 homes lost to foreclosure in September

Nevada once again had the nation's highest foreclosure rate, with one out of ever 82 homes in foreclosure. Florida had the second highest rate in September, with one in every 178 homes in default. California came in third, with one in every 189 homes there receiving foreclosure filling last month.

Posted by mark @ 10:13 AM 0 Comments

Help for BTLers, hidden behind a veil of helping tenants?

24Dash: Beckett to receive Rugg Review on private rented housing market

Proposals to grow the private rented housing market in the UK were being put forward in an independent report being presented to housing minister Margaret Beckett today.

Posted by whostolemyendowment @ 10:12 AM 2 Comments

A housing-credit bubble - Finally, the coup de grace

MarketWatch: Wall Street's 'Disaster Capitalism for Dummies'

ARROYO GRANDE, Calif. (MarketWatch) -- Yes, we're dummies. You. Me. All 300 million of us. Clueless. We should be ashamed. We're obsessed about the slogans and rituals of "democracy," distracted by the campaign, polls, debates, rhetoric, half-truths and outright lies. A housing-credit bubble -- while secretly planning for a meltdown. Finally, the coup de grace: Along came the housing-credit crisis, as planned. Press and public saw a negative, a crisis. Disaster capitalists saw a huge opportunity. Yes, opportunity for big bucks and control of America. Millions of homeowners and marginal banks suffered huge losses. Taxpayers stuck with trillions in debt.

Posted by malct @ 09:57 AM 1 Comments

Fed bails out Hedge Funds

Financial Times: Fed offers $540bn liquidity to money market funds

The US Federal Reserve on Tuesday said it would finance up to $540bn in purchases of short term debt from money market mutual funds, in its latest move to shore up a key pillar of the US financial system.Money market funds have faced severe redemption pressures over the past month as the financial crisis deepened - but have struggled to find any buyers willing to pay the full value for their assets since all these funds are selling at the same time. This has left them wary of investing any cash that they have, making it difficult for companies and banks trying to raise funds in the commercial paper market.

Posted by charlie brooker @ 09:53 AM 3 Comments

Sellers are still in denial

Guardian: Home sellers have 'unrealistic market expectations'

The Rightmove index of estate agent asking prices continues to decouple from reality with a 1% increase in asking prices last month. Sellers are continuing to ask for more money in the hope that any discounts are negotiated on the basis of the higher asking price. In reality, if you aren't on the first one or two pages when sorting lowest price first, buyers aren't going to even look at your property.

Posted by jonb @ 09:30 AM 12 Comments

"Sentiment is lousy," said Dariusz Kowalczyk, chief investment strategist at CFC Seymour in Hong K

Assoc. Press via Yahoo: Asia stocks fall on profit fears; SKorea off 7 pct

HONG KONG Asian stocks fell for a second day Thursday, with South Korea's market sinking more than 7 percent, as a barrage of downbeat company forecasts deepened fears of a global recession. But in a positive sign, most major indices pared losses in afternoon trading as some investors bought beaten down shares. Japan's Nikkei 225 stock average tumbled 7 percent at the open but recovered some to closed down 2.5 percent at 8,460.98. Hong Kong's Hang Seng Index was down 4.7 percent at 13,603 after falling more than 6 percent earlier.

Posted by malct @ 09:24 AM 0 Comments

take a trip down the Economic Rabbit Hole to explore what is really going on

SOTT: Perception Management and the Economic Spider's Web

Summary: A battle for global economic hegemony is under way. The banking bailouts have moved from the original US proposal of simply buying bad assets to substantial recapitalisation and even nationalisation of banks that just months ago were considered strong and healthy. Bank deposits are rapidly being guaranteed around the world and government guarantees for short and medium term bank debt are freely available. Just who is running these bailouts, and for who's benefit?

Posted by malct @ 09:21 AM 0 Comments

Every little bit helps - more mainstream crash news

Sky News: Prices Slashed In Housing Gloom

"If a home-owner thinks they can value their property at the same level as six months ago, they should expect their estate agent to tell them otherwise for their own good", said Ed Ogden from Bushells estate agent in west London.

Posted by quiet guy @ 09:09 AM 1 Comments

Rightmove cut staff, increase marketing

High immigration levels will support high house prices.... not

Telegraph: A third of Poles driven home by recession

The rise of the Polish zloty against the pound has meant that some Poles can earn almost as much in their native country as in the UK. A third of the Polish people living in the British Isles will leave the country next year, driven out by the recession. In their home country job prospects are better and the economy has not been hit by the credit crisis. Such a large-scale withdrawal could damage the British economy. The departure of so many skilled workers could prompt fears that building sites will face a major labour shortage. The extensive building programme ahead of the 2012 London Olympics could also be at risk. Polish labour agencies are already reporting that the trickle of returning countrymen is steadily turning into a flood.

Posted by drewster @ 01:04 AM 19 Comments

Wednesday, October 22, 2008

Capital Economics analysts predicted that sterling would drop down to $1.50 against the dollar in th

telegraph: The pound suffered its biggest fall since the aftermath of Black Wednesday in 1992 after the Prime Minister and Governor of the Bank of England warned that the UK is entering a recession

Sterling plummeted by almost 6 cents against the dollar as investors abandoned the UK currency after the warning, originally delivered by Mervyn King on Tuesday night. The pound ended the day worth just $1.6334, compared with almost $1.70 the previous close

Posted by big chris @ 11:54 PM 5 Comments

Freds got the raving...

Fred H: Foreign Press associaton news conference

Fred in glorious technicolour on the rampage. Has a "bit" of a go at Gordon. Whether you believe in LVT or not its good to watch. The video doesnt go into LVT - but just basically states that Gordon isnt a superhero and the plan wont work.

Posted by techieman @ 11:50 PM 10 Comments

Colliers sues investor over fraud accusation

Estates Gazette: Colliers sues investor over fraud accusation

Hardeep Johal blames agent for the loss of 67,000 See attached document for the story has gone to print in the estate Gazzete, maybe now you can consider this a high priority story, since colliers is the 3rd largest property companies in the world after all. And the global crisis 2008 is all a property overvaluation issue just as occurred in this case. I am just the first of many investors that have been scammed by colliers in this investment, i have located one other investor who has been frauded out of approx 150k. In total the fraud relates to millions of pounds of losses for both the investors and the banks involved. I am sure there are many more who searching for other investors however colliers has attempted to keep all investors separate by hindering information.

Posted by harry @ 11:34 PM 1 Comments

A lighthearted anti-conspiracy article

Guardian: Police raid Germany's 'dumbest bank'

"German prosecutors and police today raided the Frankfurt headquarters of state-owned bank KfW, looking into a case suspected criminal breach of trust. Prosecutors said they had opened an investigation into whether the bank's executives acted criminally in allowing KfW to transfer 319m (251m) to US investment bank Lehman Brothers on the day it went bankrupt." Always look for the screw up before looking for the conspiracy :)

Posted by quiet guy @ 10:21 PM 4 Comments

The banking system taking another blow

Bloomberg: Wachovia Lost $24 Billion as Customers Drained Funds

"The bank wrote off $810 million in option adjustable-rate mortgages, up from $508 million in the previous quarter. Borrowers aren't paying interest on about $9 billion of the loans, or 7.6 percent of the total". Wells Fargo expects a cumulative loss of $26 billion from option-ARMs, with more than 90 percent of those credit costs to be incurred by the end of next year. Steel in September estimated such losses would reach about $14 billion. Option- ARMs, which Wachovia no longer offers, allow borrowers to defer part of their interest payments, boosting the principal.

Posted by alan @ 10:09 PM 0 Comments

Aye-Aye-Aye Calm down

Bloomberg: Credit-Rating Companies `Sold Soul,' Employees Said

Same buggers that had Iceland's debts rated at AAA the week before they went into melt down... So what do they rate US debt at now? AAA? now is that an honest AAA or a fook me we are knackered type AAA! Be honest now Honestly.... I can't judge you... but St Peter will!

Posted by yoss @ 09:00 PM 1 Comments

Sovereign wealth funds are funny money too

FT: Insight: Shattered illusions of liquidity

Sovereign wealth funds are not real, unleveraged liquid cash ready and waiting to be mobilised to support assets around the world. They are hit by deterioration of US credit quality and by problems in the US financial sector and are just a part of the self-referential global financial system that created candyfloss money - lots of it spun out of a limited amount of real money which eventually collapses back on itself. The abundance and liquidity of sovereign funds and central banks is an illusion created by excessive debt and leverage and as the world deleverages we pull back the curtain and see smoke and mirrors.

Posted by icarus @ 06:44 PM 8 Comments

Steven Norris on the politics of property

Property Week: Housebuilding will suffer after Browns rescue plan

"The damage is already severe. Housing starts are negligible and mortgage applications at all-time lows. Not only is that bad news for construction, but it spills over into falling consumer confidence."

Posted by peter whelp @ 05:01 PM 2 Comments

As below

CNBC: Please read below

As below

Posted by submedia @ 04:56 PM 1 Comments

Nouriel Roubini speaking - please watch as he had been on the ball for a long time

CNBC: The Unfolding Financial Crisis

One of the best bears in the world speaks - he may be right he may be wrong.

Posted by submedia @ 04:52 PM 10 Comments

"Buy-to-let investors have reason to cheer..."

Telegraph: Rental demand up by 50 per cent

[Same article as FT below, only free to view]. The number of people signing up for rented accommodation rose in September, with demand up 50 per cent year on year, according to the UK's second largest lettings agent Your Move, which has 250 branches nationwide. The number of leases commencing in September jumped 4.34 per cent compared to August 2008 - far beyond normal seasonal fluctuations, the agent added.

Posted by drewster @ 04:32 PM 17 Comments

So ... renting isn't dead money after all

FT: Rental demand up 50%

The number of people signing up for rented accommodation rose in September, with demand up 50 per cent year on year, according to the UKs second largest lettings agent Your Move, with 250 branches nationwide. The number of leases commencing in September also rose, up 4.34 per cent compared to the previous month, coinciding with mortgage advances being at an all time low, which Your Move said was an indication that would-be buyers are renting rather than buying property.

Posted by uncle chris @ 04:08 PM 1 Comments

the 3 minute segment trying to corner her on UK debt

Yvette Cooper gets grilled by Andrew Neil on UK debt: Yvette Cooper gets grilled by Andrew Neil on UK debt

I think this must be Yvette Cooper's worst interview yet. AN corners her on household debt and she has no escape other than to trot out her usual well worn phrases. Watch it here

Posted by crown @ 02:59 PM 20 Comments

No more Boom and Bust ---- just Bust!

Telegraph: Pound slumps and shares tumble as Gordon Brown admits recession is looming

The pound has plunged by the most in 16 years against the dollar and the FTSE 100 tumbled after Gordon Brown joined the Governor of the Bank of England in admitting for the first time that the economy is entering a recession. Still don't worry I am sure the prudent Mr Brown stashed a few Trillion away for just such a rainy day!!

Posted by who stole my pension? @ 02:59 PM 3 Comments

SmartNewHomes remain upbeat based on "demand price"

mortgagestrategy: New build prices drop again

The average price of a new home fell for the fourth consecutive month in September, reports SmartNewHomes.com. This takes new home prices to 236,142 down 2.6% from August 2008. This represents the sharpest monthly decline of 2008 so far. David Bexon, managing director of SmartNewHomes.com, says: New home buyers can now enjoy excellent value for money on sale prices, boosted by added incentives such as help with deposits and legal fees paid, as well as the new stamp duty threshold...........

Posted by jack c @ 02:57 PM 4 Comments

Drugmaker will eliminate more than 10% of its work force to cut costs

cnn: Merck to cut jobs as profit sinks 28%

The new restructuring program announced Wednesday aims to eliminate about 7,200 jobs, 400 of them currently vacant, across the company worldwide by the end of 2011. As part of the program, Merck will streamline management layers by eliminating about 25% of senior and mid-level executives. The company currently has a total of about 56,700 employees. The new job cuts come on top of a massive 2005 restructuring program, just about completed, that eliminated 10,400 jobs.

Posted by mark @ 01:59 PM 0 Comments

Pound Devalued - More to come

FT: Pound plunges as King warns on recession

but good news - The age of innocence when banks lent to each other unsecured for three months or longer at only a small premium to expected policy rates will not quickly, if ever, return, he said.

Posted by andrew @ 01:54 PM 18 Comments

Instead of bailing out banks invest in our future

Telegragh: Wind farms: Britain has enough offshore to provide power to 300,000

"In a special video message played at the London conference Gordon Brown said Britain had the best wind and wave resources in Europe and had now overtaken Denmark as the largest producer of offshore wind in the world." I agree Crash, now put some of our money where your mouth is.

Posted by mountain goat @ 01:37 PM 24 Comments

Brown orders courts to stop repossessing

BBC: Plan to ease repossession rates

Guidance will be issued to judges in an attempt to ease repossession rates, Prime Minister Gordon Brown has said. Mr Brown told the Commons that lenders would have to demonstrate to the courts that they had exhausted every avenue. Chief Secretary to the Treasury Yvette Cooper said that she wanted "stronger rules across the board" to make sure homeowners were supported.

Posted by little professor @ 01:25 PM 10 Comments

luxury yachts, billionaire oligarchs, luxury villas, lavish cocktail parties, old money, new money,

Independent via truthseeker: Oligarchs, Mandelson and Osborne

My only excuse as a business editor in writing about what is essentially political mudslinging is that the newly ennobled Mandelson is now Britain's Business Secretary. Wherever he goes, fireworks seem to follow, so his new charge can at least expect a lively couple of years, assuming he lasts that long. The trouble started almost immediately Mr Mandelson was summoned back from exile in Europe to be part of Gordon Brown's political fightback.

Posted by malct @ 12:53 PM 2 Comments

RightMove Stands Defiant on Agents Fees

BrightSale Blog: BrightSale

In a communication to all its members last night, RightMove effectively rejected calls for it to reduce its fees or to move to a different form of charging (per property rather than per branch). The companys argument appears to remain that estate agents should reduce their print advertising budgets instead. The other major change is a reduction in focus on overseas property which we were aware RightMove was already struggling with. To us this looks like another clear indication that the British publics previous rush (we might call it the Place in the Sun stampede) into overseas property is slowing abruptly.

Posted by jeremy howard @ 12:40 PM 1 Comments

Recession fears swamp signs of bank crisis easing

reuters: Recession fears swamp signs of bank crisis easing

"We are far from the end of the road back to stability," he said late on Tuesday. "But the plan to recapitalise our banking system, both here and abroad, will I believe come to be seen as the moment in the banking crisis of the past year when we turned the corner." His comments were underlined by U.S. dollar short-term funding costs falling further in London and Asia, a sign that banks are beginning to regain trust in each other.

Posted by mark @ 12:28 PM 0 Comments

CDO Cuts Show $1 Trillion Corporate-Debt Bets Toxic

bloomberg: CDO Cuts Show $1 Trillion Corporate-Debt Bets Toxic

Investors are taking losses of up to 90 percent in the $1.2 trillion market for collateralized debt obligations tied to corporate credit as the failures of Lehman Brothers Holdings Inc. and Icelandic banks send shockwaves through the global financial system. The losses among banks, insurers and money managers may spark the next round of writedowns on CDOs after $660 billion in subprime-related losses. They may force lenders to post more reserves against losses after governments worldwide announced $3 trillion in financial-industry rescue packages since last month, according to Barclays Capital.

Posted by mark @ 11:53 AM 2 Comments

Hungary Raises Benchmark Rate to Defend Its Currency

bloomberg: Hungary Raises Benchmark Rate to Defend Its Currency

Hungary's central bank raised the benchmark interest rate by 3 percentage points today, after a series of earlier measures to prop up the forint failed to halt the flight of investors from local assets.

Posted by mark @ 11:52 AM 1 Comments

Saves them having to follow BoE lead on interest rates!

Mortgage Stratergy: A&L pulls all two-year trackers

Alliance & Leicester is withdrawing all of its two-year base rate trackers at close of business today.

Posted by whostolemyendowment @ 11:47 AM 1 Comments

Hard Times Approaching on the Horizon

The Guardian: Russia, Iran & Quatar Announce Cartel that will control 60% of world's gas supplies

As I've mentioned ad nauseam, the present financial 'crisis' is merely a monumental stuff-up over the handling of notional forms of wealth. The real wealth (underpinning the actual value of its representational forms - one example: currency) is being depleted and diminished at an alarming rate or, as in this case, being corralled by the new energy world powers. Britain is effectively finished. Its economy has basically depended on a global economic system which has now contracted alarmingly, and its indigenous energy supplies - vital for any sort of manufacture or production - are approaching exhaustion point. Its one thing to seize oil from a weakened state like Iraq, but who's going to start a war with Russia? Or its ally Iran, with its ability to block oil supply via the Hormuz Straits?

Posted by lierbag @ 11:02 AM 13 Comments

Scary similarity between Japan's and UK answers to crisis

The Ludwig von Mises Institute: Explaining Japan's Recession

This is al old article (2002) that may have already been posted here in the past - if so bare with me please. Really worth a good read because unlike recent articles, this was written long before things started to go wrong in US and UK and long before rescue plans were drawn. It makes the relevance of this piece even more striking and could well confirm that the future of UK is not bright at all. I am looking forward to reading your comments!

Posted by arnaud @ 11:00 AM 2 Comments

More bailouts then!

reuters: "Under water" mortgages are growing threat to U.S.

Long before she filed for bankruptcy, Ann Neukomm was "under water" -- she owed more on her mortgage than her house was worth -- a situation more and more Americans are finding themselves in. As the financial crisis hits Main Street America, nearly one in six U.S. homeowners are finding themselves in the same position, threatening the U.S. economy with a new wave of foreclosures and bankruptcies. About 12 million U.S. homeowners owe more than their homes are worth, compared with 6.6 million at the end of last year and slightly more than 3 million at the close of 2006, said Mark Zandi, chief economist at Moody's Economy.com.

Posted by mark @ 11:00 AM 1 Comments

Ready guys all at once 1,2,3 arhhhhhhhh poor guy, banker sleeps in car!

bbc: Financial crisis: World round-up

Bruce Richall is an IT consultant based in the affluent Connecticut suburb of Westport. He describes how the loss of his job at a multinational bank triggered a rapid spiral into poverty. Having depleted his savings and unable to afford rent, he now sleeps in the back of his car.

Posted by mark @ 10:47 AM 18 Comments

Comic Capers and Bankers

bbc: Disney calls for Lehman inquiry

Walt Disney has become the latest company to call for an investigation into the dealings of investment bank Lehman Brothers before its collapse. Disney says it is owed $92m (56.5m) and wants to know how money was moved between Lehman Brothers Commercial and its parent company before bankruptcy.

Posted by mark @ 10:36 AM 0 Comments

CHL's website states they are not currently accepting new applications

Introducer Today: CHL Mortgages put 40% of staff on consultation

CHL mortgages has placed 65 members of its marketing and sales division on consultation. This follows the previous shedding of 50 employees in April for the company, which is the specialist lending subsidiary of Irish Life & Permanent. www.chlmortgages.co.uk

Posted by whostolemyendowment @ 10:12 AM 0 Comments

Another "property tycoon " bites the dust.

Yorkshire Evening Post: Property tycoon Simon Morris bailed

PROPERTY magnate and former Leeds United director Simon Morris has been bailed after being arrested for alleged fraud and money laundering. Two weeks ago the YEP reported that Mr Morris's multi-million pound property empire was lying in ruins after SRM Holdings based at Brewery Wharf, Leeds, called in the administrators with estimated debts of 50m. BTW whats happened to Homes under the hammer this morning? Have the BBC realised they may be held liable for misselling on national TV!

Posted by cheekie charlie @ 10:09 AM 2 Comments

Still not live yet....www.propertylive.co.uk

Estate Agent Today: Propertylive.co.uk set to launch with 50,000 properties

Propertylive.co.uk, the new portal from the National Federation of Property Professionals, was due to go live last night (Tuesday). NFOPP chief executive Peter Bolton King said that it had been hoped to launch the portal over the weekend but a couple of glitches had forced the delay.

Posted by whostolemyendowment @ 10:05 AM 3 Comments

Has the UK won the Euro trillions lottery whilst I was on holiday last week?

Citywire: Iceland to receive 3bn loan from UK to pay back Icesave depositors

The Treasury is preparing to lend 3 billion to Iceland so it can pay depositors in the UK hit by the collapse of the country's online bank account, Icesave. Reports indicate that Treasury officials are preparing to head over to Iceland this week to finalise details of the plan, in an effort to alleviate the concerns of UK investors who put their money in the overseas account.

Posted by jack c @ 09:27 AM 14 Comments

Depositor cash with Barnsley BS re-invested in Iceland

BBC: Barnsley building society rescued

The Yorkshire Building Society is to takeover its smaller rival, the Barnsley Building Society. The Barnsley said it was protecting itself against the possible loss of up to 10m deposited with Icelandic banks. The deal is the latest in the trend towards further consolidation among the UK's building societies. The deal is expected to be completed by the end of the year and there will be no windfall for Barnsley savers, nor will there be a vote of members.

Posted by jack c @ 09:15 AM 2 Comments

My fear is that governments in the US, Britain, and Europe will display similar reflexes. Indeed, th

telegraph: Argentina seizes pension funds to pay debts. Who's next?

My fear is that governments in the US, Britain, and Europe will display similar reflexes. Indeed, they have already done so. The forced-feeding of banks with fresh capital - whether they want it or not

Posted by big chris @ 07:29 AM 4 Comments

But According to Merv

BBC News: Gloomy forecasts for UK economy

"Meanwhile, the National Institute of Economic and Social Research says the UK is on the brink of its first full year of recession since 1991. It says Britain will "suffer the worst setback" of all leading economies."

Posted by renting2 @ 07:15 AM 22 Comments

Tuesday, October 21, 2008

Concentrated bear food (makes you feel sick)

Telegraph: Financial crisis: House-price slump to cost economy 50 billion

House prices are set to fall 35 per cent from last year's peak, as the property slump costs the wider economy almost 50bn as people stop buying homes, economists warned. With house prices predicted to make their biggest fall in British history by dropping 35 per cent by autumn next year, the associated consumer spending is expected to plunge, they said ... This is expected to have a huge impact on the wider economy as each house sale triggers around 4,000 in new spending on household goods, on items such as washing machines and other white goods.

Posted by quiet guy @ 11:34 PM 7 Comments

Should see houses selling in UK soon then?

Wall Street Journal: Experts: The Bailout Worked! So Far. That is, We Think.

"An increasing number of experts say the U.S. Treasury has taken just the right number of steps to end the financial crisis, and good things should start happening any time now. " Phew!! So it's back to 'normal' then?

Posted by renting2 @ 08:14 PM 3 Comments

Poor BTLers

BBC: Repossessions: your stories

Sam, 29, was earning 20,000 a year, as well as receiving income from two buy-to-let London properties. "I spotted a deal in a property magazine, for five flats in Birmingham for the price of just four. It was irresistible so I bought the flats in 2005 with a 90% mortgage. They said I could get a rent of 750 a month.That turned out to be rubbish. With 15,000 I went for voluntary repossession for all five. I went bankrupt in December 2007. I have lost everything. It is so sad. I am an accountant, but may not be able to work for five or six years. I wish the government had better protection for consumers as I had got my original mortgages for the Birmingham flats in minutes. Government should stop these unscrupulous deals.

Posted by little professor @ 06:13 PM 37 Comments

Spend your way out of housing gloom

Telegraph: Flash Gordon flies round the world, but the Good Ship GB is holed

"WHILE Flash Gordon is off saving the world, those he's left behind prepare for the worst. The Prime Minister's bank bail-out plan is winning plaudits around the world but back in Blighty we're suffering the fallout from a less successful period in his career the decade he spent as Chancellor. If the world wants to know what they're getting with Gordon, they might like to first consider what he's done to Britain". "White elephant capital projects, non-jobs in the "community" or box-tickers to check we're all complying with red tape, Brown and Darling obviously can't be trusted to spend our money on our behalf".

Posted by alan @ 05:41 PM 0 Comments

Some cool pics

Time: London's Gathering Storm

Some good B&W photos of the City. Pic number 3 is my favorite.

Posted by landedgentry @ 05:33 PM 0 Comments

The unravelling of the great buy-to-let scam

Spectator: The unravelling of the great buy-to-let scam

Good summary, though little new information. Interesting comments...! I have developed a rather ghoulish pastime. It involves thumbing through auction results for repossessed apartments in city centres, then checking what those same properties sold for when new, a year or two ago. My record so far is a two-bedroom flat in a development called Beauchamp Place, Coventry, which was auctioned in September for 85,000 less than 40 per cent of the 214,000 for which it was sold new in June 2006.

Posted by james @ 05:13 PM 6 Comments

Effect of crash on city "workers"

BBC Radio 4: The Crash: A Walk Through The City

City veteran John McLaren visits the Square Mile to meet bankers and headhunters, shopowners and cab drivers, to find out how they are coping with the current economic turmoil and what the future may hold. More fun stories of bonuses being squandered on Chelsea flats etc that now have to be sold up.

Posted by landedgentry @ 04:26 PM 4 Comments

New Comical Ali....? "My feelings - as usual - there will be no HPC"

Hotproperty: Property prices 'will not fall' in the UAE

Speaking to Emirates Business, the chairman of Dubai project Falconcity of Wonders, salem Almoosa said the price of property in the emirate 'will never go down' and he disagreed with those who see a correction coming.

Posted by whostolemyendowment @ 04:00 PM 5 Comments

Price is a matter of opinion

BBC: House sales slump 53% across UK

At these low low levels of house sales, the HP indexes are not going to be accurate. and .. "The key factor in the sales slump has been the lack of funds ...". Now hang on a mo, it wasn't that long ago when the BBC kept up the house prices staying high because of sound fundamentals, crowded island, demographics, divorce etc etc bullsh1t.

Posted by voiceofreason @ 02:08 PM 9 Comments

Hundreds of mill jobs 'at risk'

bbc: Hundreds of mill jobs 'at risk'

An Aberdeenshire paper mill employing almost 400 workers is facing closure, it has been announced. International Paper said its Inverurie plant was "unprofitable and not financially viable". The company has now started a three-month consultation with its 371 staff at the mill and admitted closure was an option.

Posted by mark @ 02:08 PM 5 Comments

The bear market is far from over

MoneyWeek: Stock markets rally but the bear market is far from over

"...we can expect house prices to keep falling, and that means we can expect consumer spending to keep falling, along with corporate profits."

Posted by damien @ 02:03 PM 0 Comments

Goodbye housing market for a good while yet...

MailOnline: House prices 'to plummet by 35%' - the biggest ever fall in Britain

The average price of a home, which was 186,000 at its highest point last October, will collapse to just 120,000

Posted by v stor @ 01:44 PM 10 Comments

British manufacturers gloomiest since 1980

yahoo: British manufacturers gloomiest since 1980

Orders for UK goods have plunged at their fastest rate in almost a decade, sending business confidence plummeting to its lowest in more than 28 years.

Posted by mark @ 01:31 PM 1 Comments

Do we have a Randi Wasik in the UK? It's her name stupid!

Boston Herald: Baby Boomers go bust as retirement savings tank

The Wall Street calamity that obliterated $2 trillion in retirement savings nationwide has left Bay State baby boomers with shattered careers, retirement plans and hopes. Its like a kick in the gut right now, said Deborah Banda, state director for AARP Massachusetts. Many, many people are hurting. Boomers are especially hard-hit. There are 76 million Americans between the ages of 44 and 62. An AARP survey of 1,628 employed Americans ages 45 and older found that 65 percent said they will delay their retirement if the economy does not improve. Just 37 percent of survey respondents said it is likely they will save more for retirement. Randi Wasik and her husband, Larry Gundrum, were struggling amid the fiscal slowdown even before the economy collapsed into a global financial -

Posted by malct @ 01:13 PM 0 Comments

Incredible, I am amazed bankers haven't been sued yet.

bloomberg: Citigroup Defeats Parmalat, Wins $364 Million Verdict

Parmalat went bankrupt after revealing that a 3.95 billion- euro ($5.34 billion) account at Bank of America Corp. didn't exist and documents certifying the account were falsified. Parmalat emerged from bankruptcy and returned to the stock market in 2005 after a two-year reorganization under Bondi.

Posted by mark @ 12:48 PM 1 Comments

big macs and tescos thats all thats left. lol

bloomberg: French Bistros File Record Bankruptcies as Le Big Mac Reigns

It's lunchtime in Paris and the packed restaurant has neither checkered tablecloths nor carafes of red wine. It's a McDonald's and the French are lovin' it. While rising prices and record low consumer confidence drive the French to throw their culinary pride to the wind and embrace le Big Mac, traditional bistros are hurting. About 3,000 independent French restaurants filed for bankruptcy in the first half

Posted by mark @ 12:45 PM 8 Comments

CBI report says 46% of firms have falling orders

BBC: Factory gloom 'worst since 1980'

Falling demand for UK-made goods and a drop in output has caused the sharpest single-quarter fall in manufacturing confidence in 28 years, a survey says. In the past three months, 16% of firms had seen a rise in new orders but 46% said they had fallen, the CBI's Industrial Trends survey said. It also found orders for UK-made goods had declined at their fastest rate since 1999 as domestic demand fell.

Posted by saving for a space ship @ 12:40 PM 0 Comments

18 hours after the bank holiday starts, the riots begin.

321 gold: The Panic of 2008

Bob Moriarty People who have been following this site know that I have been predicting a depression for years. It's here. Even the dolts in Washington are starting to figure it out. The credit system has ground to a halt. Commerce is on the verge of a complete breakdown. 18 hours after the bank holiday starts, the riots begin. The United States dollar is going to default soon. We have known since late 2002 that the US was in deep trouble. Treasure Secretary Paul O'Neill revealed the United States Government had a real debt of $44 trillion and it was growing at a rate of $2-$4 trillion per year. As of last year the debt was up to $59.1 trillion. Even before the government started throwing money around like a drunken sailor US spending was totally out of control. crazy man

Posted by malct @ 12:09 PM 2 Comments

Mortgage lending and prices are back to 2005 levels

Metro: New slump in mortgage lending

"A total of 17.7 billion was advanced during the month, 10% less than during August and 42% below the level for September last year, according to the Council of Mortgage Lenders. The figure was also the lowest since January 2005, and the weakest figure for the month of September since 2001." A quick look at Nationwide's 'house prices adjusted for inflation' shows that in absolute terms, prices are back to early 2006 levels, and adjusted for inflation, back to late 2004 levels. Which supports my theory that house price bubbles and credit bubbles are two sides of the same coin.

Posted by mark wadsworth @ 10:32 AM 31 Comments

The recession, the credit crunch, the housing collapse and the bear market have not run their course

Barrons Up and Down Wall Street: It Isn't Over

Buffett: great but not infallible. Most of all, Buffett despite his long experience and savvy hasn't run into a crisis quite like this one because, pure and simple, it has no true precedent. That alone anyone should give anyone with fewer resources than Buffett, intellectually and otherwise, pause. Contrary to what he's saying, we can't remember anything that deserves to be called a bull market that had to be caught early and it certainly wasn't true of the last two we've enjoyed. As to his allusion to robins in the spring -- a nice play on it's the early bird that catches the worm -- as someone has noted, it's the second mouse that gets the cheese.

Posted by malct @ 10:30 AM 3 Comments

falling prices for loans and other risky assets lead banks to force hedge funds to put up more cash

Naked Caoitalism: Loan Market Suffering Sharp Writedowns

While all eyes have been fixed on the interbank market, and the plunge in the Baltic Dry Index has also garnered some attention, the sudden decay in the loan market (meaning for the most part leveraged loans, the sort used to finance LBOs) has gotten far less commentary. Yet this will wreak havoc on bank balance sheets, as it did last year. Banks have gone to some length to try to reduce their loan inventories, even going so far as to finance sales heavily. But values have continued to erode. Loans were recently trading in the mid 80,. Some contended those prices were suspect, on small volumes to cooperative counterparties.

Posted by malct @ 10:07 AM 1 Comments

the hedge fund industry to shrink by 50 per cent in coming months

seeking alpha: What Makes Me Bearish? Hedge Fund Sales on the Horizon

If you ask me what makes me most bearish, what makes me think that the S&P 500 could go to 600, it is not the recession. Recessions we have seen before. Highly leveraged fund liquidation by over-compensated money managers in an industry that gets paid not to take losses whose time horizon is next quarter and whose clients thought they would earn money in any market environment we have not seen before. No, what makes me very worried and why I am not deploying capital just yet, even though the market is getting cheap, is the tsunami of hedge fund sales that may be on the horizon. That is what worries me.

Posted by malct @ 09:56 AM 0 Comments

foreclosure sales accounted for half of all resales

The Truth About Mortgage.com: SoCal Home Sales Up 65 Percent in September

Southern California home sales surged 65 percent in September compared to the same period a year ago as foreclosure sales accounted for half of all resales, according to a new report from DataQuick. A total of 20,497 new and resale homes and condos sold in six Southland counties last month, up 5.8 percent from the 19,366 sold in August and 64.6 percent more than the 12,455 sold in September 2007. The year-over-year increase is the largest on record for any month since DataQuick began collecting data back in 1988. While last months home sales were the highest of any month since December 2006, it was still the second-lowest September total since 1996 with sales 17 percent below the 20-year sales average for the month.

Posted by malct @ 09:50 AM 0 Comments

Prudential is the latest company to say that everything is fine

Telegraph: Prudential insists capital position remains 'robust'

Since it is clearly the latest fashion, I would like to tell everyone that my capital position also remains robust. I have absolutely no exposure whatsoever to the housing market.

Posted by jonb @ 09:03 AM 0 Comments

The CDS market is enormous, one reason for its enormous implications or the health of global finance

Credit Writedowns: Lehman Brothers: a primer on Credit Default Swaps

Somethings happening later today (I think) but it's not in the news yet, so here's a recent primer. The bankruptcy of Lehman Brothers was a credit event which triggered a massive liability to participants in the large and potentially dangerous Credit Default Swaps (CDS) market. This is a market that represents the "weapons of financial mass destruction" label which Warren Buffett gave to the derivatives. Below, I will attempt to explain, with much help from Wikipedia, what Credit Default Swaps are, how the market functions and why it is THE derivatives market that needs to be regulated before systemic risk threatens the global financial system.

Posted by malct @ 08:43 AM 25 Comments

the end of the long period of growth in owner occupation

skynews: Housing Market 'Crash' Until 2011

A housing expert has told Sky News that part of the property market has crashed and many people will no longer qualify for mortgages. Fewer sales show that parts of the property market have crashed, said Miles Shipside, commerical director of Rightmove. He said house prices will hit rock bottom in 2010, causing problems for those who need to borrow money. "I think we're going to see a paradigm shift in the housing market. I think a lot of people looking at housing in the future will not qualify for a mortgage. "First time buyers perhaps are going to find that lenders are going to be a lot stricter."

Posted by malct @ 08:36 AM 42 Comments

He advises investors to buy dollar dips against most Asian currencies.

cnbc: In Favor of the Dollar

In Favor of the Dollar The long-term outlook for the greenback is positive, says Callum Henderson, head of FX strategy at Standard Chartered. He advises investors to buy dollar dips against most Asian currencies. He tells CNBC's Amanda Drury why.

Posted by big chris @ 08:13 AM 0 Comments

Lloyds TSB staff "will still get bonuses"

reuters: Lloyds TSB staff "will still get bonuses"

The paper says that Eric Daniels told employees in a recorded message that the group faced "very very few restrictions," despite the injection of up to 5.5 billion pounds of taxpayers' money.

Posted by stooboy @ 07:46 AM 0 Comments

Even the CML think House Prices will continue to decline..

FT.com: Fear that mortgage lending will be negative by January

More money is set to be taken out of the housing market than is being put back in for the first time in more than 20 years, economists warned yesterday. Net mortgage lending - the value of new loans extended minus repayments of principal - could turn negative by the end of the year, economists said following data on mortgage outlays from the Council of Mortgage Lenders. That has not happened since the CML began collecting data in 1987. If mortgage lending turned negative, it would imply that demand for house purchases was falling and that home prices were likely to go on falling.

Posted by britonia @ 06:02 AM 2 Comments

The highly unusual letter was signed by the Australian CEOs of JP Morgan, UBS, Deutsche Bank, Societ

australian: THE Australian heads of several global investment banks are warning the Goverment and regulators that their exclusion from bank guarantees will limit their lending capacity and damage the economy.

THE Australian heads of several global investment banks are warning the Goverment and regulators that their exclusion from bank guarantees will limit their lending capacity and damage the economy.

Posted by big chris @ 03:21 AM 0 Comments

Monday, October 20, 2008

The financial crisis could lead to a 20 million rise in the number of unemployed worldwide by the en

age: Crisis could cost 20 million jobs

The crisis gave an ''opportunity'' to re-balance globalisation which had grown ''unfair, unsustainable and unbalanced,'' he added.

Posted by big chris @ 11:46 PM 0 Comments

National Australia Bank today warned of a marked slowdown in growth in Australia in the face of the

age: NAB warns of worsening outlook

National Australia Bank today warned of a marked slowdown in growth in Australia in the face of the global credit crunch as it unveiled a 10% fall in cash earnings for the last 12 months to $3.9 billion - a result hit by a sharp increase in bad debts.

Posted by big chris @ 11:41 PM 0 Comments

Interesting Comparisons

NY Times: How This Bear Market Compares

Great Graph! For all those Anoraks out there.

Posted by stevie dee @ 11:31 PM 2 Comments

Interesting Graph

FT Alphaville: Rationing and Depressionomics

Sadly, some risk exists that financial events could still unfold like a proverbial dam break. This might leave policymakers treating very serious and lasting damage to the financial system, rather than preventing further erosion. With no desire to exaggerate, this might be considered the financial pre-conditions of a depression as improving financial conditions are a pre-condition of a cyclical recovery

Posted by stevie dee @ 11:28 PM 0 Comments

Interesting Take on October RightMove Survey from BrightSale

BrightSale Blog: What Does RightMoves October Survey REALLY Tell us about the State of the Market?

A lot of estate agents will probably have had the same response to the "news" that sellers INCREASED their asking prices in October (by 1% over September): i.e. Are You KIDDING?? The explanation RightMove gives for this seeming anomaly in the current difficult market is that if a seller knows he is going to chipped away on price he (and his agent) might as well start with the highest number possible! But there is a more intriguing other possibility which would also explain the result, as BrightSale suggest in this blog post ...

Posted by jeremy howard @ 11:24 PM 0 Comments

Companies are going to have trouble raising funds

Mish: Armageddon in Corporate Bonds

Credit markets have fallen far, yet investors are still selling. Prices of loans rated below investment grade declined to a record low 66.1 cents on the dollar, virtually guaranteeing investors get their money back, based on historical recovery rates. Yields on corporate bonds show investors expect 5.6 percent of the market to go bust, the highest default rate since the Great Depression.

Posted by drewster @ 11:09 PM 0 Comments

RBA warns on bank guarantee as Reserve and Treasury at loggerheads

australian: RESERVE Bank governor Glenn Stevens is warning the Rudd Government its blanket guarantee of deposits is creating serious dislocation in the entire financial system and must be changed

The Government ignored the RBA's strongly voiced concerns about the impact of an unlimited guarantee scheme in its rush to announce a guarantee of all deposits in Australian deposit-taking institutions on October 12.

Posted by big chris @ 10:35 PM 1 Comments


Wall Street Journal: EU Banks Get Leeway on Making Write-Downs

"LONDON -- European banks could soon find it much easier to avoid write-downs thanks to changes in accounting rules being pushed through by European policy makers. In moves that analysts say could boost earnings but make it harder to discern the financial health of banks, the European Union and international accounting standard-setters are loosening so-called mark-to-market accounting rules, which require banks to value investments at the price they would get if they sold them immediately." Goodbye transparency, although we never actually met.

Posted by renting2 @ 10:26 PM 3 Comments

Iceland! Iceland was the most leveraged economy in the developed world when it became the first econ

brisbanetimes: Why real estate spending could make Australia the new Iceland

During 17 years of unbroken economic expansion and a 10-year commodities boom, it took a lot of people, borrowing a lot of money, taking a lot of unproductive risk, to get to where we are today: a nation with excessive debt and excessive vulnerability to external circumstances barely within our control.

Posted by big chris @ 09:08 PM 0 Comments

Industry leader blames Regulators, Government

Sky: Bank Crisis: 'Regulators To Blame'

Lord Levene, chairman of Lloyd's of London says he lays the blame for the current banking crisis on the financial regulators speaking to Jeff Randall. Then he gently drops the government into the mess..

Posted by alan @ 08:30 PM 2 Comments

Comedy club is back in session

Assetzzz: And now for the good news.

However, there is now some optimism, particularly in the wake of the recent government initiatives to help the banks. Nicholas Leeming, director of Propertyfinder.com, said that just now this hope is a "glimmer", but suggested things will soon lighten up, stating: "Homebuyer confidence has taken a knock but lower house prices and the promise of a bargain will begin to encourage some people back into the market once mortgage availability improves." Property firm Young Group states "Buy-to-let is arguably the world's second oldest profession and is certainly alive and kicking. With the correct advice and an analytical long term approach, good returns are there to be made."

Posted by little professor @ 08:19 PM 3 Comments

"The crisis is now in full swing across the entire world,"

Ambrose telegraph via SOTT: Do our rulers know enough to avoid a 1930s replay?

The commodity and emerging market booms are breaking in unison, leaving no more bubbles left to burst. Almost every corner of the world is now being drawn into the vortex of debt deflation. The freight rates for Capesize vessels used to ship grains, coal, and iron ore have fallen 95pc to $11,600 since May, hence the bankruptcy of Odessa's Industrial Carriers last week with a fleet of 52 vessels. Cargo deliveries dropped 15.2pc at the US Port of Long Beach last month, but that is a lagging indicator.

Posted by malct @ 07:52 PM 4 Comments

Smell the fear: a lot of traders at Canary Wharf won't survive the downturn.

Standard via SOTT: I never believed I was worth my $2.3 million bonus

From his position as managing director of one of the largest trading desks in Canary Wharf, Michael Sharp has witnessed the impact of the City's rampant bonus culture first hand. "I have watched people come into the City being normal and humble," he says. "When they get their first million-dollar bonus, you tell them they have been lucky, that it has been an exceptional year, that it will never happen again, and they listen to you. "But after three years of ever-escalating multi-million dollar bonuses, most bankers become arrogant and start to believe they are getting paid because they are smart, because they are worth it." He shakes his head. "I was never under the illusion that I was worth my bonus.

Posted by malct @ 07:38 PM 3 Comments

Government fails first time buyers - period

Timesonline: Government home help fails first time buyers

"If everyone who does qualify did apply, the money simply wouldnt be there. No wonder the government has been keeping stumm.

Posted by matt_the_hat @ 05:11 PM 11 Comments

Says it all really

startups: Scarborough leads the way for enterprise

The development of sectors such as surfboard manufacturing

Posted by matt_the_hat @ 05:08 PM 6 Comments

Boo Hoo

London Evening Standard: I've hit my personal property slump

Get used to it you silly selfish sheep "Property Slump is more of a niche ailment, specific to homeowners, with those who bought at the market's pinnacle most susceptible. In my case, the symptoms include generalised anxiety, a sick feeling in the pit of my stomach and rapid heartbeat on seeing words such as "crash" writ large in headlines."

Posted by doomwatch @ 05:06 PM 9 Comments

UK unemployment to rise to 7.8% of working population as recession hits

citywire: UK unemployment to rise to 5% as recession hits

TEM is forecasting that unemployment will be 5% by the end of 2010 (reaching 7.8% on the Labour Force Survey), double the 2.5% level at the end of last year.

Posted by matt_the_hat @ 05:04 PM 2 Comments

Unfortunately for the miracle economy banks have stopped lending to people who can't pay back

telegraph: Mortgage lending falls by a record amount

The number of mortgages advanced in September dropped by 42 per cent from the same period a year ago. This is a 10 per cent fall from the previous month - the highest ever decline since its records began in 1994. Who's still borrowing thats what I want to know

Posted by matt_the_hat @ 05:00 PM 4 Comments

Bernanke ready to give the addict another fix

guardian: Bernanke comments boost markets

US Federal Reserve chairman Ben Bernanke has given markets a lift by suggesting the American economy might need another boost to revive its growth prospects. You couldn't make this stuff up.

Posted by matt_the_hat @ 04:56 PM 7 Comments

An "expert panel" answers some very sad mortgage questions

BBC Moneybox live (listen): Mortgages: Your questions

The number of mortgage products available has reduced rapidly since the credit crunch began. Mortgage providers are tightening their lending criteria, asking for larger deposits and raising fees. And despite the recent cut in the Bank of England Base Rate of 0.5 percentage points to 4.5%, not all lenders have passed this cut on in full and some have increased their tracker rates. So if you are coming to the end of an existing loan or trying to find your first mortgage you may be struggling to obtain a suitable offer.

Posted by hello @ 04:44 PM 0 Comments

Merrill Chief Thain Expects `Thousands' of Job Cuts

bloomberg: Merrill Chief Thain Expects `Thousands' of Job Cuts

Most of the cuts will fall in information technology, operations and ``corporate functions,'' Thain, 53, said in a Bloomberg Television interview in Dubai today. Jobs in the fixed income and commodities divisions won't be eliminated after the deal, he said.

Posted by mark @ 04:20 PM 0 Comments

no buyers are just wise now

bbc: As if world has come to a halt

In the beginning Ian Broadfoot thought his problems selling the family home in Inverness were a hangover of the winter. But having remained unsold since March, it appears the property, like thousands of others across Scotland, is frozen in the glacier-like housing market. Mr Broadfoot, 60, who is now trying to rent out the house, said: "It just seems to be that everything has stopped. "It is almost as if the world has come to a halt."

Posted by mark @ 04:06 PM 4 Comments

Couple fear loss of Iceland 1.2m

bbc: Couple fear loss of Iceland 1.2m

A couple who put 1.2m from the sale of their family business into an Icelandic bank fear they have lost the money.

Posted by mark @ 04:04 PM 11 Comments

more drugs for the party?

cnn: Bernanke: Congress should weigh stimulus

Fed chief says Congress should weigh another plan to juice the economy. He cites risk of 'protracted slowdown.'

Posted by mark @ 03:17 PM 0 Comments

Wow, renting is now smart

Times: It pays to rent a property

More like suddenly no one is buying & we need to grab money from somewhere, so let's pretend renting is glamorous and "smart". It is smart, but we've known that for a long time & not just when the game is up & paid to write by the VIs. Must have really stuck in your wrinkled throat old dear. "Suddenly it's a smart way to sit out the credit crisis. Jane Ingram, director of national lettings at Savills, notes: We are seeing a new, more glamorous breed of tenant. It's no longer Rising Damp out there."

Posted by doomwatch @ 03:10 PM 2 Comments

Icelandic savers who lost their money go online

Lost your savings ?: Welcome to Lost Your Savings?

Looks like the people who lost their money in the Icelandic banks collapse are getting their electronic begging bowl out. Some very sad stories on there, sounds like lots of peole were badly advised, maybe they should have read this site !!!

Posted by thecountofnowhere @ 02:47 PM 0 Comments


FT: Barratt seeks investment partner in land bank

The land bank figures are too vague to gloat about, but this is brilliant: "Barratt also has offered steep reductions on some of its completed homes, particularly ones designed for first-time buyers. These are attracting discounts of up to 43 per cent for buyers who purchase five or more properties at a time." as is this "Barratt is in the process of divesting part of its holding in Wilson Bowden Developments, a division of Wilson Bowden, which Barratt bought last year for 2.2bn. The sale of the portfolio would reduce Barratt's debt by about 200m."

Posted by mark wadsworth @ 02:44 PM 9 Comments

What can water and ice teach us about the frozen credit market

FT Alphaville: Libor fixes: credit and phase transitions

Pure water cooled to its critical point makes a sudden transition to ice, often due to a small impurity. The thaw is a slow process. In the mean time house prices fall like leaves after the frost.

Posted by mountain goat @ 02:24 PM 7 Comments

Borrowing soars to record high

wirrals buzz: Borrowing soars to record high

Borrowing soared to a record high in September as the nation's finances came under more pressure. The Office for National Statistics said net borrowing rocketed by 8.1 billion, a record for the month.

Posted by mark @ 02:22 PM 2 Comments

Future Shock

chrismartenson.com: Future Shock

No plan B. Oops.

Posted by doomwatch @ 02:18 PM 5 Comments

Lamb to the slaughter or a time to buy?

Independent: James Daley: I'm getting back into the market

The FTSE is down 40% from its peak during 2007. James Daly is aware there may still be problems ahead but does not believe that we are on the verge of Armegeddon so has put his money where his mouth is. Personally I think there is some value to be gained in the right sectors, i.e companies heavily funded by the public sector but I'm not too sure the bottom has been found in the UK yet and expect a little more volatility.

Posted by denzil @ 01:44 PM 4 Comments

Best line about credit crunch from AEP

Telegraph: Do our rulers know enough to avoid a 1930s replay?

Quote "The world stole prosperity from the future for year after year, with the full collusion of governments, regulators, and central banks. Now the future has arrived." This sums up the current situation, whatever your views on AEP. It's a bitesized, economic newby friendly summary which I plan to use on anyone who asks me what's going on.

Posted by goweresque @ 01:17 PM 10 Comments

Where's the money coming from?

BBC News: UK government in borrowing record

No surprise that the govt has already borrowed as much this year as last, but a look at the DMO gilt auction calendar shows a rapid fire of new gilt auctions coming up. Who has the cash to buy these now? - will the supply swamp the demand?

Posted by uncle tom @ 01:13 PM 5 Comments

ING starts asset fire sale

Times: ING sells Taiwanese arm hours after government lifeline

The Dutch financial giant raises $350m from fire sale of life business after 10bn was pumped in at the weekend by the dutch government

Posted by jonb @ 01:02 PM 0 Comments

Another bubble just popped

Times: Growing signs of art slump

Just two weeks ago, in the midst of financial turmoil, a collection of Damian Hurst "art" exceeded all price expectations at auction. Yesterday a Freud portrait failed to reach expected price of 7m. Works of art are only worth what the next "investor" will pay for them so are classic bubble fodder. Another asset bubble popped. There can't be many left now.

Posted by dr ray @ 12:49 PM 3 Comments

Do they have the reserves to put the competition out of business?

Daily Mail: Estate agents selling homes for NO fee as property sales collapse

A chain of London estate agents is offering to waive its fee on any property sold before the end of the year. The move, which could cost it up to 10,000 on each transaction, comes as sales have collapsed due to the credit crunch and financial crisis. A leaked email reveals how a senior sales executive at Lauristons has written to potential clients in south and west London offering to sell their homes 'for an unbeatable 0 per cent selling fee'.

Posted by whostolemyendowment @ 12:43 PM 7 Comments

Always worth repeating ...

Metro: Two million face trap of negative equity

If prices indeed fall by 42%, then there'll be three million in nequity, as it happens. The more times they repeat this story the better, with a bit of luck it will put off the remaining few potential FTBs from buying, thus speeding up the crash.

Posted by mark wadsworth @ 12:13 PM 16 Comments

Innocent victims?

Guardian: Bank of Scotland offers home loan at eight times joint salary

Peter and Josie Connell are City traders. They could not believe their luck when the bank approved their 1.5m mortgage to buy a dream Sussex farmhouse last December, despite monthly repayments almost equalling their combined take-home pay. Peter says: "We didn't lie. Last year we had guaranteed bonuses which nearly doubled our income, but this time they will be zero." He says: "After four months, we had to give up. The bank refused a payment holiday because we admitted we had problems. We had to put the property back on the market. We are victims of irresponsible lending which was unsustainable."

Posted by little professor @ 12:06 PM 17 Comments

Exclusive Sky News 'Investigation'

Sky News: British House Prices Down By 40%

One flat in Folkestone, Kent, went on the market on January 28 this year at 125,000, and has now been reduced to 75,000. The one-bedroom, lower ground floor property lies in an upmarket area of the coastal town, and is in need of refurbishment. When Sky News Online posed as cash buyers, the estate agent Fell Reynolds confirmed the flat had been slashed from 125,000 to 99,950 and then to 75,000 because of the housing slump. One two bedroom house near Worthing, West Sussex, was first advertised last October at 319,950 - but is now down a staggering 53% to 149,995. A similar home in Cardiff, Wales, has been slashed by 45% from 184,950 to 100,000 in less than a year. The situation is even worse in London, where estate agents have made an average of just eight sales in 3 months

Posted by little professor @ 11:46 AM 5 Comments

I'm starting to feel sorry for estate agens (except Foxtons)

BBC News: How are estate agents surviving?

"We've resorted to buying cheaper teabags and coffee because the situation is that difficult." "I'm even considering getting a job stacking shelves at Tesco to get some extra cash." How can you not feel for these people? Sitting in empty offices all day, pretending to work and look interested in their computers :-(

Posted by doom&gloom @ 11:38 AM 6 Comments

So this is it. With all due respect, I am dropping out. Please do not expect any type of reply

" title="External Link" target="_blank">Portfolio: Hedge Fund Manager: Goodbye and F---- You

Andrew Lahde, manager of a small California hedge fund, Lahde Capital, burst into the spotlight last year after his one-year-old fund returned 866 percent betting against the subprime collapse. Last month, he did the unthinkable -- he shut things down, claiming dealing with his bank counterparties had become too risky. Today, Lahde passed along his "goodbye" letter, a rollicking missive on everything from greed to economic philosophy. Enjoy. Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.

Posted by malct @ 11:36 AM 32 Comments

Housebuilders say Govt to blame and initiatives are 'spin gone wrong'

Property Week: UK housebuilders say Government has damaged consumer confidence

UK housebuilders said that the Governments new housing measures are not only ineffective but have ruptured consumer confidence, especially in the wake of job losses. Last months Government housing initiatives were viewed as tokenism by the industry, with one senior industry member branding the announcement as a press-spin exercise that has failed

Posted by peter whelp @ 11:22 AM 0 Comments

Darling's wrong: we can't spend our way out of recession

MoneyWeek: Darling's wrong: we can't spend our way out of recession

The government wants to borrow billions to spend on big projects to get us through the recession. Nice idea in theory, says John Stepek, but too much borrowing is what got us into this mess in the first place.

Posted by damien @ 11:16 AM 13 Comments

Largest ever annual fall recorded in asking prices

Rightmove: October House Price Index

"Housing market unlikely to ever be the same again"

Posted by doomwatch @ 11:03 AM 5 Comments

could this be the next wave of hits around the Globe?

bbc: Chinese economy growth rate slows

Correspondents say indicators from steel prices to housing sales suggest a severe economic slowdown could be in prospect.

Posted by mark @ 10:32 AM 0 Comments

Different continent, same old 5H1T

Business Day (NZ): Australia unveils A$10.4b stimulus plan

"The housing sector is a major beneficiary. The Government will triple to $21,000 the current $7,000 first-home buyers grant for people buying a newly constructed home. Those first-home buyers moving into existing properties will receive a doubling of the allowance to $14,000. The plan is "designed to support activity in the housing sector and the housing sector is critical to the economy overall," Mr Rudd said." It's only a question of time before they try this over here!!

Posted by mark wadsworth @ 10:26 AM 1 Comments

expect some serious job losses, maybe gordon will buy these companies too

reuters: Big jump seen in number of UK companies in trouble

The number of distressed British businesses was almost 500 percent higher in the third quarter than in the same period a year ago, corporate restructuring specialist Begbies Traynor will reveal on Monday, according to the Financial Times. In a sign of the effect of the global financial crisis on the wider economy, 4,566 companies are facing critical problems compared with 791 in the third quarter of 2007, it said.

Posted by mark @ 10:21 AM 0 Comments

Lending returning to normal levels?

BBC News: Mortgage lending slump continues

The slump in mortgage lending continued in September, according to the latest figures from the Council of Mortgage Lenders (CML).

Posted by shipbuilder @ 10:19 AM 5 Comments

Accountant's outlook on the economy

Ernst & Young: Out of the financial frying pan into the fires of recession

The Ernst & Young ITEM Club Autumn forecast. * A short and shallow recession. * Credit conditions will continue to remain tight. * But scope to cut interest rates dramatically. * Corporate sector will struggle and employment will fall. * Consumers will continue to be stretched. *Hard to see the bottom of the housing market. * Light at the end of the tunnel?

Posted by 51ck-6-51x @ 10:18 AM 0 Comments

Armstong turning point in April 2009

Kitco: Deflation Scare the Perfect Camouflage

The US is the worlds greatest debtor. Money printing will bring on monetary inflation, which will wipe out those debts, savings, as well as the US dollar. That is the real scare that markets today, as well as foreign creditors, should be pricing in. It is only a matter of time. To borrow a line from the classic film The Usual Suspects: The greatest trick the Devil ever pulled was convincing the world he didn't exist.

Posted by sold 2 rent 1 @ 10:07 AM 8 Comments

Deluisional: House Asking Prices Are On The Up

Yahoo: House Asking Prices Are On The Up

The asking price of homes has risen by 1% in the last month! Sellers are tempted to think their home is more desirable than others on the market and some have sent the average price of a house in England and Wales up to 229,691. Capitulation seems a long way off then.

Posted by crash n burn @ 09:42 AM 31 Comments

It could be long into 2010 before we know the true value of our banking systems housing portfolio.

The Cultural Economist: Where The Heck Is The Bottom?

Lets summarize the challenges ahead . * Home loans. Additional Option ARMs and Interest Only loans are scheduled to reset through 2012. Almost a trillion dollars of debt to roll over, and most of the original loans are under water. Many home owners will chose to walk. It could be long into 2010 before we know the true value of our banking systems housing portfolio. * Housing. In some areas, it will take several years for the market to recover. Start with excess inventory, factor in higher unemployment, and we have a recipe for sluggish sales. Economists appear to be unsure how to measure the impact of the mortgage crisis, the rash of financial institution failures, or the sudden decline of available credit. No one seems to know how to include these three challenges

Posted by malct @ 09:19 AM 1 Comments

Government to buy developers' empty new-build houses

Mirror: Exclusive: War on Home Front

Thousands of empty houses are to be bought by the Government in a bid to beat the economic crisis, it will be revealed today. Housing Minister Margaret Beckett will announce the plan to buy from developers who cannot sell their new build homes. They will be rented to people waiting for a council house. As well as cutting the waiting lists, it will boost the building trade, where thousands of job losses are expected in the economic downturn. Ms Beckett said: "This deal will help deliver much needed affordable homes while supporting housebuilders facing difficult times. It is part of a range of actions we are taking to help overcome the challenges in the housing market.

Posted by little professor @ 08:54 AM 22 Comments

public spending earmarked for after the 2010 general election will be brought forward

telegraph: Brown to splash billions on schools and hospitals

Gordon Brown is planning to inject billions of pounds of emergency funds into new schools and hospitals to stimulate the economy as Britain heads into recession, it emerged last night. As the Prime Minister warned yesterday of a "defining moment" for the country, it was revealed that public spending earmarked for after the 2010 general election will be brought forward to encourage growth. Alistair Darling, the Chancellor, is drawing up plans to raid 2010-2011 Budgets and "fast-track" the money to public service building projects.

Posted by malct @ 08:19 AM 5 Comments

Not where I live ...

The Telegraph: House prices are close to affordable levels, reveals survey

""We think that house prices could bottom out mid to late next year," she said. " She's clearly spent the last month in a vacum crunching her numbers for the report.

Posted by jonathan @ 12:23 AM 20 Comments

Gordon Brown NOT the architect of the 'Bail Out' Plan

Telegraph Newspaper: Standard Chartered chief Peter Sands was quiet architect of Britain's bank rescue

......Darling, call that clever banker chap. He'll get us out of this.....Oh! And tell him we'll pretend it was my idea...

Posted by daniel @ 12:12 AM 4 Comments

Sunday, October 19, 2008

Time to don the badger costumes

wsj: Spain's Showy Debt Collectors Wear a Tux, Collect the Bucks

Companies in the fast-growing field include The Scottish Collector, which threatens to send a bagpipe player in highland dress to debtors' homes, and the Monastery of Collection, whose employees arrive decked out as Franciscan friars. Others dress as bullfighters, Zorro or the Pink Panther.

Posted by mken @ 09:18 PM 0 Comments

it can happen to all of us...maybe gb helped himself..lol

Telegraph: Sarkozy bank account raided in internet scam

Mr Sarkozy complained to police in September after 'small amounts' began disappearing from the account. Police said financial thieves regularly make lots of small illegal withdrawals as a means of trying to keep their crimes undetected.

Posted by mark @ 08:15 PM 1 Comments

Negative equity 'affecting 60,000 families a month', report reveals

Telegraph: Negative equity 'affecting 60,000 families a month', report reveals

More than 60,000 families a month are now falling into negative equity, as the collapsing housing market wipes thousands of pounds off the value of homes.

Posted by mark @ 08:08 PM 8 Comments

This crash will be worse than the last one.

Daily Mail: Two million set to enter negative equity as Docklands development has 82 of its 84 flats repossessed

Up to 2 million households will enter negative equity by 2010, outstripping the 1.8 million affected in the last housing slump, it has been claimed.

Posted by supermike @ 07:45 PM 3 Comments

Now ING is in trouble

Daily Telegraph: Dutch to inject cash into ING

They are expected to report a loss soon, and are getting a bail-out from the Dutch government, If you had the maximum limit in Kaupthing, Heritable and ING, you should consider moving some of it very quickly - and if you don't fancy filling claim forms in Dutch, you also need to consider your options. There is a 20+ minute wait for them to answer the phone at their call centre at the moment

Posted by jonb @ 07:29 PM 4 Comments

Amusing animation!

Mises Institute: Can a video game explain the ridiculous housing bubble? And its aftermath?

A few animated futuristic army folk who have their weapons reposessed after investing in sub-prime loans!

Posted by planning4acrash @ 07:29 PM 1 Comments

I wish I didn't have any savings!

BBC: ING to get Netherlands cash boost

Dutch banking and insurance company ING is to receive a cash injection from the government of the Netherlands. The move follows a weekend of meetings with Dutch finance officials, after ING revealed it expects to make a 500m euro ($670bn; 387bn) third quarter loss.

Posted by cheekie charlie @ 07:07 PM 0 Comments

Crazy Numbers

BBC: Troubled French bank set to meet

France's Caisse d'Epargne, which lost millions of euros in a trading incident, is meeting to decide the future of its management, reports say. On Friday it was revealed that the savings bank lost 600m euros (466m).

Posted by flintster1994 @ 04:57 PM 2 Comments

BBC report the slightly obvious

BBC: UK economy 'already in recession'

Ernst & Young Item Club report that the country is in recession and that government policy will hit the economy "very hard" and follow up with a bit of crystal ball gazing to make everyone feel a bit better.

Posted by enuii @ 04:53 PM 0 Comments

More wise words from the sage of The Sunday Times!

Times: Bank rescue won't stop the misery index rising

Economic numbers will never be the same again. A trillion here, a trillion there and soon you are talking about real money. The bank rescue pales everything else into insignificance, even if it has not yet calmed jittery markets.

Posted by flintster1994 @ 04:43 PM 2 Comments

Please HMG - Stop Interfering

Washington Post: Financial Rescues Can Set Off New Problems

"If there was one thing policymakers could agree on during the recent economic turbulence, it was that interest rates on U.S. home mortgages ought to come down, and fast. But as the government stepped in recently to shore up the nation's banks, those rates went up." The law of unintended consequence (One for MW and P4AC). Get a free log-in and read the comments.

Posted by renting2 @ 04:12 PM 3 Comments

One to follow!

The Guardian: SFO may launch probe into Peston bank scoops

The Serious Fraud Office could launch an inquiry into BBC business editor Robert Peston's recent string of market-moving banking 'scoops' after David Cameron's Tories raised suspicions that he could have a 'mole' inside 10 Downing Street or the Treasury.

Posted by flintster1994 @ 03:34 PM 15 Comments

A sing song to get everyone in the mood

YouTube: My Old Man's A Banker (Credit Crunch Song) By Jo Waite

Watch it from start to finish and the tune becomes hard to forget.

Posted by new_order @ 03:29 PM 1 Comments

Don't frear the REAPO man....

bbc news: ministers plan repo help

ahhh...feet up.

Posted by larry pickleman @ 02:53 PM 0 Comments

And There's So Many More Like Chris

BBC News: Credit crunch hits homeowners

"He originally borrowed 95% of the house's value in his mortgage. But, thanks to the credit crunch, banks just won't lend that much anymore." ...... "He's worried that will push his payments up to a thousand pounds a month. That leaves me about 150 a month, just for food, running the car and going out."

Posted by renting2 @ 02:33 PM 10 Comments

Darling to divert billions from efficient industry and hard working productive members of society

Guardian: Darling to inject billions into public sector to boost economy

listair Darling said plans for two aircraft carriers and a new nuclear deterrent would go ahead. London's 16bn Crossrail project and the 9.3bn budget for the 2012 Olympic Games were also safe.

Posted by matt_the_hat @ 01:32 PM 6 Comments

Now I understand when they say a rock and a hard place.

The Independent: Rock borrowers face rate rise or repossession

'I just don't understand this mad rush of the Government to repossess'

Posted by sosoon @ 12:16 PM 7 Comments

Quick! Spend it before they do the math realise we don't have it

FT.com: Darling to fast-track public spending

.. or realise we left it in an Icelandic bank account after we were CLEARLY and CATEGORICALLY informed there would be a problem.

Posted by whiteknight @ 11:59 AM 7 Comments

BTL Ghost towns

The Sun: Des Res to Dead Res

Two years ago all 84 of these luxury flats in this Thames side development were sold, for up to 400,000. Incredibly, just two years on, the prestige development lies virtually ABANDONED. Neglected, overgrown and swarming with vermin, Hill House today stands monument to the savage effect of the credit crunch. A staggering EIGHTY-TWO of its EIGHTY-FOUR homes have been repossessed. Empty apartments are infested with rats and cockroaches. Windows have been broken and mailboxes smashed open by squatters and junkies, while stairwells have been disfigured by graffiti. The local council have bought 22 of the empty flats, allowing council tenants paying as little as 380 a month to live in flats once valued at a quarter of a million pounds.

Posted by little professor @ 11:53 AM 13 Comments

Labour Government in Repossession drive through local partnership deal

The Scotsman on Sunday: Credit crisis robs Scots of homes

Just hand the keys Back and go and work in a beach bar in Thailand

Posted by sosoon @ 11:14 AM 9 Comments

Max discusses recent financial happenings.

Max Keizer's Karmabanque: [978] The Truth About Markets - 18 October 2008

After predicting Iceland's fall in 2007, discusses the fall of nations, strain of the Eurozone, Describes the new financial system as forced speculation and gambling, as a modern version of the fascist model. Saving and productive activity penalised. Explains how our limited vocab makes it difficult to describe the crisis, that poor people taking the loans are not to blame, and much more.

Posted by planning4acrash @ 11:07 AM 3 Comments

the biggest crisis since the Great Depression. In some ways it is worse than the Great Depression,

Common Dreams: Guided by An Invisible Hand

Make no mistake: we are witnessing the biggest crisis since the Great Depression. In some ways it is worse than the Great Depression, because the latter did not involve these very complicated instruments - the derivatives that Warren Buffett has referred to as financial weapons of mass destruction; and we did not have anything close to the magnitude of today's cross-border finance. The events of these weeks will be to market fundamentalism what the fall of the Berlin Wall was to communism. Last month in the United States almost 160,000 jobs were shed - making more than three-quarters of a million this year. My guess is that things will get considerably worse. I have been predicting this for some time, and so far, unfortunately, I have been right.

Posted by malct @ 10:57 AM 0 Comments

Let them eat bread

Observer: High earners need to be brought down to Earth

"As Martin Wolf wrote in that well-known socialist organ the Financial Times, 'either banking should be treated as a utility, with regulated returns, or it should be viewed as a profit-seeking industry that operates in accordance with the laws of the market, including, if necessary, mass redundancies'. Since the latter is unacceptable, he concluded, we have to move towards the former - and regulation must include pay above all."

Posted by letthemfall @ 10:34 AM 5 Comments

Bailout for homedebtors?

Guardian: Bank chiefs ordered to cut home evictions

Banks will face new curbs on home repossessions to prevent families from being evicted when they fall into financial difficulties, the Chief Secretary to the Treasury has promised. The pledge was made by Yvette Cooper in an interview with The Observer as the government braces itself this week for official confirmation that Britain is entering recession for the first time since the early Nineties.

Posted by quiet guy @ 10:07 AM 11 Comments

I Think We Need A New Risk Register

Cabinet Office: National Risk Register

Youd have thought that collapse of the housing market and failure of a large UK bank would be included as risks, wouldnt you? Especially as our economy relied so heavily on them. See also: http://www.financialsectorcontinuity.gov.uk/ And http://www.ukresilience.gov.uk/ And http://interactive.cabinetoffice.gov.uk/documents/security/national_security_strategy.pdf

Posted by renting2 @ 09:55 AM 12 Comments

The taps will be turned on again eventually?

Independent: So will mortgage lenders ever let us come back in?

Housing is going from bad to worse despite the Government's multi-billion- pound bailout scheme for British banks. Agents blame the banks, and their continued lack of willingness to lend, for the moribund state of the property sector. "There is demand out there people want to move home. The market is like a hosepipe full of water but the banks have their foot on it, causing pressure to build up with no outlet," says Nick Salmon, an estate agent and board member of the National Federation of Property Professionals.

Posted by matt_the_hat @ 09:53 AM 5 Comments

1 year and it will all be over - where do they get these guys!

Independent: The Financial Crisis: Now the real problems begin

According to Peter Spencer, chief economist at Ernst & Young, Britain is in a recession that will last for a year. He predicts the downturn will bottom out in the second half of 2009, and that there will be growth in 2010, but only by 1 per cent.

Posted by matt_the_hat @ 09:49 AM 0 Comments

Has negative real interest rates made this an option?

Times online: Time to swoop on bargain properties?

In its latest research, agents Knight Frank predict that prices will continue to fall until at least the middle of next year, flattening out only when they are 30% below the peaks reached late last spring or, put another way, back to levels last seen in September 2003. Indeed, it will not be until 2015 that average prices in the country will return to where they were last year, they believe. Other predictions paint an equally gloomy picture.

Posted by matt_the_hat @ 09:45 AM 5 Comments

Nu Labour says "repossession needs to be a lot rarer."

sky news: Banks Urged To Cut Home Evictions

The Chief Secretary to the Treasury is said to be working with the Ministry of Justice on tightening requirements on lenders seeking repossession orders in the courts. "We need a more responsible approach to repossessions," she told The Observer.

Posted by sold out @ 09:43 AM 3 Comments

Work to live or live to work

Timesonline: Credit crunch will only make things worse

The law has always expected a lot from its employees. There is an assumption that the long hours are just part of it people often refer to it as a vocation rather than a job.

Posted by matt_the_hat @ 09:42 AM 0 Comments

That rare breed the red spotted saver is nearly extinct

Mirror: Credit crunch latest

Meanwhile, inflation hit a 16-year high of 5.2 per cent. This means that, after tax and inflation are taken into account, savers will find it near impossible to make headway. Moneyfacts.co.uk says a standard rate tax-payer needs to find an account paying 6.5 per cent just to break even, while a higher rate taxpayer needs to earn 8.63 per cent.

Posted by matt_the_hat @ 09:40 AM 5 Comments

Don't expect a rate cut for FTBs

FT.com: Little respite for borrowers after rate cut

The most attractive two-year tracker mortgage from Lloyds is now a 5.75 per cent offer which requires a 40 per cent deposit and carries a fee of 695. The move follows decisions by Halifax, Abbey and First National to raise the margins on their tracker rates by 0.5 per cent, which in effect wipes out the rate cut for prospective new borrowers.

Posted by dohousescrashinthewoods @ 09:39 AM 1 Comments

Recession - Depression ??

guardian: Recession is here, warns Item Club

Item expects GDP to decline outright next year by 1 per cent - the first full-year decline since 1991. It predicts a gradual recovery in 2010, with the economy recording growth of just 1 per cent.

Posted by matt_the_hat @ 09:37 AM 0 Comments

japanese house price crash lasted 15 years and fell 70% and more!

motley fool: Is it time for japanese real estate

reference to the size and length of the japan house price crash because its similar to this one. In Japan the high was 1989 like our own here in the UK only it crashed until well perhaps now and prices fell by around 70% over a 15 year period. I am not sure what is happening to them now with this current crash. there were beginning to bottom out in 2006 but that process may now have stopped. A warning to all those overly optimistic who keep on saying UK house prices will recover a year or so

Posted by jb @ 08:46 AM 0 Comments

So sad and so predictable

Sunday Times: Negative equity to reach 2 million

No mention that the Sunday Times' Property Porn Fests may have contributed to the problem.

Posted by peeps @ 08:43 AM 0 Comments

Saturday, October 18, 2008

Arise Sir Robert!

FT.COM: October 2013: that was the week that will be

What a week! The utility-dominated FTSE 100 celebrated the fifth anniversary of the crash of 2008 with a 2 per cent gain to close at 1,950, its biggest five-day surge since early 2009. Sir Robert Peston, who took over as governor of the Bank of England earlier this year following its long-heralded absorption of the Financial Services Authority, welcomed the government's decision to delay privatisation again. "Speculation, encouraged by irresponsible media coverage, has got out of control," he said, reminding journalists of their duties under the 2011 Dangerous Blogs Act.

Posted by john k @ 09:30 PM 0 Comments

So they're daft as well as greedy and corrupt

Financial Times: Letter: Andrew Lahde

Andrew Lahde made a fortune by being on the other side of US banks' trades and reckons the banks are stupid and leaden-footed, easy meat for hedge fund managers betting against them. Their ineptness leads to corruption - they are often the privileged few who don't know how to make a living, so when they've lost their money they go running to mommy, daddy, uncle Hank and uncle Ben, who give them a stern look and more money and tell them to look after it this time. These are the people who make up the banking "system" that we're all supposed to revere and support.

Posted by icarus @ 09:17 PM 6 Comments

Cuba's unexpected arrival into the big oil league could increase pressure on the next administration

Truthseeker: 20bn barrel oil discovery puts Cuba in the big league

Friends and foes have called Cuba many things - a progressive beacon, a quixotic underdog, an oppressive tyranny - but no one has called it lucky, until now . Mother nature, it emerged this week, appears to have blessed the island with enough oil reserves to vault it into the ranks of energy powers. The government announced there may be more than 20bn barrels of recoverable oil in offshore fields in Cuba's share of the Gulf of Mexico, more than twice the previous estimate. If confirmed, it puts Cuba's reserves on par with those of the US and into the world's top 20. Drilling is expected to start next year by Cuba's state oil company Cubapetroleo, or Cupet.

Posted by malct @ 07:09 PM 10 Comments

A look at the best various different options for the future

Guardian Online: Financial Crisis: What Happens Next?

Truth is, despite what the pundits, or the politicians, or the bankers or anyone here says, no one knows what the future holds... good article listing them from v-shaped recession to Armageddon. I'll not be putting a bet on. I've no money left!

Posted by ketha @ 04:52 PM 1 Comments

no intention any time soon of using the billions in taxpayer money to resume lending and unfreeze t

WSWS via Truthseeker: US bank losses wipe out years of paper profits

A milestone was reached Thursday by the US banking system: With the announcement by Citigroup and Merrill Lynch of billions of dollars in additional losses in their third quarter reports, all of the profits accumulated by the nine biggest banks during the three-and-a-half-year housing boom had vanished. . . . these very same bankers are declaring that they have no intention any time soon of using the billions in taxpayer money handed them by the government to resume lending and unfreeze the credit marketsthe ostensible purpose of the bailout measures whose estimated cost to the American people has risen to $2.25 trillion.

Posted by malct @ 03:53 PM 2 Comments

Victor Meldrew Would Say It Far Better Than I Could !!

Mortgage Introducer: Countrywide appoints Guy Batchelor as Corporate Business Director

"Guy joins Countrywide on 20 October and brings more than 25 years experience in the banking and financial services market, including his most recent post at Lehman Brothers, where he was a Senior Vice President in the Mortgage Capital Division."

Posted by renting2 @ 03:05 PM 1 Comments

Oooh these are good.... add your own below!

Mirror: 10 credit crunch jokes to have you laughing all the way to the bank

What's the difference between an investment banker and a large pizza? A large pizza can still feed a family of four. --- What's the capital of Iceland? About 3.50 --- Why have estate agents stopped looking out the window in the morning? Because otherwise they'd have nothing to do in the afternoon. --- What's the difference between investment bankers and pigeons? The pigeons are still capable of making deposits on new BMW's. --- What's the definition of an optimist? A banker who irons five shirts on a Sunday. --- Knock knock. (No answer). Knock knock. (No answer). Look I'm just trying to do a knock knock joke, I'm not here to repossess your house! ---

Posted by drewster @ 02:44 PM 13 Comments

And When This Is Spent?

FT: Darling to fast-track public spending

Plans to fast-track billions of pounds of public spending on building projects such as new schools and hospitals are being drawn up by Alistair Darling to give an emergency boost to the British economy as it heads into an expected recession in 2009.

Posted by renting2 @ 12:07 PM 12 Comments

Theyre trying the clever numbers game

communities.gov.uk: House Price Index - August 2008

The headline rate of 3.4% masks the true scale HPI on this report, Have a look at the Graphs on the PDF PDF with Graphs, Download the Appendices, Northern Ireland went from HPI rate of 45.4 August 2007 to 18.6 August 2008 This data has not yet been added to the HPC site.

Posted by sosoon @ 10:43 AM 2 Comments

Catching a falling knife

Telegraph: Property market: When the going gets tough

Shreena, 21, graduated last year. She bought her one-bedroom flat in Battersea, south London for 165,000, after negotiating down the asking price of 180,000. "All my friends feel the same - renting is throwing money away. I know that house prices in London will go up. I'm hoping to stay here for two to five years and then afford somewhere better."

Posted by little professor @ 09:22 AM 36 Comments

homelessness since the foreclosure crisis -- now at 10,000 homes per week

IPSnews: ECONOMY-US: No Joy in Hooverville

With a massive spike in the number of foreclosures and evictions over the past two years, communities throughout the U.S. have witnessed the sprouting of tent cities -- many of them home to once middle-class citizens fallen victim to the economic downturn. Encampments have formed in or near large urban areas including Reno, Los Angeles, Chattanooga, Columbus, St. Petersburg, Seattle and Portland. The phenomenon is similar to the social upheavals of the Great Depression of the 1930s -- an era frequently referenced these days -- when "Hooverville" ad-hoc shanty towns, some as big as 15,000 people, were erected around the country, named after the president at the time, Herbert Hoover.

Posted by malct @ 08:13 AM 1 Comments

Ambrose Evans-Pritchard Telegraph.co.uk somehow this got missed

Truthseeker: Crisis may make 1929 look a 'walk in the park'

Original Telegraph article came up as valid so didn't get posted. A view from less than four weeks ago. The ECB's little secret is that it must never allow a Northern Rock failure in the eurozone because this would expose the reality that there is no EU treasury and no EU lender of last resort behind the system. Would German taxpayers foot the bill for a Spanish bail-out in the way that Kentish men and maids must foot the bill for Newcastle's Rock? Nobody knows. This is where eurozone solidarity stretches to snapping point. It is why the ECB has showered the system with liquidity from day one of this crisis. The International Monetary Fund still predicts blistering global growth of 5 per cent next year. If so, markets should roar back to life in January

Posted by malct @ 08:10 AM 18 Comments

State bailiffs with baseball bats and attitude

Times Online: Northern Rock accused over level of repossessions

Debt charities have accused Northern Rock, the state-backed bank, of aggressively repossessing the properties of mortgage borrowers who have been struggling to meet repayments.

Posted by paul @ 12:00 AM 5 Comments

Friday, October 17, 2008

The Devil's In The Detail

Washington Post: Treasury's Rescue Plan Hits Technical Snag

"Banking regulators are working today to resolve accounting roadblocks that would hold up the government's plan to revive financial markets by investing $250 billion in the nation's banks."

Posted by renting2 @ 10:30 PM 1 Comments

Savills adjusts report

Telegraph: Savills issues profit warning

Savills reported its half-year results just seven weeks ago but said the market had become "increasingly challenging" since then

Posted by mken @ 09:34 PM 1 Comments

Never mind the quality, feel the wad

Guardian: Top Wall Street bankers to receive $70bn pay deals

Just to assure you all's well with the world this Friday evening. Buy gold: hit them over the head with it.

Posted by letthemfall @ 08:55 PM 6 Comments

Is Confidence Slowly Returning?

Market Beat: More Baby Steps for Libor

"Three-month US dollar Libor dropped to 4.41875% from Thursdays fixing of 4.5025%, while the one-month rate fell to 4.18125% from 4.2775%. The three-month rate now stands at its lowest since October 8, when central banks orchestrated emergency coordinated interest rate cuts. The overnight rate tumbled to 1.66875% from Thursdays 1.9375%, edging closer to the Federal Reserves Fed funds target rate of 1.5%."

Posted by renting2 @ 08:22 PM 4 Comments

The great game, chase the govt funded financial institution or go risk it with volatile commodities?

Bob Chapman's - The International Forecaster: Liquidity Injection Will Not Help Wall Street

Because of the extent of the financial destruction reeked by the Illuminist morons and their rocket scientist creators of Frankenstein derivatives, the ability of the Illuminists to run up the stock markets looks unlikely. So, Plan A having failed, they will now implement Plan B. What is Plan B? Plan B is to use this insider trading scam to make non-insiders chase after the Illuminist insiders as they manipulate the markets, with non-insiders always coming up a day late and a dollar short because they do not know when the manipulations will occur, or whether markets will be driven up or down. Instead of ripping you off all at once, they will dismantle you one piece at a time. Simply put your sales proceeds from dollar-denominated paper assets into gold and silver related assets and wait.

Posted by planning4acrash @ 07:30 PM 2 Comments

Housing market turns gladiatorial, and buyers will win in the end!

Findaproperty: Buyers vs Sellers Creates Stalemate In London

Transaction activity in Central London has fallen by as much as 60 per cent in some postcodes, according to Knight Frank's autumn review of the market. The downturn in activity comes as vendors continue to resist realistic pricing in the tougher climate.

Posted by whostolemyendowment @ 04:05 PM 0 Comments

Berkshire Hathaway CEO gives advice on how to invest during America's money crisis in a New York..

CNN: Buffett: I'm buying stocks

Billionaire investor Warren Buffett used a guest commentary article in the New York Times on Friday to announce that he's sticking with stocks. Buffett, the so-called Oracle of Omaha for his ability to buy up the right companies at the right time for his holding company Berkshire Hathaway (BRK.A), said the worst may not be over for the faltering economy. "In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary," Buffett wrote. But for that reason, the Berkshire CEO said, he has converted his personal portfolio almost entirely to U.S. stocks. Previously, he said he owned nothing but Treasury bonds.

Posted by mark @ 03:36 PM 27 Comments

What a great use of taxpayers' money!

Metro: 500 million lost in French banking disaster

At least it was French taxpayers' money. Do you think they'll go back to Sarkozy and ask him to bump up that 360 billion bank bail outby another 600 million?

Posted by mark wadsworth @ 03:21 PM 1 Comments

Gold prices 1, Conspiracy theorists 0

FT Alphaville: Gold prices 1, Conspiracy theorists 0

Want to know why gold isn't performing like it should? You could ask s2r1 - he'll blame it on 'market manipulation'. Or you could read the informed comment of the FT's commodities correspondent.

Posted by james @ 02:50 PM 29 Comments

businesses needing to access the credit market to make payroll

ICH Ron Paul: Capitalism Without Capital?

Not only is our nation on the verge of bankruptcy, but so are its people and private institutions. We are now repeatedly hearing about businesses needing to access the credit market to make payroll. This is an unmistakable sign of more dire consequences ahead for the economy. If businesses must borrow just to make payroll, this is evidence of a severe undercapitalization that cannot be sustained, even for the short run. Couple these facts with items such as the explosion of the payday loan industry and the unmasking of the false sense of economic well-being is nearly complete. These payday loan companies use preferred access to easy credit to inject cash into the hands of the working poor. They are nearly always set up in lower-income neighborhoods.

Posted by malct @ 02:19 PM 6 Comments

Car dealer

yahoo: Inchcape issues profit warning, job cuts

The group said trading conditions have deteriorated significantly in the UK and are weakening in a number of its other markets due to the events in the financial markets and weaker consumer confidence. It expects these factors will result in current trading conditions remaining tough for the rest of 2008 and throughout 2009. Inchcape will undertake a "substantial overhead reduction programme" to "right-size the business" in the light of current difficult conditions.

Posted by mark @ 01:45 PM 0 Comments

Swiss Citizens must be worried

FT Alphaville: Swiss to fund $60bn bad bank for UBS

The Swiss economy is very vulnerable to a UBS default.

Posted by mountain goat @ 01:17 PM 13 Comments

expect some layoffs

reuters: Premier Foods shares dive on jitters over loans

Shares in Britain's biggest food manufacturer Premier Foods Plc (PFD.L: Quote, Profile, Research) fell over 50 percent on Friday as traders cited market speculation that the company had, or was about to, breach banking covenants.

Posted by mark @ 12:25 PM 10 Comments

bye bye saving incentive hello speculation incentive

Daily Telegraph: Financial crisis: Interest rates to hit lowest level since 1694

The Bank of England faces cutting borrowing costs to beneath two per cent - or even as low as one per cent - within months as it battles to protect Britain from the financial crisis and the worst recession in decades, economists said. This would be very very dangerous IMHO. Might be good for exporters i guess but still overall very worrying.

Posted by submedia @ 11:43 AM 52 Comments

Britian in the red

BBC Panorama live special: Britian in the Red

For the HPC fraternity out last night celebrating with large amounts of disposable income, thanks to not been mugged into buying an over-priced house with a comedy mortgage, here's chace to watch "look what you could have won".

Posted by doomwatch @ 11:39 AM 13 Comments

The intervention by Brussels officials could threaten the Government's scheme.

Telegraph: Banks in bail-out scheme cannot pay dividends for five years under EU law

The banks are now in urgent discussions with the Treasury to renegotiate the terms of the bailout.

Posted by gardeniadotnet @ 11:30 AM 2 Comments

Petrol prices will fall regardless of what Gordon Brown does

MoneyWeek: Petrol prices will fall regardless of what Gordon Brown does

Petrol prices are falling because we're facing a massive recession - despite what Gordon Brown might try to say...

Posted by damien @ 11:04 AM 16 Comments

Consumers are increasingly unable to pay off their credit cards, forcing banks to hoard cash

Washington Post: Banks Hoard Cash as Credit Card Defaults Rise

Consumers are increasingly unable to pay off their credit cards, forcing banks to hoard cash to protect against future losses and lend to fewer people, according to reports yesterday from several of the nation's largest banks. These financial disclosures showed a spike in credit card loans going bad, putting further pressure on already-stressed balance sheets. J.P. Morgan Chase said the number of credit card loans in default rose 45 percent in the third quarter from the comparable period a year ago and predicted that default rates would sharply accelerate through 2009, with 7 percent of credit card loans going bad. "We have to be prepared that it gets a lot worse," J.P. Morgan chief executive Jamie Dimon said about the overall economic outlook.

Posted by malct @ 09:45 AM 7 Comments

JPMorgan will require fresh asset meat every several weeks in order to survive

Market Oracle: JPMorgan Responsible for the Destruction of U.S. Financial System

The tag team of JPMorgan as the monster and Goldman Sachs as its harlot represent a powerful pair that is more responsible for destroying the entire US financial system than 95% of the American public has any awareness. The colossus of JPMorgan is a monster, a predator, nurtured by pond scum. It has gobbled up Chase Manhattan, Manufacturers Hanover, Chemical Bank, Bank One, and more over the past two decades. Their profound presence in keeping the USTreasury Bond yields down can never be understated. They do so by managing 85% of the credit derivatives on the planet. They distorted usury prices, as in price of borrowed money, thus aggravating the LIBOR (London InterBank Offered Rate) market in a very visible manner. Jim Willie - hot and angry

Posted by malct @ 09:31 AM 4 Comments

HPC News

Telegraph: Homeowners 'in denial' about plummeting property prices

32% think prices haven't dropped, perhaps there is still time to STR to one of this lot!

Posted by yoss @ 09:27 AM 16 Comments

The Real Monster In The Meltdown Closet

Rense: Not Enough Money In The World To Fix Things

Unsustainable mortgages are a key factor in the global crash, of course. And many people did take out mortgages they would not be able to afford if the housing bubble ever burst, which it has, most spectacularly. And yes, it is undeniable that the financial services industry has been tempting people with easy credit like schoolyard pushers flashing reefers. But this alone would not have been enough to threaten the destruction of the entire global financial system, nor cause the blind, screaming panic that has strangulated the financial markets. The house of cards has fallen down, and revealed a hole of derivatives-based debt that could not be filled, literally, by all the money in the world, much less by the mere trillions that national governments are frantically throwing at it today

Posted by malct @ 09:10 AM 8 Comments

Urgent work costing about 350m needs to be carried out on the historic central London building.

BBC: MPs could be moved out of Commons

The Commons authorities have commissioned a 250,000 feasibility study into the options for relocating MPs while it is completed. The work was not likely to start until 2012, he added.

Posted by malct @ 08:39 AM 10 Comments

That's it then Tories back in soon

Whitehall News: Cameron attacks PM over economy

Almost plausible, well present speech. The sheople wil fall for it hook, line and sinker.

Posted by malct @ 08:35 AM 22 Comments

Gordon Brown demands garages slash petrol prices

Timesonline: Gordon Brown demands garages slash petrol prices

Emboldened by international praise for tackling the banking crisis, Gordon Brown accused petrol retailers of charging too much and told them to follow the lead of Asda and Morrisons in bringing prices below 1 a litre. You can't stop him anymore... next thing you know he is going to ask BTL to slash their asking prices

Posted by frenchie @ 07:29 AM 1 Comments

Poachers turned gamekeepers are very attractive to hire

Guardian: We'll get tough with City, says watchdog

Lord Adair Turner admitted that the Financial Services Authority had tried to regulate Britain's big banks "on the cheap" in the past, but said a more stringent regime was on the way. Turner said the FSA was recruiting staff in order to stiffen up regulation of banks and other institutions considered too big to fail. "We will pay more than necessary to attract the correct quality of people from outside. Poachers turned gamekeepers are very attractive to hire. The FSA, in relation to systemically important firms, was [until now] trying to do regulation on the cheap."

Posted by malct @ 07:26 AM 33 Comments

A hard winter for debtors

Guardian: Experian to help lenders chase delinquent debts

"The credit checker Experian is restructuring to help bank clients collect debts - after years of providing credit-scoring services to help them lend cash." A clear sign of the times.

Posted by quiet guy @ 01:11 AM 4 Comments

Thursday, October 16, 2008

Santander in trouble?

BBC News: Internet bank website 'stalled'

They say they had a power cut.. - Sorry, but people like this have protected 'uninterruptible' power supplies. They all do.. This cover doesn't wash - something is wrong at Santander..

Posted by uncle tom @ 11:00 PM 19 Comments

Pity the amateur BTLers

FT: How buy-to-let turned into a mugs game

Patricia, a single mother I encountered recently, is typical of buy-to-let casualties. Her mortgage costs on five buy-to-let apartments will shortly jump by 1,000 a month. Her rents do not even cover current interest and the value of the flats has fallen 20%. Ive just lost my job and Im temping, so my income is reduced, she said. I dont know what to do. Its horrendous. She is likely to lose all her properties, including her own home, and crystallise an unpayable 60,000 debt. Mr Panayiotou expects lenders to start pursuing struggling buy-to-let landlords more aggressively over the next few months. But Ajay Ahuja, a pioneering buy-to-let investor, told me he plans to buy hundreds of cheap properties when prices stabilise. Other bargain hunters will follow suit.

Posted by little professor @ 10:08 PM 9 Comments

The Gravy Train Never Stops - Just Becomes an Express

Bloomberg: Blankfein's $70 Million Would Survive Paulson's Rules

"Goldman Sachs Group Inc.'s Lloyd Blankfein, whose $70.3 million paycheck made him Wall Street's most highly compensated chief executive officer last year, could still earn tens of millions annually under the bank-rescue plan run by his former boss, Treasury Secretary Henry Paulson."

Posted by renting2 @ 09:44 PM 4 Comments

Gold is gold, paper is paper, and "Comex gold" is nothing but paper masquerading as gold

321gold via SOTT: Why Gold Is Dropping When It Shouldn't? - and what it all means

Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, "because Comex-gold isn't gold" - and because it deceptively pretends to be 'the' price-setter for real gold. Gold is gold, paper is paper, and "Comex gold" is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked. HOW ABOUT PAPER MASQUERADING AS HOUSES? The Limits of Financial Power The financial elites can twist and squirm all they want, but nothing they are able to do within their own limited powers will work. All they can do is shut down markets, shut down banks, or create more debt. Period.

Posted by malct @ 09:04 PM 17 Comments

The second 'boom and bust' video

Gordon Brown's House Price Boom And Bust: The second 'boom and bust' video

With as many relevant clips as I can find http://thecrownblogspot.blogspot.com/2008/10/gordon-browns-house-price-boom-and-bust.html He will try and squirm out from blame again

Posted by crown @ 08:53 PM 7 Comments


New York Times: Drama Behind a $250 Billion Banking Deal

WASHINGTON The chief executives of the nine largest banks in the United States trooped into a gilded conference room at the Treasury Department at 3 p.m. Monday. To their astonishment, they were each handed a one-page document that said they agreed to sell shares to the government, then Treasury Secretary Henry M. Paulson Jr. said they must sign it before they left. by 6:30, all nine chief executives had signed setting in motion the largest government intervention in the American banking system since the Depression What happened during those three and a half hours is a story of high drama and brief conflict, followed by acquiescence by the bankers, who felt they had little choice but to go along with the Treasury plan to inject $250 billion of capital into thousands of banks

Posted by malct @ 08:46 PM 0 Comments

Poacher and gamekeeper?

BBC News: Audit chiefs have 10m in Iceland

The watchdog conducting an inquiry into local authorities' decisions to invest in Icelandic banks has admitted it has also got 10m tied up in the country. LOL

Posted by shipbuilder @ 08:43 PM 4 Comments

globally accepted standards of supervision and regulation applied equally and consistently in all co

yahoo finance: EU, US call for a global summit to reshape banking

"I believe there is scope for agreement in the next few days that we will have an international meeting to take common action ... for very large and very radical changes," Brown told reporters before meeting for talks on the financial crisis with other EU leaders, who on Wednesday endorsed a $2.3 trillion continentwide emergency bailout for the banking sector. "We now have global financial markets but what we do not have is anything other than national and regional regulation and supervision," Brown said. "The IMF has got to be rebuilt as fit for purpose for the modern world. We need an early warning system for the world economy." Brown's paper urges "globally accepted standards of supervision and regulation applied equally and consistently in all countries."

Posted by malct @ 08:29 PM 1 Comments

It's starting to look like we have all been had with a Shock Doctrine style maneuver.

Assoc Press via SOTT: A New Bretton Woods, NWO style: EU, US call for a global summit to reshape banking

Brussels, Belgium - The Group of Eight major industrial nations announced Wednesday they will hold a global summit - perhaps as early as November in New York - to forge common action to prevent another economic meltdown. French President Nicolas Sarkozy said all European Union nations backed radical restructuring of global institutions like the International Monetary Fund and World Bank. He called for a meeting "preferably in New York, where everything started" and said it should lead to "a new capitalism." Sarkozy said emerging economies such as China, India and others outside the G-8 should also participate because "no one should feel excluded from what we are recasting." Brown, a longtime former Treasury chief widely seen as a leader in crafting policies to combat the

Posted by malct @ 08:24 PM 0 Comments

Spain learning Icelandic...

Times Online: Cahoot loses website after powercut in Spain

Spanish practicing how they will blag depositors when it all goes *.* up!

Posted by brian2 @ 07:18 PM 0 Comments

Spain at it now...

Times Online: Cahoot loses website after powercut in Spain

Spanish Banks tests out new witholding tactics

Posted by brian2 @ 07:16 PM 0 Comments

Russian and Chinese firms, are moving to cut production.

The Economist: Hurting the real economy

Although Chinas iron ore imports in the first nine months of the year were up by 22% on 2007, there are fears among Australian mining firms that the cuts in Chinese steel production could presage a pause in Chinas boom. Mount Gibson, an Australian producer, has given warning that stockpiles of ore are piling up in China. Iron-ore prices on the spot market have fallen by roughly half this year, to $100 a tonne or less. The prices of copper, nickel and zinc have also fallen by half or more this year, and aluminium is down by a third. Those drops, in turn, have battered the share prices of mining companies. Rio Tinto is even more sanguine: it does not foresee Chinas growth falling below 8%. Tom Albanese, its boss, says the Chinese economy is merely pausing for breath.

Posted by malct @ 06:51 PM 0 Comments

about 20 percent of the national debt, which recently blew past $10 trillion

Information Clearing House: U.S. Could Guarantee $2 Trillion For Banks

The government may guarantee nearly $2 trillion in U.S. banks' debt and deposit accounts for more than three years in an effort to break the crippling logjam in bank-to-bank lending. That's the equivalent of about 20 percent of the national debt, which recently blew past $10 trillion, and roughly 14 percent of U.S. gross domestic product the economy's total output of goods and services. The temporary guarantees for banks by the Federal Deposit Insurance Corp. are in addition to the new $250 billion plan announced by the government Tuesday to directly buy shares in U.S. banks. from comments THE RED SYMPHONY The key to understanding our world is the 1938 interrogation of Illuminati insider Christian Rakovsky (Chaim Rakover) by the Stalinist secret police

Posted by malct @ 06:44 PM 6 Comments

Bill Maher Interviews Fmr. Comptroller General David Walker

ICH: The 56 Trillion Dollar Deficit

Comptroller General David Walker, explains that we have a debt of $480,000 per US household? from comments :- Tell me why the first words out of David Walker's mouth are always "reform social security." The gov't has raided OUR Social Security trust fund for years to pay for their boondoggles. Now, they are going to come and say "we can't afford social security." That is B.S. David Walker is a shill for the right wing people like Grover Norquist who are transferring wealth like crazy to the already wealthy. DO NOT BE FOOLED LIKE BILL MAHER APPARENTLY IS. and The bad news? We're going down. The good news? We're taking everyone else with us. New World Order? You betcha!

Posted by malct @ 06:38 PM 0 Comments

FINANCIAL markets are tipping a 2.25 percentage point cut in official interest rates by Easter

australian: RBA plans drastic rates cut as world markets tumble

"Markets expect the Reserve Bank to cut interest rates aggressively to less than 4 per cent within six months," he said. The futures markets expect the Reserve Bank to cut rates at its November meeting on Melbourne Cup day and at its final meeting for the year in December, with reductions totalling 1.25 per cent, bringing the cash rate down to 5.5per cent.

Posted by big chris @ 05:15 PM 1 Comments

Credit crunch proceeds apace - can the govt force lenders to lend?

FT.com: Millions of loan applications rejected

Report from MoneyExpert estimates that a total of 3.27m credit card applications and 1.56m loan applications have been refused by lenders during the six months to mid-September 2008, the equivalent of 27,000 rejections a day. People whose applications are being approved are also having to pay higher rates than they were being charged 18 months ago e.g. the interest rate on personal loans has doubled from 8.6% to 15.3%... credit has really crunched in the last six months. Is the government bailout going to change this? Can't see how, personally.

Posted by an bearin bui @ 04:34 PM 0 Comments

But The Bail-Out Was Never About The little People

Wall Street Journal: FDIC Chief Raps Rescue for Helping Banks Over Homeowners

"Federal Deposit Insurance Corp. Chairman Sheila Bair on Wednesday criticized the federal government for failing to take more aggressive steps to prevent Americans from losing their homes, highlighting a rift between her and other senior U.S. officials over terms of the $700 billion rescue package." The same this side of the pond. The banks f*** up, save em. The little people foul up, f*** 'em. Result - more quick forced sales, more the HPC gathers pace.

Posted by renting2 @ 04:07 PM 0 Comments

Bank black hole deepenning.

BBC: Losses pile up at key US banks

US banking giants Merrill Lynch and Citigroup have both reported massive quarterly losses, $5.15bn and $2.8bn respectively, as market turmoil has led to further write-downs.

Posted by peter_2008 @ 03:36 PM 0 Comments

I urge you to close your eyes, take shallow rapid breaths, and begin freaking out immediately

The Onion via don't panic lighten up: Bush Calls For Panic

My fellow Americans, the time for running aimlessly through streets while shrieking and waving our arms above our heads is now," Bush said. "I understand that many of you are worried about your economic future and our situation overseas, and you have every right to be. Yet there is only one thing we as a nation can do in times like these: give up all hope and devolve into a lawless, post-apocalyptic, every-man-for-himself society." For those of you who have remained resolute in your belief that things will turn around eventually, I urge you to close your eyes, take shallow rapid breaths, and begin freaking out immediately," Bush added.

Posted by malct @ 03:34 PM 0 Comments

Thunderbirds are Go..

The Nerve of it!

Guardian Online: Bail out under thread as banks eye new deal

Of interest HPC favourite David Blanchflower is mentioned. "Yesterday's financial mood was further darkened when David Blanchflower, a labour market expert and member of the Bank of England's monetary policy committee, said the 164,000 rise in the jobless total to 1.79m was "truly horrendous and much worse than I had feared". He added that he expected the jobless total to be more than 2 million by Christmas."

Posted by ketha @ 02:25 PM 1 Comments

Credit gets looser

CNN: Credit gets looser

Frozen pipelines show signs of a thaw as the overnight and 3-month bank-to-bank rates edge lower. Treasury prices down.

Posted by mark @ 02:19 PM 2 Comments

Everyting fine in Hertfordshrie. Nothing to see here

The Comet: Order in the housing market

ESTATE agents in Comet country are kicking the credit crunch amid speculation that people are shying away from the housing market.

Posted by matt @ 01:45 PM 0 Comments

and the far east markets were listening.

Assoc. press via SOTT: Subtle call to panic: Bernanke says economic recovery won't be quick

Washington - The country's economic health won't snap back quickly even if badly needed confidence in the U.S. financial system returns and roiled markets finally calm, Federal Reserve Chairman Ben Bernanke cautioned Wednesday. Comment: No doubt. Especially if they keep reminding the markets that the situation is painful and long-lasting. "Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away," "I am not suggesting the way forward will be easy." "credit markets will take some time to unfreeze," and the far east markets were listening.

Posted by malct @ 01:37 PM 0 Comments

Northern Rock No, only a 0.15% cut 7.34%

yahoo finance: Is Your Mortgage Going To Get Cheaper?

The Bank of England recently cut its base rate by a half a percentage point. This should mean good news for mortgage borrowers on variable rates. After all, that's the key advantage of choosing a variable rate over a fixed rate: your monthly payments come down when the base rate is cut. But not all lenders passed on the full 0.5% cut. Here's a list of the biggest 10 lenders and their Standard Variable Rates (SVRs) those that have not passed on the full 0.5% cut are highlighted:

Posted by malct @ 01:28 PM 2 Comments

Jaguar Land Rover Cuts 200 Jobs

yahoo: Jaguar Land Rover Cuts 200 Jobs

Car manufacturer Jaguar Land Rover has announced it is to cut 198 jobs from its UK workforce. The firm, which employs about 15,000 people in the UK, will seek voluntary redundancies from its plants on Merseyside, in Birmingham and in Solihull.

Posted by mark @ 12:53 PM 0 Comments

WTF - too much demand - they really are just making this up

WTF: Tracker mortgage 'battle' starts

Great journalism - return lending to 1997 levels. Really wish they'd learn that numbers do actually mean something.

Posted by phdinbubbles @ 12:49 PM 8 Comments

That's That Sorted Then

TimesOnline: Housing slump could be over next year, MPs hear

David Miles, chief UK economist at Morgan Stanley, said that if mortgage rates stayed at present levels, an educated guess from sophisticated economic estimates was that house prices would fall by another 5 to 10 per cent and wipe a further 17,000 off the value of an average home before the market bottomed out next year. However, Professor Miles, who previously has advised Gordon Brown, added that if a recent decline in the cost of mortgage funding continued, price falls could soon end.

Posted by renting2 @ 12:42 PM 9 Comments

Iceland inflation could hit 75% as collapsed financial sector destroys currency (UK next?)

Bloomberg: Iceland Cuts Key Interest Rate to 12% From 15.5%

"Iceland's economy may contract as much as 10 percent after the collapse of the banks sent the krona [their currency] into a tailspin. The rate cut indicates the central bank has given up on controlling inflation, which may accelerate to as much as 75 percent in the next few months. The krona hasn't been traded between banks outside of Iceland this week after the central bank tried and failed to fix its value the week before. Its value remains undetermined. Iceland's benchmark stock index yesterday plunged 77 percent. Credit agencies don't expect the banks to be able to honor their foreign liabilities to bond investors. The government has so far failed to respond to questions on how it plans to pay back foreign bank debt."

Posted by drewster @ 12:38 PM 3 Comments

desperately disappointed to not be handing keys over to the lucky winner (and bagging 1m)

BBC News: Estate's 1m prize draw delayed

People who bought raffle tickets to win a house in Devon have been told the prize draw, due to take place later, has been postponed.

Posted by matt @ 12:08 PM 10 Comments

Official: Banks Create Money! Copy of letter from HM Treasury:

Sustainable Economics Green Party: October Newsletter of the Monetary Reform Policy Working Group of the Green Party of England and Wales

1 Editorial 2 Official: Banks Create Money! 3 Fingers to Nose, Hamburg Gives Naples Help with Its Trash W.K. 4 Book review: Making Poverty A History, by Tom Lines Brian Leslie 5 SOME LIGHT ON ECONOMIC EUGENICS Frank Taylor 6 JFK vs The Federal Reserve John P. Curran 7 Greenhouse mitigation: How economists get it wrong Ted Trainer 8 Quality of Life and the Price of Gold Shirley Farlinger 9 BAIL OF THE CENTURY SchNEWS 10 Money: Myths or Facts? The SOCIAL CREDITER letter posted in comments

Posted by malct @ 11:38 AM 6 Comments

Why stock markets will keep crashing

MoneyWeek: Why stock markets will keep crashing

Financial authorities have thrown billions at the money markets - but it hasn't done any good. Investors have twigged that, whatever governments do, a nasty recession is coming.

Posted by damien @ 11:33 AM 6 Comments

"The IMF has to be rebuilt as fit for purpose for the modern world,"

CNBC: Brown urges IMF reform, global financial order

BRUSSELS, Oct 15 (Reuters) - The International Monetary Fund must be reshaped to help regulate the world's financial system and avoid a repeat of the global credit crisis, British Prime Minister Gordon Brown said on Wednesday ahead of an EU summit. "The IMF has to be rebuilt as fit for purpose for the modern world," Brown said after talks with European Commission President Jose Manuel Barroso.

Posted by malct @ 10:53 AM 40 Comments


ft: Spending watchdog linked to Iceland

Oxford university has about 30m of its own cash and college money frozen in Icelandic banks more than twice the amount any university has revealed so far, writes David Turner. Twelve universities, including Oxford, have so far admitted to a collective loss of 77m in Icelandic accounts. Oxfords investment in the two Icelandic banks accounts for about 5 per cent of the cash deposits which are managed by the university.

Posted by mark @ 10:37 AM 1 Comments

Stating the obvious

FT: How buy-to-let turned into a mugs game

Doesn't really say anything that regular readers here don't already know, but a good read. The author is at least honest enough to say that he's a BTL landlord himself.

Posted by richc @ 10:34 AM 10 Comments

The country should be invited into the G8 immediately; it has a vital part to play in restoring glob

Guardian: If China spends its trillions, recession could be averted

The country should be invited into the G8 immediately; it has a vital part to play in restoring global stability. The massive government interventions announced on both sides of the Atlantic in the last 48 hours may, just, have prevented the world's financial system from imploding. Alongside the largest monetary meltdown in half a century, we face collapsing consumer and business spending. These problems are closely intertwined - the financial crisis is part of the cause of the collapse in spending, and the collapse in spending is now undermining financial markets - but they need separate (and yet non-conflicting) solutions.

Posted by malct @ 09:59 AM 10 Comments


Darling tries to defuse bail-out row

FT.com: Darling tries to defuse bail-out row

You see who you are dealing with now? Now do you understand? They cry like little girls to be saved. Then pretend the didn't need it. And try and renegotiate everything to their favour. That's what they do. Declare an about face and watch them squeal like little pigs again. Let .... it ..... go. personally i am tired of the braying.

Posted by whiteknight @ 12:45 AM 1 Comments

A comparison between a financial collapse and an ecological collapse.

The Guardian: This stock collapse is petty when compared to the nature crunch

An interesting comparison between economic, social and ecological collapse, and how they are related. The reference to the construction booms on Easter Island and within the Mayan Civilization immediately prior to their collapse makes interesting reading.

Posted by twd @ 12:17 AM 13 Comments

Wednesday, October 15, 2008

A bearish Estate Agent? Wow, that's news

Times Online: House prices will fall 30%

House prices are poised to fall almost a third from their peak last year to reach values last seen in September 2003, says one of the countrys leading estate agents, Knight Frank.

Posted by peter_2008 @ 11:36 PM 14 Comments

Numbers becoming meaningless as Paulson defends government intervention

Infowars: Total Bailout Cost Heads Towards $5 TRILLION

These potential figures (within the article, based on Reuters estimates) take the potential cost to $4.559 trillion+ - or $43, 221 per household. Furthermore, when you account for the fact that the credit default swap market is around $62 trillion, & that derivatives worldwide are worth between between $1 and $2 quadrillion, the numbers start to become meaningless. They have worked hard to achieve this only since Greenspan made derivatives legal during the early 1990's! Once again, the derivatives are imaginary, & no threat to anybody but the financial institutions that hold them, and to a portion of a pension industry that would be relatively cheap to save. The derivatives only become a danger to the whole economy once monetized by the bailout that will let them buy/inflate real assets.

Posted by planning4acrash @ 10:36 PM 5 Comments

Who's for another drop in the FTSE tomorrow?

New York Times: Stocks Plunge 8% on Economic Gloom

Wall Street looked beyond the governments bailout plan on Wednesday and saw more signs that the economy was in for a drastic slowdown.

Posted by renting2 @ 09:22 PM 9 Comments

Govt. 'desperate to prop up housing market' - Official!

FT Lex: Mortgage Lending

Lend, lend, lend. To judge from the statement accompanying the UK governments bail-out of British banks, that is the message Whitehall mandarins will be sending to mortgage lenders. The Treasury is insisting, as a condition of the UK recapitalisation plan, that banks receiving public funds maintain competitively-priced lending to homeowners and small businesses at 2007 levels for three years. Desperate to prop up the plunging housing market, the government is fearful that credit withdrawal by the banks will deepen the looming recession...

Posted by mark wadsworth @ 08:19 PM 14 Comments

Another red day then!! Don't know how Blue Peter is more newsworthy than this

BBC News: Shares tumble on recession fears

Stock markets in Europe have slumped, as weak economic figures fuel worries of a recession.

Posted by soundman74 @ 05:55 PM 9 Comments

We are not really banning bank dividends

BBC News: Bank dividends

Treasury spokesman Robert Preston clears up the "misunderstanding" regarding the payment of dividends in RBS, HBOS and Lloyds

Posted by jonb @ 05:12 PM 5 Comments

We will be able to retrain as loft insulators

Yahoo: Unemployment 'set to spiral'

The Government has been warned that unemployment could spiral to 3 million after the biggest jobless rise since 1991 left 1.79 million people looking for work. However, Prime Minister Gordon Brown stated that unemployment was higher in America, Germany, France and Italy than in Britain. Mr Brown said one way to tackle unemployment and at the same time climate change was to train people to install loft insulation.

Posted by mytimeisnigh @ 04:58 PM 23 Comments

Bankruptcy figures are rising...

OneStopView Blog: UK Bankruptcy Now Every Five Minutes!!!

After one hell of a 10 year + party of spending credit on plastic cards, a large portion of Brits have seen the curtains drawn on all those meals out to restaurants, home gadgets, new cars, holidays etc, etc. and what a hell of a hangover is going to be suffered.

Posted by eve @ 04:02 PM 0 Comments

Try to keep it clean

BBC News: Public urged to question Darling

MPs have asked the public to suggest questions to put to Chancellor Alistair Darling about the government's 37bn rescue package for banks."Taxpayers are naturally very concerned about the scale of this investment." Questions should be emailed to: bankingcrisis@parliament.uk

Posted by yoyo1 @ 03:54 PM 17 Comments

The housing market downturn has reached the halfway point, says an Estate Agent

Findaproperty: Downturn At Halfway Point

"However, it is also worth noting that we do not have the oversupply problems of Spain and the US, and, indeed, a shortage of housing will become more apparent with time." ....does this Liam Bailey write GB's speeches

Posted by bystander @ 03:47 PM 13 Comments

Why does this not surprise me in the slightest?

The Telegraph: Government cuts train overcrowding with new definition

Until now railway companies in the West Midlands and a number of other areas classed the threshold for overcrowding as 10 people standing for every 100 seats. However, according to guidelines from the Department for Transport, the industry standard - which will apply to all routes - can now be tripled to 30 per 100 seats. It means that fewer trains will be classed as overcrowded without any need to add seats or carriages.

Posted by flintster1994 @ 03:14 PM 27 Comments

Andrew Clare predicts 40% drop in house prices from peak

Guardian: Prices to bounce back ... in 2023

As part of our occasional series on property prices going down, a prediction that things will get a lot worse before they recover.

Posted by jonb @ 02:01 PM 12 Comments

A change in mainstream sentiment

Telegraph: Selling houses

Remember, home-owners have had more than 10 years of house-price rises, and psychologically it is difficult to accept that values are falling quite dramatically. Remind yourself that if it was possible for prices to rise 15 per cent in a year, which they did in years such as 2002-3 and 2006-7, it is equally possible for them to drop by that amount in 2007-8. Unfortunately, buyers are not interested in how much you paid for your home - nor how large your mortgage is - so wanting to make a profit or get out what you put in are no longer viable. For a long time we have been told in defence of soaraway values that the market sets the price. That applies equally to a recession as to a boom.

Posted by little professor @ 01:47 PM 3 Comments

this explains gordons moves, we have been cheated again.

reuters: UK may debate joining euro due to crisis

The financial markets crisis will spur a new debate in Britain about the country adopting the euro,

Posted by mark @ 01:46 PM 43 Comments

More news from the Wilsons

This is Money: BTL guru Judith Wilson sells up

The Wilsons have not been immune to the credit crunch and Fergus admits that they have lost a couple of million over the past three months. 'We are not going to sell all at once,' says Fergus, referring to a portfolio worth 250m. 'That would collapse the entire market in Ashford and Maidstone. We have even got to be careful to avoid selling clusters in the same street.' The Wilsons claim the prices of their homes have been static for the past three months, but estate agent Glen Wright, of Martins in Ashford, reckons they have plummeted 20% in the past year. He says: 'Two-bedroom resale houses priced at 165,000 a year ago now sell for 140,000 - if you are lucky. The market is paralysed.'

Posted by little professor @ 01:40 PM 26 Comments

Will we see $50 a barrel?

Arabian Business: Oil prices predicted to fall further, could hit $50

"A combination of fear, de-stocking and disruptions across the supply chain owing to frozen credit markets is currently depressing oil demand far below where underlying economic fundamentals would suggest," Goldman Sachs said on Monday in a note to clients. Goldman said it expected crude to average $75 in the fourth quarter and end the year at $70, but added: "Should the financial and economic crisis cut deeper into demand, the market could fall as low as $50 a barrel."

Posted by stevie dee @ 01:12 PM 0 Comments

Govt will own 75% of the repossession *market% and 52% of the mortgage market

Firstrung: Govt. repossess 4201 properties through Northern Rock whilst former directors escape legal action

The nationalised mortgage lender Northern Rock has stated that no legal action will be taken against the former directors who were at the centre of the group's collapse last year. A review conducted by lawyers and accountants into the previous regime, headed up by chief executive Adam Applegarth, has announced there are "insufficient grounds to to proceed with any legal action for negligence"... Northern Rock stated it is "well ahead" of its Government loan repayment target; having paid back more than half the 26 billion owed to leave 11.4 billion outstanding as at September 30. Northern Rock's nationalisation in February led to 1,500 job losses as it scaled back activity to pay back the Government.

Posted by converted lurker @ 01:03 PM 1 Comments

Over twenty percent of those able to work don't...

Firstrung: The number of economically inactive people of working age approaches 8 million

There has been a fall in both the number of people in employment and the employment rate, according to the Office for National Statistics (ONS). The number of unemployed people, the unemployment rate and the claimant count have all increased. The number of inactive people of working age has increased, but the inactivity rate is unchanged. The number of vacancies has fallen. Growth in average earnings, both including and excluding bonuses, has decreased

Posted by converted lurker @ 01:01 PM 11 Comments

Why your mortgage won't get any cheaper

MoneyWeek: Why your mortgage won't get any cheaper

Despite a cut in official interest rates, your mortgage isn't likely to get much cheaper while banks remain cautious about lending. But the banking crisis does have one silver lining: people are finally waking up to the fact that they need to take control of their own finances.

Posted by damien @ 12:41 PM 5 Comments


Your Mortgage: Confusion over mortgage lending bail-out conditions

The Treasury said that all banks receiving government money as part of the package would be obliged to return their mortgage lending to the levels of 2007. However, the CML and lenders themselves are concerned that such a level of lending would be inappropriate in the current market conditions.

Posted by whostolemyendowment @ 12:28 PM 0 Comments

Wouldn't call that a bounce, more like a soggy ripple!

Your Mortgage: House prices to bounce back by 2023'

Average house prices will take 15 years to return to the peak they hit in 2007, a leading academic said yesterday. Andrew Clare, professor of asset management at Cass business school in London, said the housing market would get "a lot worse" before it started to pick up.

Posted by whostolemyendowment @ 12:25 PM 0 Comments

don't worry inflation will drop soon....lol

yahoo: Rail Fares Rise Above Inflation

Britain's rail misery looks set to continue with a new report warning of above inflation fare rises and overcrowding. The Government's spending watchdog said some rail fare price hikes last year were as high as 20%.

Posted by mark @ 12:00 PM 2 Comments

senators were receiving calls 50:50 against - 50% "No" and 50% "Hell No".

The Market Ticker: America Has Died - To Thunderous Applause

America's House and Senate, just a couple of short weeks ago, passed a law that was denounced by The American People, where representatives and senators were receiving calls 50:50 against - 50% "No" and 50% "Hell No". Were you told this was how Congress was browbeaten into passing this law? Were you told that Congress was essentially threatened that tanks would be deployed into our cities and towns if Congress did not pass this bad law that Paulson and Bernanke demanded? Well, yes you were. Representative Sherman disclosed this fact in an impassioned speech in the Well of the House. One little sentence, with which you surrendered forever the principles of economic capitalism and replaced them with government totalitarianism.

Posted by malct @ 11:57 AM 7 Comments

Gordo said "he would do everything possible to keep people in jobs."

times online: Unemployment rises at fastest rate in 17 years

Brendan Barber, TUC general secretary, said: This is extremely bad news, and these figures do not even show the effects of the bank crash. After years when we could take reasonably full employment for granted, we are now in for grim times. This is the next big challenge for Government. Prime Minister Gordon Brown refused to comments on today's figures, but said he would do everything possible to keep people in jobs. We will do everything we can to help create jobs and help people maintain jobs in the British economy," he said.

Posted by sold out @ 11:15 AM 26 Comments

New York 'faces 165,000 job cuts'

bbc: New York 'faces 165,000 job cuts'

New York City could lose as many as 165,000 jobs as a result of the crisis in the financial sector, the city's chief financial officer has warned. Comptroller William Thompson estimates the positions will go over the next two years, including 35,000 directly employed in the financial sector.

Posted by mark @ 11:01 AM 0 Comments

Newsnight House Price Crash Special

BBC: Newsnight 14 Oct 2008

First 20 mins. Roger Bootle finally gets to say his piece. 40% down. Yvette Cooper talking nonsense propaganda spin about 2007 lending levels, refusing to admit comedy mortgages will be controlled. She took a right grilling and appears to have been badly briefed on a subject she knows little about. Then they wheel out some chinless EA director and that "Property Expert" Gary McNumpty, surprisingly pleading for a 3% interest rate and talking up the market. Apparently inflation is a "red herring". Also trotted out the usual tired lies about "fundamentals" such as shortage of space. Gary has listened to his own spin for so long he's actually persuaded himself that the housing market is the backbone of the British economy.

Posted by doomwatch @ 10:58 AM 22 Comments

Exclusive research predicts seven year wait for return to 2007 values

Property Week: Seven years until homes regain their 2007 values, says Knight Frank

The 2009 Knight Frank residential market forecast estimates that homeowners will see the values of their homes bottom out in late 2009/early 2010 but will need to wait until 2015 for a return to 2007 values.

Posted by peter whelp @ 10:33 AM 2 Comments

James Ferguson not bullish on gold.

Moneyweek: Why gold bugs will get bitten by deflation

I (JF) know Im at odds with the rest of the MoneyWeek team on this, but buying gold, the great inflation hedge, just ahead of a great deflation, seems a triumph of faith over logic.

Posted by holding out @ 10:13 AM 38 Comments

Number of credit checks being carried out falls

Telegraph: Credit-checker Experian says mortgage slump slows sales

The number of credit checks has fallen by 4% in the UK, which suggests that at least some of the fall in mortgage approvals is due to less people applying for a mortgage. A reduction in supply of mortgages would normally mean more credit checks, as people need to try more mortgage lenders before they find one that will take them on.

Posted by jonb @ 09:06 AM 1 Comments


Timesonline: Blow for buy-to-let borrowers

'Ray Bougler, of John Charcol, the mortgage broker, said: Lenders will continue to cut tracker deals and increase rates in an effort to protect profit margins. ........so the point of rate cuts are??????

Posted by bystander @ 09:03 AM 4 Comments

The Real - Human - Cost of the Bailout.

The Renegade Economist: $45 trillion : The Great Wealth Wipe out

At least $45 trillion will now be wiped off people's wealth and trigger a decade-long depression. Fred Harrison will release his forecast today at a Press conference at the Foreign Press Association, London. His estimate is based on conservative assumptions, it therefore under-estimates the true scale of the losses that are destroying banks and peoples savings around the globe. By using the methodology that enabled me to forecast the current crisis back in 1997 a full 10 years before the credit crunch crushed the banks I am left in no doubt that the assets of home-owners and investors will be savaged.

Posted by neo-serf @ 08:19 AM 0 Comments

Sale and rent back regulations revealed

Property Week: Sale and rent back housing sector to be regulated

Rogue residential landlords who prey on vulnerable homeowners should be regulated, the Office of Fair Trading (OFT) declared this week. An OFT study has found that some householders in financial hardship enter into sale and rent back deals when it is not their best option while some prospective landlords mislead consumers as to the value of their home or the security they would have as tenants.

Posted by peter whelp @ 07:58 AM 0 Comments

WOW! The BBC is actually having a go at explaining Fractional Reserve Banking!

BBC News: Where has all the money gone?

Billions of pounds have been wiped off property values and share prices are massively down, while the debt-laden banks are being bailed out. But where has all this money gone? Economist John Sloman explains.

Posted by flintster1994 @ 07:52 AM 48 Comments

Swan won't speculate on Budget deficit

abc: Treasurer Paul Keating warned of Australia's becoming a "banana republic" if it did not rein in its deficits. That phrase, which sent the currency into a tailspin, may come back to haunt Prime Minister Keating.

Treasurer Wayne Swan has refused to speculate on whether the Government's $10.4 billion economic stimulus package will push inflation up or put the next Budget into deficit

Posted by big chris @ 04:17 AM 0 Comments

Risk Aversion Likely to Return

Nouriel Roubini, the professor who predicted the financial crisis in 2006, said the U.S. will suffer

bloomberg: Roubini Predicts a Recession That May Last 24 Months

There are significant downside risks still to the market and the economy,'' Roubini, 50, a New York University professor of economics, said in an interview with Bloomberg Television. ``We're going to be surprised by the severity of the recession and the severity of the financial losses

Posted by big chris @ 02:59 AM 0 Comments

Tuesday, October 14, 2008

Morgan Stanley Economist's House Price Halucinations

Times: Housing slump could be over next year, MPs hear

David Miles, chief UK economist at Morgan Stanley reckons that the housing market slump could be over as soon as next year if the cost of home loans falls by a further half-point and added that if mortgage rates stayed at present levels, an educated guess from sophisticated economic estimates was that house prices would fall by another 5 to 10 per cent before the market bottomed out next year.

Posted by enuii @ 11:34 PM 16 Comments

Amazing debt story

The Times: Facing up to the debt monster

"Paul and Amanda Davis have worked hard all their lives to bring up their three children, but they do admit to having succumbed to the buy-now-pay-later culture, and now find themselves with 50,000 of unsecured debt ... Paul, a construction manager, brings home 2,700 a month, while Amanda weighs in with 520 a month from her part-time job as a credit risk manager." WWHHATT!!! A credit risk manager in this mess?

Posted by quiet guy @ 10:52 PM 15 Comments

Sale and rent-back sharks in spotlight

Times Online: Sale and rent-back industry should be regulated says OFT

The Office of Fair Trading (OFT) has called for urgent regulation of the sale and rent-back industry. The competition watchdog said In a report published today that more than 50,000 householders had agreed to sell their home to landlords, often for a sum less than its market value, on the assumption that they will be allowed to remain as tenants. However, the OFT found evidence that vulnerable tenants often had no protection against being evicted from their homes months after the sale of their property. Around 1,000 companies are operating in the sector, according to the report.

Posted by peter_2008 @ 10:10 PM 3 Comments

First of many?

HousepriceCrash meetup: London Meetup set, location picked.

Now with 41 members, hopefully you can join in. This is the last mainblog plug of an new opportunity to put the world to rights with a beer! A Midlands meetup has also been planned.

Posted by planning4acrash @ 10:08 PM 8 Comments

Barclays sees long-term bargains

reuters: Barclays sees long-term bargains

There are "extraordinary" buying opportunities for long-term investors in today's markets, though a strong stomach may be required in the short run, the vice chairman of Barclays Wealth (BARC.L: Quote, Profile, Research, Stock Buzz) said on Tuesday.

Posted by mark @ 09:57 PM 1 Comments

If foreclosure is their best option, they will take it in a heartbeat.

Sign on San Diego: Just stop paying your mortgage

If you are a mortgage holder who is either struggling with crushing payments, bitter for having overpaid for your home during the bubble, or who has extravagantly refinanced when prices were rising, the government's landmark $700 billion bailout package has an important message for you: stop making your mortgage payments . . . immediately. Furthermore, if you believe that with some planning and sacrifice you may be able to meet your mortgage obligations, the government's message is clear: relax, don't bother.

Posted by malct @ 08:56 PM 2 Comments

This may be Gordons final nemesis

Reuters: Bank bailout massively boosts government exposure

The government's bank bailout scheme leaves the taxpayer massively exposed to potentially risky assets, with the government owning or part-owning lenders controlling nearly 3 trillion pounds in mortgage assets, almost half the mortgage market, heightening taxpayer exposure to a faltering economy. Bearing in mind Andrew Clare's earlier prediction in the Guardian article posted that UK house prices will not recover their August 2007 level until 2023 the governments decision may turn out to be disastrous.

Posted by enuii @ 08:28 PM 9 Comments

Am I Bovvered ........... ??

FT: Jobs in City hard to find amid failures

"The number of job vacancies in the City of London fell by more than 40 per cent last month compared with the same period a year ago, according to Morgan McKinley, the financial recruitment specialists." - Sort of mirrors house prices.

Posted by renting2 @ 07:57 PM 2 Comments

Mass media whips up hysteria

Yahoo / Sky News: British House Prices Down By 40%

Some houses in the UK have nearly halved in value as markets plummet amid the global financial crisis, a Sky News Online investigation reveals. One flat in Folkestone, Kent, went on the market on January 28 this year at 125,000, and has now been reduced to 75,000. The one-bedroom, lower ground floor property lies in an upmarket area of the coastal town, and is in need of refurbishment. When Sky News Online posed as cash buyers, the estate agent Fell Reynolds confirmed the flat had been slashed from 125,000 to 99,950 and then to 75,000 because of the housing slump. --- (If this is what Sky News consider to be investigative journalism, then Panorama has nothing to fear.)

Posted by drewster @ 06:58 PM 2 Comments

Making us look bullish

Guardian: House prices will drop 40% by 2010,

Andrew Clare, professor of asset management at Cass business school, said the state of the housing market will get "a lot worse" before it starts to pick up again. Using futures contracts based on the Halifax house price index, he has calculated that, in 2010, house prices will be 40% lower than their peak of 199,600 in August last year. "Worse still, according to these prices, the Halifax index will not recover to its August 2007 level until 2023," he said. Clare said his survey was "very bad news" for anyone who bought a house in the UK last summer and predicted that negative equity would become a big feature of "our economic landscape for years to come".

Posted by little professor @ 06:28 PM 24 Comments

expect ours to be tougher

Yahoo: Ireland Announces Tough Budget

Unemployment is also predicted to continue spiralling, peaking at 7.3% in 2009. Mr Lenihan said: "We are a small nation facing a major challenge in these uncertain times. "We must all pull together if we are to return to more prosperous times." Taxes in Ireland are set to rise as the Irish Government seeks to raise an extra 2 billion Euro to meet spending targets. A 1% income tax levy on annual salaries over 100,000 Euro is to be introduced and VAT will be raised by 0.5%.

Posted by mark @ 04:48 PM 7 Comments

Reason why Barclays has a stronger balance sheet!

BBC Online: Barclays faces investment lawsuit

Barclays is being sued in a New York court over claims it moved loss-making investments from its own accounts to those held by outside investors.

Posted by whostolemyendowment @ 04:44 PM 2 Comments

Dow Jones into negative territory

Yahoo Finance: Dow Jones live chart

It's daft to look too often at these things, but still - I thought we were going to see another 10% rise today? What happened to all the optimism, chaps?

Posted by pelethar @ 04:27 PM 12 Comments

This graph says it all, its spectacular

Yahoo Finance: HBOS: Basic Chart: 1 year

HBOS is share price shocker. Watch the ride over the last year, from around 1200 to 76 today. Now that is a dot com style collapse.

Posted by last_days_of_disco @ 04:22 PM 10 Comments

Yet another Alice in Wonderland Thesis

Inverstors Chronicle: When will the housing market recover?

Recent apocalyptic events in the turbulent financial markets, both in the UK and in the US, may have distracted attention from the gloomy and deteriorating state of the UK housing market, but they certainly have not improved the situation.

Posted by paranoia blue @ 04:07 PM 4 Comments

More Councils Hit By Iceland Woes

Yahoo: More Councils Hit By Iceland Woes

The number of councils in England and Wales which invested money in Icelandic banks has grown to 116, depositing a total of 858m, it has emerged. That works out at about 7m per council.

Posted by mark @ 04:05 PM 6 Comments

Are cheaper mortgage rates here?

HIP-Consultant.co.uk: Cheaper Mortgage Rates ?

The Bank of England recently reduced interest rates by 0.5% and many home owners are looking forward to a reduction in their mortgage repayments, however will this be the case?

Posted by hip-consultant.co.uk @ 03:50 PM 0 Comments

Fantastic news - Libor down another 0.02%

Telegraph: Libor falls for second day

More evidence, if any was needed that everything is now fine, house prices are going to rocket skywards again and so on. Or at least, that's what the VIs are saying. Libor is still 1.75% above base and it is going to take a lot of these 0.016% and 0.02% drops to get back there.

Posted by jonb @ 03:11 PM 28 Comments

100 years of financial disasters

CNN: 100 years of financial disasters

This isn't the first financial meltdown, and it won't be the last. But we are a fast-learning species, and we've figured out a few ways to cope along the way.

Posted by mark @ 03:11 PM 50 Comments

this is bad yes???

Yahoo: Income funds ditch Lloyds and HBOS

Banking stocks HBOS (LSE: HBOS.L ) and Lloyds TSB fail to participate in the rise, however, with dealers saying income funds are offloading shares in the pair as neither will be paying dividends in the immediate future.

Posted by mark @ 03:04 PM 6 Comments

The latest craze is ....... Rent Dodging

BBC News: Naming and Shaming

SIGNS naming and shaming those who have fallen behind with their rent will be put up outside dozens of homes across Merseyside in the next few weeks as landlords feel the bite of the credit crunch.

Posted by yoyo1 @ 02:04 PM 35 Comments

job cuts?

bbc: JJB Sports eyes assets sell off

Troubled sportswear retailer JJB Sports has announced it is in discussions regarding the potential sale of one or more of its "non-core assets".

Posted by mark @ 02:01 PM 1 Comments

Fun bailout blogging: Barclays will not give in to the communists

Money is the way Blog: Barclays will not give in to the communists

Great news. Barclays ain't taking no cash from no taxpayers. Hallelujah. I have been speaking to my very dear friend Bob Diamond. He told me, 'There is absolutely no way that mystical capitalism would be able to flourish at Barclays if we had to watch out all the time for the commissars.

Posted by mountain goat @ 01:51 PM 3 Comments

Will it be easier to get a mortgage now?

The independent: So does this mean the financial crisis is over?

"it ought to be. The part-nationalised banks are committed to returning to 2007 levels of lending. New mortgages are at only 30 per cent of last year's levels, so something had to be done. We'll see big cuts in interest rates too." .....as predicted ramping growing in decibels, Krusty and Phil will be renegotiating a new series of Location etc. As GB has always said - 'House prices only ever go up and if they don't I'll Bl**dy well fix it so they do". This rescue package on the whole is good to stabilise a very shaky financial sector, but to insist the lenders (responsible for 45% of all mortgages in the UK) return to 2007 levels of mortgages is plain criminal and done purely for votes and not the long term stability of UK PLC.

Posted by bystander @ 01:43 PM 4 Comments

Still seems expensive

yahoo finance: House Prices Down 40%

Asking prices are plummeting.....back to HPC....

Posted by european-bear @ 01:23 PM 0 Comments

Banks tamed but not hamstrung by bailout

reuters: Banks tamed but not hamstrung by bailout

Barclays Chief Executive John Varley told reporters that going it alone could give the bank a competitive advantage.

Posted by mark @ 01:20 PM 3 Comments

Hurry up people its your last chance to buy a house!!

Evening Standard: London house prices cut by 20 per cent

"Purchasers have been told that now is their best time to close a deal before the Government's 37 billion bank rescue restores confidence to the market. " ... "Another two-bedroom flat in Holland Park is down 20 per cent from its original asking price of 875,000 to 699,000. " Ooooh, a two-bed flat for only 700 grand. I'll have 3 please! When will these VI morons realise that it's over?

Posted by papabear @ 01:17 PM 0 Comments

More jobs go

Yahoo: Pepsi cutting back

plans to cut 3,300 jobs as the economic slowdown and changing consumer tastes hit soda sales

Posted by mark @ 01:13 PM 0 Comments

It could have worked


BUILDING a time machine to take us back 18 months would have been cheaper than the multi-billion pound bank bail out, it was claimed last night.

Posted by mrmickey @ 01:13 PM 0 Comments

worse to come

Yahoo: British House Prices Down By 40%

Some houses in the UK have nearly halved in value as markets plummet in the storm of the global financial crisis, a Sky News Online investigation reveals. One flat in Folkestone, Kent, went on the market on January 28 this year at 125,000, and has now been reduced to 75,000. The one bedroom lower ground floor property lies in an upmarket area of the coastal town, and is in need of refurbishment. When Sky News Online posed as cash buyers, the estate agent Fell Reynolds confirmed the flat had been slashed from 125,000 to 99,950 and then to 75,000 because of the housing slump.

Posted by mark @ 01:10 PM 4 Comments

Buy Buy Buy!!!

Evening Standard: London house prices cut by 20 per cent

THE chance to snap up a London property bargain has opened up, the Standard reveals today. The "window of opportunity" has been created by prices depressed by the global financial crisis. Purchasers have been told that now is their best time to close a deal before the Government's 37 billion bank rescue restores confidence to the market.

Posted by little professor @ 12:48 PM 21 Comments

So just how exactly are house prices meant to go back up if there are no bonuses?

The Times: Brown targets fat cat pay after nationalising banks in 37 billion bailout

Because here http://www.thisislondon.co.uk/standard/article-23572439-details/London+house+prices+cut+by+20+per+cent/article.do it says THE chance to snap up a London property bargain has opened up, the Standard reveals today. The "window of opportunity" has been created by prices depressed by the global financial crisis. Purchasers have been told that now is their best time to close a deal before the Government's 37 billion bank rescue restores confidence to the market. [...] Peter Rollings, managing director of agents Marsh & Parsons, said: "We're 20 per cent down. There are some very, very keen sellers out there. But yesterday was a line in the sand and things should gradually get better."

Posted by sneaker @ 12:43 PM 5 Comments

'Value' is halved....no, the sellers expectations are 'halved'!

Sky News: British House Prices Down By 40%

Some houses in the UK have nearly halved in value as markets plummet in the storm of the global financial crisis, a Sky News Online investigation reveals.

Posted by whostolemyendowment @ 12:41 PM 0 Comments

Morgan and Chase agree to hold each other's coconuts

SOTT: Wonderland Economics: Bailouts balloon, markets crash, the dollar strengthens and gold does nothing

Some estimates put the value of outstanding credit default swaps on Lehman Brothers debt at $400bn, Not only are there the Credit Default Swaps written on Lehman's name but there are also the $639 billion (as at the date of it bankruptcy filing on 15th September 2008) of swaps and other derivatives that Lehman wrote in its own name that need to be settled or sold. These two vast sums hang over the market like the sword of Damocles - one slip by just one major counter-party to these financial transactions could cause the system to implode. No wonder central bankers look nervous these days. Ran P "Imagine an island with three people, Morgan, Chase, and you. Each of you has ten coconuts. Morgan and Chase agree to hold each other's coconuts and pay interest to each other, cont.

Posted by malct @ 12:35 PM 2 Comments

And then some!

Metro: House prices 'could fall another 10%'

"Dave Miles, Professor of Science at Imperial College London, said economic models suggested that if interest rates stayed the same and prices fell by a further 5% or 10%, meaning property would have lost around 20% of its value from its peak, then the housing market would stabilise." Yeah right ...there again they might fall by a further third, to hit HPC's overall consensus of a 42% peak-to-trough fall. Who are these people trying to kid?

Posted by mark wadsworth @ 12:34 PM 5 Comments

G7 have only looked after their own shop - but more SH1T is ready to hit the fan

FT: Emerging nations hit by default fears

Investor fears over the risk of many emerging market countries defaulting on their debt has risen sharply as Icelands financial collapse has hit sentiment, discouraging funds from investing in these economies. The market is pricing the risk of default for countries such as Pakistan, Argentina, Ukraine and Iceland at 80 per cent or higher as the banking systems of these countries come under increasing pressure due to the credit crisis.

Posted by whostolemyendowment @ 12:25 PM 0 Comments

Check out the Video spin

timesonline: UK house sales fall to less than one a week

"Under the estate agents estimates average house prices would fall a further 45,000 to 185,625." ...good news, but I thought average prices were already nudging 160K. The VI machine is up and running on Sky as well as on the BBC. Media property moguls have their platform, where is ours??

Posted by bystander @ 12:21 PM 2 Comments

the need to maintain and defend the interests of the financial aristocracy.

WSWS: Worst week for global markets since 1929

All of the proposals to deal with the worst economic crisis since the Great Depression, whether from the Bush administration and the Democrats and Republicans in the US, or the governments of Europe and Asia, have one thing in common: They all proceed from the need to maintain and defend the interests of the financial aristocracy. None of the measures address the social tsunami that is about to engulf the working class. As for the multi-millionaires and billionaires who monopolize the economy and dominate the US government, they will remain as ruthlessly preoccupied with their personal enrichment as ever.

Posted by malct @ 12:18 PM 0 Comments

Property investors will be able to use exchange traded derivatives from early next year.

US FT: Property enters exchange traded futures

Original source Charlie Brooker on an earlier post. "Is this really the sort of financial innovation we want? Isn't this the kind of thinking that brought the world within a hair's width of armageddon? Isn't the world knee deep in sh1t as it is?" Property investors will be able to use exchange traded derivatives from early next year. International derivatives exchange Eurex announced it has licensed the European indices of IPD (the Investment Property Databank) and plans to launch futures on the UK total returns index. "Property is a big asset class," said Ian Cullen, co-founding director of IPD. "But up till four years ago, it didn't have any kind of derivatives."

Posted by malct @ 11:54 AM 3 Comments

Lending for homebuying hits record low in August

Guardian: Lending for homebuying hits record low in August

The number of people borrowing money to buy a property fell to a record low of 42,200 in August, the Council of Mortgage Lenders (CML) said today. The value of mortgages approved for house purchases was 6bn, the lowest level since the association began collecting data in January 2002 and 10bn below last August's figure. Gross lending fell to 19.7bn, a drop of 20% compared with July and 42% down on August 2007.

Posted by peter_2008 @ 11:33 AM 3 Comments

They're Now Open and Down 76% Today Though

BBC News: Iceland stock market to stay shut

Iceland Stock Exchange Falls 76% In First Trading Since Wednesday.

Posted by renting2 @ 11:10 AM 8 Comments

An attempt to boost or kill the sales?

MoneyMagic: Consumer inflation reaches 5.2%

"Savers and borrowers are being warned to act now to get the best mortgage rate as banks stop selling their most competitive deals" I take it, this site has a Vested Interest in selling their mortgage products.

Posted by should_of_banked_it @ 10:50 AM 0 Comments

Link to Rics report

Rics: RICS housing market survey Sept 2008

EA's market reports are a good read as always

Posted by wdbeast @ 10:46 AM 0 Comments

Ros Has Got It Right

Mortgage Introducer: Protecting Icesave depositors, was it a mistake?

Dr Ros Altmann, an independent policy adviser says:" The Government's decision to protect 100% of all retail deposits in the Icelandic bank IceSave is the most dangerous, misguided act of the credit crisis so far."

Posted by renting2 @ 10:16 AM 10 Comments

More jobs go

Yahoo: Cadbury Q3 sales rise 6%, job cuts

It today announced that it was cutting 250 jobs including a number of senior managers.

Posted by mark @ 10:05 AM 0 Comments

Retail shakeout: 'Worst is yet to come'

CNN: Retail shakeout: 'Worst is yet to come'

Experts warn that the credit freeze combined with slumping sales - and a likely dismal Christmas season - will force out many more retailers in 2009.

Posted by mark @ 10:02 AM 0 Comments

The emergency cut last week did nothing and now we get this stat - disgraceful!

BBC: Consumer inflation reaches 5.2%

The UK's benchmark inflation rate hit 5.2% in September, official figures have shown, with energy bills behind much of the rise.

Posted by tyrellcorporation @ 09:48 AM 28 Comments

I guess luxury hotels is just what Glasgow needs - NOT!

Property Week: Jumeirah signs for 25-storey luxury hotel in Glasgow

The 25-storey development, designed by Ian Simpson Architects, in Glasgow's financial district, will be Jumeirahs fifth hotel signed in Europe and is scheduled to open in 2011.

Posted by whostolemyendowment @ 09:34 AM 0 Comments

Estate Agents are selling one house per week and the gap between asking and selling price widens

Property Week: House sales at one a week and gap between asking and selling price widens, says RICS

House sales dropped again last month with surveyors reporting less than one sale a week because of a lack of mortgage finance for buyers, according to the RICS. The RICS said sellers have been forced to drop asking prices to more realistic levels but even so the gap between asking and selling prices continues to widen.

Posted by peter whelp @ 08:49 AM 0 Comments

willful and arrogant action and behavior designed to undermine a wise woman's good judgment.

Alternet, TheNation: The Woman Who Could Have Prevented This Financial Mess Was Silenced by Greenspan, Rubin and Summers

On Thursday, the New York Times ran a masterful and revealing front page article [link] exposing the culpability of Greenspan, Rubin and Summers for the era of dangerous turbulence we live in. What these "three marketeers" -- as they were called in a 1999 Time magazine cover story -- were adept at was peddling the timebombs at the heart of this complex crisis: exotic and opaque financial instruments known as derivatives . . . To cut to the quick, Greenspan, Rubin and Summers opposed regulating them. "Proposals to bring even minimalist regulation were basically rebuffed by Greenspan and various people in the Treasury What emerges is a story of reckless, willful and arrogant action and behavior designed to undermine a wise woman's good judgment.

Posted by malct @ 08:41 AM 1 Comments

"The way to solve this problem is let people go bankrupt

ICH: Jim Rogers: CASH is King

"The way to solve this problem is let people go bankrupt...the people who are sound will take over the assets from the people who are unsound and we will start over"

Posted by malct @ 07:59 AM 3 Comments

It will administrate banks and sums of money that Lenin, with his abacus, could never have imagined


In order to avert a general state of panic, the U.S. administration has declared that it will secure deposits that do not exceed $250,000. It will administrate banks and sums of money that Lenin, with his abacus, could never have imagined counting. The current crisis and the brutal measures of the U.S. administration to save itself will bring more inflation, more devaluation of national currencies, more painful losses in the markets, lower prices for exports and more unequal exchange. But they will also bring to the peoples a better understanding of the truth, more awareness, more rebelliousness and more revolutions. We will see now how the crisis develops and what happens in the United States in 25 days.

Posted by malct @ 07:48 AM 3 Comments

Castles were built in the sky, and suddenly people realized that these castles don't exist at all.

de spiegel: 'Capitalism Has Degenerated into a Casino'

Nobel Peace Prize laureate Muhammad Yunus says that greed has destroyed the world's financial system. SPIEGEL ONLINE spoke with him about the profit motive, social consciousness and what should be done to end the financial crisis. Yunus: The current turn of events makes me sad. It is certainly not something I am happy about. The collapse has hurt so many people and has suddenly made the entire world unstable. We should now be concentrating on making sure that such a financial crisis does not happen again.

Posted by malct @ 07:44 AM 6 Comments

Spot the missing exaplanation

BBC: House sales hit new 30-year low

The article includes a load of pat phrases like "The housing market continues to hold its breath and unless mortgage liquidity improves, the market is likely to remain a dormant beast for some time to come." but does not actually say that buyers are put off by the fact that house prices are a) ridiculously high and b) sliding rapidly.

Posted by mark wadsworth @ 07:39 AM 5 Comments

Financial gridlock

Telegraph: Financial crisis: Estate agents 'selling only one property a week'

The survey by the Royal Institution of Chartered Surveyors (Rics) showed that house sales have dropped to their lowest level since records began 30 years ago.

Posted by quiet guy @ 07:26 AM 2 Comments

House sales hit new 30-year low

bbc news: House sales hit new 30-year low

The slump in the property market is becoming even worse, according to a survey from the Royal Institution of Chartered Surveyors (Rics). Estate agents sold less than one property per week each in September.

Posted by it will happen @ 06:29 AM 0 Comments

Carbon Credits and the Bailout

Lew Rockwell Show: The state and climate

A little known clause in the bailout gives the Federal Reserve powers to charge carbon taxes. What does this have to do with the bailout? Well, clearly banks will do well from taxing and regulating one of the elements crucial to all life. Whilst most pundits agree that carbon credits will be a great boom to central banks and big government, some are undecided about whether they will benefit the environment or our personal liberties. Follow the link to hear more, from a refreshing libertarian viewpoint.

Posted by planning4acrash @ 02:00 AM 3 Comments

Cut through the left-right paradigm

Market Oracle: How Central Banks Destabilized the World's Economies

Whilst politicians discuss a new world order, what they really discuss is a new way of repackaging the old world disorder. - "The crisis that America finds itself in is not political in origin nor can it be laid at the feet of any individual or party. The whole world, including Europe, is experiencing a massive monetary disruption. Moreover, it is not the first time that the world has been shaken by a financial crisis. It happened in 1824 and it happened again after WW I. What is depressing is that though these crises have but one single cause today' s central bankers and legions of economists find themselves utterly clueless, readily taking as a causes those data which are in fact symptoms of a very deep monetary disorder."

Posted by planning4acrash @ 01:48 AM 0 Comments

Problem, reaction, solution.

Alex Jone's infowars.com: Brown: Use This Crisis To Create New Financial World Order

Speaking at Thomson Reuters editorial headquarters, Brown called for a new financial architecture for the global age, stating that the Bretton Woods system devised after the second world war was out of touch with the new world order. - We are proposing a world leaders meeting in which we must agree the principles and policies for restructuring the financial system across the globe, Brown added. Browns call echoes that of elite figures such as CFR member Jeffrey Garten and Timothy Geithner, president of the Federal Reserve Bank of New York, who have both recently called for a new global monetary authority, a de-facto global financial dictatorship, operating across borders and forcing nations and corporations to register and adhere to strict monitoring and regulations.

Posted by planning4acrash @ 01:30 AM 8 Comments

Gartman Sees Stock `Bounce,' No End Yet to Bear Market :

bloomberg: Gartman Sees Stock `Bounce,' No End Yet to Bear Market :

Dennis Gartman, an economist and editor of the Gartman Letter, talks with Bloomberg's Carol Massar about global government efforts to restore confidence in the banking system and the outlook for stock and commodity markets

Posted by big chris @ 12:32 AM 0 Comments

Further Market Collapse Ahead

.bloomberg: Caron Is `Skeptical' About Further Gains in U.S. Stocks

Caron Is `Skeptical' About Further Gains in U.S. Stocks

Posted by big chris @ 12:25 AM 0 Comments

Monday, October 13, 2008

Inflation and stupidity are here to stay

Telegragh: Bank bail-out: 'Inflation and stupidity are here to stay'

"Markets were working fine and doing what they have always done. When new forms of risk-taking work, markets reward them, when they dont work markets kill them. Markets create and destroy. And markets are, quite rightly, destroying at the moment. This natural process changes behaviour and stops stupidity dominating. " Couldn't have said it better. All this meddling will lead to inflation.

Posted by mountain goat @ 11:01 PM 1 Comments

Relief for Bank as Libor falls

Relax, panic is over: Telegraph

Libor has fallen by 0.016% since yesterday. This underlines the huge vote of confidence given by the market to our 500,000,000,000 bail out package, and clearly demonstrates that the credit crisis is completely over, and everyone can get back to lending and buying houses again.

Posted by jonb @ 08:49 PM 23 Comments

Here's our new 2007 level mortgage availablility

Times: Nationwide pulls deals for first-time buyers

In Summary - Nationwide rates up 0.61%, no longer lending to first time buyers, now require 15% deposit, up from 10%. RBS rates up 1. Abbey rates up 0.5% as previously announced.

Posted by jonb @ 07:01 PM 10 Comments

Golden Gordon wants to return to the gold standard

Telegraph: Financial Crisis: Gordon Brown calls for 'new Bretton Woods'

Shame he sold all our reserves at less than rock bottom prices.

Posted by earthstick @ 06:53 PM 2 Comments

BTL new build flats lead hpc Charge of the Light Brigade

Times: House prices: the 10 worst performing streets

Nowhere in the country has been immune from the housing market slump, but owners of city centre flats are suffering more than most, according to research by property website mouseprice.com. A survey indicating the 10 streets in England and Wales with the biggest annual falls in property prices is dominated by those full of new-build flats. These were snapped up by buy-to-let investors in the boom years who have since tried to sell up.

Posted by mountain goat @ 05:27 PM 5 Comments

You can't make up stuff like this... taxpayers money goes to iceland now, this has to STOP

bbc: UK loan offered to Icelandic bank

A 100m loan is being given by the Bank of England to the UK arm of the collapsed Icelandic bank Landsbanki to help repay the bank's UK creditors. Savers with Icesave, the bank's internet operation, and any of its other UK depositors will benefit. "This loan will help ensure an orderly wind-down of Landsbanki which will maximise the return to UK creditors," said the Treasury. Icesave closed last week, leaving its 300,000 UK savers without their cash. The loan was announced in the Commons by Chancellor Alistair Darling on Monday afternoon.

Posted by mark @ 05:11 PM 32 Comments

Can't sell, so think a raffle will shift it instead?

Findaproperty: Property Prize Draws Come Under Scrutiny

In the current market slowdown, there has been a growing trend of people offering their home as a prize in a competition in an attempt to realise its value. But a report from the Gambling Commission warns that doing this may fall foul of Section 14 of the Gambling Act 2005, and it is advising competition organisers to seek independent legal advice before going ahead.

Posted by whostolemyendowment @ 04:57 PM 0 Comments

No, we didn't really mean a return to 2007 lending levels

Times: Treasury clarifies mortgage plans

The Treasury has since said that the statement was indeed in reference to the availability of mortgages in general, rather than a specific return to the lending levels of last year.

Posted by jonb @ 04:48 PM 8 Comments

Was mentioned in the Torygraph today....but can't find article online

This is South Devon: 1.7m property prize biggest in country

A TORQUAY developer is offering four luxury apartments worth more than 1.7m for a 50 ticket. And another flat in a prime site on Torquay harbour is up for grabs for 20 a go. Cliff Rawlinson, of St Marychurch-based Signature Homes, is aiming to beat the credit crunch and the property slowdown by giving someone the chance to win not just one but four flats at Wolborough Heights in Newton Abbot.

Posted by whostolemyendowment @ 04:33 PM 0 Comments

Bernanke's helicopter has been REPLACED with C130 cargo planes and B1 bombers to rain cash down

Market Oracle: Financial Markets Crash Greatest Opportunity in History!

Monetary Tsunami Unfolding! Since the newsletter of September 15 th , entitled Monetary Flooding Anticipated , approximately 7 trillion dollars worth of G7 currencies have been manufactured out of thin air to underpin the morally and fiscally BANKRUPT financial enterprises and G7 governments. It is but a down payment on the ultimate price. Bernanke's helicopter has been REPLACED with C130 cargo planes and B1 bombers to rain cash down on the economy and banking system. It is but the beginning of the greatest reflation exercise in history and it will DWARF the previous reflation by Alan Greenscam, er Greenspan in 2001 through 2003, as it will be WORLDWIDE in scope. Everyone knows of the recent bankruptcy of the banking system in Iceland . It is but the first domino of many

Posted by malct @ 04:08 PM 15 Comments

The central banking system has its own bankers bank, the Bank for International Settlements (BIS)


The Treasury Department, for the first time in its history, said it would begin selling bonds for the Federal Reserve in an effort to help the central bank deal with its unprecedented borrowing needs.2 The Treasury is setting up a temporary financing program at the Feds request. The program will auction Treasury bills to raise cash for the Feds use. The initiative aims to help the Fed manage its balance sheet following its efforts to enhance its liquidity facilities over the previous few quarters. This is extraordinary. Why is the Treasury issuing U.S. government bonds (or debt) to fund the Fed, which is itself supposedly the lender of last resort created to fund the banks and the federal government?

Posted by malct @ 04:04 PM 10 Comments

Wonder what happened to the mortgage?

afp - SOTT: Cambodian couple split house in half to avoid divorce court

with pic A Cambodian couple hoping to avoid the country's convoluted divorce process have separated by sawing their house in half, local authorities said Thursday. Husband Moeun Rim and wife Nhanh divided their house, some 90 kilometers (56 miles) northeast of the capital Phnom Penh, into two parts last month after deciding to separate, Cheach commune chief Vorng Morn told AFP by telephone. "They agreed to split the house into two parts. The part that belongs to the husband has been removed, but the one that belongs to the wife is standing upright there. She stays there during the daytime," Vorng Morn said.

Posted by malct @ 02:55 PM 0 Comments

Crash Gordon Builds a Bear Trap

BBC: UK has 'pent-up housing demand'

The UK's property market is likely to recover quicker than those elsewhere because too few properties have been built recently, Gordon Brown has said. The prime minister told a City audience the US and Spain had "overbuilt" homes during the years of rising prices. In contrast the UK had "pent-up demand" because not enough had been built. He said the UK problem was not shortage of demand for homes at "the right prices" but a shortage of mortgages "at the right prices for people to buy".

Posted by mountain goat @ 02:31 PM 40 Comments

HMG Can't Even Convince the CML

CML: CML seeking clarification on Treasury statement

"The CML doubts whether, in the current market where house prices have been falling and demand has reduced, it would be either prudent or desirable for the volume of lending to home-owners to equate to 2007 levels."

Posted by renting2 @ 02:06 PM 12 Comments

76% of estate agents to quit Rightmove

Estate Agent Today: Three quarters of agents threaten to quit Rightmove

The half-time results of this Estate Agent Today poll shows that the majority of estate agents are planning to quit Rightmove, the stagnant property market has meant they just can't justify the membership fees of Rightmove any more...many are turning to free sites instead. The end of the number one property site?

Posted by gtrisk @ 12:53 PM 17 Comments

Estate agents having to quit Rightmove

The Mirror: Wrongmove for estate agents

Rightmove may be the 'number one property site', but agents can't even afford the membership fee any more. Wonder what that will do to Rightmove share prices?

Posted by gtrisk @ 12:49 PM 3 Comments

maybe we should close all banks and open marklays bank..lol

Yahoo: Hackers take aim at World Bank

The World Bank's internal networks have been compromised by outside attackers at least six times in the past year, according to a recent report. (Advertisement) Fox News cited internal World Bank memos reporting that the organisation had been attacked at least twice from IP addresses originating in China, and that last spring the network was hit with a major spyware infection.

Posted by mark @ 12:46 PM 3 Comments

I Missed IT!!

Patrick.net: Protests in London Against the Financial Bailout Plan for Banks

"On October 10 a large protest group stormed the London Exchange (next to the Bank of England) and made their feelings known to the occupants thereof." Did this actually happen? Not a whiff in the press/internet I looked at.

Posted by renting2 @ 12:31 PM 16 Comments

What a turnaround...

BBC News: Mortgage wish-list 'not prudent'

A government plan for major banks to return mortgage lending to 2007 levels is "not prudent or desirable", says the Council of Mortgage Lenders (CML).

Posted by andrew turner @ 12:17 PM 0 Comments

more free cash to bankers

yahoo: Germany Readies Bail-Out Package

Germany is set to pump 55bn into its banks and put up 315bn in interbank lending guarantees as Europe pulls together to tackle the global financial crisis.

Posted by mark @ 12:14 PM 1 Comments

more jobs to go

reuters: Clinton Cards reports FY loss, footfall slows

"Some jobs will go and we'll reduce our capex and will have to get sharper at store level," Finance Director Barry Hartog told Reuters, adding that the group would close more shops after reducing its store portfolio by 21 in the last year. The group has 1,051 stores operating in the United Kingdom.

Posted by mark @ 12:02 PM 3 Comments

Get buying!

Bloomberg: Fannie, Freddie to Step Up Purchases of Troubled Mortgage Bonds

Fannie Mae and Freddie Mac are ready to start purchasing $40 billion a month of underperforming mortgage bonds as the U.S. government expands its options to remove troubled assets from the slumping financial markets.

Posted by alan @ 11:48 AM 0 Comments

What the Government bailout means for markets

MoneyWeek: What the Government bailout means for the markets

Governments have taken over much of the world's banking system with taxpayers' cash. David Stevenson examines what effect this will have on the markets, and explains why we're not out of the woods yet.

Posted by damien @ 11:45 AM 2 Comments

Property conveyancing and legal process

HIP-Consultant.co.uk: Property conveyancing and legal process - Part 2

In part 2 of our property conveyancing guide we look at what is involved in the closing stages of the home buying and selling process.

Posted by hip-consultant.co.uk @ 11:40 AM 0 Comments

RBS and HBOS slide further.....total nationalisation later today or tomorrow?

BBC online: Banking - Market Data

Company value change % Barclays 221.75 +14.25 6.87% HBOS 89.50 -34.70 27.94% HSBC Holdings 856.50 +66.50 8.42% Lloyds TSB Group 173.90 -15.50 8.18% Royal Bank of Scotland Group 50.60 -21.10 29.43% Standard Chartered 1100.00 +100.50 10.06%

Posted by whostolemyendowment @ 11:20 AM 2 Comments

have a puffin to calm nerves..

bbc: Nerves over Iceland stock market

Investors in Icelandic banks are watching nervously as the country's stock exchange re-opens. Trading was suspended last week after days of market turmoil and the government's decision to nationalise Iceland's three major banks.

Posted by mark @ 11:08 AM 0 Comments

The Actual Treasury Statement in Full

HM Treasury: ury statement on financial support to the banking industry

The key phrase thats is getting evryone excited is "maintaining, over the next three years, the availability and active marketing of competitively-priced lending to homeowners and to small businesses at 2007 levels" Hmmmmm...

Posted by luckyjim @ 11:07 AM 3 Comments

Govt. announcement on bail outs and nationlisation

Firstrung: Financial support to the banking industry - HM Treasury statement

HM Treasury statement: With continuing exceptional instability in the global financial markets, the Government is today taking decisive action, by implementing the comprehensive set of measures it announced on 8 October, to make commercial investments in UK banks and building societies to help stabilise their position and support the long term strength of the economy... The overall aim of these measures is to support stability in the financial system; to protect ordinary savers, depositors, businesses and borrowers; and to safeguard the interests of the taxpayer. In summary, the measures intend to:

Posted by converted lurker @ 10:54 AM 0 Comments

Safe haven

Times: Frightened investors pile into property

Investors who have lost faith in the banking system are turning to property as a safe haven for their cash. Estate agents have identified a growth in interest from cash buyers, who want something tangible for their money rather than depositing it with banks they no longer trust. Experts said that the market downturn made the case for investment in residential property more compelling. Mr Bailey said: Now that capital prices are down 15 to 20 per cent on last years values, and even more for new-build property, the investment case is more compelling for residential property.

Posted by little professor @ 10:54 AM 47 Comments

"RBS and Lloyds/HBOS promise to return mortgage lending to 2007 levels" is misreporting

bbc news: The Treasury's statement in full

The tresury report acrually says: "maintaining, over the next three years, the availability and active marketing of competitively-priced lending to homeowners and to small businesses at 2007 levels" Which is very different from saying they will lend the same amount as in 2007.

Posted by dim st thomas @ 10:53 AM 0 Comments

they can't pay their bills...lol

wsj: Starbucks Leases in Dispute

Starbucks, which is facing slow sales and weak earnings growth as customers cut back on lattes and Frappuccinos, intends to shut down more than 600 U.S. locations by early next year as part of a broader plan to revive the company. The lease battles represent a turnabout for Starbucks, which has been one of the most sought-after retail tenants of the past decade. The chain helped draw other retailers to shopping centers and spent top dollar to get the best real estate during its rapid U.S. expansion. Some landlords contend Starbucks is paying rent late or darkening stores before specifying the closure dates to make the landlords wary of a fight and to pressure them into letting the company out of leases for a price they deem too low.

Posted by mark @ 10:46 AM 9 Comments

Gov'mt appoints property VI to head RBS

BBC News: Bank chiefs quit after rescue bid

The new chief executive of RBS will be Stephen Hester. He is currently the chief executive of British Land. Unbelievable!

Posted by cynicalsoothsayer @ 10:37 AM 1 Comments

More puffin Thor, no thanks i have some seal said Johannes

bloomberg: Icelandic Shoppers Splurge as Currency Woes Reduce Food Imports

will this happen in the UK? if we cannot get grain etc..

Posted by mark @ 10:27 AM 4 Comments

Oh Lordy!

Bloomberg: Fed Says ECB, Others to Offer Unlimited Dollar Funds

Oct. 13 (Bloomberg) -- The U.S. Federal Reserve said central banks will offer financial institutions unlimited dollar funds, backing up efforts by governments to restore confidence in markets. The ECB, the Bank of England and the Swiss central bank will conduct dollar auctions with maturities of seven days, 28 days and 84 days at a fixed interest rate, the Washington-based Fed said on its Web site today. The Bank of Japan will consider introducing ``similar measures.'' Million, Billion, Trillion, Quadrillion.... Oh F@ck it! Unlimited Money! Yeeeha!

Posted by flintster1994 @ 09:48 AM 7 Comments

Forlorn Hopes

Home.co.uk: Bail-out Plans Offer Hope to Sellers

The last month has been a truly extraordinary one for the UK housing market. The UK government pledged up to 500 billion to buy shares in UK banks, extend loans and underwrite inter-bank loans. The Bank of England (BoE), meanwhile, took the unprecedented step of cutting the base rate by 0.5% in concert with several other central banks including the US Fed and the ECB. An immediate effect of these dramatic moves has been to raise hopes amongst home sellers that UK house prices may be spared further falls.

Posted by tinecu @ 09:37 AM 0 Comments

Robert's summary of today's developments

BBC - Robert Peston's blog: Momentous Monday

See item 2 - RBS and Lloyds/HBOS promise to return mortgage lending to 2007 levels

Posted by pelethar @ 09:15 AM 97 Comments

When they Create the Debt, they do not create the Interest.

Sky News: Banks To Get 37bn From Taxpayer

The Government says it has agreed to bail out three high street banks - RBS, HBOS and Lloyds TSB - to the tune of 37bn. The announcement came after Royal Bank of Scotland said it would be raising 20bn of new capital including 5bn in cash from the Government. As part of the deal the bank's under-fire chief executive Sir Fred Goodwin is to stand down. Lloyds TSB is also to raise 5.5bn of new capital, and is also revising the terms of its takever of rival HBOS. Barclays has confirmed it plans to raise more than 6.5bn of extra capital from investors - not from the Government - to strengthen its balance sheet. The group also said it will not be paying a 2bn dividend for the 2008 financial year.

Posted by malct @ 08:48 AM 2 Comments

Yesterday was ''the hour of Europe, demonstrating its unity,''

Bloomberg via SOTT: Europe Guarantee Banks to Halt Financial Meltdown

European leaders agreed to guarantee new bank debt and use taxpayer money to keep distressed lenders afloat, trying to stop the worst rout in Europe's stock markets in two decades and stave off a recession. At a summit chaired by French President Nicolas Sarkozy, leaders of the 15 countries using the euro hammered out an unprecedented battle plan for bandaging the crippled credit markets and halting panic among investors.

Posted by malct @ 08:39 AM 0 Comments

The End

Telegraph: Financial crisis: Markets to decide on HBOS and RBS 'nationalisation'

Now everyone can borrow as much as they want, free at the point of delivery regardless of their ability to pay

Posted by matt_the_hat @ 07:05 AM 8 Comments

Sunday, October 12, 2008

As we are supposed to be talking about house price crashes, I thought I might put this one up

Times: Property slump finally hits the baby boomers?

Another article about how people who thought their house was their pension are now realising that it isn't going to pay up. But what is interesting is the paragraph halfway down which says 'Mead believes that, for most people, it makes sense to hang on in not least because of the dearth of potential buyers. After the crash of 1989, it took seven or eight years for prices to come back, he says. This time its different, because everything has happened so quickly. Prices have dropped by 25% in six or seven months, so it should take only three or four years for them to come back. ' No it's not. The crash has only just started, and prices won't "come back" for a very long time, if ever.

Posted by jonb @ 08:59 PM 13 Comments

trading in the banks on the London stock market being suspended

yahoo oh yes that's how bad it is: British govt to take control of two major banks Monday: reports

LONDON (AFP) - The British government will announce plans Monday to take controlling stakes in Royal Bank of Scotland and HBOS, two of the banks worst affected by the financial crisis, reports said. (Advertisement) The unprecedented move would make the government the biggest shareholder in the banks and government representatives could be installed on their boards, the Sunday Times and Sunday Telegraph newspapers reported Sunday. The scale of the operation could lead to trading in the banks on the London stock market being suspended to allow traders to digest the news, the reports said. A banking source told AFP that four banks -- RBS, HBOS, Lloyds TSB and Barclays -- will announce before markets open Monday they are taking up the offer of the government's bailout

Posted by malct @ 08:35 PM 19 Comments

Total Incompetence, Hold Them To Account!

TimesOnline: Councils invested 100m in Iceland despite warnings

"Local authorities poured almost 100m into Icelandic banks for nine months after being warned about the risks of investing in them. Town hall leaders have claimed that they were told of the dangers only a few weeks ago, leaving them with little time to react. The councils were told months ago that the banks were being downgraded by credit rating agencies because of fears about their stability, but they still invested another 93m until last Monday when the main Icelandic banks were nationalised."

Posted by renting2 @ 07:59 PM 14 Comments

Try again

Mail Online: See below

See below

Posted by p. doff @ 06:50 PM 5 Comments

Imagine that!

Mail online: Grant Bovey loses BTL empire

Further to the denials and threats of legal action---------

Posted by p. doff @ 06:33 PM 17 Comments

Banks Get Nationalised Tomorrow

Bloomberg.com: Brown Says Euro Region May Pursue `Comprehensive Plan' on Banks

Prime Minister Gordon Brown said he discussed a ``comprehensive plan'' of measures with European leaders to help stem the financial crisis and the British premier believes they will press ahead with the proposals. Brown, speaking to reporters in Paris after an emergency summit, said the discussions involved measures to recapitalize banks, add funds to the financial system and guarantee lending. Was unable to transfer funds electronically from HBOS tomorrow. Next available date 14th October 2008.

Posted by plato @ 06:10 PM 6 Comments

Credit Crises hits shipping

financialpost Canada: Grain piles up in ports

"There's all kinds of stuff stacked up on docks right now that can't be shipped because people can't get letters of credit," said Bill Gary, president of Commodity Information Systems in Oklahoma City. "The problem is not demand, and it's not supply because we have plenty of supply. It's finding anyone who can come up with the credit to buy." So far the problem is mostly being felt in U. S. and South American ports, but observers say it is only a matter of time before it hits Canada.

Posted by mountain goat @ 04:53 PM 13 Comments

Ukraine's government seized Prominvestbank this week, suspending payments to creditors.

Telegraph: Financial crisis: Countries at risk of bankruptcy from Pakistan to Baltics

A string of countries face the risk of "going bust" as financial panic sweeps Asia, Eastern Europe, and Latin America, raising the spectre of a strategic crisis in some of the world's most dangerous spots. Nuclear-armed Pakistan is bleeding foreign reserves at an alarming rate leading to fears that it could default on its loans. There are mounting fears that Ukraine, Kazakhstan, and Argentina could all now slide into a downward spiral towards bankruptcy, while western banks exposed to property bubble across Eastern Europe have seen their share price crushed. The markets are pricing an 80pc risk that Ukraine will default, based on five-year credit default swaps (CDS) an insurance policy on a country being able to pay its debts. UK vision blinkered as usual

Posted by malct @ 04:51 PM 2 Comments

Poor Old Abbey

TimesOnline: Philip Falcone shorts Santander

PHILIP FALCONE, the American hedge-fund manager who made a killing by betting against the shares of HBOS, now has the UKs second-largest retail bank in his sights.

Posted by renting2 @ 04:41 PM 2 Comments

is this a statement or a warning?

CNNMoney: Read the text of Bush's speech

And we agreed that we ought to work with other nations such as those that will be represented this afternoon in the G20 forum. As our nations carry out this plan, we must ensure the actions of one country do not contradict or undermine the actions of another. In our interconnected world, no nation will gain by driving down the fortunes of another. We're in this together. We will come through it together. I'm confident that the world's major economies can overcome the challenges we face. There have been moments of crisis in the past when powerful nations turned their energies against each other, or sought to wall themselves off from the world.

Posted by plato @ 02:38 PM 6 Comments

20 million have lost their jobs....

Times: China: all bets are off

China Central Television, for example, recently broadcast a report prepared for the cabinet saying that 67,000 companies have gone bankrupt in the first half of the year and 20m workers have lost their jobs.

Posted by mark @ 02:00 PM 3 Comments

How about UK petrol prices huh!!!!! When we will see drops? NEVER because....

CNN: Gas(petrol) prices: Down 10 cents in 2 days

Gasoline prices are within 25 cents of $3 but remain some 19% above year-earler levels.

Posted by mark @ 01:51 PM 10 Comments

Bank bail-out latest

BBC: Banks may get bail-out on Monday

The first banks to receive money under the UK government's bank rescue scheme could do so as soon as Monday morning. The banks and the Treasury are working on announcements to be made before the markets open, according to BBC business editor Robert Peston. He says the first banks to take up the recapitalisation are likely to be HBOS and Royal Bank of Scotland (RBS). A key aspect of the announcements will be what the government requires the banks to do in return for the cash.

Posted by jack c @ 12:18 PM 38 Comments

PM's having a laugh, surely.

BBC: UK will lead the way, says Brown

Gordon Brown has promised Britain will "lead the way" through the global financial crisis ahead of an emergency summit of European leaders in Paris. Oh really!? Writing in the erudite organ of insight and wisdom that is the Sunday Mirror, the prime minister said he would urge Europe to copy his blueprint to end the turmoil. Laugh? I nearly cried.

Posted by harold @ 01:02 AM 13 Comments

Saturday, October 11, 2008

Video: George Soros Criticises Market Fundamentalism and offers Alternatives

PBS.org: Bill Moyers Journal

Thoughtful stuff by Soros worth a watch. BILL MOYERS: does this financial meltdown represent the end of the American dream as they have known it? GEORGE SOROS:No. No. I think it's got nothing to do with the American dream as such. There has been some kind of an ideological excess; namely, market fundamentalism for the last 25 or so years. And now that world is collapsing...

Posted by mountain goat @ 10:41 PM 18 Comments

"Parallel universe" celebrates property crash

BBC: Iran celebrates global meltdown

President Ahmadinejad has pronounced on the collapse of global capitalism, and announced that Iranians should stand ready to manage the world. Mr Ahmadinejad, who says he is proud of his ignorance of economics, also seems to believe the laws of supply and demand do not apply to the Islamic republic. He insists the excess amounts of cash in the economy, excess liquidity, is in no way to blame for the spiralling rate of inflation - 25% and counting.

Posted by night @ 10:30 PM 11 Comments

The A-Z of the UK's Mortgage, Banking and Economic Woes

Times: Why you will feel the pain of the global market slump

Awesomely detailed article from the Times that must have taken all week to write, if there is one article you read this weekend this is it!

Posted by enuii @ 09:50 PM 7 Comments

Sadly HPC Blog does not make the shortlist

Times: Top ten blogs to read during the banking crisis

DailyMash makes the shortlist and rightly so.

Posted by denzil @ 08:57 PM 5 Comments

IMF Getting Serious

Reuters: IMF warns of financial meltdown; Europe seeks unity

WASHINGTON/COLOMBEY-LES-DEUX-EGLISES, France (Reuters) - The IMF warned on Saturday that the global financial system was on the brink of meltdown, while France and Germany pushed ahead with a pan-European crisis response to try to prevent the worst global downturn in decades. At a joint news conference, French President Nicolas Sarkozy and German Chancellor Angela Merkel said they had "prepared a certain number of decisions" to present at a Sunday meeting of European leaders as they work feverishly to restore blocked credit markets to working order.

Posted by plato @ 08:21 PM 9 Comments

All I wanted was affordable house prices - and all I got was this lousy global meltdown!

Crooks and Liars: Iceland Teetering Too (8th Oct - but worth a read)

The strategy gave Icelanders one of the world's highest per capita incomes. But now they are watching helplessly as their economy implodes their currency losing almost half its value, and their heavily exposed banks collapsing under the weight of debts incurred by lending in the boom times.

Posted by whostolemyendowment @ 06:38 PM 0 Comments

What to have for breakfast

YouTube: Breakfast Time

Depends on your sense of humour. I found it funny anyway.

Posted by new_order @ 06:20 PM 2 Comments

I think I need a beer!

Telegraph: G7 meeting: The five-point rescue plan

Edmund Conway - The details of the five-point rescue plan drawn up to stem the global financial crisis.

Posted by alan @ 04:33 PM 15 Comments

A permanent meetup/networking resource for hpc.co.uk

meetup: Housepricecrash meetup group

Meetup group to organise titan's meetups and to allow members to contact each other independently. You only need to add an e-mail address and username. Clearly, if you want privacy, get a spoof e-mail address.

Posted by planning4acrash @ 01:25 PM 22 Comments

UK Property blog breaks into top 16,000 sites in UK

HIP-Consultant.co.uk: HIP-Consultant.co.uk breaks into Alexa Top 200,000

HIP-Consultant.co.uks UK Property blog is a relatively new addition to our website which is now nearly close to a year in existence. Our focus on quality and dedication in providing the information our readers are looking for seems to be gaining recognition and an increased Alexa traffic ranking.

Posted by hip-consultant.co.uk @ 01:04 PM 0 Comments

Let's hope that by the time we hit 3.5 x salary, we still have salaries!

Evening Telegraph: House prices in Northamptonshire fall to less than 100,000

House prices in Northamptonshire have fallen below 100,000 this week with properties on the market for less than they would have cost in 2006.

Posted by whostolemyendowment @ 12:11 PM 2 Comments

Ignorance is bliss

BBC: People 'unaware' of pension risks

Millions of people are being encouraged to take too much risk with their pensions, the government-funded Pensions Advisory Service has warned. It said workers who pay into pension schemes which invest heavily in shares may not be aware of the risks.

Posted by stevie dee @ 10:22 AM 17 Comments

can anyone tell more about this, sky and yahoo are stuck for words

Yahoo: HBOS Crisis Nearly Wiped Out Virgin

HBOS Crisis Nearly Wiped Out Virgin

Posted by mark @ 10:11 AM 23 Comments

Doesn't Matter What The BoE Does.

BBC NEWS: Interbank lending in deep freeze

"The rate at which banks lend to each other has risen despite aggressive measures from governments worldwide to tackle the credit freeze." .................. "Three-month Sterling Libor has risen to 6.285%, while three-month euro Libor stands at 5.366% - near 14-year highs."

Posted by renting2 @ 09:43 AM 18 Comments

The Ghost Train in the Underground.

Daily Mail: Welcome to Britain

A current perspective, although open for interpretation , the train driver is Gordon and the tramp is the economy,or maybe the train? The hoodie, a refugee from canary wharf .God bless .

Posted by camping @ 09:08 AM 6 Comments

The hair-trigger mentality of the market was evident from the opening bell.

SOTT for Assoc Press: U.S. Stocks end worst week mixed after wild session

NEW YORK - Wall Street capped its worst week ever with a wild session Friday that left stocks with a widely mixed finish. Late-day buying helped curb steep losses and gave the market its best showing of the week as investors snapped up bargains among stocks devastated by seven days of massive losses. The Nasdaq composite index finished with a modest gain, while the Dow Jones industrials lost 128 points, a relatively mild drop after the blue chips fell 2,271 during the previous eight trading days. Still, the Dow, which traded in a range of 1,019 points Friday, had its worst week ever, as did the Standard & Poor's 500 index. "Fear has been running rampant all over the Street. Fear and greed, that's what rules the Street. I think the carcass has been stripped to the bone,"

Posted by malct @ 08:51 AM 7 Comments

'After the horse has bolted' comes to mind

Telegraph: Negative equity is not so scary if you've planned ahead for it. By Edmund Conway

...we are facing the worst housing crash since the 1930s, not to mention the worst financial crisis. But the first piece of advice I give is still the same: you should only buy a place if you are sure you can afford it, and provided you don't assume the price will go up.

Posted by suzyandjoe @ 07:48 AM 3 Comments

Friday, October 10, 2008

Another chap who's been predicting this for years.

Bob Chapman's - The International Forecaster: Massive Gains Wiped Out in Markets Despite Everyone Being Warned

(includes interesting analysis of commodities markets, that I confess to not fully understand) "Indeed, the party is over. You have all watched in horror as five years worth of stock market gains have been vaporized since the peak on October 9, 2007, almost exactly one year ago, when the Dow closed at a bogus 14,164.53. All the gains for the past 8 plus years have been illusory, and the losses suffered over the past year are the direct outcome of an economy that has been based on nothing but smoke and mirrors ever since the dot.com collapse in 2000. - The bailout was a stealth bailout of the Federal Reserve Bank itself, which was almost bankrupt. - AIG could potentially take down the entire European banking sector due to swaps it had insured on European banks.

Posted by planning4acrash @ 11:34 PM 2 Comments

Gordon Browns government accused of complacency over Icelandic Banks

BBC: UK 'ignored Iceland bank warning'

Gordon Browns government has been accused of "complacency" after it apparently ignored warnings in July that Icelandic banks were facing collapse as Lib Dem peer Lord Oakeshott and Tory MP Michael Fallon both raised the issue with ministers on separate occasions.

Posted by enuii @ 10:53 PM 5 Comments

The banking crisis is just chills before the flu sets in

Reuters News - James Saft: What comes after the Great Unwind?

While the banking crisis is deadly serious, even when its over the Anglo Saxon economies have the hard part yet to do. Saving more, spending less and exporting god knows what to god knows who. Ugly

Posted by edna freefall @ 09:07 PM 0 Comments

Tip of the global ponzi scheme!

FT: A cruel wind

....after a week in which Icelands top three banks collapsed and were nationalised putting more than 20bn ($27bn, 16bn) of depositors money in jeopardy across Europe fame is turning into notoriety. As Geir Haarde, prime minister, warned this week: The danger is real that the Icelandic economy would be sucked, along with banks, under the waves and the nation would become bankrupt.

Posted by whostolemyendowment @ 08:58 PM 0 Comments

Some Kind Of Rescue !

Halifax removes tracker mortgages: Telegraph.co.uk

Halifax has removed a number of tracker mortgage following Wednesday's 0.5 per cent cut in the Bank of England's interest rates. The UK's biggest mortgage lender was one of the first to announce it would be passing on the interest rate cut to borrowers. But as a number of other banks failed to pass on the interest rate cut earlier this week, with others pulling some of their most competitive deals, Halifax has moved to ensure they keep a proportionate amount of new business. Halifax claims it is the last man standing as a number of banks and building societies have withdrawn their tracker mortgages.

Posted by plato @ 08:58 PM 10 Comments

Article a few days old (light years in current climate) but worth a read

Guardian: A house of cards starts to fall

The property collapse could drag down banks, builders - and even the country's hippest estate agent, writes Nick Mathiason ***For those of us who hate Poxtons see last few paragraphs

Posted by whostolemyendowment @ 08:30 PM 0 Comments

Clarkson ain't so smug now!

Independent: Clarkson among rich clients hit by closure of AIG investment fund

Thousands of Britain's richest investors stand to lose as much as 25 per cent of what they believed to be a "low-risk" investment, after a run on an AIG investment fund forced the troubled insurer to take emergency measures to close the portfolio down. The television presenter Jeremy Clarkson is known to be one of those who may lose out, after he was advised to transfer a large sum of money into the troubled fund, just weeks before it ran into trouble.

Posted by whostolemyendowment @ 08:23 PM 0 Comments

This is a gem. How wrong they all were. How short the media's memories are.

H M Treasury: 20 June 2007 Speech by the Chancellor of the Exchequer, the Rt Hon Gordon Brown MP, to Mansion House

Pick your best quotes. My favourite? "So I congratulate you Lord Mayor and the City of London on these remarkable achievements, an era that history will record as the beginning of a new golden age for the City of London." and "enhancing a risk based regulatory approach, as we did in resisting pressure for a British Sarbannes-Oxley[sic] after Enron and Worldcom". Oh dear oh dear oh dear.

Posted by paul @ 07:19 PM 9 Comments

At Last an Honest Estate Agent

Estate Agency News: 300bn Wiped Off Property Values Since January

Berkshire has been the hardest-hit county so far, with the average home recording a daily loss of 75.51, or a weekly value drop of 528.57. Dorset has also suffered from the recent slump with average values down 64.58 per day or 452.06 per week since the start of the year.

Posted by yoyo1 @ 05:48 PM 6 Comments

No HPC.....but set my blood boiling.......Greenspan is member of its advisory board of Paulson & Co!

ADVF News: Short Selling Disclosure-ROYAL BANK OF SCOTLAND G

Short Selling Disclosure-ROYAL BANK OF SCOTLAND G RNS Number : 6085F Paulson & Co. Inc. 10 October 2008 *** See also www.prnewswire.co.uk/cgi/news/release?id=216777

Posted by whostolemyendowment @ 05:38 PM 2 Comments

How about a bit of house price news for a change?

Yahoo news: BTL owners worst hit

'Owners of buy-to-let properties are among the worst hit by falls in housing prices. Researchers compiling a top 10 list of places suffering the largest price drops discovered it was dominated by regeneration sites in Northern city centres, which have proved popular with buy-to-let investors. Many buyers of such properties, often in new developments on old brownfield or industrial sites alongside canals or rivers, have since seen their investments lose thousands in value.'

Posted by montesquieu @ 04:23 PM 15 Comments

99p start price no reserve

eBay: Country for sale: ICELAND

Unique opportunity to buy a Northern European country: Iceland. Established in 874 by Inglfur Arnarson Iceland is the least populous of the Nordic countries with a population of about 320,000 and a total area of 103,000 km.. Located on the Mid-Atlantic Ridge in the North Atlantic Ocean, Iceland will provide the winning bidder with - a habitable environment, Icelandic Horses and admittidly a somewhat sketchy financial situation. Big Towns and Cities including: Reykjavk, Kpavogur, Hafnarfjrur, Akureyri & Reykjanesbr. PLEASE NOTE: GREENLAND AND Bjrk ARE NOT INCLUDED IN THIS AUCTION! Offered at 99p start price and without reserve!!!!!

Posted by sid public @ 04:23 PM 18 Comments

Good News For HPC

BBC NEWS: Blow for new mortgage borrowers

"The number of mortgage products available to new borrowers hit its lowest figure since the start of the credit crunch, according to Moneyfacts. On Friday there were 3,281 mortgages available for new borrowers, compared with 10,726 a year ago, the financial information service says." Thought they were meant to be passing the money on.

Posted by renting2 @ 04:20 PM 3 Comments

A sign of the times!

BBC: US debt clock runs out of digits

The US government's debts have ballooned so badly the National Debt Clock in New York has run out of digits to record the spiralling figure. The digital counter marks the national debt level, but when that passed the $10 trillion point last month, the sign could not display the full amount.

Posted by who stole my pension? @ 02:59 PM 7 Comments

Named and Shameless

MSN: As Banks Broke Down, CEOs Cashed In

Many CEOs who led their banks and brokerages into the subprime abyss collected millions through salaries, stock options and bonuses. Equilar, an executive-compensation research firm in Redwood Shores, Calif., helped columnist Michael Brush take a look at what some of the key players earned over the past three years as the nation's banks went bust.

Posted by renting2 @ 02:52 PM 3 Comments

The Dow Jones Index opened over 7% down amid a dismal day on the world markets.

Sky News: Dow Plunges Over 7% Amid Turmoil

The fall follows London's FTSE, which has suffered one of its worst weeks in history. It is now trading at around 9% down. France CAC 40 and Germany's DAX have also plunged today, both down over 9%. This morning the Asian markets closed, with the Japanese Nikkei down 9.62% - its biggest one-day drop since Black Monday. World makers have been in turmoil since the Dow reached a five year low in trading yesterday, dipping below 9,000 points for the first time in five years. President Bush is set to address the American public in response to the financial crisis, as fears that the global economy is in recession grow.

Posted by malct @ 02:47 PM 46 Comments

Housing related article!

The Guardian: Annual decline is deeper than 90s recession, says Halifax

Apparently the housing market's not looking too healthy.

Posted by l davis @ 02:37 PM 0 Comments

this is real recession stuff now...

yahoo: Metals sell-off hits miners

how long before depression?

Posted by mark @ 01:19 PM 5 Comments

Since the peak last Oct. 9 a year ago today the index is down 42 percent.

New York Times: Seven Days in October

Every year, when Oct. 19 approaches, people speak darkly of the crash. On that day in 1987, the Standard & Poors 500-stock index fell 20.5 percent. This is the crash of 2008. But so far in October after only seven trading days the S.&P. is down 22 percent. The only other time since the Depression that there was that large a fall within seven days was in 1987. This time, we were in a bear market before the October plunge began. Since the peak last Oct. 9 a year ago today the index is down 42 percent. Directly after the 1987 crash, the Fed slashed rates and made cash available to the banks. That helped to stem the panic. This year, the Fed had done all that and much more before the crash came. see also http://www.sott.net/articles/show/167262-Seven-Days-in-October

Posted by malct @ 01:18 PM 42 Comments

Removing Deposit Insurance Limits Also on the Table

wsj: U.S. Weighs Backing Bank Debt

The U.S. is weighing two dramatic steps to repair ailing financial markets: guaranteeing billions of dollars in bank debt and temporarily insuring all U.S. bank deposits. If the two moves come to fruition they would mark the government's most extensive intervention yet in the financial system, as officials ponder increasingly far-reaching measures to stem the sprawling crisis.

Posted by mken @ 01:11 PM 0 Comments

credit crisis claims its first real estate investment trust (Reit) victim

Citywire: Credit crisis claims first Reit victim

UK property firms are under pressure after the credit crisis claimed its first real estate investment trust (Reit) victim. Overnight a Japanese Reit, New City Residence (NCR), filed for bankruptcy. The trust has total liabilities of 112.4 billion yen ($1.13 billion). The trusts share price closed at 71,000 yen on Thursday, about 90% below its peak in May 2007.The blow up destroyed sentiment in the Japanese Reit sector. The Tokyo Stock Exchange Reit index halved in value to hit its lowest level since its 2003 inception. In London, the Reit firms suffered steep losses as they digested the news. Land Securities Group PLC, down 87p to 11.00, was among the biggest fallers on the Footsie.

Posted by jack c @ 12:21 PM 6 Comments

no more chelsea fc soon....

bloomberg: Abramovich, Deripaska, Oligarchs Lose $230 Billion

Russian billionaires from aluminum magnate Oleg Deripaska to soccer-club owner Roman Abramovich lost more than $230 billion in five months during the nation's worst financial crisis since the 1998 default on its debt. The combined wealth of Forbes magazine's 25 richest Russians tumbled 62 percent between May 19 and Oct. 6, based on the equity value of traded companies and analysts' estimates of closely held assets they own. The loss is four times larger than the fortune of the world's wealthiest man, Warren Buffett.

Posted by mark @ 12:07 PM 9 Comments

Was Blanchflower Right?

Bloomberg: Roubini Urges 1.5 Point Rate Cut to Avert Disaster

Nouriel Roubini, the professor who two years ago predicted the financial crisis, said world financial officials should orchestrate interest-rate cuts of at least 1.5 percentage points to help avert a depression.

Posted by alan @ 12:05 PM 4 Comments

Silver lining

London Evening Standard: Goodbye turbo-lifestyle we wont miss you

"Foxtons' difficulties symbolise one of the biggest silver linings of the crisis: house prices are coming down. Yes, of course this will hurt the economy, and some recent buyers (especially those who used Foxtons) will land in negative equity. But most homeowners will still have made money. Their profits will merely be less than they once were. And thousands of Londoners on average incomes might now actually be able to live in London. Thousands more will see slightly less hideous proportions of their salaries eaten up by their houses. Homes will once again be for living in, not for making money out of. "

Posted by doomwatch @ 12:02 PM 3 Comments


Propheties: Crisis

Are we sure that the current accoujnts are safe? For example, in the UK the first 50,000 are guaranteed for every person and for every financial group. In practice you must not have more than that figure in your account if you are to remain protected. Chancellor Darling and Mr. Brown affirmed that 98% of accounts are in this range.

Posted by mario @ 12:00 PM 3 Comments

The stupidest place to put your cash right now

MoneyWeek: The stupidest place to put your cash right now

Banks are on shaky ground. Safe havens are hard to find. But despite what some people may say, the one place you most certainly don't want your money right now is in property.

Posted by damien @ 11:51 AM 10 Comments

US Goldman Sachs ex CEO Henry Paulson, as Treasury Secretary, is not stupid.

geoeconomics /Engdahl: Behind the Panic: Financial Warfare over Future of Global Bank Power

Using panic to centralize power There is serious ground to believe that US Goldman Sachs ex CEO Henry Paulson, as Treasury Secretary, is not stupid. There is also serious ground to believe that he is actually moving according to a well-thought-out long-term strategy. Events as they are now unfolding in the EU tend to confirm that. What's clear from the behavior of European financial markets over the past two weeks is that the dramatic stories of financial meltdown and panic are deliberately being used by certain influential factions in and outside the EU to shape the future face of global banking in the wake of the US sub-prime and Asset-Backed Security (ABS) debacle.

Posted by malct @ 11:18 AM 11 Comments

FTSE100 under 4,000

Reuters: Sterling on track for worst wk vs dlr in 16 years

The pound was also on track for its worst week against the euro since the single currency's inception in 1999

Posted by alan @ 11:17 AM 6 Comments

tescos need to be stopped brown has been in their pockets too long

reuters: Woolworths sells up to 9 store leases to Tesco

It said proceeds from the disposals, which are expected to take up to six months, will be used to reduce group borrowings.

Posted by mark @ 11:10 AM 2 Comments

Many lenders are showing their true colours right now.

Telegraph via SOTT: Major UK mortgage lenders fail to pass on rate cut

Homebuyers could see their mortgage costs rise despite the interest rate cut, after some banks yesterday failed to pass on the cut while others pulled some of their most competitive deals. Abbey announced it was increasing all its tracker home loan deals by 0.5 percentage points, meaning new customers will pay exactly the same as when the bank rate was at 5 per cent. And along with Nationwide, it said it would not be passing on the half percentage point drop in rates to customers through its standard variable rate. Experts suggested other lenders were likely to follow suit to prevent them becoming the best deals on the market and being inundated with applications.

Posted by malct @ 11:00 AM 4 Comments

So Japan Isn't Safe

AFP: Financial crisis brings down Japanese insurer

TOKYO (AFP) The credit crunch claimed its first victim among Japan's financial institutions Friday as hopes faded that Asia's largest economy would be relatively immune to the crisis.

Posted by renting2 @ 10:48 AM 3 Comments

This week, America's quiet revolution started in an unlikely place. Cook County (Chicago)

Sun Times and others via Truthseeker: An End To Bush's Potemkin Economy

Where mortgage firms see pieces of paper, my deputies see people. Yet no matter how difficult they are, evictions are part of our job. But perhaps no part of our job is as difficult as the work done by our eviction units. What isn't part of our job, however, is to carry out work on behalf of the multi-billion-dollar banks and mortgage industries. Too many times, our deputies arrive at a home to carry out a mortgage foreclosure eviction, only to find a tenant -- dutifully paying their rent each month -- who is unaware their landlord stopped using that rent money to pay the mortgage. They had no fair warning that they were about to be thrown out of their home."

Posted by malct @ 10:43 AM 2 Comments

Another day, another reckless throw of the dice ...

Telegraph: Financial crisis: Rising unemployment on the way as recession looms

Mr Purnell pledged that ... Those who are made redundant will get help to pay their mortgage after 13 weeks on the dole up to the value of the average house - 175,000. Dude WTF!?! The underlying message is: "If you are worried about losing your job, rush out and buy a property for 175,000 or less and you can live there rent- and mortgage-free" Subsidies for land and property ownership are the very worst kind of subsidies* as these are in fixed supply, so subsidies just feed through into artificially high prices. Being repossessed is stressful, I agree, but that house doesn;t get demolished - the new owner either lives in it or rents it out - ultimately to the very people who were repossessed in the first place. * By reverse logic, taxes on land values are the least bad taxes, of course.

Posted by mark wadsworth @ 10:39 AM 14 Comments

Self Preservation Society

Youtube: The Italian Job 1969 - Michael Caine

Just thinking.. think this is pretty apt for the occasion.

Posted by stevie dee @ 10:06 AM 0 Comments

Discussion of Fractional Reserve Banking in Mainstream Media!!!

The Guardian: The next burden: inflation

Excellent article. He may turn out to be wrong in his conclusion that we face serious inflation, but his analysis of the current situation will hopefully get more people thinking about the causes of the current maelstrom. One of the first mentions of FRB in the MSM that I have seen!!

Posted by peppersauce @ 09:45 AM 3 Comments

Next stop the Real economy

Debris from the City and Wall Street will destroy innocent lives: Telegraph

It is hard to comprehend the scale of pain that is about to be inflicted on people who least deserve it, says Jeff Randall, but at its heart will be unemployment

Posted by holding out @ 09:25 AM 26 Comments

Better placed to deal with the downturn?

FT: Unfreeze the interbank markets by guaranteeing interbank lending

Gordon Brown is absolutely right in his proposal that the G7 offer state guarantees, on commercial terms (really terms that provide the state with an adequate risk-adjusted return on the funds it commits) to restore life to interbank lending. Banks today dont lend to each other without high-grade security at any but the shortest maturities. When banks dont lend to each other, they dont lend to the real economy - non-financial businesses and households. That is the road to economic disaster. If French officialdom believes the interbank lending market in the eurozone to be in materially better shape than in the UK, it is detached from reality.

Posted by stevie dee @ 09:09 AM 3 Comments

Panic spread across world markets this morning as the FTSE 100 Index dived 10% in early trading.

Sky: Financial Crisis: FTSE Dives 10%

Chancellor Alistair Darling is in Washington for an emergency summit of leading finance ministers. President Bush says he will address the American public later about US efforts to deal with the crisis. And a delegation of Treasury officials is heading to Reykjavik in an attempt to resolve the face-off over the financial meltdown - where millions of pounds of British taxpayers' cash is being held in Icelandic banks.

Posted by malct @ 08:41 AM 111 Comments

Gordon Brown 10th October 2008

Times online: We must lead the world to financial stability

The banking system is fundamental to everything we do. Every family and every business in Britain depends upon it. That is why, when threatened by the global financial turmoil that started in America and has now spread across the world, we in Britain took action to secure our banks and financial system.

Posted by sold out @ 08:36 AM 7 Comments

town halls were considering withdrawing all their cash from private institutions and putting it into

Times: Alistair Darling risking a run on the banks by refusing to bail out town halls

Alistair Darling refused last night to bow to demands by town halls, police authorities and charities to protect 1 billion of taxpayers money held in collapsed Icelandic banks. After an emergency meeting between ministers and council chiefs the Chancellor agreed to give appropriate help in the severest cases. But he rejected their call to extend the guarantee from individual savers to public and commercial bodies who also risk losing their cash. Even as the meeting took place The Times learnt that some town halls were considering withdrawing all their cash from private institutions and putting it into more secure Government bonds. If dozens of councils follow suit this could lead to a damaging run on the banks, local government experts cautioned.

Posted by malct @ 08:25 AM 5 Comments

Historical: Markets in melt down. DOWN 10% @ Open

BLOOMBERG: Europe, U.S. Futures, Asia Shares Slump; Axa, Philips May Drop

European and U.S. index futures plunged and Asian shares tumbled on concern the deepening credit crisis will spur the failure of more financial companies and drive the global economy into recession. The yen and U.S. Treasuries rallied as investors shunned higher-yielding assets.

Posted by stevie dee @ 08:12 AM 0 Comments

Anne's at it again, although with a hint of realism

Timesonline: Still as safe as houses

"The Icesave effect underlines the influence that cash buyers are now having. They are - often ruthlessly - exploiting their purchasing power, knowing that other aspiring purchasers are struggling to obtain mortgages," ....she has such a way with words - she even denegrates the very people who she needs to help her keep her job. More power to the cash buyers, they have the power to help drive the market down further.

Posted by bystander @ 07:40 AM 9 Comments

As widely predicted ...

BBC: Flats see biggest price falls

City centre flats dominate a survey indicating the 10 areas in England and Wales with the biggest annual fall in property prices. Birmingham Canal tops the list - compiled by property website mouseprice.com - after a 17.3% drop in the value of homes in the past year. The study found properties west of the city centre - mostly new-build flats - fell to an average value of 153,500. The list also includes areas in Manchester, Leeds and London.

Posted by mark wadsworth @ 07:27 AM 14 Comments

It's going down......

BBC: Asia share panic after Dow plunge

Tokyo's Nikkei-225 index has dropped 10%

Posted by v stor @ 07:26 AM 0 Comments

To hell with the banks, I want bricks and mortar

Times on line: Frightened investors pile into property

Investors who have lost faith in the banking system are turning to property as a safe haven for their cash. Estate agents have identified a growth in interest from cash buyers, who want something tangible for their money rather than depositing it with banks they no longer trust. The trend is emerging in all corners of the property market, according to one nationwide agent, from high-end mews houses in Knightsbridge to dilapidated two-up two-downs in the East Midlands. Robert Billson, head of Savills in Nottingham, said: There are people with 50,000 who would rather buy a derelict house and board it up for a while than put their money in an Icelandic bank right now.

Posted by eternal sceptic @ 07:23 AM 5 Comments

Is the prime Minister correct or will he rue the day?

Times on line: World must follow my example, says Gordon Brown

The Prime Minister, writing in The Times, urges other governments to put money into struggling banks and offer similar guarantees worth hundreds of billions to persuade the banks to start lending to each other again. Amid indications that the United States is considering such moves, Mr Brown calls for a global solution to a global problem. He says that he never expected to find himself taking a government stake in banks but that countries had to abandon outworn dogmas and embrace new solutions. I am angry at irresponsible behaviour, he said. Where there is excessive and irresponsible risk-taking, that has got to be punished. Banks that signed up to the rescue plan would have to accept there could be no more huge bonus payouts. The days of big bonuses are over.

Posted by eternal sceptic @ 07:19 AM 1 Comments

Which set of statistics can you believe

Times on line: House price fall is smallest in seven months

House prices tumbled for the eight month in a row in September, wiping more than 2,000 from the value of an average home, new figures from the Halifax show. The average property price is now 172,108, down from about 200,000 in September last year. This 13.4 per cent annual fall is the largest decline since Halifax's series began in 1983. Prices in the three months to September were 12.4 per cent lower than in the same period last year, which is another record low. This decline in prices has overtaken the 1990s housing market slump, when the longest run of house price falls was seven months.

Posted by eternal sceptic @ 07:13 AM 0 Comments

Dont worry they can control it....Right!

EWI: Admit It: People Herd - why is the stock market falling so uncontrollably?

"Anybody searching for cause-and-effect logic in the daily gyrations of the market will be disappointed... the market has become a case study in the psychology of crowds, many experts say. During the dot-com boom in the late 1990s, it seemed everybody and their grandmothers were piling into stocks. Now they are bailing out. "Fear is an immensely powerful force Scientists who have studied the brain function have found that the amygdala, the part of the brain that controls fear, responds faster than the parts of the brain that handle cognitive functions."

Posted by techieman @ 06:40 AM 0 Comments

Run on the Banks

Times: Alistair Darling risking a run on the banks by refusing to bail out town halls

The Times learnt that some town halls were considering withdrawing all their cash from private institutions and putting it into more secure Government bonds. If dozens of councils follow suit this could lead to a damaging run on the banks, local government experts cautioned

Posted by mr. plant @ 01:39 AM 0 Comments

Thursday, October 9, 2008

Good to see the "co-ordinated action" yesterday is working...watch the FTSE follow?

CNN: Dow Jones drops 7%

NEW YORK (CNNMoney.com) -- Stocks tanked Thursday afternoon - with the Dow falling nearly 700 points during the session - as panicked investors dumped stocks across the board. Bank lending remained tight as nervous institutions continued to hoard cash. Treasury prices fell, raising their corresponding yields. The dollar gained versus the euro and the yen. Oil and gold prices fell. According to early tallies, the Dow Jones industrial average (INDU) lost 679 points, or 7.3%, after hitting its lowest point since May 27, 2003 during the session.

Posted by eyes_wide_open @ 10:00 PM 0 Comments

UK Anti-Terrorist Laws used against Icelandic Bank Kaupthing!

Telegrath: Financial Crisis: Kaupthing blames collapse on British Government

Gordon Brown and the Treasury made use of anti-terrorist laws to seize Kaupthing, Singer & Friedlander to ensure the stability of the UK financial system and to protect the interests of depositors and taxpayers.

Posted by enuii @ 09:52 PM 26 Comments

IMF activates emergency finance mechanism

BBC: IMF takes action to stem crisis

The International Monetary Fund (IMF) has activated an emergency finance mechanism to help countries hit by the financial crisis. IMF chief Dominique Strauss-Khan said the lending procedure would allow the IMF to react quickly to support countries facing funding problems. The scheme, which was used during the Asian financial crisis in 1997, will help speed up approval of loans. He said the world was "on the cusp of recession", but could still recover.

Posted by jack c @ 09:49 PM 1 Comments

no it was the cow mooing that made ths stock market crash today.was it wet leaves, maybe it was rain

CNN: Shorts blamed for Morgan Stanley plunge

Shares of Morgan and other big banks nosedived Thursday, the same day that the controversial ban on short selling financials ended. But bank stocks didn't do well during the ban either.

Posted by mark @ 09:49 PM 6 Comments

any more ideas? this is like a comedy freak show

CNN: Paulson 'actively' eyes bank investment

The Treasury Department is "actively" looking at buying equity stakes in some of the nation's banks, according to White House spokesperson Dana Perino. At a White House briefing on Thursday, Perino confirmed reports that the United States could soon join the United Kingdom, Iceland and Italy in announcing a plan to inject capital directly into their troubled banking systems.

Posted by mark @ 09:45 PM 0 Comments

Dow Jones plummets below 9000

Google Finance: Google Finance: DJI

The Dow Jones index is trading under 9,000 points, only 4 days after crashing through the 10,000 point barrier. Investors have fled the building...

Posted by brite2006 @ 08:24 PM 0 Comments

We are heading toward infinity

The Cleveland Leader: Sign of the Times: National Debt Clock in Times Square Runs Out of Digits

The National Debt Clock situated near Times Square ran out of numbers as the federal government's debt soared to $10.2 trillion. The billboard style clock, which was erected in 1989 by late Manhattan real estate developer Seymour Durst, was only equipped to handle a debt of up to $9,999,999,999,999. Helps to get your head around these astronomical numbers by actually seeing them. Only we can't even do that now.

Posted by plato @ 07:47 PM 28 Comments

Govt vs. Miners (83) Govt vs. Financiers (08) Both have tried to hold the public to ransom

BBC: UK miners' strike (19841985)

Just reminiscing. How 22 years on.... things aren't different. The miners' strike of 1984 1985 was a major industrial action affecting the British coal industry. It was a defining moment in British industrial relations, and its defeat significantly weakened the British trades union movement.

Posted by stevie dee @ 07:14 PM 0 Comments

Do you know where your pension is invested?

sundayherald: Is your company pension at risk?

Workers who don't have access to a final salary scheme are usually members of a money purchase or defined contribution plan - and these are more shaky. The income you can expect in retirement depends on the performance of the pension fund. In other words, you are exposed to the ups and downs of the stock market. Experts advise members of money purchase plans to at least check where their money is invested. Julian Webb of Fidelity International says: "My suggestion is that everyone makes absolutely sure they understand where their pot is invested and, if need be, make an active decision about it. Switching funds into a more appropriate investment is often a very simple thing to do."

Posted by plato @ 06:50 PM 12 Comments

possible closure with the loss of 265 jobs on Anglesey.

BBC wales: 265 electronics jobs under threat

Eaton Electric, which makes miniature circuit breakers in Holyhead, would close the plant in December 2009. The company said it reflected efforts to "increase efficiency and continue to optimize global competitiveness". It plans to move work to plants in Europe where production costs are up to 35% lower. The deputy first minister said it was a "very grave blow". Workers were told they could go home early on Thursday after being told of the consultation over possible closure.

Posted by mark @ 06:19 PM 3 Comments

House-price-to-earnings ratio will keep falling

MoneyWeek: Finally, some good news on the property market

According to Halifax, the house-price-to-earnings ratio has fallen from its completely absurd peak of 5.84 in July 2007 to a slightly less absurd level of 5.02 this year. Better news still is the fact that the ratio will keep heading down

Posted by damien @ 05:50 PM 35 Comments

A new report says U.S. auto sales will hit recession levels this year, threatening their survival.

CNN: GM, Ford fall sharply as outlook dims

The impact of oil prices at the beginning of the year was mild compared to the squeeze from the credit crunch. As Nigel Griffiths, Global Insight's managing director of global forecasting, points out, expensive oil merely meant that wealth was being transferred to oil-producing countries like Russia from oil-consuming ones like the United States. Now, the credit crunch is destroying wealth and making it impossible for customers to buy. "The impact is worse than if the price of oil had been sustained at $200 a barrel," he said.

Posted by mark @ 05:17 PM 0 Comments

The full list, I reckon it might grow yet.

bbc: In full: Councils facing losses

Here are the councils known to have deposits in the collapsed Icelandic bank Landsbanki or its UK arm Heritable, or in other threatened Icelandic institutions:

Posted by mark @ 05:00 PM 6 Comments

what next

Yahoo: Web traffic jam as people search for financial news

The financial crisis has people flocking to the Internet for the latest money news along with tips on how to salvage investments and save on the routine costs of living. (Advertisement) Visits to websites such as the business-centric Wall Street Journal and economy-focused Yahoo Finance set new records as the US Congress grappled with its 700 billion dollar plan to stop credit markets from imploding. Internet tracker comScore says visits to www.gasbuddy.com, which steers drivers to stations featuring low fuel prices, are up nearly 30 percent and it expects to report spikes in traffic to finance and bargain-hunter websites when September statistics are calculated later this week.

Posted by mark @ 03:42 PM 13 Comments

What about the leaders of the other 23 countries making up the EU,

ICH: The financial crisis could be the euro's death knell and even end the shambolic EU

things are happening so fast perhaps we need to reflect on what really happened. On Saturday, President Sarkozy invited Chancellor Angela Merkel of Germany, Prime Minister Silvio Berlusconi of Italy and Gordon Brown to Paris for an 'emergency summit' to discuss the crisis. 'It is of the essence,' said Mr Sarkozy, 'that Europe should exist and respond with one voice.' This, in itself, was odd enough. Why were only these four governments represented - along with the president of the European Central Bank, the man in charge of the euro? What about the leaders of the other 23 countries making up the EU, many of whom were deeply disturbed at being excluded from this cosy get-together?

Posted by malct @ 03:08 PM 11 Comments

fraud cost us 1.7billion, but banks cost us 300 billion plus+++

reuters: ID fraudsters switch tactics to beat credit crunch

"There is no longer a guarantee that they will get credit by applying assuming another person's identity, so they are instead tapping into accounts which already exist," their report said.

Posted by mark @ 03:00 PM 0 Comments

Key indicators on latest measures (1) overnight money markets/interbank lending (2) Equity markets

Citywire: Co-ordinated rate cut just a 'temporary bandage', says Merrill Lynch report

A report from Merrill Lynch's global currency strategy team describes Wednesday's co-ordinated rate cut as the 'right medicine for the wrong illness.''The surprise coordinated rate cut from the Fed, ECB, BOE, SNB, BOC and the Riksbank marks yet another new chapter in the policy response to the global financial crisis,' the report says. 'But the cut represents only a temporary bandage, in our view, in the fight to shore up the weakness of the global banking system.'

Posted by jack c @ 02:42 PM 10 Comments

more and more filters through the rosy glasses gordon wears until he realises.......

bloomberg: FerroChina Says It Can't Repay Loans, Blames `Crisis' (Update2)

a Chinese steelmaker, said it is unable to repay loans totaling 706 million yuan ($104 million) because of the ``current economic crisis,'' and a further 4.52 billion yuan in loans and notes may also be at risk. Production at FerroChina's plants has been suspended and the mill is in talks with creditors and potential investors, the company said today in a statement to the Singapore Stock Exchange, without identifying companies. The escalating credit crunch has toppled banks in the U.S. and Europe, frozen credit markets and slowed economic growth, curbing demand for China-made products. Steel prices and demand in China have been declining.

Posted by mark @ 02:34 PM 2 Comments

but USA & UK gave you 1500billion where did it go? on a party?

bloomberg: Libor Dollar Rate Jumps to Highest in Year; Credit Stays Frozen

The cost of borrowing in dollars for three months in London soared to the highest level this year as coordinated interest-rate reductions worldwide failed to revive lending among banks for any longer than a day.

Posted by mark @ 02:27 PM 7 Comments

not rocket science is it Gordon!

yahoo: Cash Boost Fails To Thaw Markets

The Government's colossal cash injection has showed no sign of restoring confidence in the financial system as banks rates to lend to each other remained high in the longer term.

Posted by mark @ 02:15 PM 4 Comments

wait for it.... rates will go up

yahoo: Councils Hold Cash Crisis Talks

The Metropolitan Police Authority alone said it had 30m tied up

Posted by mark @ 02:03 PM 23 Comments

Will the success of the bailouts depend on China?

FT Alphaville: [John Kemp] - Follow the Money

The Fed is out of money. The US Treasury is trying to prop them up. But in the end it will need foreign money, the owners of vast amounts of US Treasuries to bailout the financial system. This is a long read, I struggled to follow, but now understand better the relationship between Fed loans, US Treasuries, the value of the dollar and inflation. Read when you have some time, but well worth it. Forget hoarding gold and silver, maybe we need to start learning how to speak Chinese as a way of surviving in the future.

Posted by mountain goat @ 01:47 PM 5 Comments

t's hard to borrow. Tax revenues are declining. States and municipalities are hurting. Get ready for

cnn: For states, it's 'worst-case scenario'

In Nevada, for instance, officials are scrambling to cope with severe declines in housing values and a slide in tourism. As a result, sales taxes for fiscal year 2008 came in 12% lower than projected, property transfer taxes 31% lower and gaming taxes 16% lower. (Nevada has no state income tax.) These shortfalls opened a $1.2 billion hole in the state's $7 billion general fund, which covers Nevada two-year budget cycle, forcing the Gov. Jim Gibbons to impose some drastic cuts. State agencies are being asked to cut their spending by 14%, vacant positions are going unfilled and some staffers in the corrections and secretary of state departments may get laid off. The state drained its rainy day fund and has put off all capital improvement projects not already underway.

Posted by mark @ 01:43 PM 0 Comments

This is what a bailout should be, not giving Bankers money to party with

bbc: Mexico unveils emergency spending

The emergency spending proposals include: stepping up public spending, especially on infrastructure including roads, schools, houses and prisons the construction of a new oil refinery a programme of help for small and medium-sized businesses

Posted by mark @ 01:41 PM 4 Comments

Is this the shape of things to come in UK ?

Wall Street Journal: Housing Pain Gauge

The relentless slide in home prices has left nearly one in six U.S. homeowners owing more on a mortgage than the home is worth, raising the possibility of a rise in defaults --

Posted by lisa c @ 01:33 PM 0 Comments

does fionna whatever her name is work for greggs?

bbc: Bad weather hits Greggs' profits

who wants sausage rolls full of fat in a downturn? 80p for 2p worth of pastry and pigs ears, nose etc mashed up

Posted by mark @ 12:53 PM 22 Comments

Lifting the short ban restores the balance in the marketplace

Bloomberg: Hedge Funds May Help Lower Volatility as Short-Selling Ban Ends

Oct. 9 (Bloomberg) -- The end of a three-week ban on short selling financial stocks may reduce the market's record price swings as hedge funds increase trading.

Posted by malct @ 12:49 PM 6 Comments

Won't be long now ?

dooyoo: Foxtons Reviews

Oh dear. I'll give them till the end of October 08. Not seen any of those snarlying cretins speeding down my local streets since August. The Champagne is on ice.

Posted by doomwatch @ 12:49 PM 7 Comments

Germany in recession

bbc: German exports slump in downturn

"To me, it's clear that GDP shrank in the third quarter. Technically speaking, we are in a recession."

Posted by mark @ 12:48 PM 0 Comments

House Prices Fall At Record Rate

Sky News: House Prices Fall At Record Rate

House prices fell at a new record rate during the last 12 months, losing more than 13% of their value, new figures show. Howard Archer, chief UK and European economist at Global Insight, said: "House prices seem poised to fall substantially further as the fundamentals remain largely negative." "Credit conditions remain extremely tight and this continues to exert upward pressure on many mortgage rates and limit the amount of mortgages available." He's right, 3 month LIBOR has actually GONE UP. Oops.

Posted by doomwatch @ 12:40 PM 0 Comments

a new list of councils stupid enough to put your money in iceland

bbc: Councils fear for Icelandic cash

Local authority leaders are seeking an urgent meeting with the chancellor after it emerged at least 66 councils have cash in troubled Icelandic banks.

Posted by mark @ 12:39 PM 1 Comments

Iceland Stock Exchange on Ice

Yahoo Finance: Iceland Closes Stock Exchange

Trading on the Iceland stock exchange has been suspended until Monday as hundreds of millions of pounds invested by British councils is at risk in the country's crisis. One authority alone - Kent County Council - has 50m deposited in troubled Landsbanki and its UK subsidiary Heritable, as well as Glitnir Bank.

Posted by adrian allen @ 12:26 PM 0 Comments

Where is our FDR?

FDR library: On the banking crisis

Amazing how relevant this fireside chat sounds today. Where is the politician who will come forward and lead in the same way today? "We had a bad banking situation. Some of our bankers had shown themselves either incompetent or dishonest in their handling of the people's funds. They had used the money entrusted to them in speculations and unwise loans. This was of course not true in the vast majority of our banks but it was true in enough of them to shock the people for a time into a sense of insecurity and to put them into a frame of mind where they did not differentiate, but seemed to assume that the acts of a comparative few had tainted them all."

Posted by james @ 12:22 PM 0 Comments

What a shambles..........................who's fault is this?

Reuters: UK slips from top 5 to 44th spot in sound banking survey

Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador and Peru, after a 50 billion pound pledge this week by the government to bolster bank balance sheets.

Posted by sovietuk @ 12:08 PM 5 Comments

Ignore politicians: its time to stop borrowing

MoneyWeek: Ignore politicians: its time to stop borrowing

Politicians have promised vast sums of money to get the markets moving and re-start lending. But the last thing we need to do now, says David Stevenson, is to borrow more money. We need to to pay our debts.

Posted by damien @ 12:03 PM 1 Comments

Letter from Bedford Falls

The Epicurean Dealmaker: Letter from Bedford Falls

This will probably get swamped in the miasma of end-of-the-world predictions, but it has the virtue of actually being written by someone who knows what he's talking about. I know malct will be on talking about Fractional Reserve Banking, but, for the record, he doesn't understand it. This explains how a bank actually works and why the 'bail-out' isn't.

Posted by james @ 11:53 AM 0 Comments

he will get it bailed out...

mail: The real credit crunch: The moment one of Britain's wealthiest bankers crashed his brand new 65,000 Porsche

This is the moment one of Britain's wealthiest bankers experienced a real credit crunch and crashed his brand new 65,000 Porsche into a stone bollard. Chris Fish, 62, a senior banker and investor, spun his Porsche Carrera 2 on a corner and mounted a curb - narrowly missing a 'For Sale' sign.

Posted by mark @ 11:43 AM 0 Comments

Fatcat Barclays bankers jet off to Italy for lavish 500,000 banquet as country faces up to financia

mail: Fatcat Barclays bankers jet off to Italy for lavish 500,000 banquet as country faces up to financial crisis

As British taxpayers faced up to a grim financial future, coupled with the fear of tax hikes following the government's bailout 500billion bailout package, a group of fatcat bosses from Barclays Wealth flew out to the luxurious Villa Erba, beside Lake Como in Italy yesterday for the all-expenses paid jaunt. Invites alone for the bash are believed to have cost up to 3,000. this is your money! taxpayers money... stop gordon and badger giving them more now....

Posted by mark @ 11:40 AM 32 Comments

Steady as they go

Telegraph: House prices drop at fastest rate in 25 years

"House prices dropped at the fastest annual rate in 25 years last month, according to the latest monthly survey from mortgage lender Halifax, as the turmoil in the global financial system escalated."

Posted by letthemfall @ 11:33 AM 16 Comments


yahoo: Will GB and AD come to the rescue of Landsbanki Guernsey?

What about all the money that depositors trusted Landsbanki with in Guernsey? What wiill become of the thousands of ex-pat UK offshore savers savings? I guess that many people who trusted in UK offshore accounts such as the Landsbanki Guernsey accounts will think twice befor einvesting in Guernsey based accounts again. IOM.. Here I come!! At least you offer some protection for invested funds.

Posted by mark @ 11:26 AM 0 Comments

Notice the use of 'take' rather than 'took'

Sky News via yahoo: Brown: Punish The Risky Bankers

Bankers and financiers who take irresponsible risks should be "punished" for their actions, Gordon Brown has said. (Advertisement) Following the Government's massive 500bn bail out for the banks, the Prime Minister spoke of his anger at the way some in the City had behaved. "I am angry at irresponsible behaviour," he told GMTV. "Our economy is built around people who work hard, who show effort, who take responsible decisions, and whether there is excessive and irresponsible risk-taking, that has got to be punished."

Posted by malct @ 11:02 AM 17 Comments

Huge rise in energy bills havn't landed on the doormats yet

Firstrung: Ofgem is failing and should be scrapped - NHF

Ofgem has failed some of the poorest customers in the country and should be 'scrapped' says the National Housing Federation, in response to the energy regulator's initial report on its energy market probe... Ofgem said this morning that the big energy companies should stop charging poor people on prepayment meters more for their gas and electricity - but has chosen not to compel them to stop the prepay meter 'rip off'. Instead, it is asking the companies to tackle the issue voluntarily - and plans to consult on its plans for at least two months

Posted by converted lurker @ 10:49 AM 0 Comments

More cuts to make the pound fall faster?

Bloomberg: Pound Falls for Third Day Against Euro; More Cuts May Be Needed

The pound dropped for a third day against the euro on speculation more interest-rate cuts are needed to prevent the global financial turmoil from driving the economy into a slump

Posted by matt_the_hat @ 10:48 AM 1 Comments

Time to recognise those who got it right, shun the fanestream media.

Prisonplanet: You Saw It Here First; Economic Crash, Banker Stick-Up Predicted Long Ago

This article catalogues a small sample of the articles where predictions were right on prisonplanet. Of note, Alex Jones predicted the sub-prime crash 2yrs before it was mentioned on the fanestream in his film, Endgame. Its time to say, I told you so, and to follow those who do. Its not smug, because these people don't like being right, they just don't like the sheople following the fanestream media, dragging the prophets with them, kicking and screaming, into the slaughter pens. The bible says, judge them by their fruits. But you'll probably go back the BBC, "Independent" or even Daily Mail for your daily dose of lies. BOYCOTT LIES!!

Posted by planning4acrash @ 10:40 AM 67 Comments

another junkie...

cnn: French-Belgian bank aided again

The governments of France, Belgium and Luxembourg announced Thursday they will give struggling lender Dexia SA a yearlong guarantee on its new loans and deposits, sending the company's shares soaring. They announced the decision after Dexia's shares fell three days in a row - by more than 15% on Wednesday alone -- despite getting a 6.4 billion ($8.8 billion) cash injection from the three governments last week. how much more money can they keep lending/giving/injecting until the junkies overdose or die? Or the dealers (govts) run out?

Posted by mark @ 10:35 AM 1 Comments

major junkie..

cnn: AIG hits up Fed for more money

looks like the SH*t is hitting the fan again... Those institutions are now returning these securities and want their money back.

Posted by mark @ 10:32 AM 3 Comments

in Dublin alone there are 10,000 unsold private units almost half of which have two bedrooms.

RTE: Govt urged to buy empty homes

The Government has been urged to buy some of the thousands of homes left unoccupied because of the recession. Simon Communities of Ireland says the homes should be used to house the many families to whom the Government has promised accommodation. Simon, which works to end homelessness, says that in Dublin alone there are 10,000 unsold private units almost half of which have two bedrooms. It wants the State to buy some of them now, a move which it says would be welcomed by the construction industry and the wider economy.

Posted by malct @ 10:31 AM 6 Comments

Customers are trying to get their money out of bank branches

RTE news: Riots in Hong Kong after heavy stock losses

There have been riots on the streets of Hong Kong following heavy losses at the city's Hang Seng index. The Hang Seng closed over 8% lower with losses in banks, communications companies and exploration companies. Customers are trying to get their money out of bank branches and many are protesting about losses related to the collapse of Lehman Brothers.

Posted by malct @ 10:25 AM 7 Comments

Missed mortgage payments on the rise

Firstrung: Ten percent of mortgage borrowers have missed mortgage payments over the last six months

More than one in ten (11%) cash-strapped borrowers have missed payments on either their mortgage, credit card, or personal loan in the last six months according to research from MoneyExpert.com... And with the pressure mounting on households the independent financial comparison website is warning that more bills are likely to go unpaid in the coming months

Posted by converted lurker @ 10:21 AM 1 Comments

Further proof (if any needed) as to the growth of the consumer debt mountain

Firstrung: Brits jump straight back into the red after consolidating loans - moneysupermarket.com

Almost two out of three people who take out a loan to consolidate their debts go on to borrow more while still repaying that loan, according to research from the UK's leading price comparison site, moneysupermarket.com... With the cost of essentials, such as food, fuel and electricity, rising in price the fastest, more and more people are finding it hard to cope financially. One in nine borrowers say they feel unable to do anything about their debt, while a further ten per cent say they feel their debt is spiralling out of control. Despite so many people going on to build up further debt after consolidating, 44 per cent would consider consolidating their debt again, showing it is often not a one-off solution.

Posted by converted lurker @ 10:19 AM 1 Comments

Are house prices now crashing at cruise speed?

Firstrung: UK house prices fell by 1.3% in September - Halifax

Commenting, Martin Ellis, chief economist, said: "House prices declined by 1.3% in September. The overall price decrease in the three months to September was very similar to that in the previous quarter, indicating that the trend rate of decline may be beginning to stabilise. The ongoing pressures on householders' income, combined with the reduction in the availability of mortgage finance, however, mean that market conditions will remain challenging."

Posted by converted lurker @ 10:17 AM 6 Comments

Things are bad when Al Jazeera is the only credible economic source!

Max Keizer's Karmabanque: Max Keizer on Al Jazeera

Max Kiezer, who correctly called the crisis, here in Al Jazeera. Note that they interview him, whilst CNN interviews those who didn't predict it. Max gets extremely animated at the beginning and says that Bin Laden could do a better job at running the economy. Have a listen to his most recently monthly podcast. Note that there is an amazing song on the crisis at just after 10mins.

Posted by planning4acrash @ 10:00 AM 1 Comments

Link to the Halifax PDF

Halifax: House Price Index September

House prices continue to fall. The annualised fall over the last six months is 19.3%. House prices compared to earnings are now back where they were in February 2004.

Posted by monty032 @ 09:59 AM 6 Comments

Halifax Stats

BBC: Halifax Stats

I suppose by the definition of news - something we haven't heard before - this isn't news really and shouldn't be included, but house prices are going down. Yippeee! Who said it was all doom and gloom.

Posted by phdinbubbles @ 09:26 AM 11 Comments

But some analysts worried that yet another emergency Fed buying spree, smacked of desperation.

Reuters via SOTT: Blatant Corporate Socialism: Fed Will Lend Directly to Corporations Without Collaterals

The Federal Reserve on Tuesday said it would begin buying the short-term debt many companies use to fund their day-to-day operations, its latest emergency move to try to restore credit flows and protect the economy. The Treasury believes the Commercial Paper Funding Facility is necessary to prevent "substantial disruptions" to financial markets and the economy, the Fed said. To support the facility, the Treasury will make a deposit of funds at the New York Federal Reserve Bank, with Fed officials saying the size of the deposit would be substantial. Where are the mandatory reductions of corporate salaries and bonuses as a condition? Where are the mandatory reductions in dividends? Nope, nothing.

Posted by malct @ 09:25 AM 1 Comments

Over the past 12 months, more than $12.4 trillion of global stock market wealth has been wiped out

reuters via SOTT: Wall Street panic rolling over consumers worldwide

Back to the doom and gloom Chicago - A London businessman may have to put off his wedding. A baker in Paris fears customers will disappear. A student in Slovenia sees an automobile loan fall out of reach. And a real estate agent in Chicago says she's just plain scared. The worst financial crisis since the 1930s was stark reality for millions on Wednesday as retirement savings evaporated, jobs disappeared, stock market values slipped again and a dramatic cut in interest rates by central banks from Europe to Asia did little to stem three weeks of near panic.

Posted by malct @ 09:19 AM 3 Comments

Fergus Wilson admits (on Radio5 Live)

KentOnline: Millionaire landlords may sell part of property empire

Fergus and Judith Wilson, Kent's biggest landlords, are considering selling a substantial number of their homes, it can be revealed. Fergus Wilson, who recently turned 60, admitted this week that he did not want to be the richest man in the graveyard. The Wilsons own more than 700 properties across the county, but mainly in Ashford and Maidstone. They have made a fortune from their investment and made The Sunday Times Rich List with assets valued then at around £300 million. Mr Wilson revealed that a number of property companies had shown interest in buying some of their portfolio. Around 300 properties could be involved in any deals. The fall in property prices - or at least a flattening in values.......

Posted by jack c @ 08:59 AM 16 Comments

No way some banks will still fail after 700Bn

BBC: USA some banks will still fail

The US treasury secretary has warned some banks will still fail despite the $700bn (406bn) rescue package to shore up the financial system.

Posted by zr_seanie @ 08:05 AM 3 Comments

Lend us a Tenner? Ah Go Wan!

BBC News: US debt clock runs out of digits

The US government's debts have ballooned so badly the National Debt Clock in New York has run out of digits to record the spiralling figure. The digital counter marks the national debt level, but when that passed the $10 trillion point last month, the sign could not display the full amount.

Posted by flintster1994 @ 07:25 AM 3 Comments

As I mentioned in earlier articles stressed: Everything else in modern financial history fades in co

kopp-verlag.de: Financial tsunami BIS stokes fears before a major depression if the losses continue

As I mentioned in earlier articles stressed: Everything else in modern financial history fades in comparison with the magnitude of the super-Gaus regarding the U.S. since August 2007 observed securitization crisis. Es wird nicht nur Monate, sondern Jahre dauern, bis sich neue Strukturen gebildet und internationale Bndnisse entwickelt haben, die annhernd stabil sein werden. It will not only months but years before new structures are formed and international alliances have developed, which will be roughly stable.

Posted by big chris @ 04:26 AM 0 Comments

Hank Paulson is fatally conflicted. He should go.

Market Oracle: US Dollar Doomed as Credit Crisis Turning into a Currency Crisis

A currency trader friend of mine once tried to cut me off with a quip "I trade currencies, what has the credit crunch got to do with me?". I hope he is reading this article. After viewing the debacle caused by Lehman's failure, Paulson and Bernanke decided it was too risky to let another derivatives-laden firm go under. This time it wasn't even a bank they felt compelled to bail out. AIG was rescued due to its large size and involvement in all kinds of international markets, with the bulk of its business in reinsurance (insuring other insurers). Not surprisingly, the $85 billion loan to AIG prevented a $20 billion loss to Paulson's old firm, Goldman Sachs.

Posted by lvmreader @ 02:20 AM 1 Comments

Gee, who'd have thunk it?

FT.com: Problem loans nearly triple in US

The percentage of large syndicated US loans rated as problematic has nearly tripled in the last year, highlighting the damage done by the lax underwriting standards of the private equity boom, a report by US regulators showed on Wednesday. During 2006 and early 2007, leading banks competed fiercely to lend to private equity groups, often dispensing with the usual covenants meant to secure such credits in a development that led to the so-called cov-light loan.

Posted by lvmreader @ 02:03 AM 0 Comments

Have it!

FT.com: Tchenguiz loses 1bn in 24 hours in stakes sell-off

Robert Tchenguiz, the property entrepreneur, lost 1bn in just 24 hours after being forced to offload his stakes in J Sainsbury and Mitchells & Butlers as the fallout of the Icelandic banking crisis hit corporate UK. Mr Tchenguiz lost up to 600m on the sale of a 10 per cent holding in Britains third-biggest supermarket chain and about another 400m on his exit from the pub company, making the entrepreneur one of the biggest individual casualties of the credit crunch in the UK. He was said to be taking a philosophical approach to his losses. Life goes on, said one person close to his group on Wednesday.

Posted by lvmreader @ 02:01 AM 2 Comments

Austrian Economics for the liberty freshman

Anti War Radio: Scott Horton Interviews Lew Rockwell

For those new to the blog and for those new to the inherently anti-war Austrian school of Economics. I listened to this radio show recently and it is the best Lew Rockwell interview ever. He is the chair of the his website which, incidentally, Ron Paul claims to read each morning! Lew goes right through the crisis from the beginning to the end in a seamless 1hr interview, with absolute clarity. Scott Horton, as ever, provides a fantastically digestible deliver with insightful questions. If you enjoy this, ensure that you subscribe to Lew Rockwell's podcast.

Posted by planning4acrash @ 01:09 AM 2 Comments

I wonder how before the bank here do the same!!

CNN: After Bailout, AIG Execs Head to California Resort

Less than a week after the federal government committed $85 billion to bail out AIG, executives of the giant AIG insurance company headed for a week-long retreat at a luxury resort and spa, the St. Regis Resort in Monarch Beach, California, Congressional investigators revealed today. Not all of the $85 billion that went to AIG was used to save the company."Rooms at this resort can cost over $1,000 a night," Congressman Henry Waxman (D-CA) said this morning as his committee continued its investigation of Wall Street and its CEOs.

Posted by eagle @ 12:49 AM 0 Comments

Local councils might lose taxpayers' money which was stored in Icelandic banks

Times: Town hall millions may be lost in Iceland

It's not just individual savers who are at risk here. Some local authorities also saved their dosh in IceSave, thinking they were getting better value for taxpayers' money by chasing the highest interest rates. Affected councils include Westminster (17m), Sutton (5.5m), Havering (12.5m), and Kent (50m). I wonder if any small businesses have savings there too, and if they lost their savings and were unable to pay a tax bill, would the Inland Revenue be nice about it?

Posted by drewster @ 12:45 AM 5 Comments

This is half the UK GDP!

Times Online: Brown and Darling commit 500 billion for bank bailout

Brown continues to blame the US, claims that the UK has been a victim not an arbiter of the crunch and that this money has to be used to kickstart the housing market. It won't work, so be afraid - Brown is going for broke. The cost of Brown's reputation is now officially just over 8,000 for every man, woman and child in the UK.

Posted by paul @ 12:19 AM 9 Comments

Wednesday, October 8, 2008

You couldn't make it up - it's a topsy turvy world!

Evening Standard: Our 1m council house? You just take what you're given

It's not that we wanted this big house - my mum is not happy because she has to clean all of it. The first day we moved in here we got lost because it was so big. The house owned by BTL landlord Ajit Panesar is being rented at double the normal market value of the property. Mr Panesar said: "I can't help it if the law says I should get paid that amount of money."

Posted by enuii @ 10:54 PM 8 Comments

No need to panic - all is well with UK plc as Fitch issues "AAA" rating

mortgagestrategy: UK still AAA says Fitch

Ratings agency Fitch says that despite the 50bn rescue package unveiled by the government today the UK's AAA credit rating is still not under threat. It says that despite the heavy upfront fiscal cost of the measures taken by the UK government today, the UK's strong credit standing is able to withstand considerable fiscal deterioration. Gordon Scott, managing director of Fitch says: "We estimate the effect of increasing the aggregate Tier 1 capital for the eight banks listed in the government's announcement would be a significant 17%, adding an estimated 130 basis points to the aggregate weighted Tier 1 ratios for those banks."

Posted by jack c @ 09:52 PM 4 Comments

Surprising that! Shares still falling

BBC: Why bank shares are falling

The government announces massive, unprecedented financial support for our banks, and their share prices fall - well all of them but that of HBOS. Shome mishtake shurely. hmmm..

Posted by modern times.... @ 09:40 PM 0 Comments

which tool would this be?

CNN: Paulson: Using all tools

Treasury Secretary Henry Paulson said Wednesday that more economic pain looms but he urged "patience" and said the federal government will use all tools necessary to support banks.

Posted by mark @ 09:07 PM 3 Comments

Most U.S. Stocks Fall on Recession Concern

bloomberg: Most U.S. Stocks Fall on Recession Concern

Most U.S. stocks fell for a sixth day as unprecedented interest-rate cuts by six central banks failed to convince investors the global economy will avoid a recession.

Posted by mark @ 06:52 PM 5 Comments

The MPC said that cuts in interest rates alone "could not be expected to resolve the current problem

UK Guardian via Truthseeker UK: Central banks cut interest rates to buoy global economy

The Bank of England joined other world central banks today in a coordinated cut in interest rates designed to ward off the threat of global recession. The Bank, the US Federal Reserve and the European Central Bank all lopped half a point off their key interest rates in the first unscheduled rate moves since the aftermath of 9/11. Sweden, Canada and Switzerland made similar cuts. Australia reduced rates by a whole percentage point earlier this week.

Posted by malct @ 06:51 PM 10 Comments

Kashkari has only a few years of experience in finance.

UK Truthseeker WSWS: Who is Neel Kashkari?

On October 6 US Treasury Secretary Henry Paulson named Neel Kashkari to head the Treasurys new Office of Financial Stability (OFS). The OFS is charged with paying out $700 billion to Wall Street banks and other financial firms in exchange for their failed mortgage-backed assets, under the terms of the bailout signed into law by President Bush on October 3. Kashkaris identity is thus a matter of considerable public interest. Only 35 years old, Kashkari joined the Treasury in 2006 as a Senior Advisor to US Treasury Secretary Henry M. Paulson, according to his official Treasury Department biography.

Posted by malct @ 06:47 PM 11 Comments

Profligate or just stupid?

Guardian: Icelandic bank poured 11m into XL in weeks before collapse

The Icelandic bank that is owed 45m (36m) by the collapsed tour operator XL was pouring cash into it for weeks up to its demise. Straumur said it had "provided significant additional funding over a sustained period" of around 11m, although this did not prove enough to give XL time to refinance 143m of debt.

Posted by whostolemyendowment @ 06:47 PM 0 Comments

do we know whcih councils put our money in this bank?

bbc: councils invested in Iceland's banks.

But at least 20 councils in England and Wales are known to have deposits in Landsbanki - some of tens of millions.

Posted by mark @ 06:17 PM 20 Comments

View from over the pond....

Time: British Bank Bailout: Is It Enough?

It's all about confidence, stupid. Plummeting markets keep the economy the primary concern of voters everywhere, but remedies are a tough sell especially for governments that have been in power too long to blame the current mess on their predecessors.

Posted by whostolemyendowment @ 05:55 PM 0 Comments

One smart STRer...must be an HPCer

BBC News: Banking on gold

Four years ago, fearful of a property crash, David and Maureen Somers sold their house and bought gold. It's a tactic suddenly popular with those seeking a safe haven for their money. As safe as houses. This piece of perceived wisdom no longer seems quite so wise as property prices fall and stocks stutter.

Posted by hovelinhove @ 05:32 PM 0 Comments

at last some honesty

CNN: Emergency rate cut: 'This better work'

"This better work. This is the last chance," said Saut. And Derrick said that if the markets don't respond well to the rate cuts, it may prove that the only solution for the crisis is time...a truly scary thought. "There is fear of the unknown. Earnings are not going to be good. It's hard to see another positive catalyst in the short-term," he said.

Posted by mark @ 05:20 PM 35 Comments

recession recession recession coming to E4 starring crusty

CNN: Nervous shoppers pull back

Monthly reports from Wal-Mart, Costco, J.C. Penney and other big retail chains confirm that American consumers are now sticking to buying necessities - at bargain prices - and cutting back on most other discretionary products. "Consumer debt levels are high, access to credit has evaporated and the job market is weak," said Ken Perkins, president of sales tracker Retail Metrics. In this environment, Perkins said consumers "will try to stretch every dollar and they aren't going to do that at department stores."

Posted by mark @ 05:02 PM 0 Comments

Another 'creative' business goes bust!

Mortgage Stratergy: KPMG appointed administrator to edeus

KPMG has been appointed to supervise the administration of edeus mortgage creators and edeus creators...which has its headquarters in Wolverhampton employs 26 people. See www.edeus.eu/default.aspx

Posted by whostolemyendowment @ 04:49 PM 0 Comments


Times: The secret plan was out. The Chancellor had lost control

"Alistair Darlings car nosed into an industrial estate on the edge of Luxembourg in the teeming rain shortly after 7am yesterday. The Chancellor, who had been woken at 4am, looked drawn. The previous day there had been the largest fall in the FTSE 100 for 21 years with bank shares taking the worst of the hammering. Markets, spooked by European governments ill-disciplined and confused response to the credit crisis, now threatened the survival of lenders across the continent...".

Posted by alan @ 04:48 PM 6 Comments

Tchenguiz carnage as he offloads stakes

Yahoo: Tchenguiz carnage as he offloads stakes

Kaupthing held the M&B and Sainsbury shares as collateral for its loans to Tchenguiz. Since running into liquidity problems the Icelandic bank has been anxious to raise cash through asset sales.

Posted by mark @ 04:47 PM 2 Comments

And....back to HPC....

Director of Finance online: Premier Properties Plc in administration

Premier Properties...concentrated on the high end of the residential market from one and two bedroom luxury apartments to luxury country houses and mansions. Prices range from around 200,000 for certain apartments through to high end seven bedroom houses at 3 million.

Posted by whostolemyendowment @ 04:41 PM 0 Comments

Fionnuala Earley on the bright future ahead for the housing market !

mortgagestrategy: Economist predicts interest rates will fall to 3.5%

A leading economist has offered a glimmer of hope amidst the financial turmoil predicting that interest rates could fall to 3.5% by the end of 2009. Speaking at the Mortgage Intelligence Annual Conference in Newport, Fionnuala Earley, chief economist at Nationwide, says: We think interest rates are set to fall to between 3.5% and 4% by the end of 2009. In terms of mortgages we are looking at a bright future. Please read on (no laughing allowed or should that be aloud)

Posted by jack c @ 04:16 PM 20 Comments

UK house prices v fundamentals by the IMF

IMF: World Economic Output October 2008

Click on 'read the research' for the report. Page 17 appears to say that the IMF believes that UK house prices are 22.5% above fundamentals. Last time (in April) they said 30%.

Posted by tim b jones @ 03:54 PM 0 Comments

In another brilliant smoke and mirrors trick, the circle of debt continues


After careful thought and a lot of planning, the scribbling on the fag-packet has now been finished and the blubbermint have completed their masterplan to save the economy of Britain.The government is to invest 500bn of your money in British banks so they can lend it back to you with interest.

Posted by nooneo @ 02:46 PM 0 Comments

Falling Knife - watch your fingers!

Reuters: House prices exceed fundamentals in 16 nations: IMF

WASHINGTON (Reuters) - House prices in 16 countries have risen more than fundamental factors would support over the past decade, with Ireland easily atop that list, the International Monetary Fund said on Wednesday.

Posted by submedia @ 02:43 PM 8 Comments

IMF astound with more great insight

BBC News: 'Major global downturn' says IMF

International M****** F******. Only a few months ago, they were predicting world growth of 3.7%. Who pays these people?

Posted by doom&gloom @ 02:35 PM 5 Comments

Don't hit the Close Account button yet

FT: Icelands biggest bank gets Swedish loan

"ING the Dutch banking and insurance group, said its UK online and phone banking subsidiary had agreed to buy 3bn in UK deposits at two Icelandic banks for an undisclosed sum" A fiver? techieman's just shorted half a million shares.

Posted by letthemfall @ 02:32 PM 2 Comments

Some lenders cut some mortgage rates...

BBC News: Mortgage rates cut on Bank news

...but I imagine the small print, and LTV ratios, will protect them. And they'll put them up quietly again soon.

Posted by sceneclub68 @ 01:34 PM 0 Comments

It's time to shoot the messanger

Mail Online: Does this BBC man have too much power? Reporter blamed for helping trigger shares fall

Bad generals (politicians) blame the messanger. Rember the story of the emperor with no clothes!

Posted by lloyd @ 01:18 PM 0 Comments

Global Rate Cuts

UK Interest Rate Forecast 2009

The Market Oracle: UK Interest Rate Forecast 2009

In such a panic stricken climate there are increasingly deafening calls are for immediate interest rate cuts across the western world including for an Imminent UK Interest Rate Cut.

Posted by nadeem walayat @ 12:23 PM 0 Comments

Robert Peston the first to attain enlightenment due to credit crunch


BBC business editor Robert Peston last night attained transcendence before converting himself into pure energy. Peston is now a shimmering orb of pale blue light hovering about four feet above his chair at the BBC Television Centre....Across London thousands of ecstatic followers poured into the streets to celebrate Peston's new form. Two goats were sacrificed outside JP Morgan as half-naked staff danced round a disco glitter ball.

Posted by mountain goat @ 12:20 PM 0 Comments

UK banks: what's really happening

MoneyWeek: UK banks: what's really happening

Alistair Darling has announced a 50bn package aimed at rescuing Britain's banks. John Stepek explains exactly how we got here in the first place, and what this means now for the average taxpayer.

Posted by damien @ 12:17 PM 7 Comments

Joey Jones Of Sky News Nails Gordon Brown

Crown Blog: Joey Jones Of Sky News Nails Gordon Brown

Joey nails Gordon Brown a beauty and as flustered as ever Gordon trips on his words and wants to create a better spanking system. Great!

Posted by crown @ 12:14 PM 4 Comments

BOE cuts rates to 4.5%

BBC News: Bank of England in shock rate cut

Central banks doing a coordinated rate cut. BOE say inflation will hit 5% "in a month or 2"

Posted by still renting @ 12:07 PM 34 Comments

HSBC gives the bailout offer the middle finger

FT Alphaville: HSBC to HM Treasury: Keep yer money

Consistent with the objectives of the UK scheme announced today, HSBC will ensure that our principal UK subsidiary, HSBC Bank plc, continues to be appropriately capitalised, funded from the Groups internal resources. HSBC therefore has no current plans to utilise the UK recapitalisation initiative.

Posted by mountain goat @ 12:04 PM 2 Comments

ING to the rescue

BBC: Rescue plan for two banks' savers

Savings bank ING Direct is buying up more than 3bn of deposits held by tens of thousands of British savers. It says it is acquiring 2.5bn of deposits held by 160,000 customers from Kaupthing Edge, the UK retail arm of Iceland's biggest bank. It is also taking control of 538m of savings held by 22,200 people with Heritable Bank, which was run by Iceland's Landsbanki - Icesave's owner.

Posted by jack c @ 11:06 AM 20 Comments

NY Market Keeps on Falling - Nobody Trusts Anybody

New York Times: New York Markets Plunge Despite Hint of Rate Cut

The latest news on the fate of the Dow Jones which continues to fall, regardless of what has been promised and by whom. The situation has been allowed to rage so far out of control before being brought to account nobody can say where the "chips" will fall in the end, so investors of all sizes and shapes are running scared. The bottomline, according to one observer is that, quite simply, there is no trust. Or as he put it: "Nobody trusts anybody." A complete lack of ethic in banking, now support by government, seems to have thoroughly soured the market. Even the thought of a rate cut doesn't seem to inspire much confidence

Posted by indiablue19 @ 10:44 AM 2 Comments

Calleman predicted all of this destruction

The Telegraph: 500 billiob bailout

Moral hazard is not dead. Despite the 50bn of taxpayer funds pledged in capital to Britain's banks and as much as 450bn of loans, Britain's banks will have to pay a price for the state rescue of Britain's financial system announced this morning

Posted by sold 2 rent 1 @ 10:41 AM 37 Comments

Why house prices will keep falling - fast

MoneyWeek: Why house prices will keep falling - fast

The idea that there is a shortage of houses is complete and utter nonsense, says Merryn Somerset Webb. House prices up 25% from their current levels by 2013? In Graham Norwood's dreams perhaps. But only there.

Posted by damien @ 10:36 AM 12 Comments

Lets take a trip down memory lane

Telegraph: Remember 1929 what seemed to be the end was only the beginning

The victim or his corpse is made to suffer all available indignities. Such was the fate of the bankers. They were fair game for Congressional committees, courts, the press and comedians. These are the observations of economist J K Galbraith in The Great Crash, 1929. First published in 1954, his analysis of the greed and self-delusion that led to the unravelling of Americas stock market and the subsequent Depression is undimmed by time.

Posted by holding out @ 09:56 AM 2 Comments

Icelandic authorities renege on their obligations.

BBC: Extra help for Icesave customers

Chancellor Alistair Darling has said he will offer extra government help for UK savers with accounts in the closed Icelandic internet bank Icesave. He told the BBC he would ensure that savers got their money back because the Icelandic authorities had reneged on their obligations

Posted by jack c @ 09:14 AM 100 Comments

Property conveyancing and legal process

HIP-Consultant.co.uk: Property conveyancing and legal process - Part 1

Once you have decided on a property, made an offer and had that offer accepted its time to instruct a lawyer. We look at each area in the legal process. Did you realise that.....

Posted by hip-consultant.co.uk @ 08:52 AM 1 Comments

Those First Impressions

BBC Peston's Picks: A very big rescue

The Treasury's rescue package for the banks is substantial, as big an economic initiative as it has probably ever taken. But then the problem it's trying to fix is huge.

Posted by gardeniadotnet @ 07:48 AM 29 Comments

Too little, too late, the price of prevarication

bbc news: Rescue plan for UK banks unveiled

The UK government has announced details of a rescue package for the banking system worth at least 50bn. It will make extra capital available to eight of the UK's largest banks and building societies. In return for the funding, the government will receive preference shares in those institutions.

Posted by eternal sceptic @ 07:45 AM 2 Comments

This is not looking pretty!

BBC: Japanese stock market plunges 9%

'losses over the past fortnight to 24%'

Posted by v stor @ 07:45 AM 1 Comments

Simon Jenkins - He rips the stuffing outta the blubbermints inability to act

Guardian: Darling and the Commons ignored the ticking of bombs

Last night's meeting of Gordon Brown, his chancellor, Alistair Darling, and their finance advisers was, to put it mildly, overdue. The outcome was further delayed until an announcement today. Anything less than an absolute guarantee of the nation's bank deposits, already in place in Ireland and Germany, is now unthinkable. The dithering and the blustering about "doing whatever is necessary to maintain stability" has to STOP. We need action and we need it NOW. Anything less will result in years and years of turmoil and an economy in intensive care for years. Crash Gordon and the "badger" that looks like "Beaker" have to implement a plan and stop thinking this mess will heal itself.

Posted by nooneo @ 02:30 AM 4 Comments

Tuesday, October 7, 2008

Can you think of any more?

Independent: 20 reasons for the crunch

"The finger of blame points widely, encompassing greedy bankers, the Iraq war and even Margaret Thatcher"

Posted by alan @ 09:49 PM 6 Comments

Roughly 2250 per household for the banks by my estimate

Independent: Banks set to agree 50bn package

UK banks are set to agree a 50bn injection of taypayers' money under a bold plan to resolve the crisis in credit markets. Banking chiefs were this evening due to meet the Prime Minister to discuss the proposals, scheduled to be announced tomorrow morning, but subject to seeing the detail, are understood to have already agreed to be supportive. The plan could mean substantial dilution for some shareholders.

Posted by quiet guy @ 09:32 PM 7 Comments

Darling active yet again ...

guardian: Darling readies bank rescue plan after market chaos

Chancellor Alistair Darling is preparing an announcement before the stockmarket opens tomorrow morning, giving details of a plan to ease the banking crisis following high-level talks at Downing Street this evening.

Posted by mken @ 08:02 PM 3 Comments

Who let the oil market be manipulated?

Salon.com: I believe the Oil Price is being used to control the DJIA

I recently watched a video on youtube about some individual saying that oil prices actually crashed on the 9th July 2008, but was covered up as prices appeared to be the same. Meaning someone pumped a lot of money in. Then we look at the following price hike to $147 then retreating to $90. Then the day that oil recently jumped $25 in one day. I believe that oil prices are being used directly to manipulate the Dow Jones and NOT vice-versa as yo would logically think. Therefore whoever is running the show can bust the DJIA and all the other stockmarkets when they like. Yes it is HPC related.

Posted by stevie dee @ 07:59 PM 4 Comments

Excellent summary of the current situation

Sunday Herald: Smoke, mirrors ... and how a handful of missed mortgage payments started the global financial crisis

Good summary of the fraud perpetrated by the greedy over the past few years. Fractional reserve banking mentioned. Chemtrails appearing over the author's house as we speak, localised HAARP-induced earthquake on the way. Let's hope his car has enough water in the tank. ;)

Posted by shipbuilder @ 06:46 PM 22 Comments

A Country-by-Country Summary

BBC News: Credit crisis: World in turmoil

As global markets fall sharply, the BBC News website looks at some of the countries affected by financial turmoil and what their governments are doing to alleviate the crisis.

Posted by renting2 @ 06:35 PM 0 Comments

Could it be about Interest Rates?

BBC: Brown holding bank crisis talks

"Chancellor Alistair Darling and the chairman of the Financial Services Authority, Lord Turner, are also taking part in the (BoE) discussion".

Posted by alan @ 06:16 PM 17 Comments

No-one home

LSE: Detailed prices

Sorry Thank you for visiting the London Stock Exchange website. Due to exceptionally high demand, this page of the web site is temporarily unavailable. Please be assured we are working to resume the service as soon as possible. Please try again later. If you want to access the Investor Relations section of the site, click here. Click here to return to the homepage...

Posted by malct @ 05:24 PM 10 Comments

Apply to get your own money back!!!! what next??

Yahoo: UK Savers Face Cash Application

For the first time since the credit crunch began, British banking customers with savings in troubled banks may need to apply to get their money back.

Posted by mark @ 05:11 PM 2 Comments

Icy climate: Are your savings safe?

Yahoo: Icy climate: Are your savings safe?

Icesave has collapsed - and it holds 5bn of your money. How much of it is protected, and when can you hope to get it back?

Posted by mark @ 04:56 PM 7 Comments

Not a good time to be a banker

businessandmedia: Knock Out: CNBC Confirms Lehman CEO Punched at Gym

It seems anxiety from the financial crisis is reaching new highs, but the tipping point for one individual came at the Lehman Brothers gym in the midst of the companys collapse.

Posted by mountain goat @ 04:20 PM 5 Comments

is it snowing yet?

reuters: Chill winds buffet Iceland's foreign investments

Altium Securities retail analyst David Stoddart said a bigger problem could be credit insurer Euler Hermes' (ELER.PA: Quote, Profile, Research) decision to withdraw coverage for suppliers to some of Baugur's retailers, a step which Baugur described as a misunderstanding of the impact of economic situation in Iceland.

Posted by mark @ 03:46 PM 0 Comments

One way to get out of your mortgage

CNN: Fannie Mae forgives loan for 90yr old woman who shot herself

Fannie Mae said it will set aside the loan of a woman who shot herself as sheriff's deputies tried to evict her from her foreclosed home. Addie Polk, 90, of Akron, Ohio, became a symbol of the nation's home mortgage crisis when she was hospitalized after shooting herself at least twice in the chest Wednesday afternoon. Her neighbour climbed through her window and found her in bed bleeding. She is expected to recover from chest wounds.

Posted by little professor @ 03:42 PM 4 Comments

Time to take a sideways look with the CIA

CIA via Housepricecrash.co.uk: Rank Order Current Account Balance

The country listed at 157 is today under threat of going bankrupt "Grim, it clearly is. But is Iceland heading for bankruptcy?" see also http://www.moneyweek.com/news-and-charts/economics/how-does-icelands-meltdown-affect-you-13772.aspx 1 China $ 371,800,000,000 2007 est. 2 Germany $ 254,500,000,000 2007 est. 3 Japan $ 210,500,000,000 2007 est. 4 Saudi Arabia $ 86,620,000,000 2007 est. 5 Russia $ 78,310,000,000 2007 est. dum dee dum dum 157 Iceland $ -3,189,000,000 dum dee dum dum 184 Italy $ -51,030,000,000 2007 est. 185 Australia $ -56,780,000,000 2007 est. 186 United Kingdom $ -119,200,000,000 2007 est. 187 Spain $ -145,300,000,000 2007 est. 188 United States $ -731,200,000,000 2007 est.

Posted by malct @ 03:39 PM 9 Comments

How Iceland's meltdown affects you

MoneyWeek: How Iceland's meltdown affects you

Iceland could be on its way to being the first country to fail in the global credit crisis. And that could be very bad news for British savers...

Posted by damien @ 03:27 PM 3 Comments

I thought Ford in the EU was safe...ha ha ha - no-one is immune

CNN: Opel, Daimler, Ford curb production

Ford Motor Company's German unit said it would curb production and lay off 204 part-time workers at its Saarlouis plant in western Germany, while the company's Cologne plant in the northwest of the country would continue production without changes.

Posted by mark @ 03:16 PM 7 Comments

Landsbanki takeover casts pall over West Ham

reuters: Landsbanki takeover casts pall over West Ham

London soccer club West Ham's finances were again in the spotlight on Tuesday after the Icelandic bank chaired by the club's billionaire owner was put in receivership, the latest victim of global financial turmoil.

Posted by mark @ 03:05 PM 4 Comments

The fund recommended that governments consider injecting funds directly into banks and purchasing tr

CNBC: IMF calls for coordinated action to address crisis

WASHINGTON - The International Monetary Fund on Tuesday called for a "collective commitment" by finance officials around the world to combat the ongoing credit crisis. The IMF also said in its report that large international banks may need up to $675 billion in capital over the next several years to maintain credit growth. The fund recommended that governments consider injecting funds directly into banks and purchasing troubled assets. the IMF also raised its estimate of the total losses that will be caused by the U.S. credit crisis to $1.4 trillion

Posted by malct @ 02:52 PM 2 Comments

SPV: Is it contagious?

Bloomberg: Fed to Purchase U.S. Commercial Paper to Ease Credit Crunch

The Federal Reserve Board, invoking emergency powers, will create a special fund to backstop the U.S. commercial paper market in an effort to support the financing needs of corporations. The move comes as the credit freeze spreads to the market for short-term debt that hundreds of companies use to finance payrolls and meet other cash needs.

Posted by stevie dee @ 02:33 PM 0 Comments

fine tuning theft from tax payer you mean

Yahoo: Darling fine-tuning 50bn bank rescue

London's index of top 100 shares plunged almost 8% Monday to its lowest since October 2004. Most banks have watched prices plunge again today as rumours do the rounds that Royal Bank of Scotland (LSE: RBS.L - news) is in trouble.

Posted by mark @ 02:31 PM 1 Comments

WWIII: The Financial War

BBC: IMF in 'severe downturn' warning

The economic downturn in many countries is likely to worsen as the financial crisis continues, the International Monetary Fund (IMF) has warned. The global economy is now showing signs of a marked slowdown in growth, said the IMF in its latest world economic outlook report. The Generals don't need weapons to kill us! They can just starve people & let us fight between ourselves.

Posted by stevie dee @ 02:27 PM 0 Comments


Daily mail: American financier kills his family and himself after losing fortune in credit crunch

CREDIT CRUNCH FAMILY MASSACRE Why did he have to take his family with him, even the motherinlaw?

Posted by camping @ 02:24 PM 14 Comments

No safe haven for Poxtons refugees now

London Evening Standard: Grim warning over City jobs from Michael Page

"... recruiter Michael Page, which could soon start letting go hundreds of its own headhunters." Leeches die first.

Posted by doomwatch @ 02:11 PM 2 Comments

Telling it How it Is, banks have a solvency crisis

Global Investor: The Origin of Financial Crises

BBC just interviewed George Cooper (see article) a hedge fund manager who told the world that British Banks, Global Banks even don't have a liquidity crisis THEY HAVE A SOLVENCY CRISIS. Dr. George Cooper is a principal of Alignment Investors a division of BlueCrest Capital Management Ltd. He was born in Sunderland and studied at Durham University. George has worked as a fund manager at Goldman Sachs and as strategist for Deutsche Bank and JPMorgan. He lives in London with his wife and two children.

Posted by malct @ 02:00 PM 9 Comments

First CDS bullet dodged, But good luck with Lehman, on Friday

NakedShorts Blog: First CDS bullet dodged

The CDS market yesterday dodged the first of three big bullets headed its way when, the auction of obligations related to the debt of Phoney and Fraudy produced recoveries. Yhe real fun starts Friday, when the Lehman deals get unwound. According to The Financial Times: "Banks are hoarding cash in expectation of pay-outs on up to $400bn of defaulted credit derivatives linked to Lehman Brothers and other institutions, according to analysts and dealers." Included nice video on how it all works.

Posted by mountain goat @ 01:29 PM 0 Comments

Not a single house price related post today

HousePriceCrash: HousePriceCrash website

Come on guys. I appreciate that all this financial Armageddon stuff is interesting (and sometimes very relevant) but in my opinion the volume of it is diluting the value of the site and detracting from its primary purpose.

Posted by phil @ 01:19 PM 0 Comments

The compensation schemes get their first test

BBC News: Icesave savers warned on accounts

Customers of the Icesave internet bank have been warned they will probably have to claim compensation for money held in their savings accounts.

Posted by shipbuilder @ 01:15 PM 29 Comments

Britain's second biggest bank remains the biggest loser, its shares down by 30% to a 13-year low.

Sky News: Banks' Shares Plunge Amid Talks

Bank shares have plummeted as it emerged some of the major UK institutions are in funding talks with the Government. The Government will discuss the structure of a possible bank recapitalisation scheme with the country's major lenders "over the next couple of days", an industry source has said. Royal Bank of Scotland is among the lenders talking, according to Sky sources. Britain's second biggest bank remains the biggest loser, its shares down by 30% to a 13-year low. Shares in Lloyds TSB have also fallen, down 11%. Both HBOS, whose shares are down 14%, and Barclays (down 5%) insist they have not requested any cash from the state. Barclays issued a statement saying it is "categorically not requesting any capital from the UK Government".

Posted by malct @ 01:03 PM 1 Comments


bloomberg: RBS, British Banks in Discussions on Government Funding Plan

The equity markets are saying RBS has the biggest problem but something needs to be done across the board,'' said Simon Maughan, a London-based analyst at MF Global Securities. ``Bond investor confidence in the banks is completely shot.''

Posted by mark @ 12:32 PM 2 Comments

can anyone explain this!!

bloomberg: Volkswagen Can Thank Lehman, Hedge Funds for Gains (Update3)

Volkswagen AG, Europe's largest automaker, just became this year's best performing stock on the continent, benefiting from hedge-fund trading strategies and the collapse of Lehman Brothers Holdings Inc. Volkswagen is up 190 percent this year after surging as much as 55 percent today. The company was one of only four in the Dow Jones Stoxx 600 Index that advanced yesterday in the worst decline for the European gauge since October 1987. The owner of the Audi brand today surpassed Toyota Motor Corp. as the world's biggest carmaker by market value.

Posted by mark @ 12:23 PM 1 Comments

crushing pain of the squeeze

bloomberg: Lenders Squeeze Corporate Borrowers Amid $112 Billion of Losses

Banks and investors who are losing money on the record $1.7 trillion of high-yield, high-risk loans made in 2006 and 2007 are charging borrowers an average of 1.64 percentage points more in interest to amend borrowing agreements and avoid default, according to Standard & Poor's. That's the highest since 1997 and almost eight times more than the first half of last year.

Posted by mark @ 12:19 PM 0 Comments

does russia expect to takeover the volcano

bloomberg: Iceland Says It Received EU4 Billion Loan From Russia

Iceland said it got a 4 billion-euro ($5.43 billion) loan from Russia, pegged the krona to a trade- weighted index and nationalized the nation's second-biggest bank after the currency's slump and bad debts crippled the financial system. The fixing of the krona, at a rate corresponding to 131 per euro, applies for today, according to the Icelandic central bank's Web site. Further moves to boost the currency will be announced in coming days, it said. ``I'm deeply surprised -- this peg is not credible at all,'' said Lars Christensen, senior currency strategist at Danske Bank A/S in Copenhagen. ``A credible peg needs a credible set of measures to stabilize the economy and we haven't seen that yet.''

Posted by mark @ 12:11 PM 9 Comments

who owns what?

times: money central

The following banks and building societies, credit card companies and insurers are in alphabetical order. Scroll down to find out who owns yours.

Posted by mark @ 11:59 AM 4 Comments

Have we hit the bottom yet?

MoneyWeek: Have we hit the bottom yet?

Yesterday was among the worst days that global stock markets have ever seen. After such hefty falls, investors minds often turn to bargain-hunting. But is it really time for contrarians to start filling their boots? Probably not...

Posted by damien @ 11:31 AM 4 Comments

A more measured article on the subject

Guardian: Iceland government seizes control of Landsbanki

"Richard Portes, an expert on Iceland at the London Business School, said the government had made a mistake by nationalising Glitnir, creating fear in the markets instead of just providing it with liquidity. "You have the same law of unintended consequences that you had in the case of Lehman Brothers," he said. "The Iceland problem was immediately vastly exaggerated."

Posted by letthemfall @ 11:26 AM 1 Comments

``Absolutely, it's a stealth easing,''

Bloomberg: Fed Sets Floor Below Rate Target, Engineering `Stealth' Cut

Oct. 7 (Bloomberg) -- The Federal Reserve may have trimmed borrowing costs yesterday without actually saying so. The central bank used power granted under last week's financial-rescue legislation to effectively set a floor under its main interest rate that's lower than the 2 percent target set by policy makers last month. The Fed may now pay interest on bank reserves while it floods financial markets with liquidity, pushing down the overnight lending rate by about 0.75 percentage point to 1.25 percent.

Posted by malct @ 11:09 AM 2 Comments

Farewell, America.

ICH: Down the Road to Serfdom By Ann Berg

Ann Berg has spent a 30-year career in commodities and capital markets as a trader, consultant, and writer. "So here we are: a phony monetary system, $3 trillion wasted on wars, and a citizenry mired in debt. And what does Congress do? It adds more debt a trillion dollars, just for starters, since once starting down this slippery slope, it won't be able to stop". As Friedrich Hayek explained in 1944, "Economic control is not merely control of a sector of human life that can be separated from the rest; it is the control of the means for all our ends. And whoever has sole control of the means must also determine which ends are to be served, which values are to be rated higher and which lower in short, what men should believe and strive for." Farewell, America.

Posted by malct @ 10:58 AM 7 Comments

People are scared and removing their money from the banks and money markets

ICH: We're on "the edge of the abyss

Here's how Nouriel Roubini sees it: "It is now clear that the US financial system - and now even the system of financing of the corporate sector - is now in cardiac arrest and at a risk of a systemic financial meltdown. I dont use these words lightly...The Commercial paper market is shut down...Corporations have no access to long or short term credit markets. Brokers are increasingly not dealing with each other. The interbank market is seizing up...This cannot continue for more than a few days. It is the economic equivalent to cardiac arrest." (Nouriel Roubini's Global EconoMonitor) The levies have already broken, and the water is flooding into the city.

Posted by malct @ 10:33 AM 8 Comments

A warning shot

Times: Crisis spreads as Iceland's Landsbanki goes bust

British savers have been blocked from withdrawing funds from Icesave, the internet savings bank that is owned by Landsbank, after Icelands financial regulator took control of the country's second largest bank .

Posted by matt_the_hat @ 10:23 AM 8 Comments

Iceland takes emergency action

FT.Com: Iceland Emergency action (October 7 2008 07:21)

Were taking the interests of the population as a whole ahead of the interest of the banks and their shareholders and providing the economy with a functioning payments and liquidity system, Mr Haarde said. Mr Haarde had approached other world leaders for help among them Gordon Brown, UK prime minister to solve a liquidity emergency in Icelands banking system, but the global problems meant no feasible proposals were forthcoming. In a situation like this its turning out that its every man for himself, every country for itself... Thats what were doing, he said.

Posted by swamp @ 10:14 AM 2 Comments

Many HPC regulars discussed this happening last week

Icesave: We are not currently processing any deposits or any withdrawal requests

We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts. We apologise for any inconvenience this may cause our customers. We hope to provide you with more information shortly.

Posted by jack c @ 10:03 AM 30 Comments

RBS shares fall under 1 on bailout fears

Times Online: Next one into to the lions' den

Shares in Royal Bank of Scotland (RBS) plunged by more than 35 per cent today to under 1 on fears that a 40 billion bailout of high street banks would result in a partial nationalisation of several household names.

Posted by dohousescrashinthewoods @ 09:40 AM 1 Comments

RBS shares down 30% in early trading

Thisismoney: RBS credit rating cut by Standard & Poor's

Royal Bank of Scotland has had its credit rating cut for the first time in almost a decade by Standard & Poor's on fears about its weakening financial outlook.

Posted by gardeniadotnet @ 09:35 AM 15 Comments

the entire London stock market could be purchased with the small change you have in your pocket. at

Independent: The day fear hit the markets

Of the myriad fears stalking the world's financial system, perhaps the most terrible is that the ability of the world's governments to control events is ebbing away. Yesterday the President of the World Bank, Robert Zoellick, almost admitted as much. "The G7 is not working," he said. "We need a better group for a better time" not a hopeful curtain-raiser for the G7 finance ministers' summit at the IMF/World Bank meeting in Washington at the end of this week. At this rate, in 10 days' time, the entire London stock market could be purchased with the small change you have in your pocket.

Posted by malct @ 08:43 AM 9 Comments

Interest Rate takes a dive down under

Associated Press: Australia slashes interest rate

Looks like we're next

Posted by semi-detached-from-reality @ 08:06 AM 4 Comments

You are a bloodthirsty lot!

Pollcode.com: What's the best way to sort out the banking 'crisis'?

Your chosen option (51%) was "Allow them to fail". Which sends a pretty clear message to all the politicians dreaming up ways to use taxpayers' money on enlarging the powers of The Government. If politicians were gracious enough to pass this message on to the banks, the banks would come to an arrangement with their creditors in next to no time; even if that meant the creditors taking ownership of the bank*. This is what is known as a 'Debt-for-equity-swap", which I am happy to say was the second favourite option (and the one that I wold recommend). *Banks ought to be familiar with this general scheme ...

Posted by mark wadsworth @ 07:25 AM 0 Comments

Congressman warns enhanced bill worse than original

Infowars.com: Ron Paul: Bailout Unconstitutional, Special Interests Forced Bill Through Congress

Texas Congressman Ron Paul has warned that the amended bailout legislation that passed Congress on Friday is not only far worse than the original bill but is also unconstitutional. "It's amazing, you take a very very bad bill, appropriating $700 billion, you can't get enough votes to pass it so you take it back out, you make it much worse and take it up to over $800 billion." Paul commented. Watch Ron Paul's reaction to the passage of the bailout: Earlier in the day Ron Paul had taken the floor in the House to express his opposition to the bailout, stating that it represents an evasion of the real problem and more of the same inflationary practices that have caused the crisis in the first instance.

Posted by planning4acrash @ 02:20 AM 0 Comments

Hubris meets reality. Are we next?

Telegraph: Financial crisis: Iceland's dreams go up in smoke

"The pension funds have now also agreed to help the Government by selling assets. It took a while, though, for the penny to drop. As recently as this spring, when questions were being asked about the economy, the country was in denial."

Posted by quiet guy @ 12:59 AM 0 Comments

Monday, October 6, 2008

Kings Group (Estate Agents) launches fresh initiative

mortgagesolutions: Kings convinces vendors to drop prices

Estate agent Kings Group has recently undergone negotiations with many of its vendors to reduce asking prices, in an attempt to create more interest from applicants. Part of this initiative is to put new boards on properties with the vendor's consent, showing that the price has recently been reduced - a move which the firm claims has been met with a degree of success.

Posted by jack c @ 10:00 PM 11 Comments

A lesson on prudence

Independent: Darling warns Europe against unilateral action

"It does demonstrate the problems that arise when member states take unilateral action because of course it does have a knock on effect for other member states. It does emphasise the need for us all to work together" - what about when one member state goes on a credit binge and the others have to suffer the consequences. "I don't think that if you establish an independent central bank distant from government, that you should change its terms of reference just because times are difficult." - no just change the fiscal rules, competition laws etc etc

Posted by matt_the_hat @ 08:53 PM 7 Comments

Not bad for being cr@p at your job

BBC News website: Lehman Bros head took home $300m

The head of failed US investment bank Lehman Brothers has told Congress that he took home about $300m in compensation over the past eight years.

Posted by angonamo @ 08:34 PM 5 Comments

New Car Sales Plange as Mortgage Equity Withdrawal Dries Up

BBC: New car registrations fall by 21%

September normally the most lucrative month on the garage forecourt sees private registrations fall 23% and business registrations plunge 37% the worst decline in new car and commercial vehicle registrations since 1991.

Posted by enuii @ 08:32 PM 1 Comments

instant insight - run for the hills

SOTT: Grand Theft Economics

uh oh so thats what happened The credit derivatives markets will on Monday set the price tag for settling up to $500bn of contracts related to Fannie Mae and Freddie Mac, the US mortgage lenders whose seizure by the US government had the unexpected knock-on effect of triggering defaults on derivatives deals. Reykjavik - Iceland has agreed legislation that gives the government wide-ranging authority over its banks, including the option to merge them or force them to declare bankruptcy, the country's prime minister said on Monday. EBay to cut 10 percent of Macdoughnuts jobs - or something similar big read

Posted by malct @ 08:24 PM 0 Comments

The Icelandic Viking Hedge Fund Economy Sinking Fast

Guardian: Icelandic government battles to save the economy

Iceland (population a mere 300,000) sees the government take over housing loans held by the banks and put them in a government housing fund and guarantee all of the domestic deposits in Icelandic savings accounts as their currency plunges and inflation rockets.

Posted by enuii @ 08:23 PM 2 Comments

According to the unbiased opinion of an estate agency

findaproperty: General London Market Improves

Russell Jervis, Managing Director of Haart, comments: "September started to show the first encouraging signs of green shoots, with a surge of buyers registering in order to take advantage of the more affordable prices and more attractive mortgage deals that lenders were offering. ..........what grren shoots and what attractive mortgage deals????? What planet do these people live on. Next thing he will say is that thanks to the mastrefull work of Bush and Paulson we can expect London prices to rise by 25% by next summer.

Posted by bystander @ 06:40 PM 16 Comments

The new 'NEC' to meet twice weekly.....better they meet every hour.

Press Association: PM to quiz Merkel on cash guarantee

Gordon Brown will be speaking to Angela Merkel amid confusion over the extent of the German chancellor's commitments to protect bank deposits.

Posted by whostolemyendowment @ 06:05 PM 3 Comments

ASk your boss if you are needed tomorrow

Sky News: Biggest FTSE Fall For 20 Years

The FTSE 100 index of leading UK shares has suffered its biggest one-day fall since the 1987 crash amid the deepening global financial crisis.

Posted by matt_the_hat @ 05:49 PM 10 Comments

A summary

BBC: Financial crisis at-a-glance: 6 Oct

1649: The FTSE 100 Index of leading shares closed down 7.85% at 4589 points, a drop of 391 points. 1638: The Cac 40 in Paris closes down 9%, the worst fall in percentage terms since its creation in 1988. 1534: Russia's dollar-denominated RTS stock market closes down 19%, its worst one-day fall on record. The index closes at 866.39 points, down 65% from the all-time high reached in May this year. 1435: Trading on Brazil's stock market is suspended half an hour after opening following a 10% fall on the main index. 1430: On Wall Street the Dow Jones opens down 208 points, or 2%, at 10,117.

Posted by matt_the_hat @ 05:23 PM 15 Comments

Didn't realize there were any still about

BBC: 95% LTV mortgage options fall

The number of mortgages available to buyers with a 5% deposit is shrinking fast, as lending is cut because of the credit crunch and falling house prices. There are only 60 such deals currently available from lenders, down from 860 a year ago. Mortgages for 100% or more of a property's value disappeared at the start of the year. The number of 90% deals is also shrinking fast, though not as dramatically.

Posted by little professor @ 05:04 PM 1 Comments

From Fred Harrison's Blog (boom and bust)

renegade economist: Tough Talkers Head for the Hills

Now that the Wests banks are bailed out, the cupboard is bare and the politicians are running for cover. The consequences for the rest of us are horrendous. Now the real trouble starts.

Posted by mario @ 04:47 PM 1 Comments

A lot of the demand for commodities has been speculation

Bloomberg: Commodities R.I.P. as Leverage Vanishes, Growth Slows (Update2)

Oct. 6 (Bloomberg) -- Commodities markets are heading for the biggest annual decline since 2001 as investors exit leveraged bets and slowing economic growth erodes demand for raw materials. The same credit-market seizure that led to last month's bankruptcy of New York-based Lehman Brothers Holdings Inc. and the forced sale of Merrill Lynch & Co. is squeezing speculators who drove commodities to record highs. Slower expansion in the U.S., China and India is also undermining prices of crude oil, which fell 39 percent, and corn, down 46 percent. ``The day of steadily rising commodity prices is over,'' said Chris Rupkey, the New York-based chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. ``A lot of the demand for commodities has been speculation,

Posted by malct @ 04:15 PM 15 Comments

FTSE 100 drops off cliff

BBC: Stock Markets

Just had a look at the markets after reading a news article saying "Oh no, they're down about 4%". The BBC page is dying (presume their servers are getting battered) but if you keep hitting refresh you should get through. Anyway, FTSE down 8.3% a few moments ago. Ouch.

Posted by night @ 04:13 PM 18 Comments

we have tipped over the edge, into the middle of the abyss. Systemic collapse is in full train

Telegraph via SOTT: Nobody will be spared, unless they own gold bars

Ambrose Evans-Pritchard The London Telegraph We face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars. As the unflappable Warren Buffett puts it, the credit freeze is "sucking blood" out of the economy. "In my adult lifetime, I don't think I've ever seen people as fearful," he said. We are fast approaching the point of no return. The only way out of this calamitous descent is "shock and awe" on a global scale, and even that may not be enough. During the past week, we have tipped over the edge, into the middle of the abyss. Systemic collapse is in full train.

Posted by malct @ 04:09 PM 14 Comments

Ironically he's holding a gold cross in the picture

BBC: Pope criticises pursuit of wealth

The global financial crisis is proof that the pursuit of money and success is pointless, Pope Benedict XVI has told a meeting of bishops in Rome. Still doesn't stop the catholic church being on of the richest organizations on earth!

Posted by matt_the_hat @ 03:54 PM 13 Comments


Times online: America's darkest fear: to end up like Detroit

On a quiet, tree-lined road near Detroits city airport, sits a house that was briefly the most famous in America. When the three-bedroom home at 8111 Traverse Street found a buyer last summer, the purchase price made headlines around the world the house sold for one dollar, then worth about 50p. The unnamed buyer was a local woman who bought the house as an investment. Yet two months later, Americas spiralling financial crisis is wreaking so much new havoc in decaying property markets like Detroits that even a $1 house cannot be resold for a profit.

Posted by sold out @ 03:22 PM 2 Comments

meltdown continues

Times online: Savers frozen out as Icesave website collapses

Sceptics have questioned how well placed the Icelandic scheme would be to pay out because it has only 88 million in the kitty to cover deposits totalling 13 billion, or 154 times as much. The Icesave spokeswoman added: The Icelandic Government has made clear it would step in to fund any shortfall. But sceptics have again questioned whether an already beleaguered Icelandic Government would be in a position to guarantee deposits totalling about twice the countrys entire GDP.

Posted by sold out @ 03:04 PM 12 Comments


Global Pensions: Iceland turns to pension funds for help

OK, OK, Stop me if you've heard this one. What's the difference between Iceland and Robert Maxwell...?

Posted by peterincambidge @ 03:03 PM 0 Comments

The darkest day for global markets so far

MoneyWeek: The darkest day for global markets so far

Stock markets around the world are collapsing as investors finally realise that this is the real thing. But with panicky governments, rising company collapses, and ever-tightening credit conditions - this may not be the last meltdown Monday

Posted by damien @ 02:26 PM 2 Comments

Sheer desperation but IMO the patient is already dead!

Bloomberg: Fed Boosts Cash Auctions to $900 Billion, May Do More

The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens. ``The Federal Reserve stands ready to take additional measures as necessary to foster liquid money-market conditions,'' the central bank said in a statement released in Washington today. Fed and Treasury officials are ``consulting with market participants on ways to provide additional support for term unsecured funding markets,'' the statement said. As part of today's steps, the Fed will increase its auctions under the 28-day and 84-day Term Auction Facility operations to $150 billion each. The two forward TAF auctions in November will be increased to $150 billion each, the Fed said.

Posted by tyrellcorporation @ 02:08 PM 5 Comments

A peek behind the curtains:

SOTT: Signs Economic Commentary for 6 October 2008

The bailout plan is more than just a giveaway to the rich as represented by the big banks (although it is that). It probably is a panicked attempt to forestall the real potential crisis: a collapse of the huge, unregulated hedge funds based on derivatives and Credit Default Swaps (CDS). The vicious cycle of contracting credit, resulting from the implosion of the housing and credit bubbles, mounting layoffs, slumping consumer spending and a worsening of the financial crisis continues to deepen. There are many signs that the credit crunch will continue to undermine major companies. A growing list of hedge funds, hit by their exposure to Lehman Brothers and other failed firms, are facing rising withdrawal requests and are telling their customers they cannot have their money back.

Posted by malct @ 01:59 PM 0 Comments

This is going to provide a tremendous amount of relief

forbes: Bank of America settles lawsuit over bad mortgages

Facing a lawsuit over deceptive mortgage practices, Bank of America Corp. has agreed to modify tens of thousands of loans to keep people in 11 states from losing their homes, the Illinois attorney general's office said Sunday. Borrowers stuck with mortgages they can't afford could see their interest rates reduced or have the loan principal cut. Some might qualify for having to pay nothing but interest for a decade. Even people who can't afford to keep their homes with such changes will be able to get help moving to a new home.

Posted by malct @ 01:36 PM 0 Comments

Rescued' car parts group closes

bbc: Rescued' car parts group closes

A Sheffield-based car parts group, which appeared to have been rescued in a takeover deal last week, has been unexpectedly closed by its new owners. Euro Car Parts (ECP) bought LSUK, which has 680 staff nationwide, from holding company Pinco 1555 Ltd last Wednesday. In a letter to staff, chairman Sukhpal Singh said he had no plans to cut jobs. However, shocked staff turning up for work on Monday found themselves locked out and a notice on the door telling them the company had ceased trading.

Posted by mark @ 01:34 PM 0 Comments

say good bye to JJB

reuters: UK credit insurer withdraws cover to JJB suppliers

Coface, a British credit insurer, confirmed on Monday it had withdrawn cover to suppliers of JJB Sports Plc (JJB.L: Quote, Profile, Research), dealing a fresh blow to the British sporting goods retailer. "That is true, we have done that," a spokesman for Coface said, declining to comment further. Credit insurers provide cover to suppliers, protecting them against losses if a company supplied with goods fails to pay its bills.

Posted by mark @ 01:28 PM 2 Comments

It's different here

Guardian: South-west hit by wave of repossessions

The south-west of England has become a hotspot for repossessions, with hundreds of people being forced out of their homes and into temporary accommodation every month. Latest figures from the Ministry of Justice reveal that repossession claims in Devon and Cornwall were up by 41% compared with last year. The problem is simple. In the south-west we have lower than average wages and above-average house prices. In North Cornwall the average wage is 23,000. The average house price is 23 times that.

Posted by little professor @ 01:28 PM 1 Comments

eBay to trim global workforce by 10%

cnn: eBay to trim global workforce by 10%

i think they have their figures a little wrong they say 1000 but they must calculate like a banker does... it is 10,000 according to another source

Posted by mark @ 01:26 PM 1 Comments

The purpose of this action is to enhance stability within the financial system

Forbes: Icelandic crown falls 3 pct versus euro on crisis

LONDON, Oct 6 (Reuters) - Iceland's crown currency fell 3 percent on Monday against the euro as the country's government scrambled to avert a full-blown financial meltdown after failing to produce a stability plan over the weekend. see also via forbes, Market Scan - Iceland In Hot Water and, Iceland Gets Iced By S&P they just can't resist it. David Oddsson, the government of Iceland's central bank, Sedlabanki, said that though Glitnir's asset portfolio and capital remained solid, it would have collapsed if the government had not stepped in. "The purpose of this action is to enhance stability within the financial system."

Posted by malct @ 01:22 PM 1 Comments

is this the next bank to fail?

yahoo: Royal Bank Of Scotland

is this the next bank to fail?

Posted by mark @ 01:22 PM 4 Comments

the Office of Financial Stability

WSJ via Bloomberg: Paulson to Name Kashkari to Oversee Bailout, WSJ Says (Update1)

Oct. 6 (Bloomberg) -- Treasury Secretary Henry Paulson is expected to name Neel Kashkari to oversee the U.S. government's $700 billion financial stabilization program, the Wall Street Journal reported, citing people familiar with the matter. As assistant secretary for international economics and development at the Treasury, Kashkari is a senior adviser to Paulson and counsels him on key policy matters, according to the department's Web site.The decision for Kashkari, 35, to run the new department known as the Office of Financial Stability, may be announced as early as today, the newspaper said. see also "Top Area 51 Stargate Commander Given Total Control Of $700 Billion US Bailout" http://www.whatdoesitmean.com/index1150.htm - lol or perhaps not.

Posted by malct @ 01:01 PM 1 Comments

We will continue to use all of the powers at our disposal to mitigate credit-market disruptions

Bloomberg: Fed May See Lending to Companies, States as Next Crisis Fronts

Oct. 6 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke may find the next fronts of the financial crisis to be just as chilling as last month's downfall of Wall Street titans: its spread to corporate America and state and local governments. Companies from Goodyear Tire & Rubber Co. and Duke Energy Corp. to Gannett Co. and Caterpillar Inc. are being forced to tap emergency credit lines or pay more to borrow as investors flee even firms with few links to the subprime-mortgage debacle. California Governor Arnold Schwarzenegger says his and other states may need emergency federal loans as funding dries up.

Posted by malct @ 12:47 PM 12 Comments

Buffet provides some good insight into the kinds of issues raised by derivatives in general and leve

Online Journal: The world according to derivatives, part 2 of 7: A Faustian bargain

What is especially troubling is that the potential profits from derivatives are magnified many times over through heavy, multi-tiered leveraging with no actual investment in an asset required, or even desired, making their appeal almost irresistible. Moreover, derivatives extract their value from fluctuations in the value of assets such as bundled mortgages and loans, stocks, bonds, currencies, interest rates, indexes and other assets which often are not themselves fixed or tangible. Derivatives have become, in every sense, bets on bets -- extracting value rather than preserving or enhancing value through real investments in the real economy. There can be no mistaking the fact that derivatives speculation requires a good deal of dancing with the devil.

Posted by malct @ 12:03 PM 2 Comments

Iceland halts trading in bank shares

Iceland halts trading in bank shares: Iceland halts trading in bank shares

Trading in shares in Icelands banks was suspended before the opening of markets on Monday as the countrys regulator sought to head off further instability in the beleaguered financial services sector. Shares and other financial instruments issued by Kaupthing, Landsbanki and Glitnir were all suspended along with Exista, the investment company, Straum Burdaras investment bank and Sparisjodur Reykjavikur, a savings bank.

Posted by swamp @ 12:00 PM 30 Comments

Slashing rates won't do any good

MoneyWeek: Interest rates may be slashed - but it won't do any good

Amid the panic, emergency interest rate cuts have been conspicuous by their absence. That could be about to change. But a massive cut will only confirm what a complete mess the economys really in...

Posted by damien @ 11:25 AM 7 Comments

House prices fall 50% in Merseyside in just one year

Liverpool Daily Post: House prices fall 50% in Merseyside in just one year

Latest analysis of Land Registry sales for Merseyside and Cheshire appear diabolical!

Posted by poultryinmotion @ 10:45 AM 18 Comments

could JJB be about to go bust?

yahoo: Altium trims JJB price target

The move follows a report in the Sunday Telegraph which claims that Coface, the UK's largest credit insurer, is to stop providing cover for JJB's suppliers.

Posted by mark @ 10:45 AM 3 Comments

So the financial crisis is much worse than in 1929.

The Age: Economics 101 - what the global meltdown means

The real comparison now is with the financial crisis that preceded the Great Depression, centred on the stockmarket collapse of 1929. Then, despite a 36% fall in the share index that year, all the Wall Street merchant banks made it through the Great Depression. This time, all fi ve Wall Street behemoths have either failed (Lehman Brothers), been taken over at bargain-basement prices (Bear Stearns, Merrill Lynch), or have sought to change their status to that of commercial banks before they failed (Morgan Stanley and Goldman Sachs). And the expected economic downturn has only begun. So the financial crisis is much worse than in 1929.

Posted by malct @ 10:42 AM 1 Comments

They're all missing the obvious!!!

Fun online poll: What's the best way to sort out the banking 'crisis'?

The options are: Allow them to fail - Nationalise them - Nationalise them and then allow them to fail - Cut base rates (aka 'pushing a pirce of string') - Taxpayer funded bail-outs - Invest taxpayers' money in new share capital - Buy up their dodgy loans for more than market value - and - Debt-for-equity-swaps. If you don't know what a 'debt-for-equity-swap' is, Prof Willem Buiter explains here.

Posted by mark wadsworth @ 10:41 AM 4 Comments

Roger Bootle in favour of rate cuts too

Telegraph: The Bank of England risks taking interest rate caution to the point of recklessness

In short, the argument is that keeping rates up will mean deflation

Posted by letthemfall @ 10:38 AM 4 Comments

only 750?

yahoo: DIY Firm Admits 750 Jobs 'At Risk'

Focus DIY has confirmed 750 jobs are "at risk" following an extensive review of costs. The review will also result in the firm's distribution centre in Severnside, Bristol, being closed.

Posted by mark @ 10:38 AM 3 Comments

Meltdowns on the scale we are seeing are not slow-motion events. They are swift and chaotic, cont.

The Age: A shattering moment in America's fall from power

Our gaze might be on the markets melting down, but the upheaval we are experiencing is more than a financial crisis, however large. Here is a historic geopolitical shift, in which the balance of power in the world is being altered irrevocably. The era of American global leadership, reaching back to the Second World War, is over. In a change as far-reaching in its implications as the fall of the Soviet Union, an entire model of government and the economy has collapsed. Meltdowns on the scale we are seeing are not slow-motion events. They are swift and chaotic, with rapidly spreading side effects

Posted by malct @ 10:34 AM 3 Comments

Iceland reels as bank rescues evaporate

Times Online: Iceland reels as bank rescues evaporate

Icelands government said this morning that it will not offer an economic package to protect the countrys banks. Prime Minister Geir Haarde said that the government decided no special action was necessary after being locked in meetings for most of the weekend. He said that Icelands banks would sell some of their overseas assets - which will increase speculation that groups such as Baugur, which owns several British high street chains and is backed by Icelandic banks, may be forced to sell some of their stakes.

Posted by swamp @ 10:31 AM 4 Comments

the financial rescue plan failed to restore much-needed confidence

Times Online: London plunges as banks pump billions into market

The approval of the $700bn US rescue plan failed to ease fears in Asia over the American economy and the global financial crisis. The FTSE index of leading shares dived by five per cent shortly after the start of trading this morning, following sharp losses across Asian equity markets on growing concerns over the global financial crisis. Approval by the US House of Representatives on Friday for the financial rescue plan failed to restore much-needed confidence with investors now anxious as to how it will be implemented.

Posted by malct @ 10:06 AM 8 Comments

Another domino about to topple?

Times: Italy's second-largest bank UniCredit sells off stock in survival bid

One of Italys largest banks outlined its plans for survival last night as UniCredit said that it was seeking up to 6.6 billion in fresh funds. The bank, Italys second-largest with operations throughout mainland and Eastern Europe, announced a scheme to sell 973 million shares at 3.083 a share. The banks stock, which has been halted several times in recent weeks after extreme price falls, closed on Friday at 3.092.

Posted by jack c @ 09:57 AM 3 Comments

Iceland melts down

BBC News: Iceland moves to shore up economy

Nowhere did the financial illusionists have more freedom to play their games than on Iceland The entire Icelandic banking system could vanish up its own backside in an instant, and be the first banks to totally fail, with no-one to the rescue..

Posted by uncle tom @ 09:46 AM 0 Comments

On Topic - RICS latest absurd prediction

Citywire: Rics warns building slowdown could reignite housing boom

Moves by housebuilders to down tools and mothball projects will demolish the governments new homes target and could trigger another boom-bust cycle, the Royal Institution of Chartered Surveyors has warned. The government needs 200,000 homes built a year to hit its target of two million homes by 2016, but the total so far this year is only 66,200, said Rics. Failure to hit this target could see surging house prices if demand outstrips supply, said Rics senior economist Oliver Gilmartin.

Posted by jack c @ 09:13 AM 23 Comments

regulators from Washington to Seoul scrambled to contain the deepest financial crisis in 80 years

Reuters Business & Finance: Regulators scramble to shore up banking system

Not the headline to be expected after the Chimp's bail out! Expectations are building that a meeting of finance leaders from the Group of Seven major industrialized nations, scheduled for this week in Washington, could set the stage for coordinated interest rate cuts. "We have a seriously weak and fear-driven market on our hands," said Tom Hougaard, chief market strategist at City Index in London. BNP Paribas took control of the Belgian and Luxembourg businesses of troubled financial group Fortis on Sunday, in a complex cross-border rescue that will make Belgium the French bank's biggest shareholder.

Posted by malct @ 08:59 AM 14 Comments

If one only new the date of ones mortality

BBC: Debt levels rising among over-60s

A study of over 60s who sought help from CAS found debt levels had risen to 17,767 since 2004, but more than a quarter had a debt of over 25,000.

Posted by matt_the_hat @ 08:54 AM 1 Comments

Germany is going to pay the bill as well...

FT.com: One of the few active operators

German investors have been popular among UK property owners looking for a quick sale, but the country's own real estate sector will not be immune for the Europe-wide slowdown.

Posted by mario @ 07:51 AM 0 Comments

We can do some of this ourselves!

LewRockwell.com: Depression Mitigation

We should not accept the idea of an outside agent being able to "save" a market by injecting liquidity. There are ways to resolve the bad loan issue. One is to resolve the issues via the market for corporate control. This is already happening. As investors learn about the bad loans, they mark down the prices of the bank stocks and other stocks that have exposure to these loans. This must be exercised ad encouraged by all. A second major way to resolve the problems is to attack them at their source. The nation should have monetary freedom. (The UK, unlike the US does not have sales tax on Gold!) There will be no Great Depression II if the people gain monetary freedom, for entrepreneurs can rapidly construct alternatives to the existing and failed money and banking system.

Posted by planning4acrash @ 06:27 AM 13 Comments

Blame game continues - this time Germany and European Central Bank

Telegraph: Germany takes hot seat as Europe falls into the abyss

"Drastic rate cuts would be a good start. Central bankers still paralysed by a misplaced fear of inflation whether in Europe, Britain, or the US have become a public menace and should be held to severe account by our democracies. The imminent and massive danger is now self-feeding debt deflation."

Posted by nelson @ 06:25 AM 2 Comments

Quaesta Capital's currency funds have reduced the amount of money in carry trades to less than 5% of

bloomberg: ``The carry trade is dead,'' said Derek Halpenny, European head of global currency research at Bank of Tokyo-Mitsubishi in London. ``The world is deleveraging.''

Investors in Japan will continue to invest internationally to diversify their holdings as risk appetites return, capping the yen's strength, said Rebecca Patterson, global head of foreign exchange in New York for the private wealth management unit of JPMorgan Chase & Co.

Posted by big chris @ 04:13 AM 1 Comments

Sunday, October 5, 2008

Vince Cable calls for bank nationalisation and rate cuts

The Times: To halt the bank tsunami, slash interest rates

"The financial crisis has touched only the edges of the real economy. Nobody seriously expects that to last. There has to be a coherent government response starting with the most vulnerable part: housing."

Posted by quiet guy @ 06:55 PM 25 Comments

A good idea.. I think

BBC: Full deposit protection is nigh

The decision by the German federal government to guarantee all private savings in German banks is momentous. In a globalised banking market, in which money can leak across borders like a sieve, it will be almost impossible for the UK not to follow Germany's lead.

Posted by mario @ 05:55 PM 2 Comments

Now Ze Germans Are At It

BBC News: Merkel guarantees German savings

"Germany will guarantee all private savings accounts, says Chancellor Angela Merkel, as a major bank struggles to stay in business. Ms Merkel was speaking after an emergency meeting with the central bank and financial regulator." At least the money didn't flow out of the UK from the last 2 declarations. Will we now follow suit? If we do it my be a precursor to a bank folding.

Posted by renting2 @ 05:11 PM 25 Comments

if the 1990s slump is the definition of a crash then the market is already in one

Thisismoney: House price crash myths: True or false?

There will not be a 1990s-style 'house price crash' House price crash is a popular but much misused term, as property slumps tend to be slow-burning prolonged affairs that bear little resemblance to the stock market dives that have delivered the crash label. However, if the 1990s slump is the definition of a crash then the market is already in one. In 12 months it has almost equalled the price falls seen in the first five years of the 1990s.

Posted by malct @ 01:43 PM 18 Comments

Please join this Facebook group and share information on the financial and economic crisis

Facebook: Resources on the current financial and economic crisis and solutions to it

This group is a forum for the sharing of resources on the current crisis and for solutions to it (both collective and individual). Please add extra links and videos to the group, and please use the discussion forum as a place to share ideas & information. http://www.facebook.com/group.php?gid=29870128588

Posted by matthew edwards @ 01:31 PM 0 Comments

Russian Machines said Friday it has terminated its $1.54 billion investment in the Canadian automoti

Market Watch: Russian equities tumble, forcing trading suspension

NEW YORK (MarketWatch) -- Oil and mining shares led a broad-based tumble in Russian equities Friday, forcing the suspension of trading three times on the RTS stock exchange, as the ongoing sell-off in Russian shares shows no sign of abating. The dollar-denominated RTS stock index fell 7.1% to end at 1,070 points. The index posted a weekly loss of 17%. In other news, Oleg Deripaska's Russian Machines said Friday it has terminated its $1.54 billion investment in the Canadian automotive supplier Magna Russian Machines is a subsidiary of Basic Element, the holding company of Russian oligarch Deripaska.

Posted by malct @ 01:07 PM 1 Comments

Everyone will know banks are lying.

Mish's Global Economic Trend Analysis: Bailout Bill Passed, So What Happens Now?

Pretending Is Not Reality What happens now is that pretending does not alter reality. I can pretend all I want that Madame Merriweather's Mud Hut is worth $1 trillion and I can pretend my pet rock is worth the same. The reality (sorry Madame), is that neither is worth the book value I place on them. Suspension of the mark to market rules will accomplish nothing but further mistrust of banks and bank stocks. Everyone will know banks are lying. No one will know by how much. What we still know is that Citigroup alone holds $1 trillion in off balance sheet SIVs.

Posted by malct @ 12:56 PM 2 Comments

the $700 billion Bailout Bill is nothing but a gnat attacking a buffalo

minyanville via Mish: Five Things You Need to Know: Bailout Passes, Stocks Limp

How can this be? How can the passage of the Bailout Bill find stocks limping awkwardly into the close? Wasn't this supposed to be our finest hour? The desperate resolution to the year-long crisis? Well, the reality we have tried to reveal here in Minyanville is that the Bailout simply will not work. Even upon passage, few corporate bonds are trading, and those that do are trading at levels that indicate a fear that there will be either massive bankruptcies - even with the passage of the bill - or that the holders of the paper are in serious trouble and in desperate need of capital. charts for chart junkies

Posted by malct @ 12:51 PM 1 Comments

A contrarian view from the Guardian

Guardian: Believe it or not, house prices are going to soar

We haven't even sorted out the current house price bubble and now the Gardian is trying to blow another. What is it about property prices and the UK? Something in our DNA?

Posted by quiet guy @ 12:47 PM 40 Comments

SO, what's worth fighting over

Market Watch: Citi gets court order, blocking Wells-Wachovia deal

NEW YORK (MarketWatch) - Citigroup said late on Saturday that a New York court issued an order extending its agreement under which it has exclusive rights to negotiate a purchase of Wachovia Corp. A deal between Wachovia and Citi was unveiled on Monday. But late on Thursday, Wachovia agreed to be acquired by Wells Fargo. Responding on Friday to the Wachovia-Wells tie-up proposal, Citigroup claimed that it had exclusive rights and that Wachovia was not permitted to talk to anyone else.

Posted by malct @ 12:37 PM 0 Comments

Mr Law is getting a bit hot under the collar

Assetz: Central banks to drop interest rates ASAP

A highly amusing rant from the CEO of Assetz plc: "The level of house price falls predicted by a couple of the doomsayers are great enough to destroy our banking system never mind anything else and it is likely that absolutely every possible action will be taken by the authorities to prevent this happening which is just as well really."

Posted by quiet guy @ 12:37 PM 9 Comments

have the government buy one million new/unoccupied homes, blow them up, and then start all over agai

Mish's Global Economic Trend Analysis: France To Buy 30,000 Homes. How Many Will U.S. Own?

President Nicolas Sarkozy, grappling with the global financial crisis, has decided to directly support the French construction industry by buying 30,000 homes waiting to be built, the presidential palace said Wednesday. "So that current property programs can be successfully concluded, the president...has decided to intervene directly, ordering the purchase at discounted prices of houses on which building work has not yet begun," a statement said.

Posted by malct @ 12:29 PM 21 Comments

Congressman explains that Congress was put under Martial Law for the vote.

youtube: Republican Burgess at Congress (2min video)

What martial law means in this circumstance, is that normal house rules of congressmen having a day or two to look at bills, were suspended, so that Congress could put a bill forward at any time, with as short notice as they wish. This is different to the normal understanding of martial law, which effectively means suspension of normal laws and procedures.

Posted by planning4acrash @ 12:03 PM 0 Comments

Wall Street financiers will have a hand in spending the $700 billion of taxpayers' money

Telegraph via ICH: Bail-out leads to conflict of interest claims as Wall Street financiers cash in on crisis

New questions have been raised about the $700 billion economic bail-out of the US economy as President George W. Bush warned that the world may have to wait weeks for the benefits of the rescue package to be felt. Doubts about the package were fuelled when financial experts warned that conflicts of interest could arise because Wall Street financiers, many of whom have been blamed for causing the financial meltdown in the first place, will have a hand in spending the $700 billion of taxpayers' money.

Posted by malct @ 10:40 AM 2 Comments

Dodgy advice for dodgy landlords

Times Online: Ten tips for distressed landlords

Worst advice: "Negotiate on the rent" (when wouldbe sellers are choosing to rent, depressing rental prices? Good luck.) Also: "Go for interest only". Hmm sound financial sense in a falling market. Best advice: "Sell" (they didn't include that one though, of course ...

Posted by paul @ 10:32 AM 2 Comments

Davis Smith has cracked it!

Times: Time for a big, bold cut in interest rates

I wrote here on the last day of August that the case for delaying a cut in Bank rate come October could be looking very thin. Then we had a series of speeches from the Bank of Englands decision-makers showing they were aware of the downside risks but were in no mood to rush things.

Posted by holding out @ 10:14 AM 7 Comments

Depression of 2008

Sunday Times: Back To The Future

A step back in time to take a look at what might come. The article may even be compiled from some of the archives on this site.

Posted by yoyo1 @ 10:08 AM 3 Comments

Financial - Hair of the dog

This is money: Brown: Banks will beat crunch

Gordon Brown last night pledged that no major bank across Europe would be allowed to go out of business because of the international financial crisis.

Posted by matt_the_hat @ 09:42 AM 3 Comments

Big trouble in Little Iceland.

Guardian: The Party is over for Iceland, the country that tried to buy the world

The bigger you get, the harder you fall, I guess. Is this a rare case of national overstretch or a warning of the future for the UK/US?

Posted by richard @ 09:09 AM 3 Comments

Its going a bit timeshareish

Mail Online: Thousands hit as 'buy to let' firm goes bust

The property company at the heart of the buy-to-let boom has collapsed because of the credit crunch.

Posted by sosoon @ 08:59 AM 3 Comments

The consortium has now declined to provide the line

International Herald Tribune: Deal to save Germany's Hypo Real Estate fails

BERLIN: Germany's No. 2 commercial property lender, Hypo Real Estate Holding AG, said Saturday that a 35 billion (US$48 billion) rescue plan for the company had fallen apart after private lenders withdrew support. Hypo said it would seek to stay in business through "alternative measures," but it did not say what those might be. The company said it was "in the process of determining the consequences" of the rescue plan's failure, according to a statement. Hypo was the first German blue chip to seek a government rescue after running into trouble in mid-September as credit froze on international markets.

Posted by malct @ 08:39 AM 1 Comments

Another Domino Wobbles

BBC News: Another top European bank falters

Another major European financial institution is teetering on the brink of collapse after a banking consortium withdrew from rescue talks. Germany's second-largest mortgage lender, Hypo Real Estate, said a bail-out deal had fallen apart.

Posted by renting2 @ 08:19 AM 0 Comments

Saturday, October 4, 2008

The BTL optimist

Rosie Millard: Bye-bye, buy to let?

BTL "has been one of the most extraordinary moments in personal finance, allowing the likes of you and me to take control of our investments, rather than hand them to some distant broker or flaky pension scheme"

Posted by confused76 @ 09:27 PM 9 Comments

It is just like the U.S. (in Rotheram)

Mirror: Jamie Oliver's junk food mum has her cooker repossessed

Julie the junk food mum once branded a "big old scrubber" by Jamie Oliver and her lorry driver husband Christopher, 45, are victims of the credit crunch. No longer able to afford the 1,075 a month mortgage they have handed back the keys to their home of 18 years.

Posted by enuii @ 08:46 PM 12 Comments

House-hold Debt and Rate Cutting.

Telegraph: Interest rate cut will undermine credibility of monetary regime

"Its become even worse. The screw has turned tighter still. Whats more, the epicentre of this crisis has now headed closer to home". In recent weeks, weve seen an alarming rise in sterling Libor the rate at which UK banks lend to one another. The gap between three-month Libor and the overnight indexed-swap rate is close to 2   per cent. In the year before August 2007, when sub-prime burst onto world markets, the same Libor-OIS spread averaged a mere 0.08 per cent."The UKs fundamental problem is too much house-hold debt: we need house prices to cool and a higher savings rate, both of which argues against cutting rates. Thats the unpalatable truth".

Posted by alan @ 07:47 PM 4 Comments

The three banks that are getting most of the stolen money are: ???

TBR NEWS: The Voice of the White House ????

There is a very serious aspect to the current economic collapse that no one wants to discuss, neither the economic pundits, the media or the scared politicians. This concerns an aspect of the subprime scams and, basically and stripped of euphemistic words and propaganda phrases, is that very large amounts of money from various banks and financial institutions and the owners and controllers thereof were, and are being, sent outside this country to a secure area. I am speaking most specifically of American business frantically sending, electronically, huge amounts of money to banks in [another country] look I don't know, do you? let's get to the bottom of this ! Who else will? uh oh !

Posted by malct @ 07:24 PM 0 Comments

Excellent commercial investment

Property auction website: Scottish Property Auction Listing

Have a look at lot 63. Surely shows the strength of the property market in Scotland.

Posted by highland property bubble @ 07:13 PM 1 Comments

Max Keiser on the Truth about Markets

Karmabanque Radio: The Truth About Markets - 27 September 2008

Some of you appreciated a bit of humour recently, and, its a very good way to get others into real issues. Like, he gives the best explaition I've ever heard on short selling. Basically, short sellers provide liquidity to falling shares, so stop them falling too far. Here, Karmabank radio, from London's Resonance FM does just that. I subscribed on i-tunes. This guy, Max Keiser, has been on Chanel 4 News recently. He's been predicting this stuff for ever. His style is a bit hard to get used to initially, because he plays on his New York accent. For those who don't know, Resonance takes on a similar format to American Patriot Radio, but its based in London and is about London and the UK, so gives you a bit of what you won't get on the Beeb.

Posted by planning4acrash @ 07:02 PM 15 Comments

In Europe there is a need for coordination,

NASDAQ: UPDATE:IMF Chief Calls For United European Response To Crisis

PARIS (AFP)--IMF chief Dominique Strauss-Kahn called Saturday on European countries to provide a united response to the financial crisis, following talks with French President Nicolas Sarkozy. "In Europe there is a need for coordination," Strauss-Kahn told journalists hours before a mini-summit of European leaders. "It has to be indicated to the markets... that European countries will not react every man for himself. "The situation is very worrying. The banks' losses are the worst we've ever seen," the International Monetary Fund's chairman warned. "The IMF thinks it's a global problem that needs a global response." Strauss-Kahn's meeting with Sarkozy came just hours before the French president was due to host his U.K.,

Posted by malct @ 06:23 PM 2 Comments

And still the american lazy citizens do nothing but say "what time is hannah montana on"

LaRouche: No Bailout ! "They Will Kill You !

What the Americans will do to those, who try to push a dictatorship down their throats. Useful links and insight

Posted by malct @ 06:06 PM 2 Comments

Too Late Mate


CALL CONGRESS NOW!! IT TAKES ABOUT 1 MINUTE PER CALL!!! GET ON IT!!! Tell them, " A "Yes" vote will be a self induced pink slip. When you nationalize corporate debt that is FASCISM. We do not wnt this or any other socialist or fascist legislation, anythind other than a "NO" note may be construed as an act of TREASON!" - Capitol Hill Switchboard: (202) 224-3121

Posted by malct @ 06:02 PM 5 Comments

EU Taxpayers' Bank

BBC: UK seeks 12bn EU business fund

"UK Prime Minister Gordon Brown is to propose a 12bn EU fund to help keep small businesses afloat during the economic crisis." A taxpayers' banking system to run in parallel to the commercial system. But only for the select few?

Posted by renting2 @ 06:01 PM 0 Comments

Easier Said Than Done!!

New York Times: For Treasury Dept., Now Comes Hard Part of Bailout

WASHINGTON It will be one of the worlds largest asset management firms with an impressive $700 billion war chest. Nothing short of the global economy depends on its success. And the Treasury Department has barely a month to get it up and running.

Posted by renting2 @ 05:14 PM 0 Comments

"A lack of buy-to-let products will dampen the housing market" + "the end of self-cert in the UK"

moneymarketing: Brokers fear buy-to-let drought

Mortgage brokers have raised concerns over the future placing of Bradford & Bingley's buy-to-let customers and fear that a funding drought will affect the whole market. The Government has confirmed that it will be running down the B&B and Mortgage Express books, much like in the case of Northern Rock.This week, The Mortgage Works pulled its entire range temporarily in reaction to unprecedented demand. HBOS also withdrew much of its range temporarily.Moneyfacts has revealed that the number of buy-to-let products dropped from 662 to 481in the first two working days of this week.

Posted by jack c @ 04:49 PM 2 Comments

A brief talk about housing statistics

thisisdevon.co.uk: House prices fall 11%

This may not look all that interesting at first but have a look at what the EA says about statistics: "A number of cheaper properties are therefore not selling. The sale of a more expensive property then sends the overall average price up. If you were to suggest to an estate agent in South Devon that prices have only fallen by one per cent they would laugh in your face."

Posted by quiet guy @ 04:33 PM 3 Comments

One third of consumers relying on property to fund their retirement

Retirement Planner: Don't rely on your property to provide your pension

Recent fluctuations in the housing market mean people can no longer look with certainty at using their property to fund retirement. David Millar discusses the situation. A survey taken by Friends Provident before the credit crunch began showed that a third (33%) of consumers were depending on property or equity release to fund their retirement. At the time of the survey, the average property owner probably believed that their house would be worth more in a year's time, felt that property prices would continue to rise and would have been confident that there would be someone around prepared to offer the asking price if they wished to sell. The market today is a very different place, with house prices falling as sellers are obliged to cut their asking prices in order to find buyers.

Posted by jack c @ 04:30 PM 5 Comments

Icelandic crisis shakes Candy brothers property dream

Telegraph: Exposure to Iceland is not so good these days

Project Lotus has been dubbed the Candy brothers most ambitious project: the British designers attempt to out-glitz the ostentatious residents of Californias Beverly Hills 90210. Well, this was unforeseen wasn't it? But just three months after securing planning permission for the $600m project, their first foray into America is in jeopardy. Yesterday, just seven working days before a $350m (178m) loan is due to Credit Suisse, their trusted bank and equity partner in the project, Kaupthing, dropped the bombshell that it may not want to pay its share of the loan because of market conditions. Although the bank insisted last night that discussions were continuing, its uncertainty could trigger concerns about several other deals funded by Kaupthing.

Posted by lvmreader @ 04:07 PM 0 Comments

Top Bailout Views by the man who has warned about Greenspan easy money for a decade

Washington Post: Bad Medicine

Low interest rates, easy money and malleable accounting rules are what plunged Wall Street into crisis. Yet it is low interest rates, easy money and malleable accounting rules that top the list of federal fixes. The unifying theme of the new bailout bill, all 451 pages of it, is the hair of the dog that bit you. The unblinkable fact is that Americans own too much house. We overpaid and overborrowed, and many of us are "upside down," as the car dealers say. What to do? Recognize the losses and write them off. What not to do? Inflate the currency and debase accounting standards.

Posted by mountain goat @ 02:38 PM 5 Comments

24 Credit crunch in cartoons to enjoy

Call me dumb but why is the B of E buying US debt?

Guardian: When the Bank is buying car loans, you know this is a crisis

The B of E swaps US student loans for cash for three months. No, this is not an offer from a Bayswater money-changer. It comes directly from the Bank of England, which is now accepting some eye-catching forms of collateral including US car loans and equipment leases.

Posted by enuii @ 12:55 PM 15 Comments

Brix Chix are bricking it

Times Online: Is this the death of buy-to-let?

Over-commitment of the financial is expected to increase instances of failure to complete in the buy-to-let sector.

Posted by paul @ 11:56 AM 0 Comments

BBC desperately tries to defend re-appointment of the twice-resigned original "loan liar"

BBC 'News': Mandelson 'good for UK business'

Peter Mandelson has "immense talent" and will be good for British business, cabinet member Ed Miliband has said.

Posted by paul @ 11:48 AM 12 Comments

"Economist Fred Harrison proved to be the canary in the housing mine but few were listening"

Spectator Business: The ManWho Predicted The Property Crash

The 50 pence racks in the nations bookshops brim with books promising an Armageddon which somehow failed to arrive other than for the author. One thinks, naturally, of The Great Reckoning: Protect yourself in the coming depression by James Dale Davidson and William Rees-Mogg, published in April 1993, on the cusp of what turned out to be one of the worlds great stock market and property booms. But dont think that being proved right gives your doom-mongering tome a longer life on the bookshelves. Stuck down at around 22,000 on the Amazon sales chart last week (which roughly translates as: one person has bought it in the past week) is a fascinating work called Boom Bust: House prices, banking and the depression of 2010, by Fred Harrison.

Posted by neo-serf @ 11:45 AM 6 Comments

The parallels with 1930 is striking

Guardian: Haunted by history

"A fundamental weakness of the American economy in the 1920s was the unequal distribution of wealth. Although the average wage of workers increased during that decade, the economic elite benefited far more from cuts in personal and corporate income taxes. Rather than borrow more, ordinary Americans cut back on consumer purchases, creating chronic deflation. The situation is strikingly similar today. Millions of debt-ridden Americans cannot afford to repay mortgages, triggering a collapse in the housing market."

Posted by mountain goat @ 11:39 AM 2 Comments

The puke list

Ron Paul's Campaign For Liberty: List of Representatives who Switched from "Nay" to "Yea"

Never before, have the freedom of so many been stolen by the votes of so few. Grand Jury anybody?! - Ron Paul's statement in the first comment. As I mentioned before, this is just one factor, Congress approved a One Trillion defense budged a couple weeks back.

Posted by planning4acrash @ 11:38 AM 9 Comments

Flat broke

Financial Times: Requiem for a dream home

The doorway looks like the entrance to a prison cell: an unpainted steel hatch with a giant padlock hanging from it. The estate agent unlocks it and heaves the cover open, revealing a normal front door behind. You need it in these flats to stop people just breaking in and smashing the whole place up, she says. Amy is showing me round a repossessed two-bedroom flat on the fourth floor of a large modern block in east London. Completed in 2006, Hill House is part of the Pinnacles, a development built and sold by the housebuilder Persimmon as a development for young professionals working in Londons financial district. You can see the towers of Canary Wharf from the balcony, which overlooks a broad grey stretch of the Thames.

Posted by jade @ 11:32 AM 2 Comments

Even the Comedy Club wouldn't have come up with this

Evening Standard: House prices rise in uni towns

House prices have risen in university towns (er, since 2003 and, er, despite recent falls). There are about 130 UK universities, so every town of any size has one, so why mention 'uni' at all? The writer identifies just the top five towns in terms of price rises and compares the current average prices in each (he could be quoting outdated Land Registry prices for all we know) with the average prices in 2003. He gives the impression that student rentals are buoying the markets - but in that case, given the number of universities, there shouldn't be a HPC at all. This is a contestant for most creative VI headline or the most meaningless.

Posted by icarus @ 10:55 AM 6 Comments

Buy to let is over

Guardian: The king and queen of buy-to-let

"We are not a penny behind on our loan payments," says Fergus. "We are reasonably safe, I think. If we go under, then everyone's going under." Ditto! it is a well known fact that over 60% of BtLetters piled in the market in 2006-07... so what does that say about their financial stability?

Posted by confused76 @ 10:46 AM 17 Comments

Earn money while others sleep

Guardian: Buy-to-let hotel rooms group GuestInvest in administration

The company that introduced the concept of buy-to-let hotel rooms, boasting that investors could "earn money while others sleep", fell into administration yesterday

Posted by confused76 @ 10:39 AM 9 Comments

Treat this article with a pinch of salt

BBC News: BBC: Your questions about the financial crisis answered

Money Box's Paul Lewis answered your questions about the current financial crisis on the BBC News Channel on Thursday, 2 October 2008 at 11.30 BST. Personally, I think this BBC pawn is now being regularly reeled out as an attempt to put the sheeples mind at rest. Heard him on Breakfast TV this morning around 9am suggesting that the $700 billion Paulson scam is good news as it will 'unlock' the UK financial wheel and perspective borrowers will no longer have to provide 25% deposits in order to secure a mortgage deal! What planet is this bloke on! Its going to take months for any evidence to surface that this bailout will work, is he saying that everything is now fine and we can go on and re-inflate the bubble??? Irresponsible journalism, at licence payers expense!

Posted by loneranger @ 10:01 AM 0 Comments

Is the Paulson bailout itself a bigger fraud than the leveraged subprime mortgages?

Counterpunch: Why Paulsons Plan is a Fraud (Bail Out the Homeowners!)

As one reader put it,We have debt at three different levels: personal household debt, financial sector debt and public debt. The first has swamped the second and now the second is being made to swamp the third. The attitude of our leaders is to do nothing about the first level of debt and to pretend that the third level of debt doesnt matter at all.

Posted by planning4acrash @ 08:17 AM 6 Comments

Repo "bargain" dumps at auction

As property prices slump, buyers seek bargains at auction: London Evening Standard

I like how the media portray these dumps as bargains to be snapped up at auction, not pointing out they were over 100% over-valued in the first place and only gullable mugs who listen to Krusty & Pfhil bought them. This really shouldn't be an analysis piece, as no real analysis has been done. "Repossessions are rising sharply, forced sellers are desperate, and the vultures are circling. Homes bought for 500,000 just three years ago are going under the hammer for little more than 250,000."

Posted by doomwatch @ 08:14 AM 12 Comments

Friday, October 3, 2008

Must be seen to be doing something. Anything.

Reuters: Brown creates national economic council

"LONDON (Reuters) - Prime Minister Gordon Brown established a National Economic Council on Friday to coordinate economic policies across government and help people cope with the fallout from the financial crisis." So that was the problem. We didn't have a council to coordinate our economic policy. I am reassured. Not.

Posted by quiet guy @ 11:18 PM 10 Comments

What Now For UK House Prices??

BBC: House backs $700bn bail-out plan

The US House of Representatives has passed a $700bn (380bn) government plan to rescue the US financial sector. The 263-171 vote was the second in a week, following its shock rejection of an earlier version on Monday.

Posted by renting2 @ 08:02 PM 49 Comments

The Bill was passed by 263 votes to 171

Independent: House approves $700bn rescue plan

The approval of the Bill from the House of Representatives came as members voted on the proposals a second time after they shocked and "disappointed" world leaders by rejecting the measures on Monday.

Posted by whostolemyendowment @ 07:23 PM 0 Comments

House of cards under strain....

Property Wire: Overseas property owners renting out to cover costs in current economic downturn

The general economic climate means they are now trying to rent out their property but the rising cost of flights and travel is impacting that market too.

Posted by whostolemyendowment @ 07:19 PM 0 Comments

You've got to laugh, but pity the poor deluded investors

Guardian: Buy-to-let hotel firm goes into administration

The company that introduced the concept of buy-to-let hotel rooms, boasting that investors could "earn money while others sleep," has fallen into administration. www.guestinvest.com Anyone seen this...http://hotels.assetz.co.uk....my @rse!

Posted by whostolemyendowment @ 07:11 PM 0 Comments

Resistance is Futile we will always come back dressed as something different

Financial Sense Uni: Breakdown Approaches Climax

The USDollar increasingly is being defended by market interference mechanisms of the worst and most egregiously shameful order, such as a) restrictions to short financial stocks, even though they are insolvent and more illiquid by the week, b) calls to eliminate Mark to Market accounting of bank assets, and c) the trusty Plunge Protection Team devices used to prop up stocks, bonds, and the US$ itself. New York City mayor Michael Bloomberg. He is a bit of a maverick, speaking his mind. He actually stated, The next cause for concern in the battered US economy is whether there will be buyers abroad for the nations billions in debt.

Posted by malct @ 05:38 PM 7 Comments

Here's the problem: None of us really know that the hell is going on

common dreams: How the Media Sold Their Souls to Wall Street

If you are like me, the pundits, and 99.9% of the American public, you really don't know much about economics. And despite Monday's refreshing moment of rebellion in the Congress, in all likelihood the House and Senate will pass a modified version of the $700 billion handout this week to fat cat Wall Street financiers. The likely result, according to Nobel economist Joseph Stiglitz: "The unemployment rate will still increase, growth will remain anemic, house prices will continue to fall, the number of houses in foreclosure will continue to rise, credit will be harder to get, states and localities will remain in a fiscal crisis, and there will be cutbacks in basic public services. .... Our living standards in the future will be lower than they otherwise would have been.

Posted by malct @ 05:04 PM 5 Comments

There's nothing worth owning ... except gold

The Daily Telegraph: Financial Crisis: Rush for gold as savers queue for bullion

"London's two leading bullion dealers, ATS Bullion and Baird & Co, have reported a rush of interest from savers, many of whom have hundreds of thousands of pounds worth of savings they want to convert into the precious metal. At least two customers have invested the entire proceeds from selling their houses into gold, each buying up more than 500,000-worth of gold bars, according to one dealer. Savers have been queuing in the street at ATS Bullion, whose offices are just off the Strand in London's west end."

Posted by sneaker @ 03:55 PM 39 Comments

Hew - what to call it now? Home Equity Rebuilding?

BBC News: Homeowners 'stop taking equity'

"Households put 2.8bn of equity into their homes, the first negative withdrawal reading since 1998. People took 5.2bn from their homes in the first quarter of 2008, and about 10bn in the April-June period in 2007. " So I make that 3.3bn per month no longer being spent on UOC (Units of Cr@p)

Posted by hogwash @ 03:07 PM 4 Comments

Payrolls shrink by 159,000 - 9th straight month of cuts. '08 total: 760,000.

CNN: Jobs: Worst in 5 years

This is really gaining speed

Posted by mark @ 02:50 PM 0 Comments

BUY A HOUSE or BUY GOLD perhaps neither

GulfNews & Reuters: Central banks in Europe favour gold as crisis unfolds

Reuters Published: October 03, 2008, 00:13 London: Sales of gold by European central banks are likely to be lower than expected over the next year as the global banking crisis boosts bullion's appeal as a "safe" reserve asset. And banks elsewhere in the world, most notably in Asia and the Middle East, may even become buyers of gold in an attempt to diversify their reserves away from the dollar, analysts say. would seem to make sense to buy gold as it goes up then cash in a buy a house when prices have crashed. BUT.

Posted by malct @ 02:24 PM 1 Comments

Senior economist cuts through the cr&p!

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

William Buiter, professor at LSE etc etc talks complete sense. The solution is neither to allow banks to fail nor to nationalise them, or in the case of B&B or NR the worst of both worlds - nationalise them and THEN allow them to fail. The solution is for banks to cancel a proportion of the bonds that banks have issued and give the bondholders new shares instead. I have been trying to explain this for ages, to little avail. At least I am not alone.

Posted by mark wadsworth @ 02:08 PM 0 Comments

FSA raises depositor protection limits

BBC: Savings guarantee to be 50,000

The Financial Services Authority (FSA) has raised the limit to the amount of deposits that are guaranteed should a bank go bust to 50,000. The new limit will come into effect on Tuesday 7 October. Previously, the first 35,000 of savers' deposits had been protected. The FSA will now consult on whether the limit should be raised even higher.

Posted by jack c @ 02:05 PM 4 Comments

Margaret Beckett to take over from Caroline Flint as Housing Minister

FT: Cabinet reshuffle..

Buried among the reshuffle announcements is the sacking of Caroline Flint (probably for showing too much of her briefs in Downing Street). Perhaps Margaret Beckett will represent the ugly face of the housing market more accurately.

Posted by mark @ 01:13 PM 3 Comments

various state-funded services are at risk of grinding to a halt.

reuters: California may need emergency $7 billion loan:

California may need an emergency loan of up to $7 billion from the federal government within weeks, the Los Angeles Times on Friday quoted Gov. Arnold Schwarzenegger as saying in a letter to U.S. Treasury Secretary Henry Paulson. "Absent a clear resolution to this financial crisis, California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the federal treasury for short-term financing," Schwarzenegger wrote in the letter a truly irresponsible article from - er ahem - reuters ?

Posted by malct @ 01:09 PM 8 Comments

GuestInvest files for administration

Reuters: UK's GuestInvest files for administration-Deloitte

I wonder what sort of recovery rate investors are likely to get. See also the FT's earlier story: http://www.ft.com/cms/s/0/403fd1a6-90e3-11dd-8abb-0000779fd18c.html

Posted by chandellina @ 01:09 PM 0 Comments

better sell up holiday homes whilst you can

yahoo: France slips into recession

French leaders scrambled to reassure consumers, voters and investors Friday, after the official statistics agency warned that the eurozone's second largest economy had slipped into recession. The French economy shrank by 0.3 percent in the second quarter of the year, and on Friday the Insee agency forecast that gross domestic product would drop by a further 0.1 percent in both the remaining quarters of 2008.

Posted by mark @ 01:01 PM 7 Comments

which one, which one....

cnn: Insurers dive on Reid's 'bankrupt' quote

Comments from Senate Majority Leader Harry Reid about a 'major insurance company' on the verge of bankruptcy send already hard-hit stocks sharply lower.

Posted by mark @ 12:56 PM 0 Comments

Can it get his bad?

Guardian: Haunted by history

Some interesting observations on the parallels between 1929 and now. So much for civilisation.

Posted by letthemfall @ 12:41 PM 2 Comments

i have an old lawnmower i want to put this up for collateral for 1million quid

yahoo: Bank of England relaxes collateral rules

Ongoing liquidity issues have prompted the Bank of England to expand the range of eligible collateral it will accept from commercial banks in return for three-month loans.

Posted by mark @ 12:35 PM 2 Comments

Why taxpayers shouldn't have to bail out bad lenders

MoneyWeek: Why taxpayers shouldn't have to bail out bad lenders

As it becomes clear that we're facing recession no matter what, there's no reason lending conditions should improve again any time soon, regardless of what governments do

Posted by damien @ 11:55 AM 0 Comments

The one who kicked it all off back in government - excellent - just what we need.

BBC News: Mandelson to return to government

Peter Mandelson, the man who lied on his mortgage application with a building society that then had a good hard think about it and decided - well that kind of thing's alright with us - is back in a position of power. Excellent. There are some that would argue that between them they set the precedent for the next decade.

Posted by phdinbubbles @ 11:09 AM 10 Comments

Press reset

BOE: Housing Equity Withdrawal (HEW) Q2 2008

Car manufactures and M&S need look no further than this report.

Posted by sosoon @ 10:59 AM 4 Comments

Now You Know Why It Was Such A "rush Job"

Market Ticker CNBC: China Declares Economic War?

Thursday, October 2. 2008 Posted by Karl Denninger at 12:43 (Page 1 of 273, totaling 546 entries) next page China Declares Economic War? Its very simple. Here it is in 2 minutes. Literally. ""Hundreds of billions of dollars are going to bail out FOREIGN INVESTORS. They know it, they demanded it, and the bill has been carefully written to make sure that can happen." - Brad Sherman , D-California"

Posted by malct @ 10:52 AM 3 Comments

The pain keeps coming

BBC: Jobs go as service sector shrinks

Britain's services sector shrank in September at its fastest rate since records began 12 years ago, new figures suggest, adding to the economic gloom

Posted by holding out @ 10:44 AM 4 Comments

History doesn't repeat - but it does rhyme

Wikipedia: The Panic of 1837

The Panic of 1837 was a panic in the United States built on a speculative fever. The bubble burst on May 10, 1837 in New York City, when every bank stopped payment in specie (gold and silver coinage). The Panic was followed by a five-year depression, with the failure of banks and record high unemployment levels. [...] The American people with one consent gave themselves to an amazing extravagance of land speculation.

Posted by sneaker @ 10:31 AM 3 Comments

Or very own billion dollar bailout

Sky News: Emergency EU Talks On Banks Crisis

Mr Brown has so far refused to meet calls for a similar guarantee in the UK.

Posted by matt_the_hat @ 10:31 AM 0 Comments

Goodbye BTL / Second homes / 4x4's / Luxury Holidays etc

Reuters: Housing equity withdrawal turns negative in Q2

The housing equity withdrawal turned negative in the second quarter for the first time in a decade as households repaid a net 2.8 billion pounds after withdrawing 5.2 billion pounds in the first quarter, the Bank of England said on Friday.

Posted by landedgentry @ 10:08 AM 1 Comments

Oh, so it wasn't an uncontrolled credit expansion?

BBC "News": Illusions causing market havoc

The mind naturally creates illusions and superstitions at times of stress - and this could be adding to the global financial crisis, say scientists.

Posted by eyes_wide_open @ 10:04 AM 0 Comments

Oh, so it wasn't an uncontrolled credit expansion?

BBC "News": Illusions causing market havoc

The mind naturally creates illusions and superstitions at times of stress - and this could be adding to the global financial crisis, say scientists.

Posted by eyes_wide_open @ 10:03 AM 0 Comments

Bit more good ol' Brown bashing

Telegraph: The roof was bound to fall in on Labour's housing market

"Homeowners rightly expect their investment to be protected by sensible policies's I am determined that, as a country, we never return to the instability, speculation, and negative equity that characterised the housing market in the 1980s and 1990s.'' Gordon Brown's Budget speech, July 1997

Posted by holding out @ 09:29 AM 14 Comments

Stock Markets face October crash

Finance Markets: Stock Markets face October crash

Stock markets face a further crash over October, as a combination of bad economic data, credit derivative write downs, and the threat of further bank failures, plague financial markets already freezing up.

Posted by brite2006 @ 09:27 AM 0 Comments

Emerging markets in collapse

Bloomberg: Emerging Market Stocks Decline, Head for Worst Week in 6 Years

Emerging markets are in a state of collapse as people wake up to US recession.

Posted by brite2006 @ 09:26 AM 0 Comments

Bank runs spread across Europe: now Greece

The Telegraph: Greece joins bailout stampede as Germany vows no blank cheques

The Greek government has issued a blanket guarantee of all bank deposits after panic withdrawals by customers in Athens and Thessaloniki, creating an unstoppable stampede across Europe for an EU-wide bail of the financial system.

Posted by brite2006 @ 09:24 AM 0 Comments

The average person aged between 50 and 60 who has taken out a debt management plan owes 41,400

Press Assoc: Over 50s 'racking up debts'

Growing numbers of people could be forced to delay their retirement after racking up crippling levels of unsecured debt, new research has showed. (Advertisement) The average person aged between 50 and 60 who has taken out a debt management plan owes 41,400 through credit cards, loans and other unsecured borrowing, according to debt solutions group Payplan. The figure is 25% higher than the amount of debt accumulated by other age groups, which averages 32,700.

Posted by malct @ 08:50 AM 2 Comments

The BBC Call it a crash

BBC News: First-time buyers welcome crash

House prices have fallen for 11 months in a row with lender Nationwide warning of "difficult" times ahead, but many first-time buyers are quietly counting their blessings. The housing market slump offers thousands of young workers their best chance of ownership in years as homes become more and more affordable.

Posted by housebear @ 08:47 AM 8 Comments

23,000: what average house lost in a year