November 2008 Archive

Sunday, November 30, 2008

Yes the grass was greener in Dubai than in Leicester or was it ?

Times Online: The partys over in Dubai

A new life in Dubai.Not.

Posted by fjcruiser @ 08:14 PM 8 Comments

2010 and beyond is looking bad Brown's UK borrowing binge is now dangerous bravado

Next year in a single year the UK will borrow a staggering 8pc of GDP. The fiscal situation now looks worse than at any time since the Second World War. Brown has managed to surpass even the havoc caused by the deeply incompetent Labour governments of the mid-1970s.

Posted by v stor @ 06:56 PM 0 Comments

I'll sue I tells ya!!!

timesonline: TV host Anthea hit by crunch

Once upon a time there were two wonderful people, who had wonderful lives and wonderful houses, until the big nasty repo man came and took it all away.

Posted by bystander @ 06:35 PM 22 Comments

And the complications begin.

Bloomberg: EU Denies Blocking Frances EU10.5 Billion Bank Plan

Nov. 29 (Bloomberg) -- The European Commission denied its blocking Frances 10.5 billion-euro ($13 billion) bank-rescue plan and said the two sides are still negotiating. We havent blocked the plan, because we havent taken a decision, Jonathan Todd, spokesman for European Competition Commissioner Neelie Kroes, said in a telephone interview today. Kroes held talks with French finance minister Christine Lagarde yesterday, and both sides are keen to reach a deal as soon as possible, Todd added.

Posted by flintster1994 @ 06:15 PM 11 Comments

AT LAST the truth is out (again) part 4

The Dossier: Silly Money (part four) - Bremner, Bird and Fortune

A Modest Proposal google video part four to complete the series

Posted by malct @ 05:48 PM 8 Comments

Government manipulation will not save the housing market

MailOnline: Mortgage firms' snub for Darling: No end in sight to the home loans drought

The stubborn refusal of lenders to turn on the mortgage tap means hundreds of thousands of borrowers are stuck on unaffordably high rates. And nothing Alistair Darling said last week will make any difference.

Posted by v stor @ 04:09 PM 0 Comments

BTL: it's a mess out there!!

Times: Profit from the buy-to-let chaos

The payment profile of buy-to-let lending has worsened more rapidly than the market as a whole. Reasons include falling rents and an over-supply of rental property in some areas,

Posted by confused76 @ 04:07 PM 14 Comments

An addition to the conspiracy v stupidity debate

GATA / WSJ: Rubin, under fire, defends his role at Citi

Under fire for his role in the near-collapse of Citigroup Inc., Robert Rubin said its problems were due to the buckling financial system, not its own mistakes, and that his role was peripheral to the bank's main operations even though he was one of its highest-paid officials. "Nobody was prepared for this," Mr. Rubin said in an interview.

Posted by gardeniadotnet @ 01:14 PM 4 Comments

goodbye JJB ???

Telegraph: JJB Sports lender Barclays piles on pressure

Barclays, which has lent JJB about 60m, has appointed Grant Thornton to advise the bank on JJB's future business plans. Advisers from KPMG are working with JJB on its negotiations with lenders. JJB has already been in dispute with HBOS, another lender to the company, over its banking covenants. In September, JJB said HBOS was wrong to say it had breached a key lending covenant. Speculation is mounting that Barclays is now worried about the company's financial position. Industry sources claimed recent like-for-like sales at JJB Sports had fallen significantly and some suppliers, such as Puma, have stopped worked with the company. Certain credit insurers have also refused to provide cover to the company's suppliers.

Posted by mark @ 12:53 PM 1 Comments

Why would anyone want to save - or is that the Plan

The Times: Nationwide hits zero on rates

One of the first Building Society to hit zero as a savings rate for some of its accounts, one has to ask why keep your money there at all, is this all part of a cunning government plan - I think not as they really are not smart enough, only a matter of time before Badgers on the road to the IMF just like Healey was!

Posted by rimmer @ 12:15 PM 5 Comments

A humorous take on the recession by Tim Lott

The Independent: If this is the end of the road, there must be a rainbow...

Our writer looks around him and sees no signs of the recession. Is it just him, or is everything fine?

Posted by gardeniadotnet @ 11:04 AM 16 Comments

What a mess

Independent: If the recession won't be that bad, why will we go so far into the red?

If the recession is shallow and short, then we might just about scramble through. But if not, then we will be in a huge mess, having to tighten policy while we're still in recession. Most of us are still reeling from those dreadful borrowing figures revealed by the Chancellor in his pre-Budget report last week. If you cannot borrow more and you cannot raise more in tax, you have to cut what you spend. The only issue is how savage this process will turn out to be.

Posted by mytimeisnigh @ 10:46 AM 7 Comments

Mr Smith I presume.

The Times: Bank of England weighs rate cut to 2%

THE Bank of England and the European Central Bank are set to cut interest rates significantly this week as Britain and Europe dive deeper into recession. The Bank, which has cut its rates by two percentage points in the past two months alone, surprising the markets with a 1.5-point cut earlier this month, is urged by economists to cut by a further point this week.

Posted by cheekie charlie @ 10:45 AM 2 Comments

Looks like mortgage lending "debrief" is unravelling

Telegraph: Nationwide ditches standard variable rate for new borrowers

"Ray Boulger at John Charcol, the mortgage broker, said: "Less than a month after the breakfast meeting rolling out the Brown/Darling master plan to intimidate the major lenders into passing on the full 1.5 percentage point rate cut in their standard variable rate (SVR), the one with the lowest SVR and by far the largest proportion of its lending on SVR pulls the plug for all new lending on that rate. "Not only did the master plan not last for life, it didn't even last until Christmas." So, after Darling Browns finger wagging and stwong words, the first and one of the biggest lenders dares to make a business decision. With the VAT plans and now the lending tuff-talk both looking as robust as my kids strawberry fool, who is going to blink next?

Posted by growler @ 10:09 AM 4 Comments

Government house price data 'flawed'

Guardian: Government house price data 'flawed'

The Government's official house price index, produced by the Land Registry, has been accused of misleading homebuyers and policymakers after it emerged that it excludes repossessions and auctions on the grounds that they do not reflect the 'full market value' of the sale.

Posted by thefinalbear @ 10:07 AM 3 Comments

We're all maxed out. What we need is another goverment bailout..

TimesOnline: All areas of UK industry feel debt pain.

FEARS are mounting over the financial health of Britains biggest boiler-maker Baxi, one of a string of companies wrestling with heavy debts as the recession continues to bite.

Posted by v stor @ 08:46 AM 0 Comments

Government desperate to stop the house price implosion Darling: 'I haven't done enough yet to save economy'

Alistair Darling has admitted that he will 'almost certainly' have to deliver a second dose of financial life-support to Britain's ailing economy

Posted by v stor @ 08:42 AM 0 Comments

LONDON Could the British governments plan to borrow and spend its way out of a recession lead to

new york times: Fears That a Weakened British Pound May Grow Weaker

Mr. Hargreaves sees the pound falling to $1.25 it was at $1.54 on Friday and he has recently moved 20 million into United States Treasury bills and instruments denominated in, among other currencies, the Norwegian krone.

Posted by big chris @ 04:29 AM 0 Comments

China wants to recruit our finance "experts" - are they mad?!

FT: Chinese exploit western job losses

Out-of-work finance staff in the UK and US have a new reason for optimism about their employment prospects especially if they speak Mandarin. Chinese financial institutions are set to exploit the widespread job losses in western financial centres as a result of the credit crunch by next month embarking on a hunt for people willing to relocate. The Shanghai Financial Service Office is sending delegations to New York, Chicago and London to recruit specialists in risk management, asset management, product research and development, macroeconomics and policy analysis. However, the salaries on offer in China are unlikely to meet international standards. [No silly bonuses? Awww, diddums]

Posted by drewster @ 03:59 AM 11 Comments


observer: UK house prices 'to plunge like US'

Robert Shiller, the Yale economist who forecast both the bursting of the dotcom bubble and America's property crash, is warning Britain's homeowners to expect things to get every bit as bad on this side of the Atlantic. "consumers should be wary of the comforting excuses many analysts find for explaining why Britain's housing market will be hit less hard than America's"

Posted by mken @ 03:51 AM 0 Comments

Top end London property falls 3.6% IN A MONTH

bloomberg: London luxury house prices fall

They said it could not happen. 3.6% down IN A MONTH according to Knight Frank. Never listen to 'them' again.....

Posted by andyh @ 03:05 AM 0 Comments

Its started here too, nowhere is safe from the crash

Semana: The Colombian economy in 2009 uh, oh

The worlds economic outlook is uncertain. Bankruptcy and massive layoffs take place daily in the United States and Europe. The International Monetary Fund (IMF) just came out with its forecast. Less than 3 percent growth signals a global recession. World growth will be at 2.2 percent in 2009. How will Colombia fare in such a gloomy world scenario? The answer depends on the dose of pessimism made by the forecaster. There are some who believe that the best Colombians can do at the end of this year is try to have a good time, because 2009 will be so complicated that perhaps there wont be an opportunity to celebrate again anytime soon.

Posted by gone-to-colombia @ 12:17 AM 2 Comments

Saturday, November 29, 2008

Trouble ahead

First Post: Bankrupt Britain

Nice summary. I think I have an explanation for the recent rise in sterling and stocks which I will put as a comment in case of length.

Posted by stillthinking @ 05:55 PM 14 Comments

Just a little bit of HPC pron House prices could fall a further 36%

House prices are set to fall a further 36% over the next two years in what could amount to the worst post-war housing crash, according to the price of contracts being traded on the derivatives market.

Posted by quiet guy @ 04:07 PM 19 Comments

Suggestions for Mandy's Survival Matrix?

Times: Lord Mandelson devising test for which businesses to save

"Lord Mandelson, the Business Secretary, is drawing up selection criteria for choosing which businesses and industries are of enough importance to the UK economy to warrant being saved". The minister has decided that a more interventionist strategy for industry is now required as Britain faces a probable recession. Can anyone guess what the wacky criteria will be?

Posted by alan @ 03:16 PM 27 Comments

Futures markets confirm the worst is yet to come

FT: The house loses

If UK mortgage lenders believe they have secured enough capital to tide themselves through a recession, they had better think again. A look at the residential property derivatives market suggests house prices have very far indeed to tumble before they reach their expected trough. Since peaking in August 2007, when the average house sold for 201,081, prices have fallen 16.4 per cent, reaching 168,158 at the end of October. Two-year derivatives contracts are now pointing to a further fall of a third to about 113,000. This implied 44 per cent peak-to-trough decline would wipe out all gains since the summer of 2002

Posted by rama @ 03:08 PM 4 Comments

Good luck - you'll need it.

BBC: Legal challenge to HBOS takeover

A last-ditch attempt to block the planned Lloyds TSB takeover of Halifax Bank of Scotland has been launched. A group of businessmen, bank customers and shareholders is to seek a legal ruling over Business Secretary Lord Mandelson's decision to allow the deal.

Posted by gardeniadotnet @ 02:38 PM 1 Comments

The art of speaking while saying nothing

BBC: Recession 'difficult to predict'

Lord Mandelson has conceded that it was difficult to tell whether the economy will grow by the rates forecast. "No-one can foretell how short or long, how painful or painless, the recession is going to be," he told the Guardian newspaper.

Posted by gardeniadotnet @ 02:01 PM 4 Comments

Minimal Iimpact!

TimesOnline: Pre-Budget Report: struggling homeowners

The threat of repossession will continue to hang over homeowners in arrears despite government plans to offer them more help.

Posted by v stor @ 01:41 PM 0 Comments

Better read this - before - you do your xmas shopping!

Assoc. Press NPR: For stores, the holiday season may already be over

Major department stores and mall-based chains have cut prices up to 70 percent to move out mounds of excess inventory stuck in the pipeline since the financial crisis hit in September and people snapped their wallets shut. Big moves of merchandise happen every year but usually after Christmas. This year stores are desperate to shed inventory even before Thanksgiving. At warehouses operated by Liquidity Services Inc., a leading online auction company for surplus goods, there are rows and rows of pallets of offloaded merchandise ranging from jewelry to consumer electronics. "This is about survival. This is not about muddling through the holiday season,"

Posted by malct @ 12:59 PM 3 Comments

Inverse economics?

Times Online: Metrovacesa asks HSBC to buy back London HQ

Metrovacesa, the troubled Spanish property company that bought HSBCs European headquarters at Canary Wharf less than two years ago, wants the bank to buy it back...Metrovacesa has failed to refinance debt secured on the building, and has decided to offer the 45-storey tower back to HSBC for 838 million 150 million less than the record-breaking 1.09 billion that the Spanish company paid for it...

Posted by whostolemyendowment @ 12:18 PM 6 Comments

Crunch! Welsh house price crash is UKs worst and it wont level out until 2010

THE plummeting decline of the Welsh property market will not bottom out until 2010, experts warned last night.

Posted by v stor @ 11:23 AM 0 Comments

The government rescue scheme

Scarborough Evening News: Council selected for mortgage scheme test

"SCARBOROUGH Council is one of only two local authorities in Yorkshire and Humberside to pilot the Government's new Mortgage Rescue Scheme ... The scheme aims to help up to 6,000 of the most vulnerable households avoid the trauma of repossession over the next two years." - Just before the election. What a coincidence!

Posted by quiet guy @ 09:39 AM 6 Comments

Anne Ashworth's pantomime

Times: The Pre-Budget Panto

"The Bank, or so it is said, would prefer that the banks devoted their cash to small businesses, rather than supporting house prices that are now more affordable for first-time buyers" "The Chancellor did little else to bolster the housing market, neither ensuring that more struggling borrowers are saved from repossession, nor introducing new concessions for first-time buyers" these clowns did enough to inflate the BTL bubble. Anne, she is the pantomime village i@iot

Posted by confused76 @ 08:41 AM 4 Comments

Supply and demand:0)

Findaproperty: 663,000 Empty Homes: Who's To Blame?

Chief Executive of the Agency, David Ireland, says: "The government is fixated on just building more homes, but we are convinced that returning more empty homes to use should be part of the solution too". ...why would this be? GB and HMG heavily in the house builders pockets? How much did Barrat, Wimpey etc. put into the coffers of NuLab during the boom times, anyone know???

Posted by bystander @ 08:27 AM 1 Comments

Utterly Delusional

The Guardian: Mandelson plans list of firms to save from bankruptcy

A fatal flaw for Prime Ministers (particularly Labour Prime Ministers) is that they quickly tire of the humdrum world of domestic politics, and hanker for an historic legacy-defining role on the world stage - Blair being the exemplar. What Mandelson says at the end of this article will leave some of you speechless - those that haven't kicked in their monitor screens in, in a fit of rage and expletives first, that is. There has to be a stage beyond 'delusional', in which case, these two have reached it.

Posted by lierbag @ 08:01 AM 0 Comments

Government trying to keep prices from falling - a hopeless task

MailOnline: 700,000 'will fail to meet mortgage' as lenders are warned: Treat home repossessions as a LAST resort

Mortgage lenders have been ordered to treat home repossession as a last resort.

Posted by v stor @ 07:45 AM 0 Comments

"Labour isn't working" 2009

New Stateman: How safe is your job?

This was a year of financial panic as oil prices spiked, banks collapsed and stock markets tumbled. But it is likely that 2009 will be the year of the dole. Unemployment, already higher than at any time since Labour came to office in 1997, is expected to climb to almost three million by 2010, according to the Confederation of British Industry. The turnaround in the UK employment market has been astonishing. The pace of job losses, led by the shake-out in the banking sector, has astounded analysts: the Centre for Economic and Business Research (CEBR) has forecast that 300,000 private-sector jobs will have been lost in the six months to the end of this year alone.

Posted by sold out @ 12:52 AM 0 Comments

Friday, November 28, 2008

How does this pan out ?

FT: Investor buys entire street at cut prices

Did we have funds bottom feeding in the last property downturn ? Will this affect the dynamic this time around ? I guess it will not cushion the falls because the funds would have to be massive to affect the UK housing lead balloon.

Posted by voiceofreason @ 10:05 PM 1 Comments

Prices to fall 30% says FT

FT: Investors bet on record property crash

"... They also suggest that the housing market will not return to todays level of pricing for another 10 years." "Modern flats in northern cities such as Leeds, for example, are already being sold at discounts of more than 50 per cent to their newbuild value two years ago." "The agent predicts that it will take around eight and a half years until 2016 for prices to recover to 2007 peak levels."

Posted by voiceofreason @ 10:02 PM 6 Comments

And so the buyers strike begins..........

Financial Times: UK and Italy struggle to entice investors

Quote:"The UK and Italy struggled to sell bonds on Thursday in a fresh sign of the difficulties governments are facing because of the debt needed for economic stimulus packages and bank recapitalisations. " "Roger Brown, global head of rates research at UBS, said: The UK auction was dire. I do not remember one as bad for shorter-dated bonds. It is an ominous sign of trouble ahead." "Both the UK and Italian governments had to offer an extra 10 basis points compared with similar existing debt to entice investors to sell 3.75bn in four-year bonds and 1.4bn in three-year bonds respectively. The Italians also raised a lower amount than expected because of worries over weak demand"

Posted by goweresque @ 08:59 PM 4 Comments

Gordon Brown's Downfall - The prequel

Crown Blog: Gordon Brown's Downfall - The prequel

New Gordon Brown Downfall - The prequel Video. Been working on this a while, but it all came together this week especially the ending. Hope you enjoy - no cursing this time.

Posted by crown @ 08:50 PM 2 Comments

View and Counter View

telegraph: Britain should join the euro says Hong Kongs Tsang

A Chinese view on UK debt.

Posted by bellwether @ 08:46 PM 5 Comments

Sensible move, imho.

TFL: Removal of Western Extension Congestion Charging zone

A reprieve for house prices?! The distortions at the border of the charge zone will cause some interesting changes, people who paid 20k extra to be just inside will feel flumoxed! But, on the whole, this should help support west london prices a little bit, and, will hopefully end the war on family cars. Do you think Boris discovered the fraud of global warming?!

Posted by planning4acrash @ 08:08 PM 0 Comments

We will follow US house price crash Even UK guarantee can't stop housing crash

Britain needs to reflate its mortgage markets to save its economy and its banks. Problem is, few want to borrow and there is precious little money to lend.

Posted by v stor @ 07:45 PM 0 Comments

A millenia of cruel inflation

media.economist: Gold price since 1344 in Sterling

Gold at 530pounds, up at its all time high, following an exponential trajectory that began when the last vestiges of the gold standard were removed in the 1970's. We are on a trajectory back to the gold standard, because, a revaluation of gold, to pay off all the debt, is the only way to deal with the debt crisis. The graph above shows how gold price has risen via a millenium of inflation. Beginning with the clipping of the coignage, such as reducing the amount of gold in the sovereign coin, accelerating with the first Bank of England in the 1600's, culminating in this century's boom following the Federal Reserve and the final capitulation from the ending of the gold window in the 1970's.

Posted by planning4acrash @ 06:44 PM 13 Comments

Britain Trending Towards Bankruptcy

The Market Oracle: Bankrupt Britain Trending Towards Hyper-Inflation?

Britian is a Big Version of Iceland

Posted by nadeem walayat @ 06:40 PM 0 Comments

Just imagine getting banged up for saying house prices will fall!

news sniffer: Senior Tory arrested over leaks

WOW a REAL CONSPIRACY!!! Conservative immigration spokesman Damian Green, was arrested earlier in connection with an investigation into a series of leaks from the Home Office. He was held on suspicion of "conspiring to commit misconduct in a public office," the Metropolitan Police said. Just imagine getting banged up for saying house prices will fall!

Posted by malct @ 06:21 PM 11 Comments

Down a whopping 49% - a stimulus package should fix this no problem! Shipping News - Container Ship Orders Plummet

Only 179 containerships were contracted in the first eight months of this year, down 49 percent on-year, Clarkson reports. This compares with a record 566 contracts in 2005, 479 in 2006 and 530 in 2007.

Posted by v stor @ 06:11 PM 0 Comments

Survival of the fittest

BBC news: What is it like to be an estate agent?

The real problem facing estate agents who have never worked through a downturn is that the methods they used to use are no longer enough. "Back in the old days..." Mr Smith begins, before realising that he is talking about last year. "It used to just be a question of throwing properties out there and seeing who catches them."

Posted by fjcruiser @ 05:42 PM 2 Comments

What is it like to be a mortgage broker?

BBC: What is it like to be a mortgage broker?

The usual serise. Actually, this particular broker seems have some decency. She claims she would recommend the best options (SVR, negotiating with lenders directly, etc) for the customers, even if that means, as a result, she doesnt make a commission fee, which itself is the bizarre consequence of credit crunch.

Posted by peter_2008 @ 04:50 PM 2 Comments

The 21st century will see almost a thousand times greater technological change than its predecessor

Market Oracle: The Millennium Wave Suggests Dramatic Technological and Economic Changes

"The paradigm shift rate (i.e., the overall rate of technical progress) is currently doubling (approximately) every decade; that is, paradigm shift times are halving every decade (and the rate of acceleration is itself growing exponentially). So, the technological progress in the twenty-first century will be equivalent to what would require (in the linear view) on the order of two hundred centuries. In contrast, the twentieth century saw only about twenty-five years of progress (again at today's rate of progress) since we have been speeding up to current rates. So the twenty-first century will see almost a thousand times greater technological change than its predecessor."

Posted by sold 2 rent 1 @ 04:43 PM 9 Comments

How to diversify your risk - Buy a whole street cos it is cheap

P E R E: Opportunity fund eyes 'entire street' in UK

London-based boutique fund manager, Managing Partners Limited, has snapped up 18 of 48 homes in one street in Portsmouth in the south of England and intends to buy another ten because prices have fallen so much. Read on.......

Posted by fjcruiser @ 04:37 PM 1 Comments

Now who'd have thought it....?

Economist: Dubai - Has the bubble burst?

THEY said you couldnt create islands in the middle of a city, shouts a property advertisement over a jammed Dubai motorway. We said, whats next? The range of answers has become gloomier by the week, as the debate moves from whether the Dubai property bubble will burst to just how bad it is going to get. Some nervous bankers think property prices could fall by 80% or so in the next year or so.

Posted by whostolemyendowment @ 04:35 PM 2 Comments

Export demand collapse - how dire is the situation? Output fall stokes Japans deflation fears

Its absolutely unprecedented, for production to show a 12 per cent drop from September to December, said Richard Jerram, chief economist at Macquarie in Tokyo. That basically tells you that export demand has collapsed, he said.

Posted by v stor @ 04:32 PM 0 Comments

Want to book her for your local social club do - and then throw pies at's where...

TMC Entertainment: Kirstie Allsopp - speaker profile

Not a new article - but hey it's Friday...'Find out how to book Kirstie Allsopp as the after dinner speaker for your next event by calling TMC Speak Out.......'

Posted by whostolemyendowment @ 03:48 PM 8 Comments

Russia hikes rates to stop investors fleeing the currency

BBC: Russian rates up as rouble falls

Russia's central bank increased its key interest rate to 13% from 12% in an attempt to help stop currency losses. The rouble headed for its largest weekly fall in five years, and has fallen approximately 1.9% this week. For the second time this week, Bank Rossii, the country's central bank, widened the rouble's trading band by about 1% or 30 kopeks. Russia's has spent $148bn (96.4bn) of its foreign currency reserves since August to stop a fall of the rouble.

Posted by jack c @ 03:10 PM 13 Comments

CBI - "a thawing of the housing market is remote"

Citywire: Scrooge reigns on the High Street as spending collapses

Retailers are preparing for a black Christmas as spending among consumer crumbles to a 25-year low. The Confederation of British Industry's (CBI) latest distributive trends survey revealed that the vast majority of retailers had posted lower numbers in the first half of November compared to a year ago. Its headline reading came in at -47, down from -27 in October to stand at levels seen in August when the survey hit its lowest level since starting in 1983. Looking forward, retailers are not expecting Christmas trading to alleviate much of the pressure they are under, with a -40% fall in year-on-year sales volumes expected.

Posted by jack c @ 02:15 PM 5 Comments

what are they expecting? going back to 1929??


The group reported a halfyear loss of 61 million but said it was scrapping dividend payments this year, slashing spending by 30 million and cutting costs by 75 million to conserve cash. It said it was trading comfortably within its banking covenants. Browett said: "We have been back to 1929 to look at consumer demand recession experience and in all reasonable scenarios we should be fine." Woolworths' woes could create weeks of disruption as it sold off stock, Browett warned.

Posted by mark @ 01:38 PM 0 Comments

Bottom feeder bait

Telegraph: House prices: Are we over the worst?

"The price of the average property in Britain now stands at 158,442, a fall of 0.4pc from 158,872 in October, Nationwide's house price index shows. Prices are 13.9pc lower than at this time last year. These figures are less doom-laden than last month's, when the month-on-month fall was 1.3pc and the annual decline reached 14.6pc. So does this mean that the housing market is about to turn a corner, or do prices have further to fall? And if we haven't yet reached rock bottom, how much longer before we do? We asked the experts economists, mortgage brokers and estate agents for their predictions." Despite my title, most of the article is quite reasonable but check the predictions made by Peter Bolton King of the National Association of Estate Agents near the end of the piece.

Posted by quiet guy @ 01:30 PM 12 Comments

maybe he is seeing sense now?

dailymail: Seller slashes price of house by 1.2million in just 12 months

A landlord trying to sell a house in an exclusive part of London has been forced to slash the asking price by 1.2 million after it went unsold for 12 months. The four-storey property in St Johns Wood went on sale at 2.8 million on last December, around the time the market peaked. It was cut to 2.25 million last month and again to 1.6 million - 42 per cent below the original valuation - on November 19.

Posted by mark @ 01:29 PM 5 Comments

We cannot solve a debt crisis by incurring more debt

sudden debt blog: Can the US Do An IMF On Itself?

Picture the US as the Global Fire Department (GFD). In the last ten years or so the GFD became extremely irresponsible. It ignored the fire safety of its own firehouse, which became choked with highly flammable material (i.e. debt and derivatives), and relaxed the rules about the health and fitness of its firemen (i.e. oversight and regulation were weakened). Seeing this, the good citizens in the neighborhood (i.e. other western nations) also adopted the same attitude. And why not? If the fire department itself didn't care about all that dead wood and turpentine piling up in its own back yard, why should they? A whole raft of nations from the UK and Australia, to Bulgaria, Poland, Iceland and Romania bought the same highly flammable "growth" model. Borrow - spend - inflate assets - borrow

Posted by mountain goat @ 12:50 PM 3 Comments

Land registry: -1.5% MoM, -10.1% YoY

Press Association: House price falls accelerate

The annual rate at which house prices in England and Wales are falling continued to accelerate during October to hit a new record of 10.1%, figures showed. The average home lost a further 1.5% of its value during the month to stand at 165,529, according to the Land Registry. It was the 14th month in a row that the annual rate of growth has declined, leaving property costing around the same as it did in the summer of 2006.

Posted by little professor @ 12:42 PM 8 Comments

The Debt Trap

Citywire: Darlings christmas present conceals a debt trap, says New Stars Simon Ward

Alistair Darlings emergency budget is pregnant with dangers. His package will not achieve his objectives of shortening the recession and hastening recovery while the borrowing the UK will have to undertake will impose major costs on future taxpayers, endangering the long-term health of the economy. On the face of it, Darling is delivering a significant economic stimulus in 2009-10 through his temporary VAT cut and other measures. The Treasury reckons cyclically-adjusted net borrowing will rise by 1.9 percentage points of gross domestic product (GDP), the largest increase since 1992-93. This package will contribute to record headline borrowing of 118 billion in 2009-10 or 8% of GDP.

Posted by jack c @ 12:34 PM 0 Comments

Rightmove on "understanding realistic prices"

FT: Savvy house-hunters on the prowl for cheap properties

Despite the downturn in the property market, Rightmove has reported a significant increase in demand for well-priced properties.In its November House Price Index, Rightmove indicated that over the last month consumers have been putting their homes on the market with an average 7 per cent discount on the year before. However, Rightmove said in the last few weeks, it has experienced a significant increase in email and phone leads from its website, with 1.1 million leads being generated in September from 38 million visits.It said savvy buyers were looking harder and keeping an eye on the market for when prices have dropped to a level they can afford.

Posted by jack c @ 11:49 AM 6 Comments

Retail stocks have plunged but they will get cheaper still

MoneyWeek: Retail stocks have plunged but they will get cheaper still

In recessions, companies fold. It's sad, but that's just what happens in downturns. And on the British high street, the failures are starting to stack up as high as the unsold stock in retailers' storerooms. Yet this week's high profile collapses of Woolworths and MFI may turn out to be more than just a sign of the cyclical times. They could signal the end of the high street as we know it.

Posted by damien @ 11:48 AM 2 Comments

1984 Alert 1984 Alert

The bailout now costs more than anything else ever.

Live Leak: The 2008 Bailout Vs Other Large Government Projects

And the figures here do not get anywhere near today's $8.5 trillion, and rising, bank heist. Its good to put these abstract figures into context.

Posted by planning4acrash @ 10:46 AM 1 Comments

Now this is handy!

Our Property: Selling prices 1995 to 2000

Our Price have updated their database for selling prices from 1995 to 2000; the ones from 2000 were already on there because they get this from HM Land Registry. (I typed in a road at random to generate a new URL)

Posted by mark wadsworth @ 10:28 AM 4 Comments

Anyone happy with this deal?

BBC: Government to own majority of RBS

Existing shareholders agreed to buy almost 56 million shares, which represents just 0.24% of the new shares on offer, at a cost of 36.7m, making an immediate paper loss of 5.6m. The gap between the offer price and the current share price also means that taxpayers have made an immediate paper loss of 2.3bn based on Thursday's closing share price.

Posted by gardeniadotnet @ 10:06 AM 14 Comments

Housing Market Risks in the United Kingdom

Federal Reserve: Housing Market Risks in the United Kingdom

House prices in the United Kingdom rose rapidly in recent years. The run-up, larger than any other in U.K. history, leveled off early last year. House prices are currently declining at rates faster than those seen in the early 1990's downturn. The housing downturn, however, is far from complete. Using the price-rent ratio as a guide, house prices are likely to fall at least a further 30 percent before leveling off. Given the historic links between housing and real activity, the downturn is likely to be associated with very slow growth. Going forward, we recommend the price-rent ratio as the appropriate measure of housing valuation.

Posted by stephen_zz @ 09:23 AM 2 Comments

Terrific Property Market

Knight Frank Residential Newsletter: Autumn 2008 london residential Review

Dont worry about it, they ain't any forced sellers, there ain't any rising unemployment, there ain't any oversupply of properties for rent in London.It is time to buy, buy,buy......

Posted by fjcruiser @ 09:18 AM 2 Comments

AEP cites Citigroup internal note indicating gold could hit $2000 in 2009

Telegraph: Citigroup says gold could rise above $2,000 next year as world unravels

"Gold is poised for a dramatic surge and could blast through $2,000 an ounce by the end of next year as central banks flood the world's monetary system with liquidity, according to an internal client note from the US bank Citigroup." OK just another gold story, but from Citi this time

Posted by doom&gloom @ 07:52 AM 26 Comments

Yikes. Even the Yanks think we're screwed

International Herald-Tribune: A dilemma in British housing

It's looking as if the fall in British house prices will be further than expected. Britons simply do not save enough to supply their banks with enough to lend to fund the debt requirement implied by their housing prices. You have to wonder which potential house buyer is out there who a) is a good credit risk b) has a 20% down payment c) is willing to buy an asset depreciating at 2% a month. Bank liabilities in the US amount to 20% of the size of the economy. In Britain, the figure is 285%. Ask yourself then what might happen to Britain.

Posted by little professor @ 12:19 AM 9 Comments

Thursday, November 27, 2008

UK's Dollar Debt

Telegraph: Bankruptcy update britain

Interesting point about a possibly unforseen consequence of UK Govts taking over banks. A Paralell with Iceland

Posted by bellwether @ 10:06 PM 1 Comments

Now you tell us!

Telegraph: Treasury admits Northern Rock lending was 'irresponsible'

The Government has finally admitted what most of us long suspected that Northern Rock was the most "irresponsible" of Britain's mortgage lenders. The admission is a marked retreat for the Treasury, which insisted after the bank was nationalized that its mortgage book was "good quality". Treasury secretary Lord Myners said "Foreclosures are higher in Northern Rock than in other mortgage lenders because its lending was more irresponsible. It is as simple as that." Northern Rock's controversial 125% 'Together' mortgages accont for a third of their mortgage book, half of their arrears and three quarters of their repossessions.

Posted by little professor @ 09:05 PM 6 Comments

No recovery for a few years - and so say all of us

Telegraph: House prices: How low can they go?

A resumee of JD and others predictions on house prices - and how things have a long way to go.

Posted by growler @ 08:42 PM 18 Comments

Stocks rally is a big raspberry!

The Market Oracle: Dow Jones Stock Market Index Defies Gravity And Reality

The Dow Jones is now on a 1,000 point, four day winning streak in a defiant bear market rally that defies the ever darkening economic backdrop and the awful cowardly terrorist attacks in Mumbai. So as the ghastly slew of economic data continued unabated yesterday the reality is that this mini rally has probably a lot to do with month end portfolio adjustments from cash and bonds into stocks. Look at US 10 year Treasuries yields which are below 3%, so the bond market is blowing this rally a big raspberry.

Posted by v stor @ 08:37 PM 0 Comments

Citi says gold is going to go to 2000, goldbugs rejoice?

Telegraph: Gold poised to surge

Gold could exceed $2,000 an ounce as the world unravels, Citigroup said. Now citi has said it, what does that mean. Maybe the conspiracy theorists and the gold-bugs could fight it out. Any takers?

Posted by last_days_of_disco @ 08:35 PM 6 Comments

Interesting theory on why some people believe in so many conspiracies

Scientific American: Patternicity: Finding Meaningful Patterns in Meaningless Noise

I argue that our brains are belief engines: evolved pattern-recognition machines that connect the dots and create meaning out of the patterns that we think we see in nature. Sometimes A really is connected to B; sometimes it is not. When it is, we have learned something valuable about the environment from which we can make predictions that aid in survival and reproduction. We are the ancestors of those most successful at finding patterns. This process is called association learning, and it is fundamental to all animal behavior, from the humble worm C. elegans to H. sapiens. Unfortunately, we did not evolve a Baloney Detection Network in the brain to distinguish between true and false patterns. But such erroneous cognition is not likely to remove us from the gene pool....

Posted by nopensionnohouse @ 07:24 PM 44 Comments

Still thinking of buying a house anythime soon? House prices to fall a further 36pc

House prices are set to fall a further 36pc over the next two years in what could amount to the worst post-war housing crash, according to the price of contracts being traded on the derivatives market

Posted by v stor @ 07:22 PM 0 Comments

Can we have some as well

BBC: Builders and carmakers seek help

Builders demand that 'Gordon Brown puts more pressure on banks to make lending available to home owners' while car makers who (are mostly under foreign ownership) want financial aid.

Posted by enuii @ 07:17 PM 0 Comments

For richer or for poorer.....

Telegraph: Recession: When the money goes, so does the toxic wife

'You loser!" screamed Katie, aiming a vase at her husband. "You've destroyed my life,'' she continued, hurling it. "Just look at my hair, look at my nails! You loser, you jerk, you nobody."

Posted by flintster1994 @ 05:56 PM 7 Comments

I'm a gold bull but when Citigroup says they are bullish, then it kind of makes you think.

Telegraph: Citigroup says gold could rise above $2,000 next year as world unravels

The bank said the damage caused by the financial excesses of the last quarter century was forcing the world's authorities to take steps that had never been tried before. This gamble was likely to end in one of two extreme ways: with either a resurgence of inflation; or a downward spiral into depression, civil disorder, and possibly wars. Both outcomes will cause a rush for gold. "They are throwing the kitchen sink at this," said Tom Fitzpatrick, the bank's chief technical strategist.

Posted by flintster1994 @ 05:50 PM 16 Comments

Don't be lured into buying equities..

Fleet Street Invest: This Mans Message Could Save You From Financial Ruin

Why you should remain wary of equities Shiller told us that, in real terms, the S&P fell 80% in the 1930s. So far it is only down 54%. This means you still have a once-in-a-lifetime opportunity to lose a lot of money very quickly. Will you take it?

Posted by v stor @ 05:19 PM 0 Comments

Food inflation will be 3.5-7% next year

NY Times: Food Prices Expected to Keep Going Up

[USA data contradicts predictions of 0% inflation for next year]. "The Agriculture Department is forecasting that food prices will increase 3.5 to 4.5 percent in 2009, compared with an estimated 5 to 6 percent increase by the end of this year. Some economists project even steeper increases next year up to 7%. A reason that overall food prices are expected to continue increasing is the lag between price increases for basic commodities and for finished food products in the grocery store, particularly for meat and processed foods. For the last 21 months, food manufacturers, restaurants and livestock producers have been absorbing significant costs that in my view are likely to be passed on to consumers in 2009 and beyond, said Mr. Lapp, a former chief economist at ConAgra Foods.

Posted by mountain goat @ 03:35 PM 9 Comments

Brown admits Houses are "Unaffordable"

yahoo news: PM hosts business crisis talks

The Prime Minister was joined by housing minister Margaret Beckett for a breakfast meeting in Downing Street with industry leaders, including from the Home Builders Federation, the Federation of Master Builders and the Council of Mortgage Lenders.He said the problem in this country was not that we had overbuilt but "the question has been the affordability of housing".

Posted by sold out @ 03:34 PM 11 Comments

The tyranny of consensus

Guardian: 'They called me bonkers'

About Danny Blanchflower (MPC) who stood alone for interest rate cuts. His view now completely accepted by policy makers. One for p4c and s2r1?

Posted by letthemfall @ 03:24 PM 19 Comments

90% is a big drop in profits

MacWorld: Panasonic forecasts 90% drop in profits this year

No company can take this kind of drop on the chin... expect layoffs.

Posted by (cr)ash @ 02:10 PM 0 Comments

Workers to fight 100 jobs losses at Cheshire BP plant

chester chronicle: Workers to fight 100 jobs losses at Cheshire BP plant

WORKERS have pledged to fight the proposed 100 job losses when the BP/Castrol oils plant in Ellesmere Port closes down. The oil giant intends to shut the Stanlow site and transfer work to plants in Europe, which would then provide lubricants for the UK market.

Posted by mark @ 01:42 PM 0 Comments

BROOKSIDE Close is the latest victim of the credit crunch.

liverpool echo: Brookside Close for sale at 600,000

Once one of the most famous addresses in Britain, the close is to go under the hammer for as little as 550,000. Developers initially hoped to fetch 2m for the West Derby semi-detached houses and bungalows, including the infamous number 10, where wife-beater Trevor Jordache found his last resting place under the patio. But with the credit crunch crippling the housing market, auctioneers Allsop have listed the 1980s red brick properties with a guide price of between 550,000 and 600,000.

Posted by mark @ 01:36 PM 5 Comments

They are begging for a bailout and layoff staff!!!

bbc: Car firm cuts 850 agency workers

About 850 agency workers are to lose their jobs at Jaguar Land Rover in the West Midlands and Warwickshire. The IT and engineering staff at plants in Castle Bromwich, Solihull, Whitley, and Gaydon have been told their jobs will go by the end of the year.

Posted by mark @ 12:54 PM 7 Comments

"The crisis may not end in 2009," he said.

reuters: China economic downturn deepens

ArcelorMittal, the world's largest steelmaker, said it was likely to start short-time working and cut production at its German steel plants in December. Two of Britain's most high profile retailers DSG and Kingfisher underlined the severity of the economic slowdown with downbeat results and gloomy outlooks, while variety story group Woolworths went into administration. Britain's retailers face a brutal downturn in consumer spending, amid sliding house prices and rising unemployment

Posted by mark @ 12:50 PM 4 Comments

EA: "at least 12 months to bottom"

BBC Today: House prices fall 4.3% in quarter

The latest Nationwide house price survey has been published. House prices have fallen by 4.3% over three months. In London, asking prices for homes are being slashed by up to 100,000 to secure sales in the run-up to Christmas, the Evening Standard says. Wales correspondent Mark Hutchings and David Miles, chief UK economist at Morgan Stanley, discuss how the housing market can recover.

Posted by doomwatch @ 12:30 PM 8 Comments

Just when you thought it was getting safe - you will have to outbid the sharks!

FT: Investor buys entire street at cut prices

Investment funds are taking advantage of the sharp downturn in house prices to buy cheap properties from struggling buy-to-let landlords and distressed homeowners

Posted by whostolemyendowment @ 12:22 PM 10 Comments

Top drawer stuff

Market Oracle: The Global Financial System is Coming to an End

Before this secular Bear Market is over, we are going to new lows in all indices, more than 3500 banks will close, unemployment will surge, there will be violence in the streets and people will kill you to get what you have. Every one of the 17 macro factors detailed in The Big Rollover is converging and coming to fruition. Sorrybut this is what we see in the future. Could we be wrong? Of course. No one has a crystal ball that can see beyond the hard right edge of the charts. No one can tell the future with complete accuracy. All we have are our many years of research and the fact that everyone has now begun to see, hear and feel the power of The Big Rollover.

Posted by sold 2 rent 1 @ 11:06 AM 33 Comments

Pettifer Construction in administration

contract Journal: Pettifer Construction in administration

The firm employed around 150 staff. The source said: Things are happening very fast there and everything is in the hands of the administrators.

Posted by mark @ 10:36 AM 0 Comments

Cant afford a house? Steal one!!

contract Journal: Ambitious thieves attempt to steal entire Dorset home

Ambitious thieves not content with household burglary tried to pinch an entire Dorset property

Posted by mark @ 10:34 AM 4 Comments

we just keep getting screwed

dailymail: Council tax bills face 10% hike after next election due to 1bn loss in Icelandic banks

Council tax payers face a rise of 10 per cent in their bills but not until after the next election. The rise, which will mean more than 120 on the average bill, looks certain because of town hall losses of nearly 1billion in failed Icelandic banks. Gordon Brown moved yesterday to delay the inevitable price to tax payers of the fiasco by allowing councils to keep their Icelandic losses totalling 944million off the books this year.

Posted by mark @ 10:29 AM 0 Comments

Times -

Times: A week of stupid politics but good economics

Claims that Britain is on the brink of bankruptcy are a misunderstanding. Every pound of savings is a pound borrowed.Shock. Horror. VAT could go up after the next election. Or it could go down - or stay the same. The same can be said of income tax and council tax and road tax. It can also be said about public spending, government deficits, the FTSE index, the oil price and the price of fish. So what? Britain's political debate has descended into farce. The fault for this lies largely with Gordon Brown and Alistair Darling - not because of the contents of the Pre-Budget Report, which was sensible from an economic standpoint, but because of their political failure to explain why it made economic sense.

Posted by jack c @ 10:17 AM 21 Comments

That's right, blame the economy

BBC: House prices fall but pace eases

"The slump in house prices eased off in November with prices falling by just 0.4%, according to the Nationwide, the UK's largest building society. The mortgage lender said the rate of price falls "moderated significantly" when compared with October's 1.3% fall. House prices are down 13.9% from November 2007, easing from a 14.6% annual fall in October. However, Nationwide warned that the poor economy would continue to put pressure on the housing market." (isn't it the other way round? The house price bubble bursting has dragged the economy down?)

Posted by mark wadsworth @ 07:35 AM 47 Comments

Fionulala's Time Machine still humming smoothly

Nationwide: November House Prices

"... This brings the annual rate of house price falls to 13.9%, down from 14.6% last month. The price of a typical house is now 158,442. This is about 25,000 less than this time last year but is still about 25,000 higher than in November 2003."

Posted by mark wadsworth @ 07:33 AM 5 Comments

Also increased numbers of homeowners trying to let a spare room

Telegraph: House sellers drop asking prices by 17,000 across Britain, survey reveals

Prices have been cut by an average of 16,941 by sellers, which is a national decline of 6.5 per cent. The figures vary by region. London has seen the biggest falls, with sellers in Westminster having 108,166 knocked off the price of their home. It is the latest sign that sellers are adjusting to lower house prices, having been in denial for months. "The months ahead are a great opportunity for cash buyers", said some twit. Tamara Smith, of, said: "In recent weeks, we've seen a threefold increase in the number of live-in landlords on our site. Some people, potentially struggling with mortgage payments or in negative equity, are choosing to rent out a room in their house rather than sell at a significantly discounted price."

Posted by drewster @ 01:25 AM 9 Comments

Off-topic, here's a story about house prices

Mish's: Case Shiller index and California Association of Realtors November 2008 Release

"Median nominal prices in California are now down 47% according to CAR and 42% according to DQNews - and those declines are in less than 18 months! The CAR housing numbers reflect Oct 2008 which are actual sales in late August and September (read pre-stockmarket meltdown)." [Note: the Case-Shiller index in the table shows "only" a 21% decline nationally at present; but Mish reckons the CAR index is far ahead of the Case-Shiller index and therefore reflects the likely picture a few months from now.]

Posted by drewster @ 12:13 AM 3 Comments

Wednesday, November 26, 2008

5bn kitty for new agency

CNplus: Home Agency To Buy Private Land

Sticking plaster or good dressing?

Posted by i'm alan partridge @ 10:21 PM 5 Comments

Globrix asking prices survey

Daily Mail: House prices down 17,000 in the last two weeks alone

Asking prices for homes are being slashed by up to 100,000 to secure sales in the run-up to Christmas, according to property search engine Globrix. In the last two weeks, prices have been cut dramatically as sellers have finally faced up to the "new reality" of the depressed London market after months of denial. In Camden the average reduction is 55,728 while in Chelsea the average price has dropped 100,797

Posted by little professor @ 10:04 PM 4 Comments

BBC BTLs bleeting at losses and over valuation.

BBC Inside Out: Buy-to-let

Was on telly tonight (see iplayer) ... But with property prices crashing all around him, Bills worried about the value of his investment. So he went to see Tony McKeon, the director of Residential Lettings Group, to find out about the state of the market: He told Bill: "Your honeymoon period is over so obviously youre forking out of your pocket to cover the mortgage on the property that you had bought. "The rental income coming in is a lot less than you originally thought youd achieve on your property." Tony also gave Bill a valuation on his flat. He believes it's worth 215,000. So in just one year Bill has lost 60,000! But Bill isn't the only buy-to-let landlord that has lost money.

Posted by doomwatch @ 09:47 PM 10 Comments

Speedy Hire revenue up but 492 jobs cut

contract journal: Speedy Hire revenue up but 492 jobs cut

Speedy Hire has made 429 of 492 planned job cuts, closed 33 depots and reduced its vehicle fleet by 260 units, despite reporting a 22% rise in revenue.

Posted by mark @ 09:27 PM 0 Comments

it will purchase up to $600 billion in mortgage debt

SF GATE: Government bailout hits $8.5 trillion

The federal government committed an additional $800 billion to two new loan programs on Tuesday, bringing its cumulative commitment to financial rescue initiatives to a staggering $8.5 trillion, according to Bloomberg News. Most of the money, about $5.5 trillion, comes from the Federal Reserve, which as an independent entity does not need congressional approval to lend money to banks or, in "unusual and exigent circumstances," to other financial institutions. To stimulate lending, the Fed said on Tuesday it will purchase up to $600 billion in mortgage debt issued or backed by Fannie Mae, Freddie Mac and government housing agencies.

Posted by malct @ 09:17 PM 0 Comments

Less people "flipping" houses

BBC: Administrators called in at MFI

"Furniture retailer MFI has gone into administration - citing falling demand for big ticket items, cash-flow problems and the withdrawal of credit". The union's Yorkshire regional secretary Tim Roache said is was "disappointing that the landlords of the shops pulled the plug and did not give the management time to turn it around".

Posted by alan @ 09:03 PM 7 Comments

The real truth behind Citigroup bailout

ICH news: Colossal Financial Collapse

The dilemma Paulson has created with his inept handling of the crisis is simple: If the US Government paid the true value for these nearly worthless assets, the banks would have to write down huge losses, and, as Levy economists put it, announce to the world that they are insolvent. On the other hand, if Paulson raised the toxic waste purchase price high enough to protect the banks from losses, $700 billion will buy only a tiny fraction of the 'troubled' assets. That is what the latest nationalization of Citigroup is about. It is only the beginning. The 2009 year will be one of titanic shocks and changes to the global order of a scale perhaps not experienced in the past five centuries.

Posted by malct @ 08:49 PM 1 Comments

Trade is drying up - the bailouts aren't working are they? Shipping costs plunge to 22-year low

The cost of shipping dry bulk commodities such as iron ore, coal and grains plunged to its lowest in nearly 22 years on Wednesday, as demand for raw materials in China and the rest of the world continued to tumble amid the economic crisis.

Posted by v stor @ 07:21 PM 2 Comments

Threat to 600 jobs at factories

BBC wales: Threat to 600 jobs at factories

Cosmetics factory Budelpack International COSi at Maesteg, which employs nearly 400 people, has gone into administration. Last month the plant, which makes brands such as Clinique and Body Shop, cut its workforce by more than 200, blaming a sales slump.

Posted by mark @ 06:07 PM 2 Comments

All this liquidity - it's all hype, hype, hype Fed Risks `Spitting in the Wind' With New Aid Pledges

The Federal Reserve's new $800 billion effort to combat the financial crisis is designed to make credit more accessible to shaken consumers who aren't sure they want more debt. Households and lenders may not respond much because of the wealth destruction from plunging property and stock values, and the deepening economic slump, economists say.

Posted by v stor @ 05:59 PM 0 Comments

Say good bye to pic & mix!

Telegraph: Exclusive: Woolworths to go into administration

Trading in Woolworths shares was suspended this morning as talks to rescue the beleaguered retailer continued. But following the breakdown of the talks the board plans to place the group's retail arm and distribution business into administration. However the holding company and 2entertain - a joint venture with the BBC - will not be placed into administration.

Posted by flintster1994 @ 05:52 PM 8 Comments

So even the dark lord could not save it with his voodoo magic.

BBC: Woolworths enters administration

High Street legend Woolworths has buckled under its debt and is set to go into administration, BBC business editor Robert Peston has learned.

Posted by peter_2008 @ 05:51 PM 2 Comments


Telegraph: Fears mount that Government will default on bonds

The cost of insuring against the British Government defaulting on its gilts in the next five years surged to 100 basis points above libor at one stage yesterday, before closing at 88.2 basis points. In comparison, insuring against leading banks failing to pay back their debt now stands at 58.8 basis points for BNP, 65.2 for Commerzbank and 68.6 for Credit Agricole. In the UK, Lloyds TSB is priced at 95 basis points and 99.2 for HSBC.

Posted by flintster1994 @ 05:50 PM 5 Comments

Leave the whisky alone Darling!

BBC News: Darling admits whisky duty error

The chancellor has admitted to MPs that he made a mistake in raising duty on Scotch whisky, which would have led to a 29p rise in the price of a bottle. Alistair Darling caused an inadvertent storm with his proposals to offset the cut in VAT by raising duty on spirits.

Posted by flintster1994 @ 05:08 PM 4 Comments

BCE Takeover May Collapse on Insolvency Concerns

bloomberg: BCE Takeover May Collapse on Insolvency Concerns

Teachers Pension Plan may collapse after auditor KPMG said the C$52 billion ($42 billion) deal, the second-biggest leveraged buyout, would leave the Canadian phone company insolvent.

Posted by mark @ 05:02 PM 0 Comments

Northern Rock hikes mortgage rates

Yahoo: Northern Rock hikes mortgage rates

State-owned lender Northern Rock (LSE: GB0001452795.L - news) has ignored government calls for banks to drop mortgage rates in line with the base rate by raising the cost of some of its fixed-rate deals.

Posted by mark @ 04:20 PM 1 Comments

Into the fourth year of house price declines! Not so sure it will take as long as that here!

Bloomberg: Sales of New Houses in U.S. Fall to Lowest Since 1991

Nov. 26 (Bloomberg) -- New-home sales in the U.S. fell in October to the lowest level in 17 years as the credit crunch deprived potential buyers of needed financing. Purchases dropped 5.3 percent to an annual pace of 433,000, lower than forecast and the fewest since January 1991, the Commerce Department said today in Washington. The median sales price decreased to a four-year low. Other Commerce reports today showed consumer and business spending tumbled last month.

Posted by flintster1994 @ 04:18 PM 0 Comments

Gold stocks tipped amongst others

Moneyweek: We're heading for a rally here's what to buy now

"We all know what is causing the huge falls across virtually every asset class. Its the global margin call, deleveraging on an unprecedented scale, forced selling of everything call it what you will. Assets the more liquid the better are being sold off wholesale, regardless of their fundamentals, to raise cash to repay debt. But at some point this deleveraging has to end. What we all want to know is when? And what will be the best performing asset class when it does?"

Posted by doom&gloom @ 04:12 PM 6 Comments

xmas sale

Game Over!!

Retail Week: MFI files for administration

Updated: Staff at troubled kitchen retailer MFI were called to a meeting this morning where they were told the company has applied to go into administration. A notification of intention to file for administration was filed with the High Court last night and the company is expected to go into administration this afternoon.

Posted by magnaman @ 03:09 PM 0 Comments

House prices drop 100,000 in two weeks

Evening standard: House prices drop 100,000 in two weeks

ASKING prices for London homes are being slashed by up to 100,000 to secure sales in the run-up to Christmas.

Posted by bring_it_on @ 02:54 PM 0 Comments

The tsunami is getting ever closer

Business Spectator: A tsunami of hope or terror?

As the world slips into recession, it is also on the brink of a synthetic CDO cataclysm that could actually save the global banking system. It is a truly great irony that the worlds banks could end up being saved not by governments, but by the synthetic CDO time bomb that they set ticking with their own questionable practices during the credit boom. Alternatively, the triggering of default on the trillions of dollars worth of synthetic CDOs that were sold before 2007 could be a disaster that tips the world from recession into depression. Nobody knows, but it wont be a small event.

Posted by gardeniadotnet @ 02:54 PM 18 Comments

This is a real worry - he may nationalise them!

Retail week: Mandelson intervenes in Woolworths crisis

Business Secretary Lord Mandelson has intervened to attempt to save variety store group Woolworths. It is understood that Mandelson's office called in Woolworths' lenders which include Burdale and GMAC - for an emergency meeting yesterday as the retailer tottered on the brink of administration.

Posted by wdbeast @ 02:49 PM 12 Comments

Keep throwing money about finally something will work

Bloomberg: U.S. Mortgage Rates Drop Most in Seven Years on Fed Debt Plan

U.S. mortgage rates dropped by the most in at least seven years as a Federal Reserve pledge to buy $600 billion of debt succeeded where seven cuts in the central banks benchmark rate had failed. This initative is intended to lower the cost of borrowing for home mortgages, for car loans, for small business loans, for student loans and for credit card debt. I was sitting in my underwear getting dressed in the morning when it came on TV, and I told my wife, Rates are going down today, said Henry Savage, president of PMC Mortgage Corp. in Alexandria, Virginia. Instead of buying stocks in stupid banks, the government finally is going to make a move to clear assets from the market.

Posted by mountain goat @ 01:48 PM 1 Comments

Blame Game now it's the Quants that did it

Scientific American: After the Crash: How Software Models Doomed the Markets

Quants - lapsed physicists and mathematical virtuosos were the ones who both invented these oblique securities and created software models that supposedly measured the risk a firm would incur by holding them in its portfolio. Without the formal requirement to maintain debt ceilings and capital reserves, the commission had freed these firms to police themselves using risk tools crafted by cadres of quants. ...the quant community needs to undertake a search for better models [too right!] perhaps seeking help from behavioral economics, which studies irrationality of investors decision making, and from virtual market tools that use intelligent agents to mimic more faithfully the ups and downs of the activities of buyers and sellers.

Posted by mountain goat @ 01:28 PM 3 Comments

Iceland inflation soars to 17.1%

bbc: Iceland inflation soars to 17.1%

Food prices increased fastest, up 30.6% over the year, as the country's currency plummeted.

Posted by mark @ 01:25 PM 13 Comments

Hyperinflation on the horizon?

BBC News: Europe announces 200bn-euro plan

The European Commission has unveiled an economic recovery plan worth 200bn euros (170bn) which it hopes will save millions of jobs across the region. Its president Jose Manuel Barroso said he thought the plan was "timely, temporary and targeted". The EC expects member states to contribute 170bn euros while the European Union will give 30bn euros. Mr Barroso said it was important that EU members acted together in a period of "exceptional crisis".

Posted by flintster1994 @ 01:03 PM 4 Comments

So, For A Service Based Economy ..... ?

FT: UK services in biggest contraction since 1990

"The service sector of the British economy contracted 0.4 per cent in the quarter to the end of September, in the biggest contraction since 1990, according to data published on Wednesday." Where's my handcart? I'm off to Hell!

Posted by renting2 @ 12:33 PM 0 Comments

No clue whatsoever!

BBC: VAT rise 'dropped just days ago'

Within days of announcing a cut to VAT, a document published online (by mistake) has indicated that the Government were actually thinking of raising the rate of VAT to 18.5%. No doubt, this will probably rise to about 20%+ to pay for the associated cash splurge by messrs Brown & Darling. Being a citizen in the UK these days is like being strapped in the back of a car whilst the car is being driven by a pair of blind drunk lunatics.

Posted by denzil @ 12:31 PM 5 Comments

The Guardian's view: let the housing bubble deflate in an orderly fashion

The Guardian: Editorial - Locked Out

"This financial crisis began with housing, .. any hope of its ending must lie with housing" "Politicians have spent the past couple of days arguing over the government's 21bn boost to the economy. That is a big number, dwarfed by what is going on in the mortgage market... last year's net total of 108bn of new home loans has shrunk to around 40bn this year and could fall below zero next year... a hundred-billion-pound business will shrink to nearly nothing" "The .. priority must be to allow the property bubble to deflate in as orderly a fashion as possible ... over the longer term, house prices must come down and orgiastic lending and wild property speculation must be curbed." "To turn property into a private asset is to court bubbles, buy-to-let madness and supply problems"

Posted by jonathan @ 12:13 PM 0 Comments

Update on real house prices Update on real house prices

The No Monkey Business blog updates its own version of real house prices relative to a sustainable trend, based on the full Nationwide data from 1957. The ratio has dropped from the peak of 132 to 112 but the trend itself, at 2.8%, is probably overstated after an unusually long period of extreme overvaluation. The ultimate low is expected to be worse than the 20-40% real price decline No Monkey Business was predicting before the banking crisis, in which case most if the drop is still to come.

Posted by stuart fowler @ 12:01 PM 0 Comments

It'll get worse before it gets better

MoneyWeek: Is there light at the end of the tunnel for stocks?

"De-leveraging, the unavoidable consequence of the credit contraction, is far from finished and will continue to create a never ending stream of forced sellers. Major stock markets should fall by as much as another 50%; in which case, FTSE will bottom out below 2,500. As unlikely as that may seem to some, it is no more than should be expected given the unprecedented conditions and the abiding lessons of history."

Posted by damien @ 12:00 PM 0 Comments

Taking Stock after the Action

Bloomberg: Browns Churchill Moment Masks Failure of Regulator He Built

The Crumblin' Rock, B&B, Bonuses, banking traumas and where regulation went wrong.

Posted by alan @ 11:41 AM 1 Comments

Vince Cable's sound views

Independent: Warning: this economic crisis could drag on for a decade

One difficulty in all this financial turmoil is knowing who to listen to, who is talking sense and has a grasp of the complexities of the matter. We've heard some dreadful disingenuous nonsense from some members of the Govt. Vince Cable is still in my opinion one of the few whose views should be taken very seriously.

Posted by letthemfall @ 11:23 AM 3 Comments

Oh dear god

Daily Mail: Diary of a Repossession: one couple describes their agony at losing 400,000 house

This couple bought their "luxury" four bedroom house in 1999 for 159,500. In 2006 they MEW to fund the purchase of a BMW Z4 and also enter the BTL business, buying a 110,000 terraced house to rent out. They also rack up 50,000 in credit card debt to fund their lifestyle. By late 2007 they can't pay their bills and put their property on the market for 400,000. Estate agent asks them to drop the price by 20k, but despite this still being more than enough to clear their debts they refuse. House gets repo'd earlier this year. The amount they owe on the mortgage is now 330,000. House is sold at auction this month for 255,000."We are reeling with anger. We can't believe how uncaring it is to sell the house for such a ridiculously low price."

Posted by little professor @ 08:49 AM 58 Comments

Taylor Wimpey to offer equity to lenders

FT: Taylor Wimpey to offer equity to lenders

The ailing developer has caved in to its banks demands to own part of the company despite its management publicly opposing such a move a fortnight ago.

Posted by fun 4 now @ 07:37 AM 0 Comments

Good Piece on Chancellor Darling's Response to the Crosy Report

BrightSale Blog: Has Sir James Really Slain the Mortgage Dragon?

This article is somewhat sceptical about whether Sir James Crosby's main recommendation of a state bail out of the wholesale mortgage markets will really occur, and warns of the dire consequences for home-owners if net mortgage lending really does fall to zero in 2009.

Posted by jeremy howard @ 07:24 AM 1 Comments

The guv'nor is angry

Independent: Bankers adopt can't lend, won't lend approach

Net new mortgage lending may next year shrink to below zero, a situation quite without precedent even during the last housing market crash of the early 1990s, when the problem was never lack of mortgage finance but rather its cost. Today it is the reverse. The main reason for this intensification in the mortgage famine is that lenders have approximately 160bn of mortgages to refinance next year, yet beyond the Government, no obvious way of doing so. Nobody is prepared to finance or buy mortgage assets right now. The securitisation markets remain closed. Bankers may have behaved recklessly in lending too much during the boom, but it is not in their nature or self interest to lend already overstretched debtors even more now that the bust has arrived, however much they are commanded to do so

Posted by drewster @ 02:25 AM 7 Comments

Something must be done! Won't someone think of the children!

Independent: Stephen King: If interest rate cuts cannot solve the money shortage, turn on the printing press

As people hoard money, so output weakens and prices fall, as in the 1930s. For the world's central banks, it is time for unconventional acts of bravery. These acts are needed because the financial crisis is mutating. No longer is this a story simply about the unwillingness or inability of banks to lend. It is fast becoming a crisis of liquidation. Something must be done. The printing press has to be turned on. // Stephen King is managing director of economics at HSBC

Posted by drewster @ 02:03 AM 18 Comments

Your job is next to go.

Telegraph: Life on the dole in Henley-on-Thames

As redundancy washes away her affluent lifestyle, Julie Salt describes her first grim experiences of the Jobcentre. "Until recently, we were a family of five living in Henley-on-Thames [a rather posh part of the southeast with very expensive property!] with the security of a good salary and an affluent lifestyle. But my husband's redundancy from his job as director of an internet travel company has jolted us rudely out of our complacency. Like many of the 5,000 people who became unemployed yesterday, we fear losing everything. We are surviving, with a spending freeze on our lives, but we are rapidly realising how the economic structure that let us live like kings was a castle built on sand." [Part 1 of a 3-part series, links below the fold.]

Posted by drewster @ 01:19 AM 13 Comments

Putting those scary numbers in perspective

Big Picture: Big Bailouts, Bigger Bucks

It's difficult to comprehend the enormity of the numbers involved in the US bailouts so far - the figure currently stands at $4.6 trillion and counting. To put this in perspective, this is more than the costs of the Vietnam, Iraq and Korean wars, the moon race and NASA, the S&L crisis, the post WW2 Marshall plan to rebuild Europe, and the purchase of Lousiana put together, even adjusting for inflation. See the article for a more detailed breakdown of the mind-boggling figures involved.

Posted by little professor @ 01:17 AM 4 Comments

File On 4 - 'Why my bank tried to evict me'

BBC Radio 4 - File On 4: 'Why my bank tried to evict me'

Current affairs program takes a look at the current housing market and concludes that it is brutal. By looking at prices of properties at auction and comparing them with previous sale prices from land registry data, calculates real price falls in the last 12 months could be as high as 48%! Features Roger Bootle and an HBOS employee on 33000/year who is being evicted by HBOS! Listen to 37 minute podcast here: Real bear food, and an excellent listen - enjoy.

Posted by peppersauce @ 01:03 AM 3 Comments

Nation of brainless zombies can't understand why they are now in deep trouble

BBC News: Mamma Mia! 'fastest-selling DVD'

For those who had doubts, this is clear evidence that the British Housing Crash was built on solid, sound fundamentals.

Posted by panda @ 12:21 AM 1 Comments

Tuesday, November 25, 2008

FDIC 'Coverage ratio' at lowest level since early 1993; bodes ill for industry

MarketWatch: Bank reserves not in pace with loan losses

Shhhhh! The FDIC does not have enough reserves to guarantee deposits in the event of a systemic banking failure. The possibility of a run on the banks is very real. - comment

Posted by gardeniadotnet @ 11:10 PM 7 Comments

One for the ladies

Telegraph: M&S planning second one day sale as high street becomes 'hooked' to discounts

By Harry Wallop A woman stands with her shopping trolley full of M&S shopping bags after their '20% Off Everything' sale on November 20 Photo: Getty Images

Posted by gardeniadotnet @ 10:26 PM 9 Comments

'Normal' - definition required

Telegraph: Outright nationalisation of banks 'may be necessary'

Gordon Brown has injected 37billion into Lloyds-TSB, HBOS and RBS, and extended billions more in support to other banks. Yet business groups say banks are still refusing to lend to some firms and demanding punitive rates of interest from existing borrowers. Restoring bank lending to "normal" levels is "the single most pressing challenge to domestic economic policy", Mr King said.

Posted by gardeniadotnet @ 10:15 PM 13 Comments

GB new tax avoidance scheme

BBC News: Cable derides 'fig leaf' tax cuts

or how to minimise your tax liability.

Posted by fjcruiser @ 09:54 PM 4 Comments


Telegraph: Pre-Budget report: Secret plan for VAT increase to 18.5 per cent

Ministers have drawn up secret plans to increase VAT to 18.5 per cent after the next election. Labour sneakiness...

Posted by tyrellcorporation @ 09:43 PM 9 Comments

New Star nominating itself to be the first of many to crash

Telegraph: New Star slash the value of its property fund

Looks like they are going to have to start selling a bit quicker!!!

Posted by redgoody @ 09:27 PM 0 Comments

Plans to raise VAT to 18.5% and they posted it by mistake on their website !!!!

Guardian: Treasury denies secret VAT rise plan

The Treasury was tonight forced to deny that Alistair Darling was drawing up secret plans to raise VAT to 18.5% in the next parliament in an attempt to fill the 60bn black hole in the Government's finances. Officials insisted that a document outlining an intention to raise VAT to a record rate had been put on a website by mistake and that the chancellor had rejected the idea in the run-up to Monday's pre-budget report (PBR).

Posted by jj @ 09:22 PM 0 Comments

Myths of Home Information Packs

hip consultant: 10 Myths of Home Information Packs (HIP)

They have not had a good response in general. Point 5 was a good one in relation to HIPs and conveyancing fees.

Posted by kaz @ 08:52 PM 4 Comments

Who will want to buy a house with these kind of projections?

TimesOnline: New mortgages fall 52% amid homeloan warning

The figures from the BBA follow a warning from Sir James Crosby that net mortgage lending could fall to zero over the next two years.

Posted by v stor @ 06:19 PM 0 Comments

From 28th Oct - but worth a read....

The Spectator: America on the road to perdition

James Doran drives from Wall Street to Detroit to discover how the American Dream turned into a nightmare

Posted by whostolemyendowment @ 05:10 PM 5 Comments

Brilliant: BBC gets simple % saving wrong

BBC: Cut in VAT leaves shoppers cold

I think this illustrates the general misunderstanding of % in this country. I'm presuming it's a "soft" degree journo reporting financial news, like the rest of these muppets. Ross was right. BBC, FYI it's 1.15(10,000/1.175) = 9,787.23, giving a saving of 212.77.

Posted by doomwatch @ 04:53 PM 14 Comments

Myths of Home Information Packs 10 Myths of Home Information Packs (HIP)

They certainly haven't had a good press but they are still here. Point 5 was interesting about conveyancing fees and HIPs.

Posted by kaz @ 04:27 PM 0 Comments


Scarborough Evening News: Building Society Chief, 2.4m Payout

What would the payoff have been if he had been any good at his job??

Posted by i'm alan partridge @ 04:03 PM 1 Comments

Taylor Wimpey down as cash worries perist

reuters: Taylor Wimpey down as cash worries perist

"They've still got banking facilities to be rearranged it appears that they're struggling in terms of support for an equity raise," says Panmure analyst Mark Hughes. "I think people are very concerned that the equity in this company is valueless or close to valueless."

Posted by mark @ 03:54 PM 1 Comments

Case-Shiller survey shows 16.6% annual decline in summer months as housing picture continues to dete

CNN: Home prices in record decline

The home price plunge stayed on a record pace this summer, according to a widely watched gauge of national real estate markets released Tuesday. The S&P Case-Shiller Home Price national index recorded a 16.6% decline in the third quarter compared with the same period a year ago. That eclipsed the previous record of 15.1% set during the second quarter. Prices in Case-Shiller's separate index of 10 major cities fell a record 18.6%, while its 20-city index dropped a record 17.4%

Posted by mark @ 03:50 PM 0 Comments

US Taxpayers buy mortgage debt

BBC News: US Fed unveils new $800bn rescue

"Under this new rescue plan - which is in addition to the already-announced $700bn bank bail-out - the Fed is to buy up to $100bn in debt from the troubled mortgage giants Fannie Mae and Freddie Mac. The central bank said it would also buy another $500bn in mortgage-backed securities - pools of mortgages that are bundled together and sold to investors." Could this put downward pressure on the dollar? Big dollar/sterling fall between 1-2.00GMT but apparently not sustained. Anyone anticipating a future dollar collapse and if so, by how much? (against gold or sterling)

Posted by doom&gloom @ 03:14 PM 18 Comments

US home prices still tumbling tumbling

FT Alphaville: US house prices tumble in September, Case Shiller says

As the Fed spends another gazillion dollars to shore up the global financial system, the market that started it all continues to collapse.

Posted by mountain goat @ 02:57 PM 4 Comments

Goodwins $140 Billion Binge May Doom RBS to Nationalization

bloomberg: Goodwins $140 Billion Binge May Doom RBS to Nationalization

During nine years at the helm of Royal Bank of Scotland Group Plc, Fred Goodwin excelled at beating his peers. In 2000, he pulled in the richest paycheck among British bank chief executive officers. He carried out the worlds largest bank merger, making RBS Europes No. 1 lender as of June 2008, with assets of 1.73 trillion pounds.

Posted by mark @ 02:37 PM 2 Comments

Short but very sweet!

Daily Mail: Banks 'to freeze mortgages' as Treasury reveals house prices will plummet by a QUARTER next year

Mortgage lending could dry up completely next year leaving no-one able to afford to buy a new home, according to a devastating report. In a huge blow to Alistair Darling's plans for keeping Britain in tact through a crippling recession, experts predict banks could stop giving any loans to aspiring homeowners. Former HBOS chief Sir James Crosby believes net lending will drop to below zero for the first time on record as people pay more money back to banks than they take out. The freeze on new loans will see house prices collapse by a quarter next year, according to the small print of Mr Darling's own Pre-Budget Report.

Posted by pdprav @ 02:15 PM 10 Comments

Will they use anti-terror legislation to silence this heretic?

BBC: Should shopping be a patriotic duty

"As an anti-consumerism campaigner, I'm frequently labelled as irresponsible when I encourage people to stop shopping. But the government is being much more reckless, when they ask us to shop our way out of the crash." Over-consumption is also the root cause of environmental destruction, says Mr Boorman.

Posted by phdinbubbles @ 12:54 PM 28 Comments

A bit off-beat - but it proves GBH knows very little indeed ...

Property Week: Pre-Budget Report: Empty rates holiday - Join the debate

See comment #2 >>> The Chancellor obviously has little grasp in reality. As a specialist developer of small industrial units with a few empty small units available around the UK, this change will have little or no impact on our empty rates bill. I presume he is looking to help owners and occupiers of lock up garages? I didn't realise that these made up 70% of the empty commercial buildings in the UK.

Posted by fahrenheit451 @ 12:02 PM 4 Comments

King: Expect bigger rate cuts

Reuters: Stg hits session lows vs dlr; King hints at big rate cuts

Sterling fell to a session low versus the dollar on Tuesday after Bank of England Governor Mervyn King said the bank may need to cut rates by more than they would otherwise as banks are slow to pass cuts on.

Posted by 51ck-6-51x @ 11:12 AM 11 Comments

King: Banks need more $$

Bloomberg: King Says British Banks May Still Need More Capital

Bank of England Governor Mervyn King said U.K. financial institutions may still need more capital and the single most pressing challenge facing policy makers is to revive the flow of credit through the economy.

Posted by 51ck-6-51x @ 11:10 AM 4 Comments

Bank issuing a negative assessment of housebuilders

YAHOO Finance: Broker snap: Land value crash to hit housebuilders

Credit Suisse (CS) believes the trading outlook for housebuilders in 2009 is extremely poor as consumer confidence continues to dive and credit availability remains restricted. CS believes the resale of repossessed properties will act as a further drag on the housing market, forcing housebuilders to slash prices to generate sales income to keep the bank manager happy.

Posted by crashonitsway @ 11:02 AM 1 Comments

Britain's going bankrupt - keep selling sterling

MoneyWeek: Britain's going bankrupt - keep selling sterling

"...we can't expect any soul-searching from the Government. Gordon Brown doesn't do mistakes. He won't admit he's wrong on his path for the economy. And that's why we haven't actually seen any massive change in direction here it's just more of the same. We'll carry on as we were before - more borrowing, more public spending, and more taxes. And judging by previous experience, the current forecasts will be ludicrously optimistic. So who knows how deep the debt hole will really be next year. 130bn? 150bn? 200bn? Where does it end? Bankruptcy."

Posted by damien @ 10:55 AM 39 Comments

Another Lighter Note

Various Sources: Entire World Insolvent Soon

. . . but what about, uh, the nation of Switzerland? Its two largest banks hold about 10 times the nation's total GDP on their balance sheets, which means writedowns could require an Iceland-style bailout by other counties. Once that happens, it may only be a matter of time before the kingdom of Great Britain and Northern Ireland declares bankruptcy. Business journalist Will Hutton noted in the Guardian that Britain's heavy dependence on financial services left the country looking like "a gigantic hedge fund" whose "fall could get out of hand." But the indomitable British spirit compelled Hutton to add, triumphantly, "we may muddle through."

Posted by malct @ 10:53 AM 1 Comments

Not quite Para-gone (yet)

BBC: Credit crunch hits Paragon profit

UK buy-to-let mortgage lender Paragon Group has reported a 43% fall in annual pre-tax profits to 53.7m ($81m) following the credit market turmoil. Paragon slashed new lending by 75% to 1.13bn in the year to 30 September after its funding costs soared. The company, which specialises in lending to landlords, said 0.53% of its mortgage accounts were in arrears - a three-fold increase from last year.

Posted by jack c @ 10:32 AM 1 Comments

On a lighter note...

Bloomberg: U.K. Home Loans Fell by Half in October From Year Ago, BBA Says

Nov. 25 (Bloomberg) -- U.K. home loan approvals fell by more than half from a year earlier in October, the British Bankers' Association said, as a Treasury report forecast net new mortgage lending may fall below zero next year.

Posted by gardeniadotnet @ 10:16 AM 0 Comments

Another day, several more reckless throws of the dice ...

Metro: Package for homeowners 'modest'

The Metro article charts our government further vain attempts to prop up house prices ...

Posted by mark wadsworth @ 09:59 AM 2 Comments

Mortgage lending by the UK's biggest banks has fallen sharply

BBC: Mortgage lending feels the strain

Mortgage lending by the UK's biggest banks has fallen sharply compared with a year ago, a banking body says. The number of mortgages approved for house purchases was down to 21,584 in October, 52% lower than a year earlier. The figures come the day after a stark warning about the state of the mortgage market in a report by former banker Sir James Crosby. He warned that without government intervention, net new mortgage lending might shrink in 2009.

Posted by jack c @ 09:55 AM 2 Comments

World's finance ministers need desperate soloutions

Telegraph: Pre-Budget report: World's economies take radical steps over threat of recession

The radical measures announced in Alistair Darling's pre-Budget report reflected a growing belief among the world's finance ministers that desperate solutions are needed to head off another Great Depression. Other major economies are now expected to follow suit by considering increasing tax for their wealthiest citizens to fund tax breaks elsewhere. In America, President-Elect Barack Obama urged the new, incoming Congress to pass a major financial stimulus package "right away" to "jolt" the US economy back on track.

Posted by ben hazell @ 09:52 AM 0 Comments

Will Labour go to the polls next ye and win?

The Independant: Michael Brown: The most irresponsible budget I have ever heard

Prepare for a general election next year if not in the spring, certainly by the autumn. Alistair Darling's temporary tax giveaways (much of which especially the VAT reductions will be clawed back in 13 months time) has all the hallmarks of addressing the political rather than the economic cycle. Every cabinet minister will be under orders never to mention the "election" word. But it is inconceivable that Gordon Brown will want to risk losing the short-term advantages given by this pre-Budget report, before unemployment rises relentlessly to three million by the end of 2009.

Posted by flintster1994 @ 09:47 AM 6 Comments

Government commissioned report predicts house prices will plummet

Citywire: Net new mortgage lending expected to fall below zero next year

New mortgage lending in the UK is set to evaporate next year as banks shy away from previous lending levels, a new report commissioned by the government has revealed.The Crosby Report, compiled by Sir James Crosby at the government's request, predicted that net new mortgage lending would fall below zero in 2009, down from 40 billion in 2008 and substantially lower than 2007's lending figure of 108 billion.

Posted by jack c @ 09:44 AM 3 Comments

Well, eveyone seems to be over the moon with ZaNuLabours magical plan

Timesonline: When M&S is slashing prices by 20% to get customers in, VAT cut is insignificant

The Chancellor was accused yesterday of using a flawed tool to stimulate the economy amid concern that the 12.5 billion temporary cut in VAT would not work properly. The reduction from 17.5 per cent to 15 per cent was too little to be effective, may not be passed on to consumers and could be neutralised by people deciding to save, economists said. This will do very little to give the UK economy the impulses it needs, Hermann Simon, from the management consultant Simon-Kucher & Partners, said.

Posted by flintster1994 @ 09:11 AM 21 Comments

The 800,000 people who will fund the costs of the pre-Budget report

Telegraph: The 800,000 people who will fund the costs of the pre-Budget report

Those earning between 40,000 and 100,000 will pay an extra 500m in total in National Insurance - an average of more than 150 per person.

Posted by ben hazell @ 08:09 AM 4 Comments

Banks agree to follow the rules for a change

Times: Banks agree to give mortgage holders more time to pay

Homeowners who are struggling to meet mortgage repayments were given a lifeline yesterday as some of Britains biggest lenders agreed not to repossess properties until at least three months after borrowers first go into arrears. Repossession would only be sought as a last resort after other alternatives, such as a minimum payment plan, had been pursued. However the Council of Mortgage Lenders (CML) said that not all borrowers would be protected by the three-month moratorium on repossessions because only a handful of big lenders had agreed to the proposal. Customers with sub-prime or buy-to-let deals from smaller, specialist lenders could still be repossessed within three months.

Posted by drewster @ 02:04 AM 8 Comments

Struggling homeowners get more money; struggling tenants don't

FT: Government helps struggling homeowners

Homeowners facing repossession or struggling to meet mortgage payments after losing their jobs will receive extra support from the government following Mondays pre-Budget report. The government focused its attention on helping existing borrowers in danger of losing their homes rather than first-time buyers who are having difficulty entering the property market. From April, the government has agreed to cover the monthly interest due on mortgages of up to 200,000 for eligible borrowers who have been out of work for at least 13 weeks and are having difficulty meeting their payments. Previously it only offered support to homeowners with mortgages of 100,000 or less.

Posted by drewster @ 01:18 AM 19 Comments

Another bank teeters on the brink

Guardian: Reverse for Standard Chartered as it makes 1.8bn cash call

Standard Chartered, the emerging markets bank that has been regarded as one of the winners of the credit crunch, yesterday joined other banks in bolstering its balance sheet through a 1.8bn cash call. Reversing its position from just three weeks ago when chief executive Peter Sands insisted the bank had a strong balance sheet, Standard Chartered admitted the economic climate was deteriorating. [Comment: Isn't amazing how things can change so fast in such a short time? To go from a strong balance sheet to 1.8bn short in just three weeks seems incredible to me.]

Posted by drewster @ 01:06 AM 0 Comments

US government plan to pay peoples mortgages for them

CNBC: FHA's new risky loans make housing even riskier

The US government's 'Hope for Homeowners' program tells lenders to write down the principal on peoples loans to 90% of their home's current value, and lowers the interest rate so that the monthly mortgage payment is no more than 38% of their take-home pay. In return, the government would guarantee to pay off the loan if the borrower ever defaults. These rules only apply if the homeowner has missed three consecutive mortgage payments, a perverse disincentive to keep paying your mortgage. The new modified loans are re-defaulting at a rate of 50%. Thus the government is going to be paying for half the mortgages it is guaranteeing.

Posted by little professor @ 12:56 AM 0 Comments

Next stop on the crash train: unemployment

New York Times: Job Centers See Crush of People in Need

"At a one-stop career center, candidates are feverishly applying for two months of temporary work with United Parcel Service. The pay was $8.50 [5.60] an hour. There were 150 slots, and more than 300 applicants. A few years ago, these people were working. Now, with the nations jobless claims at a 16-year high, they are among the 20 million people expected to use federal workforce services in 2008, up from 14 million in 2005. Economists say the full impact is easy for lawmakers to miss. Many people apply for unemployment through the Internet, cutting down on actual lines. And those most in need are largely invisible - unskilled, less educated and disproportionately black or from immigrant communities."

Posted by drewster @ 12:45 AM 0 Comments

Debt figures revealed to end international speculation that Dubai is in trouble

Telegraph: Dubai reveals debt levels to dispel fears over growth

According to one of Dubai's top property bosses, the emirate has $80bn of debt outstanding against a total asset base of $1.3 trillion. "Dubai's growth has been at a rate of 13pc to 14pc a year. If this comes down to 6pc or 7pc or 8pc then fine. We've been running a long time and could probably do with a breather. We will use this time to learn lessons and become a stronger city." [Question: How much of Dubai's wealth is based on foreign investors piling in to their property market? I thought they were a bubble like all the rest?]

Posted by drewster @ 12:33 AM 7 Comments

Monday, November 24, 2008

Cost of Bankster Bait and Switch Now $7.4 Trillion

Bloomberg: U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit (Update2)

Bait, because Congress was told that mortgages would be bought, switch, because they took over healthy banking institutions with the loot after gaining dictatorial powers. The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago, More analysis from Kirt Nimmo.

Posted by planning4acrash @ 10:58 PM 4 Comments

The housing market is beyond help

Times: Is it time for the return of Miras?

It was abolished in April 2000 by Gordon Brown, who regarded it as a middle-class perk. Stuart Law, of Assetz, the investment business, is among those who argue that Darling should also give the rich a tax break

Posted by confused76 @ 10:32 PM 10 Comments


Times: Homebuyers who forfeit their deposits

They are resigned to losing the half a million deposit, and are happy to walk away on that basis, but the seller wants to pursue them for every penny theyve got. Theyre in real difficulty, says the couples lawyer, Simon Thomas, a partner at Thomas Legal Group, a high-value property specialist focusing on London and the Cotswolds. Theyve lost up to 70% of the value of their bonuses and their stock options options collected over years and years. That was a big hit for them. Theyve gone from a position of strength, with a 15% deposit, to having no share values.

Posted by confused76 @ 10:03 PM 4 Comments

Adviser to the Treasury Select Committe thinks Darings as mad as a box of frogs!

Timesonline: Darling's VAT cut 'could feed deflation', expert warns

A University of Manchester professor who acts as a special adviser to the Treasury Select Committe said today that it was "incredibly risky" for Alistair Darling to have cut the rate of VAT, given the dangers of deflation. The Chancellor today cut the purchase tax from 17.5 per cent to 15 per cent as part of a 20 billion fiscal stimulus to help the economy through recession. He said that the cut was equivalent to putting 12.5 billion back into the pocket of consumers over the next 13 months.

Posted by flintster1994 @ 08:15 PM 28 Comments

Nationalizations take dramatic losses from the private sector and places them on the larger balance

CNBC: All US Financials Will be Nationalized in a Year

It's not preferable, but all major U.S. financial companies will eventually be under government control because the alternative is so much worse, Hugh Hendry, chief investment officer at hedge fund Eclectica Asset Management, said Friday. All financials will be owned by the U.S. government in a year," Hendry said. "I bet you." Nationalizations take dramatic losses from the private sector and places them on the larger balance sheet of the public sector, he said. "It's not good," but society is vulnerable and society is going to have to intervene, Hendry said.

Posted by malct @ 07:32 PM 5 Comments

More Back Door Privatisation of Common Wealth Assets

Telegraph: Selling off the family silver to pay for spending

Alistair Darling is to help pay for his spending splurge by making more than 30billion of cuts from Whitehall costs and selling off a series of state-owned household names. Among the British institutions earmarked for sale within the next two years are the Met Office, mapmaker Ordnance Survey and the Forestry Commission. The list is also thought to include the Queen Elizabeth II Conference Centre in Westminster. Channel 4 is excluded for the moment, but will be assessed by Lord Carter, the new communications minister. Gordon Brown set a target of raising 36billion from disposals by 2011 and more than 18billion has been raised so far, mostly by offloading surplus land and property. ^^^^^^^^^^^^^ However, the current financial turmoil means it is a buyer's market.

Posted by malct @ 07:24 PM 11 Comments

This World 7pm

BBC2: This World

Anyone watching this?

Posted by renting2 @ 07:19 PM 5 Comments

It's been a while - the Comedy Club is back in session

Assetz: A positive consensus

If one reads the views of some commentators on the buy-to-let industry, the situation appears unremittingly dire: one of failure, negative equity and collapse. Standard & Poor's recent study suggested that the fall in property values could lead to as many as four out of every ten investors being in negative equity next year. This month's Landlord and Buy-to-Let Show at the NEC in Birmingham, produced a consensus that success is still there for the taking if those keen to invest for the first time or add to their portfolios in the current market make sure they carry out thorough research on the homes they are investing in and the tenants they are taking on. Those buying now or in the near future will be buying at or near the bottom in the market.

Posted by little professor @ 06:51 PM 11 Comments

What does the pre-Budget report mean for you?

MoneyWeek: What does the pre-Budget report mean for you?

Are proposed measures in the pre-Budget report as radical as Alistair Darling and Gordon Brown would have you believe? A summary of the key points for consumers.

Posted by damien @ 06:38 PM 3 Comments

New York sneezes; will London catch its cold?

Bloomberg: New York May Lose 225,000 Jobs, Comptroller Says

New York may lose as many as 225,000 jobs and $6.5 billion in securities industry-related tax revenue over the two-year period ending in October 2009. Wall Street is the engine that drives the economies of New York state and New York City, but the global credit crunch has slowed that engine down, DiNapoli said in a news release. This year is on pace to be one of the worst years ever on Wall Street. Finance industry-related activities account for 12 percent of New York City tax revenue and up to 20 percent of state revenue, the comptrollers office said. Before the crisis, the securities industry accounted for 5 percent of the citys employment but almost 25 percent of wages, the office said. [Similar figures for London, presumably? How will that affect property prices in London?]

Posted by drewster @ 06:31 PM 0 Comments

The situation is dire - stock market bounce is built on nothing U.S. Economy: Home Resales Fall, Prices Tumble Most on Record

Nov. 24 (Bloomberg) -- Home resales in the U.S. dropped in October and prices fell by the most on record, signaling a deepening housing recession going into 2009.

Posted by v stor @ 06:18 PM 0 Comments

Government borrowing is to soar and confirmed that the country will fall into recession next year

Telegraph: Alistair Darling confirms borrowing will reach 118billion

Speaking to Parliament as he unveiled a 20 billion package of tax cuts designed to boost the British economy in his pre-Budget report, Mr Darling said that borrowing would reach 78 billion this year - approaching twice what was originally budgeted for - and will reach 118billion in 2010.

Posted by malct @ 06:08 PM 14 Comments

The economy will bounce back quickly from recession and start growing again second half of 2009

Telegraph: 'Economy will recover from recession by mid-2009'

He confirmed that from next week, Value Added Tax will be reduced from 17.5 per cent to 15 per cent, cutting 2.20 from every 100 of consumer spending. The VAT cut will last until the start of 2010, when ministers expect the economy to be recovering. Mr Darling said the measure meant the Government was putting 12.5 billion into the economy. However, some retail experts have questioned whether such a modest cut will be enough to stimulate consumer spending. Many big retailers are already cutting prices by as much as 20 per cent in order to lure customers back, with only limited success.

Posted by malct @ 06:05 PM 4 Comments

Mr Darling will borrow his extra billions for his measures from international investors.

Telegraph: Pre-Budget report: Taxpayers to foot the bill for years to come

Mr Darling will borrow his extra billions for his measures from international investors. He needs to reassure the international markets that fund his borrowing that the UK public finances will improve quickly once the recession is over, to stop investors demanding a higher return on Government bonds. That means that when the economy returns to growth, taxes will rise and Government spending will fall. In his speech, Mr Darling promised "to put in place measures to ensure sound public finances in the medium term, to ensure as a country we live within our means".

Posted by malct @ 06:01 PM 0 Comments

The Chancellor's pre-budget report speech in full

Telegraph: Pre-Budget report: The Chancellor's speech in full

The full text of the Pre-Budget report statement to the House of Commons, delivered by Chancellor Alistair Darling.

Posted by ben hazell @ 05:36 PM 0 Comments

Masive increase in money supply=rally in everything followed by hyperinflation. Game over!

FT: Dollar slides as risk appetite warms up

The dollar and yen weakened on Monday as investor appetite for risk ticked higher on the back of rallying equity markets, following the US government bail out of Citigroup, the financial services company. US authorities said they would issue a guarantee covering $306bn of troubled mortgage-linked assets and inject a further $20bn in liquidity on top of the $25bn it had already received.

Posted by flintster1994 @ 05:33 PM 1 Comments

Add to this the 'reluctant landlords' that decide to let their propoerties while trying to sell...

Motley Fool UK: The Dark Side Of Buy-To-Let

For the first time since records began, a greater proportion of landlords are in arrears than mainstream borrowers.

Posted by whostolemyendowment @ 04:58 PM 1 Comments

Alistair Darling unveils 20bn tax cut package

Telegraph: Pre-Budget Report: Alistair Darling unveils 20bn tax cut package

Alistair Darling has announced a 20 billion package of tax cuts designed to boost the British economy in his pre-Budget report, balancing them with a tax increase for higher earners.

Posted by alex english @ 04:26 PM 0 Comments

Useful recession page (found it by clicking prebudget whats in it for you!) lol

Yahoo: Recession

The banking crisis might be nearing its end, but the recession has only just begun. While unemployment hits the highest levels in a decade, the UK economy - long regarded as the strongest and most resilient in Europe - has now been tipped to be the hardest hit.

Posted by mark @ 04:04 PM 2 Comments

Germany has clung steadfastly to budget orthodoxy but the downturn has now begun to engulf Europe's

Telegraph: Germany facing worst slump since 1948

Euro-zone industrial orders plunged 3.9pc in September and Germany's IFO index of business expectations has fallen to the lowest level since the survey began half a century ago, heightening fears of a severe slump across Europe next year.

Posted by malct @ 04:01 PM 7 Comments

90 jobs to go as factory closes

bbc: 90 jobs to go as factory closes

Workers at the Calcast factory in Campsie outside Londonderry have been told the plant is to close.

Posted by mark @ 03:56 PM 0 Comments

This is the story of the housing crisis, the banking crisis and the global financial meltdown.

Mortgage Lender: Rolfe talks leverage:

Everyone, everywhere was levered to the hilt, using piles of borrowed money to make leveraged bets on everything from real estate, to stocks, to currencies, to bonds, to companies themselves (LBOs), etc. With so many people maxing out leverage to drive returns, all it takes is a small decline in asset prices for all of them to go bust. Unfortunately, the decline in asset prices isnt going to be small. Consequently, the value of equity capital will continue to get hammered.

Posted by malct @ 03:43 PM 2 Comments

If you mark to market today, the banking system is bankrupt,

Bloomberg: Fed Pledges Top $7.4 Trillion to Ease Frozen Credit (Update1)

Nov. 24 (Bloomberg) -- The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago

Posted by malct @ 03:38 PM 1 Comments

The Telegraph's live blog following the pre-Budget report

Telegraph: Pre-Budget report: Live

The Chancellor Alistair Darling is delivering the most important speech of his career today. Keep up-to-date with our live coverage of the pre-Budget report here.

Posted by ben hazell @ 03:34 PM 0 Comments

Guardian: World's house values fall for the first time

Global house prices fell for the first time on record over the past three months, underlining the extent of the downturn. Britain among worst performers with 10% drop Dubai, Slovakia and Russia see big increases

Posted by mountain goat @ 02:29 PM 5 Comments

Wish we had the luxury to wait - in January we won't have an ecomomy

Guardian: Germany rules out tax cuts to boost economy

They think its all over, it is now !!!!!! - for the UK that is

Posted by matt_the_hat @ 02:14 PM 5 Comments

Must be refering to Alister Darling's PB speech today! advert: 2008 - God's Final Witness

Very suprised to find this at the TOP of this news blog! do they know something we've all missed? "Some of these prophecies concern the demise of the United States over the next year, which will be followed by man's final world war. This last war will be the result of clashing religions and the governments they sway. Billions will die! This time will far exceed even the very worst times in all human history." puts doomandgloom to shame - hardly worth buying a house then?

Posted by malct @ 02:12 PM 11 Comments

Sound familiar????

Bloomberg: Dutch Home Sellers Cut Prices in Market That Would Never Fall

"The combination of being one of the most densely populated countries in Europe and a drop in supply of new homes may limit price declines."

Posted by bystander @ 02:10 PM 2 Comments

why? makes no sense!

yahoo: British Land upgraded

The US bank has upgraded British Land to "buy" from "hold" but cut its price target from 830p to 680p

Posted by mark @ 01:24 PM 1 Comments

My instincts still tell me that any defation will be very shot lived.

Timesonline: R word yields to D word as source of anxiety

Money off everything! In a country that has made shopping its national pastime, the idea of persistent falls in the prices of all or most products and services sounds like the ultimate bargain bonanza. Yet in an economy already beset by dangers and difficulties on all sides, the emergence of just this trend deflation is rapidly emerging as the latest peril to Britains prospects. With the R word, recession, already a grim reality, now it is the less familiar D word that is provoking fear and loathing among economists and officials. Behind this alarm lies the knowledge that, although sustained falls in prices across the economy might seem like a dream for shopaholics, in practice this can swiftly become an economic nightmare.

Posted by flintster1994 @ 01:03 PM 2 Comments

Greenpeace activists scale Bank of England on budget day to demand greater investment in green tech

Telegraph: Greenpeace activists scale Bank of England

Activists from environmental group Greenpeace scaled the Bank of England building in the City of London today, calling on the Government to invest in "green" industries as part of the response to the recession.

Posted by generic_jammin @ 12:52 PM 2 Comments

Biggest bank in the world nationalised plus taxpayers to fund car loans!

BBC Peston's Blog: Citi and Manic Monday

Worth a read occasionally. This made me especially angry: "If you're shocked by the thought that we as taxpayers may soon be financing car purchases, don't be...The motor makers want to exchange bonds or securities backed by car loans for Treasury bills - which would help them provide finance to those who might still want to buy a car, in spite of the inclement economic weather." If people want to buy brand new cars but can't get loans, they should try SAVING first. Oh no, car sales are falling! When did this country become so utterly perverted....

Posted by doom&gloom @ 12:32 PM 12 Comments

As businesses in shopping centers close, decreased foot traffic threatens the survivors

Las Vegas Sun: Struggling to hang on

Without close inspection, you could chalk up the receding monthly sales at the Maui Wowi smoothie shop to cooling temperatures. But slumping sales began in April. You could argue that fewer people today can afford a $4 or $6 smoothie. But Maui Wowi also sells 99-cent coffee. Co-owner Paul Goldberg has a different theory: declining foot traffic at Spanish Trail Business Park, on Rainbow Boulevard near Tropicana Avenue. And it doesnt help that most of the new office suites in the rear of the complex still dont have tenants another source of smoothie and spa customers.

Posted by mark @ 12:22 PM 4 Comments

Currency collapse imminent

Bullionvault: Gold Ends Week 6.6% Higher as Stocks Lose 8% to 11-Year Low; UK Gold Price Hits Record Closing High - Saturday 22nd November 2008

Gold is now trading at 545. On its way to 1000 and beyond. So, Icelandic conditions on the way. Recent price slump was desperate manipulation to keep the economy from presidential debates. But, in reality, gold prices aren't rising, they are remaining stable, the supply of gold and its value is always stable. What is happening is that currencies are slumping and asset prices are deflating in real terms. But you only benefit if you have a real store of value. Anybody without at least 10% of their wealth in gold and other real assets will be left totally exposed. Physical coins are best because the institution holding your gold in a vault could fall if they have cash reserves in a bank that goes under.

Posted by planning4acrash @ 11:59 AM 36 Comments

And now for some Euro News German business confidence plummets

German business confidence has plummeted to lows not seen since the early 1990s in the latest evidence that Europes industrial powerhouse has suddenly been thrown into reverse. The Munich-based Ifo index reported its business climate index had fallen much more sharply than expected from 90.2 in October to 85.8 in November, the lowest since February 1993. It was the sixth consecutive monthly fall in the index, which is closely watched as an indicator of future trends in activity. Businesses expectations about the next six months were the weakest since the pan-German series started in 1991 and for almost 50 years using data for former West Germany, economists said.

Posted by plato @ 11:32 AM 1 Comments

Gordon Brown vows to keep recession short

Daily Telegraph: Gordon Brown vows to keep recession short

Gordon Brown has promised to do everything possible to ensure that the recession is as short as possible. Mr Brown told the Confederation of British Industry annual conference: "Simply letting the recession run its course, to say there is no alternative, is not an option. "To fail to act now would be not only a failure of economic policy but a failure of leadership.

Posted by ben hazell @ 11:25 AM 0 Comments

Can Darlings VAT cut save the UK economy?

MoneyWeek: Can Darlings VAT cut save the UK economy?

Alistair Darling's pre-budget report will focus on a 2.5% cut in VAT. But in a recession we shouldn't be trying to encourage consumption - we've done enough of that already, says John Stepek.

Posted by damien @ 11:24 AM 6 Comments

Fed Pledges Top $7.4 Trillion to Ease Frozen Credit

bloomberg: Fed Pledges Top $7.4 Trillion to Ease Frozen Credit

he U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago. The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions

Posted by mark @ 11:00 AM 9 Comments

Pre-Budget moves sum up paucity of both country and political thinking

Telegraph: Pre-Budget report: Pre-Budget moves sum up paucity of both country and political thinking

The leaks on what will be announced in the pre-Budget report sum up the absolute paucity of both the country and of the political and economic thinking in the top echelons of government.

Posted by generic_jammin @ 10:43 AM 0 Comments

More doom, it's time to abandon the Good Ship Britania.

Fresh Business Thinking: Will Migrants Come Back When Recession Is Over?

Basically, every indicator (though not the government's flawed statistics) are pointing down, irrespective of this tax freebie (which actually makes it worse). >>> "Official figures released last week show that the number of central and eastern European migrants from the so-called A8 accession countries registering to work in the UK is running at a three year low. This is yet another indicator of worsening labour market conditions."

Posted by fahrenheit451 @ 10:34 AM 1 Comments

Labour has lost their marbles, take their stuff

BBC News: Will a statement save the economy?

Can the chancellor rescue the economy with one statement? The BBC's political editor Nick Robinson and economics editor Hugh Pym go head to head on what we can expect from the pre-budget report.

Posted by last_days_of_disco @ 10:18 AM 2 Comments

Retailers say VAT cut isn't enough to save the High Street

Daily Telegraph: VAT cut is not enough to save the High Street

Leading retailers fear the VAT cut will be too little to save the British high street as the latest figures show "unprecedented" sales are failing to get shoppers to part with their cash.

Posted by ben hazell @ 10:14 AM 8 Comments

Is allowing this a good idea?

FT: Fears of deflation spark a rush for government bonds

The problem is a restriction of credit due to banks with insufficient capital. Why then, provide a safe haven in the form of government bonds? Understandably, the government cycles this flow of wealth back to the banks, but surely better for governments to refuse to provide any safe haven. This wealth would be obliged to go elsewhere. The UK government stimulus is a bit of a fake if it is funded by removing capital from the banking system. We are surely closer and closer to monetisation.

Posted by stillthinking @ 10:12 AM 0 Comments

The rich get twitchy

BBC Radio 2: Don't Cancel Christmas

That's right folks. A Christmas Carol gets rewritten with Bob Cratchit as the chief villain - how DARE he not get into even further debt?

Posted by panda @ 09:43 AM 1 Comments

Bleat Bleat Bleat


THE Daily Express today launches a crusade against the threat of hundreds of thousands of families losing their homes. On the eve of todays Pre-Budget Report, this newspaper demands a proper amnesty to give struggling home-buyers a lifeline. Our crusade presses for an amnesty of at least one years grace for home owners slipping into mortgage arrears through genuine hardship. Other measures proposed, by housing charity Shelter, include allowing interest-only mortgages, extending the repayment term, repayment holidays and being able to put outstanding debt on to the mortgage.

Posted by little professor @ 01:10 AM 24 Comments

Sunday, November 23, 2008

U.K. Government seeks urgent cash injection

BBC: Top earners face income tax rise

Darling is probably gooing to announce todat thatt for those earning over 150,000 per annum income tax will rise to 45%. Just as the credit crunch came in waves so to will the tax rises!

Posted by who stole my pension? @ 10:47 PM 21 Comments

Wile E Coyote economy: what happens if we believe that asset prices will drop?

Independent: Why buy now if prices are plummeting? How deflation could drag us all down

Even as recently as August, we were being told by the Bank of England that the real economic risk was inflation ... Now, just a few months later, oil has dropped below $50, commodity prices have fallen by 40 per cent and, five weeks before Christmas, British retails stores are slashing their prices by anything from 20 to 40 per cent. UK and US interest rates have been cut sharply and will go even lower, and the Bank and the US Federal Reserve are now predicting inflation may go negative perhaps as soon as the middle of next year. All talk is of recession, deflation and depression.

Posted by quiet guy @ 09:43 PM 23 Comments

Property owners patiently waiting for the recovery?

BBC News: Empty home numbers 'on increase'

The number of empty homes in England is increasing because of the downturn in the housing market and a sharp rise in repossessions, a charity has warned. The Empty Homes Agency is urging the public to report homes left vacant for long periods so it can inform councils, which can bring them back into use.

Posted by quiet guy @ 09:01 PM 5 Comments

Footballer turned BTL king


FOOTIE ace Robbie Fowler is down 12million in the credit crunch.The Liverpool legends property empire once worth 30million has plummeted 40%. Robbie ploughed his earnings solely into flats and houses. It worked at first because he tripled his fortune. He would never have anticipated the economic meltdown that has left the property industry in freefall. Because Robbie has put his money into the top end of the market, hes suffering more than most. So renowned was he as the buy-to-let king, fans at his former club Manchester City sang to the tune of Yellow Submarine: We all live in a Robbie Fowler house.

Posted by little professor @ 08:04 PM 19 Comments

Is this on top of Paulsons $700 Billion?

Bloomberg: Obama Will Get Stimulus Bill First Day, Democrats Say

Nov. 23 (Bloomberg) -- Congress will send President-elect Barack Obama an economic stimulus package the day he takes office Jan. 20, two Democratic lawmakers said today. Senator Charles Schumer of New York said on ABCs This Week program that the package will be between five and $700 billion. House Majority Leader Steny Hoyer, of Maryland, said on Fox News Sunday that he believed the Inauguration Day goal would be met, but he declined to put a price tag on the bill. I think Congress will work with the president elect starting now and will have a major stimulus package on his desk by Inauguration Day, Schumer said. I think it has to be deep. My view it has to be between $500 and $700 billion.

Posted by flintster1994 @ 07:05 PM 2 Comments

Nomura hatches plan for huge capital boost

Japan Times Online: Nomura hatches plan for huge capital boost

Nomura Holdings Inc. is considering raising several hundred billion yen in capital to strengthen its standing amid the global financial meltdown, sources said Saturday.

Posted by mark @ 06:38 PM 0 Comments

Ambrose at his most extreme finest

Telegraph: There is really no choice: we must back Gordon Browns blitz

If this crisis is botched by the major powers as the lesser crisis of 1930-1931 was so botched by politicians stuck in a mould we risk a self-reinforcing spiral into devastation. Matters are getting out of hand. The American bank JP Morgan has just told clients that the US Federal Reserve will cut interest to zero by February. This never happened in the Great Depression. You cant cut below zero. At that point, deflation increases the real burden of debts at a compound rate.

Posted by gobuchul @ 05:37 PM 0 Comments

Video - Rebound in housing coming says Dr Doom

CNBC: Strong Rebound Coming: Dr. Doom

Marc Faber says it is likely that reflation efforts of Central Banks will succeed and cause a rebound in asset prices, and yes that includes real estate - housing (he says this at 5.26 in the video). This will happen as money flows out of cash & Treasuries seeking higher yields. If this rebound does not happen and instead things go lower then it means we are in for something worse than 1929-1930.

Posted by mountain goat @ 04:55 PM 23 Comments

Citigroup hovers on the brink of collapse

BBC: Citigroup seeks 'emergency cash'

Executives of Citigroup, one of the biggest banks in the US, are in emergency talks with the US Treasury to gain much-needed funding, reports say. The bank is also said to have contacted certain shareholders to assess their interest in increasing their stakes as as it faces an uncertain future. Citigroup stock ended 20% lower on Friday as its board members met. Last week the company announced 52,000 job losses worldwide on top of 23,000 job cuts previously announced.

Posted by jack c @ 04:37 PM 4 Comments

I am taking bets on which chain will go bust!

this is money: Shop insurers signal High St collapses

Suppliers affected by the credit insurance firm's decisions can include product manufacturers, distribution firms, advertising agencies, landlords or even clothes hangar designers. Retailers affected to date include JJB Sports, Currys and Focus.

Posted by mark @ 02:24 PM 3 Comments

2bn MoD shortfall 'will hit jobs'

this is money: 2bn MoD shortfall 'will hit jobs'

BAE, which produces parts for the Eurofighter, has announced it will cut 200 jobs and plans further redundancies next year.

Posted by mark @ 02:22 PM 3 Comments

no room for Gordon

BBC wales: Former asylum fire investigated

Recently protests had been held at the site by local people at plans by the owner to demolish some of the buildings, which had been added after the main building had been constructed, in order for the development of new housing. But Ayub Bhailock, a consultant with Freemont Denbigh Ltd, said permission for demolition of certain buildings had been issued three years ago, in conjunction with Denbighshire Council, the Welsh Assembly Government and Cadw.

Posted by mark @ 02:19 PM 0 Comments

It must be like this in the UK too, but of course no-one will admit it

CNN: Crisis on Dealers' Row

"If I do 50% less volume, then my staff has to go down 50%," he said. "I'm just trying to hold on to the good salesmen I have." Customer traffic is way down, according to Park. "They're still worried about 'Am I going to lose this job? Can I make it through this Christmas season?' That's what they're thinking."

Posted by mark @ 02:13 PM 1 Comments

Rage in Iceland

Beeb: Iceland protest ends in clashes

Iceland is the first country whose economy has toppled, destroyed by a deflating housing debt bubble that is sinking the world economy. They are calling for the gov to step down for these errors. Perhaps we should do the same to our chancellor who fell asleep with a smug smile while our bubble floated up into blissful insanity? Rage is understandable but not always useful. Better to channel it at protecting yourself now. Get rid of debt, keep your job, invest wisely if you don't trust cash in the bank.

Posted by mountain goat @ 01:23 PM 10 Comments

I wouldn't say hilariously candid, more like sad truths!

Guardian: Secret diary of an agent

They've had their boom, now they're having their bust. So, is Britain's most hated profession finally getting its comeuppance? A hilariously candid account from the frontline of the property crunch

Posted by whostolemyendowment @ 01:02 PM 1 Comments

More 'secret' talks

The Times: Jaguar in secret plea for 1bn government loan

The speed of the economic decline has not just hit the motor industry. A number of large British-based industrial groups are also considering asking the government for financial support. If help is not given tens of thousands of jobs are at stake.

Posted by gardeniadotnet @ 12:59 PM 4 Comments

Yawn. Delusions of Grandeur!

BBC News: Scottish recession 'not as deep'

Scotland is about to enter its worst recession since 1980, but will still fare better than the rest of the UK, economists have predicted. The study by the Ernst & Young Scottish ITEM Club said Scotland's GDP was likely to contract by 0.4% in 2009. But it said this would be significantly better than elsewhere in the UK, where there will be a fall in output of 1%.

Posted by flintster1994 @ 12:29 PM 4 Comments

Merry Christmas from Gordon Brown

Independent: Treasury's dreadful position means a long squeeze on living standards

What troubles me is that the need to give a tax boost to the economy, which most of us would accept is desirable, is being used to conceal a really dreadful underlying fiscal position. If people realise that, they will realise that there will be a long squeeze on their living standards for a decade or so, as this deficit in gradually corrected. The rational response is to correct their own personal balance sheets, pay off debt as fast as they can, and get to work on improving their pension, because the Government in 10 or 20 years' time won't have the funds to help them. Golden periods don't feel like golden periods at the time. People who took out big mortgages, in effect borrowing to finance a standard of living they could not really afford, now face a harsh adjustment.

Posted by quiet guy @ 12:19 PM 3 Comments

Got nequity? Repossession, repossession, relocation

Times Online: Better to downsize than risk repossession

Property permabull Anne Ashworth suggests that if people are having trouble repaying their mortgage that they defy the laws of gravity, sell their homes and downsize. Genius. Forget that no-one will buy it, even if it is priced way below your mortgage, and forget the fact that if you're in a studio flat in central london (one of the worst affected areas) that you can only downsize to a garage. Why does the Times still employ ditzies like her?

Posted by paul @ 10:46 AM 5 Comments

Housing is now a non-buy Bank will stamp down on future house price booms, says deputy governor

In what will be seen as a major about-turn by Britain's central bank, Charlie Bean pledged to do more to prevent major credit bubbles developing in the economy. He also acknowledged tacitly that central banks around the world did too little to prevent the housing boom from emerging in previous years. His comments, made at a conference in Istanbul, are likely to have serious implications for the path of Britain's housing market in future years.

Posted by v stor @ 07:52 AM 12 Comments

Hyperinflation or deflation - the jury remains out

Merk: The Road to Financial Ruin: We Have to Spend Money Now

Fiscal spending is part of the problem, not the solution. At this stage, the dynamics over the coming years are shaping up. Investors may want to consider whether to take advantage of the panic buying of U.S. dollars to diversify their holdings. Typically, when a currency appreciates, the money is invested broadly in an economy; in recent months, most of the money flowing into the U.S. was invested in short-term Treasury Bills. We very much doubt that all this money will stay in the U.S. once the panic abates. Indeed, whereas just about everyone seems to be concerned about deflation, the risk of not only inflation, but hyperinflation increases with every step taken down this road.

Posted by gardeniadotnet @ 01:15 AM 9 Comments

Saturday, November 22, 2008

VAT cut by Christmas

TimesOnline: Gordon Brown to cut Vat as winter recession bites

Bad timing. An announcement of this cut, but today is 22nd November... The only plus is that I don't think anybody cares about a 2.5% change in VAT (good example of EU restrictions though). Probably 300 is a fairly substantial family gift but you are only going to save 7.50 .

Posted by stillthinking @ 11:28 PM 14 Comments

Obama has a dream, over to you Gordon

Associated Press: Obama economic plan aims for 2.5M new jobs by 2011

Obama; "We'll put people back to work rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms and solar panels". Gordon; I'll cut VAT for XMAS - D'Oh.

Posted by enuii @ 08:54 PM 2 Comments

Debt securitization is dead - so we're headed only one way! This Is Not A Normal Recession: Moving on to Plan B

"Neoliberal economists in the last three decades have denied the possibility of a replay of the worldwide destructiveness of the Great Depression that followed the collapse of the speculative bubble created by unfettered US financial markets of the 'Roaring Twenties'. They fooled themselves into thinking that false prosperity built on debt could be sustainable with monetary indulgence. Now history is repeating itself, this time with a new, more lethal virus that has infested deregulated global financial markets with 'innovative' debt securitization"

Posted by v stor @ 07:34 PM 0 Comments

Beware when a CEO says that his bank is fundamentally sound....

Yahoo UK & Ireland news: Citigroup talking to U.S. government

75,000 job cuts at Citigroup. Today it looks like a very optimistic figure.

Posted by fjcruiser @ 04:34 PM 1 Comments

Boo, Hiss, he's behind you!! The B(w)anker

Financial Times: Bankers are latest pantomime villains

Never mind wicked stepmothers, ugly sisters and evil witches. As Londons pantomime season gets under way for the Christmas season, there is a new villain in town the banker. As the effects of the economic crisis make themselves felt, writers of the annual childrens entertainment are turning away from traditional characters and looking to the capricious world of international finance to find their baddies.

Posted by mytimeisnigh @ 04:27 PM 0 Comments

Cardiff Bay - 50% off

Guardian: Britain's worst price falls

Wasn't Greenbay operating in the Cardiff area?

Posted by wiltshire @ 12:56 PM 12 Comments

Deflation? Could this move be the very beginnings of the return of inflation?

The Independant: Sony hikes prices as yen value soars

Sony is planning big price rises in the UK because of the strength of the yen against sterling, in a move that threatens to put extra pressure on Britain's embattled retail sector. The Japanese electronics giant said it had informed trade customers in the past 48 hours of the price increases in Britain and Ireland driven by the yen's rise against the pound and the euro.

Posted by flintster1994 @ 12:37 PM 25 Comments

Badger to the rescue with ergh ... more debt

BBC News: Darling fine-tunes recovery plan

The Chancellor, Alistair Darling, is spending the weekend putting the final touches to a package of tax cuts and big increases in public spending. The measures, designed to revive the flagging economy, are to be announced in Monday's pre-Budget report. It is understood Mr Darling will say tax cuts will only be short-lived and taxes will have to rise in the future.

Posted by quiet guy @ 11:50 AM 10 Comments

bye bye buy to let

Times online: Buy-to-let boom turns to nightmare as repossession hotspots are revealed

Soaring numbers of buy-to-let investors have fallen behind with their mortgage and face losing their property, official figures revealed yesterday. The worst economic meltdown since the First World War has spelt disaster for many who took out one of Britain's 1.1million buy-to-let loans. The figures, from the Council of Mortgage Lenders, show a rise of nearly 50 per cent in defaults for these mortgages

Posted by sold out @ 11:01 AM 12 Comments

Darling Hands tied Northern Rock calls it a day on Granite vehicle

This article seems to contradict a previous proposal by Darling, as you know there is a lot of pressure on Uk banks to lend. Lending cannot be maintained at 2007 levels even for existing borrowers because 50% came from NR. I then expected that Darling would stop the run-down of NR and re-enter the market to supply credit. However, it seems that Granite which supplied NR with funds through securitisation has now gone into run-down and split from NR. So how Darling will be able to force the existing lenders to supply credit seems to me impossible because there is now only 50% of capacity left (which they don't want to lend anyway). NR seems to be gradually distilling itself into a collection of the very worst loans also.

Posted by stillthinking @ 10:55 AM 3 Comments

It's not a depression. Its a Dark Age!

The Times: Britain is in no position to laugh at Icelands problems

The scale of our problems has still not been understood. In essence the domestic banks are largely bust. The Governments 500 billion bailout plan is primarily designed not to keep banks lending to small firms and to homebuyers but to prevent an unimaginable financial calamity.

Posted by cheekie charlie @ 10:40 AM 1 Comments

more banks fail

CNN: Three banks in California, Georgia fail

Three more banks - two in California and one in Georgia - failed Friday, bringing to 22 the number of institutions forced to close in the wake of the financial crisis. The Federal Deposit Insurance Corp. said the banking operations of Downey Savings and Loan Association of Newport Beach, Calif., and PFF Bank & Trust of Downey, Calif., were acquired by U.S. Bank (USB, Fortune 500) of Minneapolis.

Posted by mark @ 09:42 AM 1 Comments

Gold Up This Week

Reuters: UPDATE 4-Gold rises above $800 on strong physical buying

NEW YORK, Nov 21 (Reuters) - Gold rallied above $800 an ounce on Friday, ending the week 8 percent higher, as mounting economic uncertainties and strong physical bullion demand triggered a bout of heavy buying. Investor confidence was shaken after shares of Citigroup, the second-largest U.S. bank by assets, tumbled for a fifth straight day, as the company looked at options, including a sale of parts of the company or a merger. Anyone have an opinion as to whether this is a temporary blip or not ?

Posted by str 2007 @ 09:36 AM 15 Comments

The downturn spirals out of control

Times: 25,000 jobs go in a week, and those are only the ones we know about

After many years of being overlooked in favour of more glamorous statistics such as GDP or inflation, unemployment is back in the headlines. A fortnight ago 20,000 jobs were lost at well-known companies. It is chilling to realise that these job losses are only the ones that we know about, because they have all taken place at publicly listed companies. One of the biggest challenges facing Alistair Darling in his PreBudget Report is how to create an environment in which employers feel comfortable about keeping staff. However, the Chancellor is far more likely to concentrate on initiatives such as rises in tax credits for poorer families, child benefits and winter fuel payments.

Posted by mytimeisnigh @ 09:23 AM 11 Comments

Prices to continue to collapse on the back of real estate - Why? Financial leverage is dead

The Korea Times: Deflation Fears Turn Into Reality

Fears of deflation at home and abroad are looming larger as prices of commodities including oil and metals have begun to plummet amid the ongoing financial crisis, following those of shares and real estate. The opposite of inflation, deflation refers to a decline in general price levels, which creates expectations that they will drop further, choking consumption.

Posted by v stor @ 07:24 AM 0 Comments

Celebrating the crash

Grauniad: Here's to the end of a nasty bubble

I love stories about falling house prices. Yes, there is the wretched prospect of repossession for some. Yes, there are years of negative equity ahead for the many. But who in their right mind thinks 200,000 for a new build flat is a good thing, while 100,000 is bad. Greedy developers and bankers, that's who. Plus the foolish people who thought buy to let was a road to easy riches. The property market will recover. But when it does the goverment and regulators should not shy away from reining it in. If we're lucky we will never see real prices back at 2007 levels.

Posted by little professor @ 01:18 AM 43 Comments

Friday, November 21, 2008

short, sweet and to the point

The Guardian: Anything is possible, but prepare for the worst

In the world of real business, the mood of chief executives has taken a discernible turn for the worse

Posted by pintail @ 09:14 PM 0 Comments

Humour in our darkest hour

Youtube: Real Estate Downfall

A little something I thought might entertain the troops..

Posted by charley says.. @ 08:50 PM 0 Comments

Early 1990's all over again, house prices have a long way to come down.. Banks see rise in voluntary repossessions

Banks are seeing an increase in the numbers of homeowners deciding voluntarily to hand back their properties because they cannot afford to keep up mortgage payments. Voluntary repossessions involve the bank selling the property at auction but this will not show up in official figures as a repossession because there has been no court order.

Posted by v stor @ 06:50 PM 3 Comments

BTL (Buy-To-Lose)

MailOnline: Number of landlords falling behind on mortgage repayments soars by 50% as buy-to-let boom turns to nightmare

Soaring numbers of buy-to-let investors have not paid a penny of their mortgage and face losing their property, official figures revealed today. The worst economic meltdown since the First World War has triggered a nightmare for the army of people with one of Britain's 1.1million buy-to-let loans

Posted by v stor @ 06:43 PM 2 Comments

Squealing BTL,s

Squealing pig: little pig, little pig, let me in

A bunch of BTL landlords are getting a bit grumpy about the state of the housing market. In particular they are looking for the government to force banks to lend them more money at interest rates below what banks currently are offering. They are using the argument that tenants may be made homeless unless banks lend more money, and more cheaply than they are now. Here is the text of the petition:

Posted by sold out @ 06:22 PM 16 Comments

"the world economy has been used to using $4 to $5 of credit for every $1 of GDP growth."

Time: The Global Economy's Big Fear Becomes Real: Deflation

The deterioration of the global economy in the wake of the ongoing U.S. housing bust and subsequent credit crunch is accelerating at a frightening pace.

Posted by whostolemyendowment @ 05:52 PM 11 Comments

Monday should be an interesting day!

BBC News: Taxes to fall and then rise

On Monday, the chancellor will admit, by implication, that the government's industrial policy of the past decade has been something of a disaster. Actually to call it an industrial policy is a bit misleading - but what I mean is the Treasury's celebration over many years of the UK's growing economic dependence on the City of London and financial services. The City contributed around a third of our economic growth in the recent past and about 10% of total output.

Posted by flintster1994 @ 05:08 PM 10 Comments

A slow train wreck in progress! Stocks Slump As Signs Point To Harder Times

Key Indicators Suggest Deep Recession

Posted by v stor @ 04:29 PM 0 Comments

the situation is graver by the day and there are dreadful implications for consumer spending.

independent: Market turmoil sends investors fleeing into Treasuries

Investors stampeded into US government debt yesterday, viewing it as the only safe haven from a new round of losses in the rest of the credit markets and another plunge by stock markets around the world. Unprecedented demand sent interest rates on a whole range of US Treasuries to record low levels, in a flight to quality that surpassed even the effects of the mid-September panic. By contrast, corporate bonds, mortgage securities and other debt instruments continued to plunge in value, amid growing concerns that a global recession will lead to a new wave of defaults and losses.

Posted by malct @ 04:13 PM 2 Comments

Utopian dreamhomes?

Times Online: Empty homes hit highest level for nine years

On July 1 Iain Wright, the Under-Secretary of State at Communities and Local Government, announced that the number of empty homes in England had risen to 762,635, the highest level for nine years.

Posted by whostolemyendowment @ 04:08 PM 11 Comments

yes give to people who dont pay per usual

dailymail: Fury over 100million plan for hundreds of gipsy sites across the country

Towns and villages across England are bracing themselves for 'bombshell' news on the location of hundreds of new and upgraded gipsy and traveller camps. Work on some of the proposed 7,500 extra pitches will get the go-ahead within weeks under a controversial 97million scheme.

Posted by mark @ 03:20 PM 18 Comments

Bedlam Pick of the Week

Bedlam asset management: Bedlam news letter

Another cracking newsletter from Bedlam - especially the ideas about the rebirth of the cartel - essentially government picked winners will soon be thriving (and raising prices as they see fit). Read on...

Posted by mrminsky @ 02:42 PM 1 Comments

215,000 German jobs threatened by crisis

charlotteobserver: 215,000 German jobs threatened by crisis

BERLIN The German economy could lose up to 215,000 jobs in 2009 amid the global economic crisis, Germany's Bild newspaper said Friday, citing a survey it compiled.

Posted by mark @ 02:36 PM 0 Comments

mounting losses from credit cards, mortgages and toxic debt could overwhelm its efforts

Reuters via SOTT: Citigroup stock drops to 13-year low, fear grows

Citigroup Inc faced a crisis of confidence on Wednesday as investors questioned the survival prospects of the U.S. banking giant, and its shares tumbled 23 percent to a 13-year low. The second-largest U.S. bank by assets has been reeling on concerns that mounting losses from credit cards, mortgages and toxic debt could overwhelm its efforts to slash costs and add deposits. Last month, Wells Fargo & Co dealt a blow by derailing Citigroup's bid to buy Wachovia Corp. and check here : Citigroup: If this is the day of reckoning, and this is the time to start confessing, I will be the first to volunteer. I can no longer stand here before you and refute the fact that Citigroup is effectively insolvent.

Posted by malct @ 01:29 PM 0 Comments

Now it is US land prices falling, farmers in trouble

NY Times: Fields of Grain and Losses

David Kanable at the Oregon Farm Center, a mill near Madison, Wis., was paying $7.25 a bushel for corn in June. We never had a farmer lock in at that price. They wanted $8, Mr. Kanable said. Now this Thursday, the mill was paying $3.17 a bushel. When commodity prices were feverish, the price of good farmland exploded, too. Cropland values rose about 20 percent in the Midwest farm belt last year, capping a multiyear rise. The market for land is definitely weakening. One reason is that the investors and part-time farmers are once again dropping away. " Farmers are trying to survive by cutting costs, planting less, using less fertilizer, owning cattle instead etc. Plan for food shortages ahead I recon, unless the dollar drops and US farmers can be profitable again.

Posted by mountain goat @ 11:35 AM 10 Comments


Times online: Home repossessions rise 12% as economy worsens

Repossessions in July, August and September jumped sharply by 12 per cent and, according to the Council of Mortgage Lenders, full year numbers are expected to soar by 70 per cent compared to 2007.

Posted by sold out @ 11:30 AM 17 Comments

Hmm this comming from a major shareholder in JJB??

Telegraph: Veteran US investor says global economy could recover quickly

David Herro, the veteran chief investment officer of Harris Associates, one of the US's leading activist funds and a major investor in UK companies, has said that the global economic slump could be more than half way through.

Posted by landedgentry @ 11:04 AM 1 Comments

Reading between lines it looks like DSG (dixons, pcworld etc) might go bump

reuters: DSG and M&S likely Christmas turkeys

"Much depends on how much confidence the suppliers have in the business and things could quickly unravel after Christmas," he said. JP Morgan analysts are equally gloomy. "We expect the results to look very poor and give little support for those concerned about the group's prospects to survive the downturn intact," they said in a preview note.

Posted by mark @ 10:53 AM 6 Comments

Excessive property prices in desert wasteland show signs of instability

Telegraph: Dubai's Palm Jumeirah sees prices fall as crunch moves in

More anecdotals than data, but Dubai property falls must be inevitable, more than anywhere else on the planet. Will be a shame to see all those footballers' investments take a tumble

Posted by doom&gloom @ 10:40 AM 3 Comments

Citigroup for sale who will buy?

cnn: Futures rise, with all eyes on Citi

Wall Street poised to bounce back from deep fall on report that financial giant may sell itself.

Posted by mark @ 10:38 AM 1 Comments

It is clearer each day we brits are being lied to about the real state of our economy

bbc: Singapore officially in recession

Singapore's economy shrank between July and September, confirming it was the first Asian country in recession in the current financial crisis. The island's economy shrank 6.8% in the third quarter, according to government data, worse than the first estimate of 6.3% the government made last month.

Posted by mark @ 10:35 AM 0 Comments

Jeff is always good value

Telegraph: When money is tight, people spend less. Are you listening, Mr Darling?

Jeff Randall argues that the root cause of this economic misery is debt, and no recovery will be lasting until the Government starts to redeem its IOUs.

Posted by holding out @ 10:18 AM 4 Comments

More downward pressure on residential house prices

BBC: Property repossessions up by 12%

The number of properties repossessed by mortgage lenders rose by 12% to 11,300 in the third quarter of the year, the Council of Mortgage Lenders (CML) said. The number of borrowers in arrears also went up compared with the previous quarter, by 8% to 168,000. The number of repossession orders made by the courts in England and Wales rose by 3% to 29,516 in the same period. The figures suggest that many more people are likely to lose their homes as the economy falls into recession.

Posted by jack c @ 10:02 AM 1 Comments

Lets stop infrastructure funding and divert resources to justifiable projects like the Olymipics

FT: Network Rail to 'accept' cuts

The company that owns Britain's rail network yesterday edged towards accepting a tough funding package that will force it to cut costs by 21 per cent over the next five years.

Posted by matt_the_hat @ 08:39 AM 12 Comments

Can they do this legally - surely some terror law covers this

Guardian: Honda to close Swindon factory for two months

The plant's 5,000 employees will be laid off for the duration of the closure without pay.

Posted by matt_the_hat @ 08:36 AM 10 Comments

Boom 2 Bust!

MailOnline: More than 130 families a day lose their homes

More than 130 families a day are losing their homes to banks and building societies, shocking figures will reveal today. They show soaring numbers of people are paying the price for 'super-size' loans taken out during the property boom.

Posted by v stor @ 07:14 AM 0 Comments

Just wait for Euro Parity. They're coming.

Sky News: European Central Bank: Britain Welcome To Join Euro

"As the pound struggles against other major currencies, the president of the European Central Bank has told Sky News that Britain is "welcome at any time" to join the euro." You think its bad now, imagine an ECB affecting our liquidity because of decisions made in Germany.

Posted by planning4acrash @ 01:48 AM 20 Comments

Wow, its really happening, only to 2003 levels, long way to go.

LA Times: Price of Southern California homes falls 41% from peak

What IDIOTS borrowed that much money?! "With the median price of Southern California homes down more than 40% from its peak, the housing market has now slid further than most economists expected. The median sales price for homes in the region fell to $300,000 in October, a level not seen since 2003 and a 41% drop from the peak price set in the spring and summer of 2007, according to San Diego-based MDA DataQuick."

Posted by planning4acrash @ 01:23 AM 9 Comments

If Goldman Sach's gets cheap, n its bought by China, will China have taken over US Treasury?!

Reuters: U.S. bank shares plummet

* Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) shares fall as much as 25.5 percent to $4.77 * Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz) shares fall as much as 10.6 percent to $11.68 * JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) shares fall as much as 18.5 percent to $23.21 * S&P financials index .GSPF falls as much as 8.5 percent * Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) shares fall as much as 11.1 percent to $49.00

Posted by planning4acrash @ 01:09 AM 1 Comments

Darling The Bank Enforcer

mail Online: Darling threatens to FORCE banks to lend to firms and families

Alistair Darling is so exasperated by the 'moral failure' of banks to help small firms and families that he is poised to toughen the law. The Chancellor is studying legal options to end the 'unacceptable' behaviour of the banks towards companies struggling in the downturn. The Government argues that when the taxpayer-funded recapitalisation scheme was agreed, the banks entered into an undertaking to restore lending to 2007 levels. But Mr Darling also has a range of legal options open to him, including the creation of a 'bank enforcer' to supervise their lending behaviour, or the imposition of a cap on the interest charged for business loans.

Posted by sold out @ 01:07 AM 22 Comments

Current situation in Israel, coming soon, to a town near you?

freerealtime: Banks reduce maximum mortgage financing: Union Bank will lend only up to 60% of a home's value.

Israel's banks have tightened their mortgage policies in recent months. In addition to raising their mortgage interest rates, they have also reduced the maximum funding they will extend to borrowers, even safe borrowers. Some banks have also stopped working with Ezer Mortgage Insurance Company Ltd (EMI), and will not provide borrowers with financing amounting to 90-95 percent of a home's value.

Posted by planning4acrash @ 01:05 AM 0 Comments

Thursday, November 20, 2008

Mail/Littlejohn in biased article shock

The Daily Mail: Exposed: The sinister secrets of Labour's party list

A list of members posted on a website shows it to be a declining rump of lecturers, school teachers, social workers, trade union officials and former councillors. Many of them have never had a proper job in their lives and harbour dubious histories, in some cases descending into outright criminality.

Posted by gardeniadotnet @ 11:12 PM 6 Comments

Subprime Ripples out in the USA

CNN: End of Capitalism?

YouTube of CNN. "They don't believe in free enterprise or free market. They want socialism for themselves. They want a handout and a net for themselves. To hell with everybody else, but give it to them. And I think, really, what we're seeing now with them, with the banks we're seeing the end of capitalism, the end of capitalism as we know it ..." Michael Moore

Posted by alan @ 09:54 PM 6 Comments

Suspension of Foreclosures in US

MarketWatch: Fannie Mae to Suspend Foreclosures

Fannie Mae today issued a notice to its loan servicing organizations and retained foreclosure attorneys directing them to suspend foreclosure sales on occupied single-family properties as well as the completion of evictions from occupied single-family properties scheduled to occur from November 26, 2008 until January 9, 2009

Posted by gardeniadotnet @ 09:51 PM 5 Comments

Krusty bashing !!

marketoracle: Kirstie and Phil's Location, Location, Location Returns as UK House Prices Crash

Kirstie and Phil self professed property experts make a return to the UK's TV screens with a more muted version of their long standing delusionally bullish UK property candy floss show titled location, location, location that helped feed the get on the property ladder frenzy of the last few years

Posted by frustrated gardener @ 09:22 PM 1 Comments

The top 5% is sucking up more & more money from the middle class.

BBC via CNN & CBNC & Cspan: Congresswoman Waters Grills Treasury Sec Paulson

congress congresswoman maxine waters economy bailout recovery fannie mae iraq bush gitmo habeas corpus

Posted by malct @ 08:44 PM 2 Comments

Auto companies need to submit a plan

MarketWatch: Aid plan for Big Three falters in Congress

Democratic leaders said Thursday there is no deal on aid yet for the Big Three U.S. automakers, and asked the chief executives of those companies to return to Congress with concrete plans on how they would use federal funds to turn their companies around before getting any money from Washington. "Until they show us the plan, we cannot show them the money," said House Speaker Nancy Pelosi, D-Calif., at a press conference.

Posted by gardeniadotnet @ 08:31 PM 7 Comments

Confusing article from the FT

Financial Times: Why the Brown critics are wrong

The FT columnist Samuel Brittan attempts to Poo Poo the Brown / Government Poo Pooers. Somehow it doesn't quite work resulting in a blatantly confusing one sided article.

Posted by enuii @ 08:28 PM 3 Comments

The painful consequences of abandoning asset auctions

The Economist: The TARP trap

Holders of toxic mortgage-backed securities had pinned their hopes on the American governments plan to buy large piles of the stuff through auctions as part of the Troubled Asset Relief Programme (TARP). The decision on November 12th to abandon that approach in favour of direct capital injections has left them shattered.

Posted by gardeniadotnet @ 08:22 PM 1 Comments

Yee Yeeha! No Problem Buddy!

Bloomberg: U.S. Needs to Pump $1.2 Trillion Into Banks, FBR Says

Nov. 20 (Bloomberg) -- The U.S. may need to spend another $1.2 trillion to recapitalize the eight largest financial institutions and stabilize the markets because private investors won't take the risk, an FBR Capital Markets analyst said. ``The sheer size of the capital deficiency, coupled with the opaque nature of credit risk, will keep private capital sidelined,'' Paul Miller said in a research note yesterday.

Posted by flintster1994 @ 07:08 PM 0 Comments

Yeeha! Anyone else want some cash, just see Mr Paulson!

Timesonline: Shares freefall halted by car bailout support

US senators reached a bipartisan agreement on a bill to support the ailing auto industry, with an announcement expected this afternoon. The Dow Jones industrial average, which had been down more than 200 points in morning trade in New York, rose by 78 points to 8,075.89 at lunchtime as investors welcomed the news. Wall Street had been bracing itself for the possibility that Washington would not approve an emergency $25 billion (16.7 billion) bridging loan to bail out Americas car industry in time to avert the bankruptcy of at least one big manufacturer.

Posted by flintster1994 @ 07:00 PM 5 Comments

How to go to confession in order to get absolved for your sins

BBC News: RBS boss apologises over losses

"Sir Tom told the meeting he was "sorry" about the financial and human cost that the bank's troubles have caused". So are we. But dont worry, nothing will ever happen to you. You may even be rewarded with a lordship later on for service rendered to GB.

Posted by fjcruiser @ 06:32 PM 0 Comments

anyone keeping count?

Telegraph: Daily Mail owner cuts 400 jobs as profits fall

Daily Mail & General Trust's (DMGT) Associated and Northcliffe newspaper divisions have already cut 400 jobs in the past two months as part of a 100m cost-cutting drive.

Posted by mark @ 05:46 PM 1 Comments

Goodbye Taylor Wimpey............................

contract journal: Taylor Wimpey faces new bank deadline of 1 January

As a result, Fitch has downgraded its rating on Taylor Wimpeys debt from B to CCC which is well into junk bond territory. A forced liquidation is now a possibility, says Fitch. The credit rating agency says: Fitch now believes default at Taylor Wimpey is a real possibility, with a distressed debt exchange, such as debt-for-equity swap, looking increasingly likely. Although Fitch believes it less likely, a forced liquidation of the company is also a possibility.

Posted by mark @ 04:53 PM 12 Comments

and the job losses keep growing without the magic beans

bbc: Bosch jobs threat 'devastating'

It takes the number of job cuts threatened in Wales this week to more than 750, including 337 jobs at the Hoover factory in Merthyr Tydfil. Twenty jobs have also been cut at a drug factory in Ceredigion, and in north Wales 20 jobs will go in Llangefni and Denbigh at a farm machinery firm.

Posted by mark @ 04:43 PM 0 Comments

Have the VI's had their day?

The Scotsman: It's all over for the offers-over system, say estate agents

ONE of the central principles of the Scottish property market the "offers-over" price will die out with the introduction of next month's Home Reports, estate agents said yesterday.

Posted by pundit @ 04:06 PM 0 Comments

The higher the G number the less likely any concrete outcome...

New Statesman: Catastrophe averted?

The leaders of the rich countries went to Washington to save the world from sliding into deep recession. We asked key politicians, commentators and economists whether they succeeded and what we should expect, and hope for, in the coming weeks.

Posted by whostolemyendowment @ 03:59 PM 0 Comments

Yet petrol and Diesel is still too high!!!

Yahoo: Lowest UK Oil Price In Three Years

London oil prices have slipped below $50 a barrel for the first time since May 2005.

Posted by mark @ 03:47 PM 8 Comments

Any bets on 2 years?

reuters: Recession to last more than a year

The recession is likely to last more than a year as growth falls off a cliff despite the Bank of England continuing to hack away at interest rates as inflation comes down, according to a Reuters poll.

Posted by mark @ 03:34 PM 1 Comments

Job cuts rise as global recession plays on

reuters: Job cuts rise as global recession plays on

"I'm still having conversations with people. But it doesn't look good."

Posted by mark @ 03:31 PM 0 Comments

let em fail...........

reuters: Prospect for auto bailout dims

Congress has at most two days remaining in its post-election session. Without a deal in that time, any bailout is likely to have to wait until the new Obama administration takes over in January.

Posted by mark @ 03:25 PM 1 Comments

UK Government remains firmly in touch with reality

mortgagestrategy: Beckett calls for house builders to keep building

Housing minister Margaret Beckett is urging the house building sector to remain on task and continue building in the face of the economic downturn....................

Posted by jack c @ 03:13 PM 10 Comments

Stuatz earlier Christmas cheer for property investors

mortgagestrategy: Consumers set to benefit from development collapse, says Assetz

Homebuyers and investors could benefit from the current market as developers try to sell off their housing stock, says Assetz. The company says that as lower interest rates take effect, coinciding with increasing pressure by banks on developers to sell existing stock and the cost of LIBOR continuing to fall, the cost of financing property purchases is set to dip even further in the run up to Christmas. It says that this, combined with banks putting pressure on struggling developers to reduce housing stock could meand discounts of 30 - 40% bringing about the lowest prices for new build housing ever in the UK.

Posted by jack c @ 03:04 PM 7 Comments

Let's Hope This Bank Doesn't Run Out

Wall Street Journal: A Different Banking Crisis in Need of Fresh Capital

"As the nation's financial crisis spread earlier this fall, several thousand people pressed forward in a line to make a withdrawal from a bank in suburban San Diego. The line stretched out the building, up the street and past the fire station. They walked away with boxes filled not with money but vegetables, fruit, pasta and juice." Food Banks are running short here in the UK too. Christmas and cold weather coming as well ..........................

Posted by renting2 @ 02:49 PM 0 Comments

Is Albania the new chapter of holiday and investment property destination?

Albania Properties: Is Albania the new chapter of holiday and investment property destination?

A Mediterranean country with beautiful frontage on both the Adriatic and Ionian seas and its great landscape and long range mountains, Albania is a country that is attracting a lot of attention from international property investors, large corporate companies and holidaymakers. Albania is undergoing huge improvements in infrastructure and developments, and offers fantastic opportunities for property investors. New Airport, roads, NATO member, EU expected in 2014, Albania is experiencing an increase on tourism year on year. Albania property prices are the cheapest in all of Europe at least 70% cheaper. Beach apartments starting from just 20,000 and capital city (Tirana) apartments cost from only 19,000. Albania has not shown any econimoc downturn due to the current financial crisis.

Posted by newera @ 02:28 PM 0 Comments

LOL, Indian companies outsourcing call centres to the UK

Indian Express: Indian BPOs bring Christmas jobs cheer to UK

Christmas in 2008 could have been the gloomiest in UK in recent decades but for Indian companies, which are coming to the rescue of Britons, facing lay-offs in the face of a looming global recession. This week, Indian call centre major Firstsource sparked early Christmas cheer in Northern Ireland by announcing plans to create 160 more jobs in the region.

Posted by little professor @ 02:02 PM 8 Comments

BORIS Johnson has announced plans to create 50,000 affordable homes and kickstart the housing market

Evening Standard: Boris: 50,000 cheap homes pledge

The Mayor said he wanted to build the ambitious total, including 30,000 social housing units, within three years. The 5 billion scheme will attempt to get middle-income families on the property ladder and ditch previous mayor Ken Livingstone's target that all new schemes are 50 per cent affordable. Mr Johnson said: "These plans aim to put London on a strong footing for the eventual upturn in the housing market." The scheme will see: ● Stalled developments receiving public money to go ahead, in return for providing affordable homes. ● Unsold new houses being bought and made affordable. ● More flexible schemes for existing social tenants who aspire to own their own home. ● An increase in the number of family-sized homes available to rent or buy.

Posted by ezkay @ 01:17 PM 0 Comments

Winter bounce !?!

Metro: Mortgage lending increases by 7%

Same facts as a post below this, just a slightly different spin ..."Mortgage lending rose by nearly 7% during October but it remained well down on 12 months ago, figures show. A total of 18.7 billion was advanced during the month, compared with just 17.5 billion during a "weak" September, the Council of Mortgage Lenders said. But the figure was still 44% lower than the 33.38 billion lent in October 2007, and it was also down on August's advances of 19.66 billion. Despite the increase in lending during October, the Council of Mortgage Lenders (CML) warned that demand was likely to remain subdued due to falling house prices and the deteriorating economy. " (I do like that last sentence. A lot!)

Posted by mark wadsworth @ 01:07 PM 4 Comments

Commercial property shares crash but they're not cheap yet

MoneyWeek: Commercial property shares crash but they're not cheap yet

It's not just Britain's houses that have fallen in price, the value of commercial property has slumped too. Property company shares have crashed 43% in the last year. And as the recession really starts to bite, they're going to come down even further.

Posted by damien @ 12:51 PM 0 Comments

Oh so all those who were "long and wrong" are now saved???

BBC: October mortgage lending picks up

Mortgage lending rose slightly in October, according to the Council of Mortgage Lenders (CML). Total lending rose to 18.7bn, 7% up from the previous month.

Posted by crash n burn @ 12:39 PM 7 Comments

look how much money they are losing, 25billion wont last long.

bloomberg: GM, Ford, Chrysler Leave Congress Empty-Handed After Hearings

The companies are seeking aid as industry-wide sales have plummeted to a 17-year low. GM this month said it lost $4.2 billion in the third quarter and almost $73 billion since the end of 2004.

Posted by mark @ 10:09 AM 20 Comments

Peugeot Citroen cuts 2,700 jobs

bbc: Peugeot Citroen cuts 2,700 jobs

French car company Peugeot Citroen has announced plans to shed 2,700 jobs because of falling demand in Europe.

Posted by mark @ 09:59 AM 0 Comments

Rolls-Royce plans 2,000 job cuts

bbc: Rolls-Royce plans 2,000 job cuts

Aircraft engine maker Rolls-Royce has said it plans to cut between 1,500 and 2,000 jobs in 2009.

Posted by mark @ 09:58 AM 0 Comments

this is not a 100-year storm for the American economy; its a millennial rite of passage for all man

Market Oracle: U.S. Treasury the Final Bailout

its a millennial rite of passage for all mankind. Treasury Secretary: Millennial? Fed Chairman: I didnt say I agree with that. I merely said thats whats being said. Treasury Secretary: I accept the 100-year storm concept. But lets not get carried away by the public mood of gloom. Yes, I know debt liquidation and price deflation continue to be at the heart of our economic challenges and remain our most significant downside risk. I know real estate prices are down as much as 50% in some sectors and stock market barometers are down nearly 70% from their former peaks. And I know all about the tsunami of home foreclosures. Citigroup: I can no longer stand here before you and refute the fact that Citigroup is effectively insolvent. Martin D. Weiss, Ph.D.

Posted by malct @ 09:44 AM 5 Comments

Krusty Krusty Krusty

Market Kirsty the Phil's Location, Location, Location Returns as UK House Prices Crash

Finally, Kirstie has been forced to recognise the fact that house prices can actually fall which follows earlier near religiously opinionated programming that fed on and reinforced the fervour that gripped much of the country as annual house prices roared ahead every month by more than that which people earned in wages, that house prices are a one way bet.

Posted by housebear @ 09:10 AM 9 Comments

Stony Broke Fresh Rumblings From Northern Rock

FT Alphaville: Stony Broke Fresh Rumblings From Northern Rock

A serious trauma for the UK mortgage market

Posted by crocked @ 08:56 AM 4 Comments

I'd have settled for four-star

News Letter: House prices fall 46k in year

"IT could have been cheaper to stay in a five-star hotel for the last year than to own a house in Northern Ireland, according to dramatic figures released today. The University of Ulster's Quarterly House Price Index today reveals that the average house price in Northern Ireland has slumped by 46,881 over the last 12 months, meaning the average house has fallen in value by 128 a day." ... "Incredibly, according to the survey, at least 10 per cent of estate agents reported no sales during the three-month period and many other agents had less than five sales."

Posted by quiet guy @ 12:09 AM 0 Comments

Wednesday, November 19, 2008

Lots of graphs and great info on the housing bubble.

Mises Institute: Did the Fed, or Asian Saving, Cause the Housing Bubble?

Just about the only good thing to come out of the housing bubble is that many financial analysts are coming to see the virtue of the Austrian theory of the business cycle. Specifically, though Greenspan did his best to blame deregulation and foreigners who saved too much, many people now think that the Maestro's ultra-low interest rates in the wake of the dot-com crash may very well have sowed the seeds for our current crisis. Naturally, there is more to the story of the housing boom than simply saying, "The Fed chairman did it." But the original Misesian insight has withstood the test: it still seems that the Fed was a necessary condition for the worst speculative bubble in world history.

Posted by planning4acrash @ 11:25 PM 4 Comments

Deutsche Bank to axe roughly one in seven traders

reuters: Deutsche Bank to axe roughly one in seven traders

FRANKFURT, Nov 19 (Reuters) - Deutsche Bank will cut roughly one in seven jobs in its trading business, or about 900 staff, its single biggest reduction to investment banking since the onset of the global financial crisis, sources with knowledge of the matter told Reuters.

Posted by mark @ 10:07 PM 1 Comments

How even the mighty can take a tumble

Reuters: Glitzy Greenwich feels hedge fund pain

As many hedge funds suffer big losses and anxious investors yank out their money, the town synonymous with the riches of their recent glory is now hurting. In Greenwich, Connecticut, the luxury car dealers are quiet, the prices of mansions are declining and the retailers who have made a good living serving its wealthy residents are complaining about a sudden drop in business. "Everything is down. We started to see it in the summer, but October is when the bottom caved in," said James McArdle, whose family has run McArdle's Florist and Garden Center in Greenwich for 98 years. "Housing sales are down and so that always cuts into our market. Fewer buyers, fewer makeovers."

Posted by lvmreader @ 08:16 PM 0 Comments

Genuine signs of massively increasing gold sales from World Gold Council

FT: Golds safe appeal attracts record interest

121% increase in gold sales over a year ago. Mints around the world have run out of gold. German gold demand up 533% on a year ago. Swiss demand up 500%. This is from the World Gold Council, reported in the Financial Times. Whether gold is about to increase in price is of course up for debate. Really, I'd just like to see a thread with the hot flame and over 50 posts due to boredom....

Posted by doom&gloom @ 08:13 PM 24 Comments

It will all blow over in months......180 months

Bloomberg: Home Prices Tumble in 80 Percent of U.S. Cities

Home prices fell in four out of every five U.S. cities in the third quarter, a record spurred by distressed foreclosure sales across the country. The median price of a U.S. home declined 9 percent from a year earlier and sales of properties with mortgages in default accounted for at least a third of all transactions, the Chicago- based National Association of Realtors said today. Prices fell in 120 U.S. metropolitan areas, rose in 28 and were unchanged in four, the biggest share of declines in data going back to 1979. The financial turmoil sparked by the collapse of the U.S. subprime mortgage market has caused $666 billion of losses for U.S. banks, lenders and insurers. U.S. companies slashed 1.4 million jobs in the last six months, the biggest cut since 1975.

Posted by lvmreader @ 08:04 PM 1 Comments

NAEA latest cry for Government help

mortgagestrategy: NAEA calls for more government action

The National Association of Estate Agents is calling for more action from the government to prop up the property market. More than half - 54% - of estate agents surveyed said they did not have confidence in current government policies and that more must be done, including a suspension of Stamp Duty. They also called on the Bank of England to further cut interest rates.The survey further revealed that consumers are cutting their asking prices on property - a difficult decision that is already helping the market.

Posted by jack c @ 07:55 PM 2 Comments

A good indicator of the real situation out there..

Yahoo News: World freight prices collapse amid financial crisis

LONDON (AFP) Freight shipping prices for transporting dry raw materials collapsed in November, slammed by the global financial crisis, slowing economic growth and falling commodity prices, industry experts said

Posted by v stor @ 07:12 PM 0 Comments

This crises appears to be much more serious than we are being told..

Global Research: The Great Depression of the 21st Century: Collapse of the Real Economy

The financial crisis is deepening, with the risk of seriously disrupting the system of international payments. This crisis is far more serious than the Great Depression. All major sectors of the global economy are affected. Recent reports suggest that the system of Letters of Credit as well as international shipping, which constitute the lifeline of the international trading system, are potentially in jeopardy.

Posted by v stor @ 06:57 PM 0 Comments

Not all that bad eh!

BBC News: The brighter side of the credit crisis

Going on holidays is the right thing to do.

Posted by fjcruiser @ 06:19 PM 13 Comments

Can they beat the big 'D' ?

The Market Oracle: G20 Central Banks Unite to Fight Economic Depression

Amid the worst financial crisis and market meltdowns since the 1930's, the world's top-20 central bankers and finance ministers are busy at work, inflating the world's money supply, slashing lending rates, and crafting stimulus packages, in order to prevent a normal recession from morphing into a Great Depression. The ECB has cut interest rates by 100-basis points to 3.25% since early October, and is telegraphing another 50 basis point cut at the next policy meeting in December.

Posted by v stor @ 06:08 PM 0 Comments

A website to watch

Bailout Sleuth: Eight more banks

At least eight more banks announced their participation in the Treasury Department's share purchase program in the past two days, adding roughly $1.48 billion to the total amount of taxpayer money to be invested in the institutions.

Posted by planning4acrash @ 06:00 PM 2 Comments

House Prices Recovering at an Astronomical Rate

Telegraph: House sales pick up as sellers become realistic

The number of properties changing hands rose for the second consecutive month in October as sellers began to price their homes more realistically. Earlier this week it emerged that sellers had cut their asking prices by almost 3pc in just four weeks.

Posted by jj @ 05:28 PM 3 Comments

What sites do they have in the UK?

reuters: BASF issues profit warning, cuts global output

BASF says now sees full-year profit below 2007 level * Says to cut production at about 100 plants * Says could reduce working hours at its sites * Shares drop 13.1 percent

Posted by mark @ 04:18 PM 1 Comments

On your bike, Mr Watanabe

BBC News: Global liquidity crisis 'is over'

Crisis is over folks.

Posted by fjcruiser @ 03:19 PM 12 Comments

Introducing Britains New Super Bank

Timesonline: Lloyds TSB wins vote for HBOS merger

Lloyds TSBs shareholders today voted through the bank's rescue takeover of HBOS, owner of Halifax and Bank of Scotland, with 96 per cent of investors backing the deal. A merger between the two banks, brokered by Prime Minister Gordon Brown in September, will create a lender with 145,000 staff and 3,000 branches across the UK. At today's meeting, shareholders also supported Lloyds TSB's plan to raise 5.5 billion to shore up its balance sheet, including 1 billion from the Treasury which will buy preference shares in the bank. Until Lloyds TSB pays back the Governments 1 billion investment, it will not be allowed to pay bonuses to its directors

Posted by flintster1994 @ 03:11 PM 9 Comments

Roubini advocates yet another massive fiscal stimulas package!

Bloomberg: Roubini Says U.S. Recession to Be Worst in 50 Years

Short interview with Roubini.

Posted by flintster1994 @ 03:02 PM 0 Comments

Shafted on all fronts!

BBC: Premium bond payouts reduced

National Savings & Investments (NS&I), which runs the popular savings account, said the total Premium Bond monthly prize payout would drop from 87.8 million this month to about 57 million in January 2009. The number of Premium Bond prizes will fall from 1.54 to 1.1 million.

Posted by cheekie charlie @ 02:59 PM 0 Comments

home prices would likely sink further and not rise, dimming the appeal of homeownership

Boston Globe: Depression 2009: What would it look like?

In a deep and sustained downturn, home prices would likely sink further and not rise, dimming the appeal of homeownership, a large part of suburbia's draw. Renting an apartment - perhaps in a city, where commuting costs are lower - might be more tempting. And although city crime might increase, the sense of safety that attracted city-dwellers to the suburbs might suffer, too, in a downturn. Many suburban areas have already seen upticks in crime in recent years, which would only get worse as tax-poor towns spent less money on policing and public services. In a modern depression, the swelling ranks of the unemployed would likely change the landscape of the country, uprooting people who would rather stay where they are and trapping people who want to move.

Posted by malct @ 02:53 PM 0 Comments

Paulson's TARP Programme comes under the spotlight

Bloomberg: It Isnt a TARP Without Troubled Assets to

Nov. 19 (Bloomberg) -- Every time Treasury Secretary Hank Paulson updates us on the governments efforts to stabilize the financial system and announces the latest twist in the Troubled Asset Relief Program, I get a sinking feeling in my stomach. I know he will introduce a host of new acronyms for new lending facilities to rescue new asset classes from new and anticipated distress. And I know that, no matter how hard I focus on what he says or how many times I read the press release and accompanying stories, I wont be able to get my arms around the details.

Posted by flintster1994 @ 02:46 PM 1 Comments

Dear Leader Gordon Brown

Timesonline: Santa Brown's great Christmas giveaway

They can't give it away. So bad is the economic situation that the Government will have to admit next week that it cannot stimulate the economy by fast-tracking great capital projects. So complex are the systems now, so unwieldy the planning process and so untrusted the Government, that the proposals and partners do not exist to build our way out of the downturn. Many billions of pounds are already stuck in the system, unspent. The 43 billion Building Schools for the Future programme, for instance, that aims to rebuild 3,500 schools in 15 years, managed in its first three years to rebuild... 13.

Posted by flintster1994 @ 02:30 PM 7 Comments

only fools rush in

bbc: House sales rise as prices fall

A property search website, Globrix, said price cuts on homes last week averaged 16,871 across the UK. The UK property market is in the middle of the worst slump in living memory because of the credit crunch and a subsequent mortgage drought. Average prices, according to the biggest lenders, have fallen by about 15% in the past year and sales have fallen by more than half.

Posted by mark @ 02:28 PM 10 Comments

British Land, the UK's second largest property company, has posted a loss of 1.3bn after it was for

Telegraph: British Land posts 1.3bn loss

The results follow similar figures from rival Land Securities, which announced a 1.7bn loss, as commercial property values fall steeply because of plunging demand amid the credit crisis.

Posted by mark @ 02:23 PM 1 Comments

Rental demand on the up... sure sure...

Tgraph: Becoming a landlord: Word on the street

... but a new wave of "reluctant landlords" are spoiling the BTL party.

Posted by confused76 @ 01:36 PM 10 Comments

And since most BTLs are "interest only"...

ThisIsMoney: Interest-only mortgage borrowers forced to sell as property prices fall

"Around 1.3m homeowners with an interest-only mortgage could be facing financial problems, research claims today." These are mostly BTLs, who in the past bragged to have made a fortune but will soon lose a fortune "If the UK does become blighted with deflation, not only does it mean people hold on for lower prices on cars, houses and big ticket items, it also means mortgages will grow relative to wages and other prices" BTL = Buy To Debt

Posted by confused76 @ 01:30 PM 0 Comments

An open letter to my kids on what the current economic crisis has taught us, and how they can learn

cnn: The 'Great Crash' in the history books

You are both too young to read this letter now. But in a decade or so, I suspect you'll be hearing about the events of autumn 2008 in your history class. You might wonder what it felt like to live through a global crisis. And when you learn about the years just before the crash - the houses that magically doubled in value, the no-questions-asked mortgages - you'll surely ask what all of us crazy old folks could have been thinking.

Posted by mark @ 01:29 PM 0 Comments

Spain 'to slide into recession'

bbc: Spain 'to slide into recession'

Spain is likely to slip into recession in the fourth quarter and stay there into 2009, Bank of Spain head Miguel Angel Fernandez Ordonez has said. His comments followed figures showing that the Spanish economy had contracted by 0.2% in the third quarter, the first shrinkage since 1993. "The scenario for the next quarters is very similar to that of the third quarter," Mr Ordonez said. The eurozone officially entered recession last week. CSFB analyst Giovanni Zanni said: "We have a slightly worse forecast for Spain than for the rest of the euro area."

Posted by mark @ 01:23 PM 0 Comments

CNBC, however, has been paying very close attention and keeping a running tally of actual spending

CNBC: Financial Crisis Tab Already In The Trillions

Try $4.28 trillion dollars. That's $4,284,500,000,000 and more than what was spent on WW II, if adjusted for inflation, based on our computations from a variety of estimates and sources*. Not only is it a astronomical amount of money, its' a complicated cocktail of budgeted dollars, actual spending, guarantees, loans, swaps and other market mechanisms by the Federal Reserve, the Treasury and other offices of government taken over roughly the last year, based on government data and news releases. Strictly speaking, not every cent is a direct result of what's called the financial crisis, but it is arguably related to it. has anyone done this in the UK?

Posted by malct @ 01:17 PM 0 Comments

With a Debt Based Money Supply, No Other Outcome Is Possible

New Scientist: Prophesy of economic collapse 'coming true'

Things may seem bad now - with fears of a world recession looming - but they could be set to get much worse. A real-world analysis of a controversial prediction made 30 years ago concludes that economic growth cannot be sustained and we are on track for serious economic collapse this century. In 1972, the seminal book Limits to Growth by a group called the Club of Rome claimed that exponential growth would eventually lead to economic and environmental collapse. The group used computer models that assessed the interaction of rising populations, pollution, industrial production, resource consumption and food production. Most economists rubbished the book and its recommendations have been ignored by governments, although a growing band of experts today continues to argue cont.

Posted by malct @ 01:02 PM 3 Comments

Cracks showed long before it all caved in

Guardian Blog: GolemXIV comments on recent articles

This blogger is on my favourites list - always insightful. Page takes 20secs to load up. Everything written in this newspaper, by all the journalists and by the editorial writers is from the point of view that what HAS to happen is to get spending started again. Get money into the system. If the banks won't do it by spending/loaning then lets get the consumer to do it by tax cuts ( which is just Bush's stimulus checks by another name.) Every word written here ignores utterly, never mentions at all, the possibility that the real problem is the outstanding cliff of bad debts. No one is willing to write a word about how that debt is what is stopping the financial sector from being able to do its job. No one wants to say that even big firms have to go bankrupt.

Posted by mrb @ 12:57 PM 0 Comments

Budget Deficit Means 1,500 Jobs On The Line; At Least 2 Train Routes Could Be Completely Removed

CBS: Report: MTA To Slash Jobs, Multiple Subway Lines

1,500 Jobs On The Line; - [I don't think they have realised!] NEW YORK (CBS) ― The MTA reportedly is ready to make deep cuts in its budget that could lead to reduced service, layoffs and more crowded trains. Sources tell CBS 2 the association board is preparing a worst case "Doomsday" scenario that will be presented during its monthly meeting on Thursday. When describing the agency's budget crisis last week, MTA CEO Elliot Sander said, "The word 'Draconian' is not inappropriate."

Posted by malct @ 12:39 PM 0 Comments

the job losses increase daily....this sounds more like a depression day by day

yahoo: Insulation Firm Axes 100s Of Jobs

SIG is axeing 900 jobs and shutting 65 trading sites after warning annual profits will be at the bottom end of market forecasts.

Posted by mark @ 12:14 PM 6 Comments

Is Britain set to turn into Japan?

MoneyWeek: Is Britain set to turn into Japan?

Latest figures show that prices in the UK are falling at the fastest rate for 20 years. It's good news that essentials such as petrol and food are getting cheaper, but there's a dark side to falling prices - we could soon be in serious danger of a Japan-style deflationary slump.

Posted by damien @ 11:57 AM 6 Comments

Retailers battle for survival. Seconds away, round one, ding ding!

FT: M&S to hold 20%-off sale for one day

Marks and Spencer is turning to a tactic it has not used since the business was in the doldrums in 2004, in a sign of its anxiety about the retail climate. The retailer will on Thursday hold a one-day 20 per cent off sale its biggest pre-Christmas promotion for four years to stimulate flagging revenue, according to people familiar with the retailers plans.

Posted by flintster1994 @ 11:56 AM 3 Comments

What happens when they run out of interest rate s to cut?

BBC: Bank hints at further rate cuts

There could be more cuts in UK interest rates, according to the minutes from the Bank of England meeting at which rates were lowered from 4.5% to 3%. The Bank's nine-member committee voted unanimously for the cut on 6 November, but considered a bigger one. The Bank's own calculations showed that a cut to 2.5%, or even lower, would be needed to stop inflation falling too far below its target next year.

Posted by flintster1994 @ 11:39 AM 12 Comments

Homeowners with interest-only mortgages face financial ruin as their property prices plunge

mail: Homeowners with interest-only mortgages face financial ruin as their property prices plunge

Around 1.3million homeowners with an interest-only mortgage could be facing financial problems, research claims today. The terms of their mortgage mean they pay only the interest on the loan each month, and they are failing to save money to pay off the capital, says the report from investment firm Liverpool Victoria. Forty-one per cent were hoping to use the increase in the value of their property to pay off their loan in the future. With prices plunging at a record rate, this is not an option for many homeowners who bought in recent years. Prices have now dropped to October 2005 levels. It raises fears of a worrying 'mortgage gap', with an estimated 75billion of mortgages on their properties.

Posted by mark @ 11:31 AM 4 Comments

Lenihan to sanction huge bank rescue plan

independent IE: Lenihan to sanction huge bank rescue plan

The Government is on the brink of launching a multi-billion euro rescue plan for the country's banks as the share price of a second major institution fell below 1 yesterday. Officials are going through an expert report forensically examining the loans given out by the banks to work out their levels of bad debt.

Posted by mark @ 11:20 AM 0 Comments

Mortgage lenders to demand 20pc cash deposits

Independent IE: Mortgage lenders to demand 20pc cash deposits

THE housing market suffered a new blow after it emerged last night that house buyers will have to come up with at least 20pc of the value of properties they plan to buy. The move will mean buyers will have to produce deposits of 54,000, based on the average price of a house at the moment. One of the largest lenders in the State, KBC Homeloans said it would now only provide mortgages for 80pc of the value of homes. Mortgage market experts said other lenders were now likely to follow KBC.

Posted by mark @ 11:18 AM 0 Comments

Sales of For Sale boards slip to all time low

Estate Agent Today: Sales of For Sale boards slip to all time low

"As a sign of the times, orders of For Sale boards have reached an all-time low, while printing firms reliant on estate agency have also been hit." But what about all those 'For Rent' signs that must be required according to the BTL VIs ....................... ?

Posted by renting2 @ 10:41 AM 5 Comments

Told you so, this is the next war zone ...

Times Online: We must defend our high seas from more than just pirates

"Every year $50 billion goes up in smoke because of the world's inability to control the sea. According to a recent World Bank report condemning the staggering inefficiency of heavily subsidised fishing fleets, the money is squandered as fishermen vie with each other to chase the ever-diminishing stocks of fish, building bigger and bigger boats in the process. If world fish stocks were rebuilt, today's catch could be achieved with about half the current global fishing effort. But a measured approach is impossible when no one owns the sea. It is a classic tragedy of the commons: if one country leaves the fish alone, another will reap the benefits. The result is a rush that will only stop when the fish have disappeared."

Posted by fahrenheit451 @ 09:59 AM 14 Comments

Deflation v's Inflation

Timesonline: Deflation is the new bogey word as crunch sends prices tumbling

The spectre of 1930s-style deflation in the British economy loomed yesterday after figures showed that prices of many goods slumped last month as recession tightened its grip. Consumer price inflation posted its biggest drop since records began in 1992, falling to 4.5 per cent last month from a 16-year peak of 5.2 per cent in September. The drop could lead to further aggressive interest rate cuts. Rates are already at a 54-year low of 3 per cent.

Posted by flintster1994 @ 09:20 AM 10 Comments

Six months ago, Cara Watt had the world, quite literally, at her feet. A former airline pilot - who

mail: A very middle-class recession: One moment you're planning your holiday, the next you're on the abyss...

Last year, he was told his team made 300million for the corporate arm of the Bank of Scotland. With a bonus, his salary could exceed 150,000 in cash, with share incentives. His job, the whole family felt, was utterly safe - until the day a few months ago when, with no warning, he was made redundant.

Posted by chris @ 03:19 AM 1 Comments

And they made such a fuss over endowment shortfalls?

Press Association: Concern over interest only mortgages

Nearly half of people with interest-only mortgages have no investment in place to repay the money they owe, research has shown. Around 2.9 million homeowners are on interest-only deals, but 45% of these are not contributing to an investment to repay the capital they have borrowed, according to LV. Instead 41% of people plan to repay the money they owe by selling their house and cashing in the equity. Despite falling house prices, many of these homeowners hope to raise enough money to not only repay their debt, but also to buy a new property. Borrowers have not been obliged to have an investment plan linked to an interest-only mortgage since the early 1990s.

Posted by little professor @ 01:22 AM 16 Comments

Tuesday, November 18, 2008

Charles Hugh Smith writes about resistance to debt writedowns

of two minds blog: Housing Writedowns Resisted

The discussion concerns America but is not irrelevant to our plight either: "Today's "trend that will stick": writing down housing values and mortgages to reality will be resisted by lenders, homeowners and government every step of the way, lengthening the recession. Why will this resistance lengthen the recession/depression? For what happens when writing down bad debt (uncollectable debt, debt based on impaired assets, etc.) is resisted, we need only look at Japan 1989-2002 for an example: hiding bad debt and acting as if assets will rebound to bubble heights someday leads to decades of stagnation."

Posted by quiet guy @ 11:04 PM 1 Comments

Game over. Suckas.

CNBC: Luxury Brands Struggle to Attract Clients

The Wall Street stockbroker had used FlatRate Moving, a high-end moving service, a half-dozen times over the years. They moved him from a modest apartment on the Upper East Side to a grander one on the Upper West. He called when he moved to an even better building in Midtown. Most recently, FlatRate helped settle him and his wife and child into a 3,000-square-foot loft in Soho, one of Manhattan's priciest neighborhoods. FlatRate got another call two months ago. The client was packing up his family for a two-bedroom apartment in the less expensive Park Slope, Brooklyn. He had lost his job and was no longer in a position to pay the $3,000 to $5,000 a month he'd shelled out before. "We did the move almost at cost"for under $1,200, says FlatRate's vice president of marketing.

Posted by lvmreader @ 08:13 PM 13 Comments

I wonder how many fraudsters have not been prosecuted yet.....

BBC News: Fraudulent mortgage broker banned

"The FSA said it would have also imposed a substantial fine on him, but for the fact that Mr King is now bankrupt". What a shame.

Posted by fjcruiser @ 08:13 PM 1 Comments

The Black Swan Theory - Fool or Genius ?

The Guardian: Days that shook the world

I am ordering his books for X-mas.

Posted by fjcruiser @ 07:55 PM 6 Comments

Endless ramping

Scotsman: Now is the time to secure a property bargain

Recent figures from the ESPC have shown that it is easier than ever to secure a home at a bargain price, with 75% of properties going for below their advertised fixed price. And as there is less competition in the market, buyers are realising that it's easier than ever before to get their first-choice home. With Bank of England's decision to dramatically slash interest rates, providing that the new rate is passed on to customers by the major banks, we're expecting more first-time buyers to start considering taking their first step on the property ladder, which will swell the number of sales even more. If you miss the boat and prices start to rise again you won't be able to buy the home you want or to get on the ladder. It's only when it's too late that people start to realise that

Posted by little professor @ 07:50 PM 13 Comments

Is there a way out? Clear all debts maybe!

The Market Oracle: Worse than the Great Depression?

It's a minority but growing view, including from 86-year old former Goldman Sachs chairman, John Whitehead, at the November 12 Reuters Global Finance Summit in New York. As disturbing evidence mounts, he said: "I think it would be worse than the depression. We're talking about reducing the credit of the United States of America, which is the backbone of the economic system. I see nothing but large increases in the deficit, all of which are serving to decrease the credit standing of America.

Posted by v stor @ 07:45 PM 1 Comments

More toxic trash thrust on the UK Taxpayer

mortgagestrategy: B&B admits hands tied over self-cert fraud

Bradford & Bingley has admitted there is little it can do to tackle self-cert mortgage fraud where borrowers lie about their income. The revelation emerged during a grilling of B&Bs chief executive Richard Pym and chairman Rod Kent at a Treasury Select Committee session held this morning as part of a wider banking crisis enquiry. Richard Pym says the nationalised lender is attempting to tackle the fraudulent loans held on its buy-to-let portfolio, but says there is little in the banks armoury to stamp out self-cert fraud.He says: One of the emerging issues within our books is mortgage fraud. There is a fraud element in our book and we regret that.

Posted by jack c @ 05:16 PM 23 Comments

Is this what brown means by building new schools....

contract journal: Building work under threat in Aberdeen following bank collapse

Building work on new Aberdeen schools could be halted unless the council provides a loan of up to 17.5m. Aberdeen council has been asked to provide between 3m and 17.5m to keep the 120m 3Rs project on track after its financial backer collapsed.

Posted by mark @ 03:38 PM 1 Comments

Independent News & Media to cut 90 jobs

Yahoo: Independent News & Media to cut 90 jobs

"This restructuring will produce a significantly lower cost base, which will allow our titles to weather whatever storms the next few years will bring," it added.

Posted by mark @ 03:36 PM 0 Comments

But I thought Assetzz said it's a good time to be a landlord?

Times Online: House rents fall as unsold properties flood market

"Rents fell for the first time in five years between July and October as home-movers flooded the rental market with properties that they could not sell." a good read... unless you are BTL

Posted by growler @ 03:25 PM 10 Comments

yes you can......

BBC news: Can you still get a mortgage?

Recession, what recession?

Posted by fjcruiser @ 03:16 PM 5 Comments

Putting the UK national debt in context

BBC News Magazine: The myth of record debt

Despite the condescending 'P4AC' writing style, this is an informative read. Author proposes that the UK debt situation is not as bad as reported, when taken in context. Good to read some articles contrary to the Zeitgeist. Have yet to verify his assertions myself however....

Posted by doom&gloom @ 01:38 PM 21 Comments

Pepsi Bottling to slash 3,000 jobs

cnn: Pepsi Bottling to slash 3,000 jobs

Pepsi Bottling Group Inc., which bottles Pepsi beverages, on Tuesday cut its 2008 profit outlook and announced a restructuring plan that will affect more than 3,000 jobs worldwide.

Posted by mark @ 01:37 PM 0 Comments

who would be this stupid?

rightmove: Lea Bank Close, Macclesfield SK11 350,000

BUY TO LET INVESTMENT OPPORTUNITY- currenntly tenanted until 15th August 2009 @ 995pcm.

Posted by mark @ 12:24 PM 9 Comments

Buy-to-let market 'is now closed'

bbc: Buy-to-let market 'is now closed'

The buy-to-let housing market is "closed", the boss of nationalised bank Bradford & Bingley has said during scrutiny from a committee of MPs. Executive chairman Richard Pym said that so many deals had been withdrawn that the market was completely different to a year ago. He also said a higher proportion of B&B's customers were in arrears compared with the industry average.

Posted by mark @ 12:20 PM 3 Comments

How zombie companies suck the life from an economy

MoneyWeek: How zombie companies suck the life from an economy

Once a company needs state aid to remain viable, it becomes a monster. The usual justification for government backing for an industry is that its a temporary measure, just to see it through the hard times. But income tax was also a temporary measure when it was first introduced...

Posted by damien @ 11:46 AM 0 Comments

Adrian Ash talks sense

Safe Haven: The Descent of Niall Ferguson

"The twilight of gold appeared to have arrived," claimed Professor Ferguson, stepping out of the lecture hall and into his gypsy fortune-teller's tent, in his 1999 tome, The Cash Nexus. "True, total blackout is still some way off," he forecast, and "gold has a future, of course, but mainly as jewelry."

Posted by sold 2 rent 1 @ 11:39 AM 5 Comments

Can't moan Gordy's paid my Icesave money back with interest!

BBC: City helps pay mortgage arrears

Wakefield council will provide a limited number of interest-free loans of up to 15,000 to those worst-affected by the economic downturn.

Posted by cheekie charlie @ 11:34 AM 7 Comments

Phil is offering lower price!!

Channel 4: Location Location Location. Survival Guide

Did anyone watch Location Location Location. Survival Guide on Channel 4 last night?. I was sligtly amused that Phil offerred 130k and 150k to two 180k (overpriced) house, which would be unthinkable until a few weeks ago. But Kristy still seemed couldn't bring herself to do it. She even claimed that she always adviced people to buy at a price that they can afford. Ha!!

Posted by peter_2008 @ 11:07 AM 11 Comments

Everyday there are more job losses around the UK, this must be as bad as the 80's if not worse

contract Journal: Countryside Properties (Northern) to shed 80 jobs

The Warrington-based firm has already shed 30 employees in May.

Posted by mark @ 10:42 AM 0 Comments

Car firms can't be bailed out like banks

reuters: Car firms can't be bailed out like banks

The European car industry cannot expect to be treated in a similar way to the financial sector and countries must not offer automakers unfair incentives, the EU competition commissioner said on Tuesday

Posted by mark @ 10:32 AM 8 Comments

Wolseley to shed 2,300 more jobs

bbc: Wolseley to shed 2,300 more jobs

Plumbing and building materials firm Wolseley says it is to cut 2,300 more jobs, the majority in the UK, and close more than 200 branches. Wolseley, which owns the Plumb Center and Build Center chains and operates in Europe and North America, said it had already cut 5,000 posts since August. It added that trading conditions were expected to worsen in the short-run. "We continue to react swiftly to market conditions with aggressive but measured cost reduction," the company said.

Posted by mark @ 10:18 AM 1 Comments

developers run off with poor homebuyers cash

Dundee Courier: Depositors unlikely to see refunds

10 days ago, the BBC reported that the development was going ahead, in spite of the fact that a number of redundancies had been made and none of the depositors could get through to the company. Sounds like the BBC are complicit in money escape.

Posted by inflation is eating my savings @ 10:12 AM 3 Comments

Its Doom, begorra, Its Doom

Property Week: UK property values in October plunge to 22-year low says IPD

UK commercial property capital values have plummeted by the largest ever monthly figure in the Investment Property Databanks 22-year history, at -4.3%, according to the UK Monthly Property Index for October 2008 In the IPD index published today it showed all property total returns falling to -3.8%, fractionally deeper than the monthly returns recorded last December, which were -3.7%, which the IPD said served to emphasise that the UK commercial real estate market has now fully entered a double dip phase.

Posted by fahrenheit451 @ 09:56 AM 2 Comments

Just about sums it up - Stormy weather ahead.

Property Week: CBI says recession to be as harsh as 1991

The UK will enter a recession as severe as that of 1991, with the economy shrinking 2.5% from its peak before reaching a trough late next year, according to a sharply revised forecast from employers body the CBI. Unemployment is expected to reach 9% by 2010, leaving nearly 3m people out of work. In 2009, the economy is expected to contract by 1.7% against a growth forecast of 0.3% made in September.

Posted by fahrenheit451 @ 09:51 AM 6 Comments

CPI & RPI latest

BBC: Consumer inflation falls to 4.5%

Official figures show that UK inflation fell to 4.5% in October, as oil prices and transport costs fell. The Consumer Prices Index (CPI) measure reached 5.2% in September. This was the highest level for 16 years. The Retail Prices Index, (RPI) the alternative measure of inflation, which includes housing costs, fell from 5% to 4.2%, the biggest fall since 2003. The Bank of England has said inflation could fall below its target of 2% next year - and might drop as low as 1%.

Posted by jack c @ 09:43 AM 9 Comments

Now rents are falling alongside house prices

BBC: Glut of unsold homes hits rents

A glut of unsold homes has flooded the rental market, driving down rents at the fastest rate on record. The Royal Institution of Chartered Surveyors (Rics) said new instructions to sell flats and houses had been at record levels in the past few months. However, Rics said many people who cannot sell their homes have decided to let their properties, and this increase in supply has pushed rents down. The proportion of surveyors reporting lower rents was its highest since 2003.

Posted by jack c @ 08:59 AM 10 Comments

Piling on the pain

Independent: The buy-to-let dream has turned into a nightmare

Pop. There goes another housing bubble. Two years ago, you could barely move without bumping into someone who'd given up on pension plans and savings in favour of bricks and mortar. The buy-to-let boom was the single most important contributory factor to the meteoric rise in UK house prices. Bad enough that the value of property has fallen by at least 15%. Now RICS says rents are falling too. It's not difficult to see why. The market is saturated with unsold flats and houses. This is an alarming development for buy-to-let investors. Until now they could take comfort in the fact that house prices might recover in time. But with rents falling too, and the cost of remortgaging escalating, the monthly cashflow will force many to sell their properties in a falling market.

Posted by little professor @ 01:33 AM 13 Comments

Greenspan's nemesis paints a horrific picture

Telegraph: Volcker issues dire warning on slump

[Apologies for straying slightly off-topic] Paul Volcker, the former chairman of the US Federal Reserve, has warned that the economic slump has begun to metastasise after a shocking collapse in output over the past two months, threatening to overwhelm the incoming Obama administration as it struggles to restore confidence. "What this crisis reveals is a broken financial system like no other in my lifetime," he told a conference at Lombard Street Research in London. "Normal monetary policy is not able to get money flowing. The trouble is that, even with all this government protection, the market is not moving again. The only other time we have seen the US economy drop as suddenly as this was when the Carter administration imposed credit controls, which was artificial."

Posted by drewster @ 01:18 AM 5 Comments

Twenty percent falls, according to Rightmove

Telegraph: House price falls hit 20pc

House prices have already fallen by 20pc from their peak, according to one of Britain's largest property websites [no, not this website...]. Evidence suggests that prices will continue to fall sharply, with sellers dropping their asking prices by almost 3pc last month, Rightmove reported. Agents are reporting sales at 20% below peak asking prices. The number of new sellers has fallen to 20,000 a week (down from 35,000 a week a year ago). Full Rightmove press release link in comments below.

Posted by drewster @ 12:58 AM 16 Comments

Monday, November 17, 2008

How the market failed The End of Wall Street's Boom

"To this day, the willingness of a Wall Street investment bank to pay me hundreds of thousands of dollars to dispense investment advice to grownups remains a mystery to me. I was 24 years old, with no experience of, or particular interest in, guessing which stocks and bonds would rise and which would fall. The essential function of Wall Street is to allocate capitalto decide who should get it and who should not. Believe me when I tell you that I hadnt the first clue." Michael Lewis, author of "Liar's Poker", explains where it all went wrong.

Posted by kruador @ 10:31 PM 0 Comments

Gordon did for Iceland

WSJ: Iceland Abandoned

Superb article outlining how that cretin in charge is also an a-hole.

Posted by frizzers @ 10:22 PM 14 Comments

Weak Currency, Weak Economy and Weak Governement Browns vow of silence on sterling?

Gordon Brown's recent criticism of George Osborne for talking down sterling has received much press. But surprise surprise it appears Gordon Brown did exactly the same thing himself.

Posted by bruce mcaaw @ 07:37 PM 1 Comments

But Paragone said rents would rise in the crash! Rents falling as houses fail to sell

Its good news for tenants and bad news for landlords: according to the latest survey from the Royal Institution of Chartered Surveyors (RICS), residential rents fell dramatically in the third quarter of this year. The record fall comes thanks to the lettings market being flooded by unsold properties being put up to let. This news tallies with my own personal experience. Recently, I made an offer to rent a property in a city in the Southeast. The previous tenants had lived there for two years, paying 1,800 a month. I offered the landlord 1,650 a month, which he promptly accepted -- saving me 1,800 a year. And I'm not alone. Disclosure: The author sold to rent in 2005, and has no plans to buy till 2010/11

Posted by little professor @ 06:25 PM 9 Comments

In it for the long term!

BBC News: Problems looming for buy-to-let

Between 20% and 40% of buy-to-let (BTL)landlords will fall into negative equity if house prices keep on falling at their current rate, a report says. The credit ratings agency Standard & Poor's says that by June this year BTL mortgages had a repossession rate greater than ordinary home loans. It warned that financial problems were concentrated among BTL mortgages granted in the past two years. The report was based on studying 200,000 BTL loans, 20% of the total. "We believe that the BTL sector could suffer above-average loss severities on repossession cases due to a concentration of certain property types that are witnessing above-average price declines," said Kate Livesey, an analyst at S&P.

Posted by rollercoaster @ 05:27 PM 0 Comments

RICS Housing market survey

RICS: Sales hit a new low but expectations of a recovery increase

Transactions fall further though lead activity indicators improve.

Posted by p. doff @ 05:13 PM 2 Comments

Just for fun

The Daily Mash: Somebody Sells a House

It's all getting a bit heavy for me at the moment (the big bad financial world) so I tuned out and went in search of 'a laugh'. Hope it cheers someone elses day.

Posted by vindicated @ 04:05 PM 11 Comments

Good explanation of some of the Sterling risks from Crash Gordon's 'just keep borrowing' policy

Could the UK face a sterling crisis, or are we in one already?: FT Blog

"a triple financial crisis: a combined banking crisis, sovereign debt crisis and sterling crisis"

Posted by doom&gloom @ 03:00 PM 3 Comments

Yes you read that right. SEVENTY-FIVE-THOUSAND JOBS!

BBC News: Citigroup set to cut 75,000 jobs

On top of 22,000 already announced. Here we go....

Posted by doom&gloom @ 02:55 PM 13 Comments

Recession to claim 8% of London jobs

Yahoo: Recession to claim 8% of London jobs

LONDON (ShareCast) - Around 370,000 jobs could be lost in London by the end of 2010, according to the Local Government Association (LGA), that's 8% of all jobs in the Capital.

Posted by mark @ 02:44 PM 2 Comments

Buy to let mortgages less risky? Maybe not.

Telegraph: Up to 40pc of buy-to-let borrowers face negative equity

Buy to let mortgages are seeing higher reposession rates than owner occupier mortgages, 3.7% are in arrears vs 2.9% and 40% face negative equity vs 20% for owner occupier mortgages.

Posted by jonb @ 02:21 PM 12 Comments

Citigroup to cut more than 50,000 jobs

CNN: Citigroup to cut more than 50,000 jobs

Citigroup said Monday it planned to cut more than 50,000 jobs, the latest move by the struggling bank to cut costs in order to weather the credit crisis plaguing Wall Street

Posted by mark @ 02:00 PM 3 Comments


BBC News: Citigroup set to cut 75,000 jobs

Citigroup set to cut 75,000 jobs Breaking News US bank Citigroup has announced plans for up to 75,000 job cuts, up from a previously announced total of 23,000. Citigroup said in a statement that the cuts represented a reduction of about 20% of its staff, leaving the bank with 300,000 jobs worldwide. The cuts will come from redundancies, the sale of units and natural wastage, the bank said.

Posted by neiloxford @ 01:55 PM 0 Comments

anyone catch the chris Moyles show this morning?? Everyone Loves Kirsty and Phil

"But the perfect tonic to Monday Blues....yes Phil and Kirsty from Location, Location, Location and other such offshoots! Such lovely lovely people..Definitely cheered me up this morning - absolute legends of the property world." ...'WHAT!!!!!!!!!!!!!"

Posted by bystander @ 01:26 PM 11 Comments

The Quicker The Better

TIMESONLINE: Homeowners slash asking prices 6,500 in a month

British homeowners are slashing the asking price on their property by as much as 6,500, as some estate agents reduce the value of deals by as much as a fifth in an effort to shift houses. According to Rightmove, the property search website, the average asking price of a home in England and Wales in the four weeks to November 8 was 223,000 - a 2.9 per cent decline on the previous month and the biggest fall since records began in 2002. Over the year, the asking price fell by 7.1 per cent and Rightmove said some estate agents are selling houses for about 20 per cent under peak prices. Miles Shipside, commercial director of Rightmove, said: Some sellers could avoid months of disillusionment and despair if they started marketing at an asking price a lot closer to where the evidence".

Posted by plato @ 12:02 PM 7 Comments

Banking in the internet age

ifalife: Banks will disappear soon - centuries of tradition to be replaced by Internet systems

People aged over 40 are often amazed by what is happening online. Sometimes they find it difficult to consider things the way those born in the 1970s do. The world is changing fast. For example, many business people - the younger ones - are avoiding banks altogether as a source of funding. Instead they are going to cooperative ventures such as Zopa, where you borrow money from other people, rather than banks.Bank accounts as we know them will become obsolete for millions of people within a matter of a few years (for many they already are obsolete).

Posted by jack c @ 11:44 AM 20 Comments


BBC: Surviving the property turmoil

The article offers no hopes of "Surviving the property turmoil". The BTL bubble is truly and forever burst

Posted by confused76 @ 10:44 AM 14 Comments

London 'worst hit in recession'

bbc: London 'worst hit in recession'

London could suffer the most in a recession while many northern cities will fare better, a report has said. ******Only a year ago reports were saying all would be OK and no recession and houseprices will keep going up*****

Posted by mark @ 10:21 AM 12 Comments

battered by wrong-way bets on Volkswagen AG shares and plunging stock markets

bloomberg: HeidelbergCement Drops on Concern Merckle Must Sell

A failure could have repercussions for Merckle's holdings, which span as many as 30 companies in the cement, machinery and pharmaceutical industries, said the people. VEM holds about 25 percent of the Heidelberg-based company, and, including holdings by affiliated companies, Merckle controls at least 86 percent in total, according to Bloomberg data.

Posted by mark @ 10:11 AM 0 Comments

Instead Brown prefers to buy banks

bloomberg: Cancer Patients Lose Chance of Longer Life as U.K. Curbs Costs

``There is a view that all treatments should be available. Unfortunately, that's not possible,'' said Peter Littlejohns, NICE's clinical and public health director. ``There is a limited pot of money.''

Posted by mark @ 10:08 AM 11 Comments

The FT interviews Jim Rogers Jim Rogers gives his outlook for the US Dollar

A small set of interviews with Jim Rogers. Someone I enjoy listening to.

Posted by flintster1994 @ 07:48 AM 5 Comments

Swap Shop

Timesonline: If you cant sell your home, then swap it

Well-maintained fourbed detached house in one acre seeks three-bedroom cottage with small garden for serious relationship. Welcome to the world of the property lonely hearts: house-swap parties at which agents, desperate to keep sales moving and the commission rolling in, attempt to match would-be buyers and sellers.

Posted by flintster1994 @ 07:35 AM 11 Comments

The current situation, neatly summed up

BusinessWeek: Key Questions From the G-20 Summit

There are five fundamental questions that went unanswered at this past weekend's G-20 summit in Washington. In their attempt to show solidarity, the world leaders skipped over the complicated and contentious questions. But that's no long-term solution. Once they go home to their respective capitals, the finance ministers and other officials who met in Washington are going to be forced to make some tough decisions. Here are five puzzlers that will demand to be sorted out in the months ahead:

Posted by gardeniadotnet @ 07:24 AM 3 Comments

Rightmove: -2.9% MoM, -7.1% YoY

Times: Falling prices prompt slump in home sellers

Rightmove reported a decline of 2.9 per cent in asking prices this month, to 222,979. Asking prices have fallen 7.1 per cent this year, the biggest annual decline ever recorded by Rightmove. The number of homeowners selling their properties has dropped by 43 per cent in the past year, as falling house prices deter potential sellers. But Rightmove said tighter constraints on mortgage availability were likely to ease next year. Miles Shipside, of Rightmove, said: Whenever it does, there is likely to be a degree of pent-up demand fuelled by historically cheap borrowing and cheaper property, lessening the advantage of those in a privileged position to proceed now.

Posted by little professor @ 01:04 AM 23 Comments

Sunday, November 16, 2008

Another government wheeze that needs deciphering

Times: Treasury may sell shares to City to cut taxpayers bank bailout bill

The Treasury is apparently considering dangling the lure of lucrative shares in the banks to pension funds and other City investors to reduce the cost to taxpayers of its bailout plan. The preference shares pay 12 per cent a year and the idea is to allow City fund managers to buy some in the hope that they will be encouraged to purchase further ordinary shares in the three stricken banks.

Posted by enuii @ 10:50 PM 5 Comments

Debt to be monetised

Telegraph: Cutting taxes or spending more the Government's options

Its happened. The first mention of printing money as a solution in the mainstream UK press. Let us put our(your) doubts aside, we are facing a deflationary recession and its going to be a stinker.

Posted by stillthinking @ 10:23 PM 4 Comments

Deleveraging is the big news, not interest rates

thinkmoney: Low-deposit mortgages: only 60 left

A bit of an older article, but really it illustrates the point quite well. Also there are probably no low deposit mortgages left. Chose this link because the BBC one has already been posted. See Leverage is what props up house prices, not interest rates. And the banks are being forced to pull the 95% (20:1 leverage), 90% (10:1 leverage), 85% (7:1), and now we are looking at 75% (4:1 leverage). This is the biggest determinant of house prices, not the interest rates. The BOE can't force anyone to lend at higher ratios, so all the interest rate stuff won't help house prices. I am sure Mark Wadsworth has pointed this out. The important thing to understand is that the *main* lever is still with the banks and they are using it.

Posted by last_days_of_disco @ 09:38 PM 34 Comments

this stinks......can we expect any less these days?

manchester news: HE chairman of the North West Development Agency has taken on another job with one of the region's biggest developers.

John Whittaker, UKIP MEP for the north west, said he felt there could be a potential conflict of interest with Mr Gray's new job. "One has to be a little suspicious", he said. "It looks to me like a conflict of interest. Bryan Gray has a place on the NWDA board so he's certainly got influence there. Peel's done terribly well out of this." It is understood that Peel decided to employ Mr Gray only after the NWDA's last-minute decision to extend his contract on Wednesday.

Posted by mark @ 07:50 PM 3 Comments

Do these employ anyone in the UK?

bbc: Sun Micro to cut up to 6,000 jobs

The computer hardware maker Sun Microsystems has announced it will shed up to 6,000 jobs in a bid to cut costs.

Posted by mark @ 07:44 PM 5 Comments

Real estate faces another major downturn

Japan Times Online: Real estate faces another major downturn

And the ultimate victim in the real estate depression and a nationwide economic slowdown will be individuals and families who bought the condominiums at ambitious prices beyond the scope of their income. "Young people in their 30s bought condominiums with heavy debts and these people will go bust as they lose their jobs and as their income declines,"

Posted by mark @ 07:37 PM 4 Comments

HPC vindicated

BBC: How low will house prices go in 2009?

Halifax spokesman Martin Ellis states "We are comfortable with the view that there will be a 20% fall over 2008 and 2009". So if prices fall 15% this year, will they drop by just 5% next year? "We don't want to be too specific about next year," he replies. Jonathan Davis, spokesman for says next year reality will kick in, even more than in 2008. "Next year prices will fall by 15-20% because unemployment is kicking in, house repossessions will rise rapidly and houses will go through auctions at previously silly prices - and banks aren't lending," he predicts. After forecasting the end of the house price bubble for several years his worst predictions appear to be coming true.

Posted by little professor @ 06:35 PM 17 Comments

I'll be the judge of that

The Times: Car firms ask Darling for cheap loan deals

Senior industry sources said that car companies were eager not to be seen holding out a begging bowl. We are not asking for subsidies for a dead-end sector. We are asking for help to tide a healthy industry over an unprecedented period of turbulence, said one.

Posted by gardeniadotnet @ 06:26 PM 5 Comments

Basket case economic policy not allowed to be criticised

Times: Under-fire George Osborne says: 'I was just telling the truth about sterling'

George Osborne has defended his warning that sterling could be about to collapse saying it was his job was to tell the truth about the consequences of ballooning debt.

Posted by sovietuk @ 05:21 PM 32 Comments

The car industry's era of glamour has been replaced with something a lot bleaker

Telegraph: Car groups face ultimate MOT

"This is a depression, not a recession," said Professor Garel Rhys, a leading car industry expert at Cardiff University. If you want an example of the pain suffered by the global motor industry, look no further than our own domestic market. The speed with which the downturn has suddenly hit has shocked the industry. In September new UK car sales fell a stunning 21pc, and came off an 18.6pc drop in August. But the fall was even larger last month, down 23pc. "October was the steepest monthly fall since June 1991, the height of the early 1990s recession," said Paul Newton, automotive analyst at Global Insight. "It is a stark indicator of the depth and speed of this economic slowdown... How long this translates into real job losses is just a question of time."

Posted by mark @ 03:12 PM 0 Comments

The 'D' word.

The White House: November 15, 2008 President Bush Attends Summit on Financial Markets and the World Economy

One of the things we did, we spent time talking about the actions that we have taken. The United States has taken some extraordinary measures. Those of you who have followed my career know that I'm a free market person -- until you're told that if you don't take decisive measures then it's conceivable that our country could go into a depression greater than the Great Depressions. So my administration has taken significant measures to deal with a credit crisis. And then we worked with Congress to deal with the credit crisis, as well.

Posted by gardeniadotnet @ 03:01 PM 2 Comments

Halp Halp O Halp!!!!

Times: Housebuilders face implosion

"The living dead" - they can be kept alive but really they are just ghost companies. That is the shocking description of the state of many of Britains housebuilders by Alastair Stewart, analyst at Dresdner Kleinwort. He sums up the housing market neatly in one word carnage. Job losses are soaring, firms are going bust every day, house and land values are plunging and new-home construction has collapsed to levels not seen since the 1920s. Taylor Wimpey's share price has plummeted 98% while rival Barrats has dropped 95%. Builders have closed down sales offices and laid off workers. Government ministers are starting to panic.The Homebuilders Federation is calling for government action to halt the housing crisis.

Posted by little professor @ 02:03 PM 9 Comments

The UK, again the poor man of Europe.

FC Exchange: Foreign Currency Report 14 November 2008

"The only hope is that the Government / Bank of England steps into save the ailing Pound, however these clowns are notoriously slow off the mark, and we have them to thank for this sorry situation." ...fat chance!!!!!!!!

Posted by bystander @ 01:54 PM 1 Comments


Telegraph: Alistair Darling seeks delay on Northern Rock repayment

Northern Rock is no longer to be run down, and will instead become a state-owned bank. Without NR handing out 125% mortgages, the remaining banks cannot maintain 2007 levels of credit supply (or more probably don't want to). NR must therefore, arise like a phoenix to resume its former role. NR will presumably become an entity unlike other banks, with a non-profit mandate of credit expansion. International funding will be obtained by tax-payer guarantees for NR mortgage securities. Well, to me, this seems to be illegal under EU state assistance, also essentially this must count as an extension of government borrowing and so push the pound down further, and presumably this must also push up real long-term interest rates.

Posted by stillthinking @ 11:39 AM 11 Comments

House price crash will gather momentum next year.

Telegraph: Thousands of City workers axed in jobs bloodbath

JP Morgan, the US investment bank, is drawing up plans to axe thousands of jobs across its worldwide operations. The move is likely to mean redundancy for hundreds of City workers, compounding the growing sense of crisis in London's financial services industry and the broader British economy.

Posted by mytimeisnigh @ 11:01 AM 7 Comments

Products are being repriced after the 1.5 per cent cut, but banks are still eager to get their hands

Independent: Savers told to act fast as rates descend from the heights

The 7 per cent interest rate is long gone, but it's still not too late to get a good deal. "The message is that the banks still want your cash, and the longer they get to hold on to it, the better for them. This means that despite the turmoil of the past week or so, fixed-rate deals that tie their customers in for a specific period (usually a year) remain competitive,". "But if you want the very best rates, you have to move now as repricing is still going on." But memories of the collapse of the Icelandic banks are still sharp among UK consumers. No wonder many savers are cautious about where they put their money; not only do they want a good rate of return but they also need to feel sure their cash will be safe. "Don't put your eggs in one basket," even if you are below the 50,000.

Posted by mytimeisnigh @ 10:47 AM 8 Comments

A snapshot of the current situation - no wonder world leaders are in a huddle!

CBS NEWS: Holiday Jobseekers Overwhelm Retailers

From department stores and convenience chains to call centers, managers who only a year ago had to scramble to fill holiday jobs are seeing a surge in the number of seasoned applicants - many of them laid off in other sectors and desperate for a way to pay the bills.

Posted by v stor @ 08:42 AM 0 Comments

Phil Spencer (of 'Krusty and Phil' fame) still ramping

Times: Winners in the housing downturn

This is, after all, the cheapest time to buy property for years and it could prove one of the best. If you have the cash to get into the market today and are able to drive down the price further, youre set to become even wealthier in the future. If you think Im being overoptimistic, just look at those who bought during the dark days of the early 1990s and what happened to the value of their homes in the decade that followed. This time around, as then, confidence will eventually return its all just a question of time. In a Credit Crunch Special edition of Location, Location, Location, my television co-host, Kirstie Allsopp, and I look at the property troubles of three sets of people affected by the current market [AND PRESSURE THEM INTO BUYING UNSUITABLE OVERPRICED HOMES]

Posted by little professor @ 12:46 AM 22 Comments

David Smith says no

Times: Are house prices really falling at a record rate?

Many people say to me that they keep reading house prices are falling at a record rate, but that their memory of the housing bust in the early 1990s is that it was a lot worse. House-price data from the two main lenders, Halifax and Nationwide, suggests a record annual fall, down 14.9% and 14.6% respectively. Other house-price measures, however, continue to point to smaller falls. The government's DCLG figure is down 5.1% since last year, while the FT index is down 6.2%. Last week, at a Chartered Institute of Housing conference, I shared the stage with David Orr, chief executive of the National Housing Federation. He reminded us that the factors that pushed up prices have not gone away, and their research suggests shortages will push prices up 25% over 2011-2013.

Posted by little professor @ 12:40 AM 13 Comments

Saturday, November 15, 2008

Merry Christmas from the Goblin King

Telegrath: Gordon Brown prepares to unveil tax cuts for Christmas

Brown says that the case for trying to rescue the economy through tax cuts was now "unanswerable", and "What you want is fiscal action that can show results as quickly as possible." Doh, about as much use as a sticking plaster on a broken leg then.

Posted by enuii @ 09:43 PM 12 Comments

Late Night Steamy Article (18+)

Business Week: Sex, Lies, and Subprime Mortgages

Wholesalers also offered sexual favors to co-workers. To drive up their commissions, some enticed loan underwriters at their companies to approve questionable applications. A vice-president at Washington Mutual who once wielded $500 million to make loans recalls an incident in which a female wholesaler wanted him to approve a loan that didn't fit guidelines. The manager, who requested anonymity, says the co-worker, wearing a low-cut shirt, knelt down at his desk and said: "I really need this. What do I have to do?"

Posted by alan @ 09:23 PM 2 Comments

How the Market sees the UK

Independant: It's official: eurozone collapses into its first recession

Europe's economy officially collapsed into recession for the first time since its inception during the third quarter, boosting hopes that the European Central Bank will be forced to cut interest rates again in December. In spite of further expected rate cuts in Europe, the euro continued to strengthen against the pound, as investors speculated that the recession would be deeper and longer in the UK than on the Continent.

Posted by alan @ 09:13 PM 3 Comments

The advanced economies will face stag-deflation (stagnation/recession and deflation) rather than sta

Forbes: Nouriel Roubini, The Worst Is Not Behind Us Doctor Doom

--Obama will inherit an economic and financial mess worse than anything the U.S. has faced in decades: the most severe recession in 50 years; the worst financial and banking crisis since the Great Depression; a ballooning fiscal deficit that may be as high as a trillion dollars in 2009 and 2010; a huge current account deficit; a financial system that is in a severe crisis and where deleveraging is still occurring at a very rapid pace, thus causing a worsening of the credit crunch; a household sector where millions of households are insolvent, into negative equity territory and on the verge of losing their homes; a serious risk of deflation as the slack in goods, labor and commodity markets becomes deeper; the risk that we will end in a deflationary liquidity trap

Posted by malct @ 02:31 PM 3 Comments

George's steely determination against protectionism!

BBC: Bush warns over protectionism

Pot Kettle Black?

Posted by phdinbubbles @ 01:35 PM 5 Comments

Rate cut forecast

Mortgage Introducer: Three per cent mortgage likely, but housing correction still probable

Capital Economics outlook for the mortgage and housing market expects to see low interest rates, possibly 3%, but even this they conclude may not stop the housing market correction running its course.

Posted by quiet guy @ 12:43 PM 2 Comments

Still in denial

Your Mortgage: Homeowners overestimating house prices

"Research by Impartial shows that British homeowners are dramatically under-estimating the reduction in the value of their properties over recent months." ... "Homeowners under the age of 34 actually believe the value of their property is still increasing. They reported an average value of 173,960 in July, increasing to 176,056 in September. By comparison, the average Londoner seems more realistic believing their house value to have dropped by 46,361."

Posted by quiet guy @ 11:58 AM 3 Comments

A bold move by Scottish estate agents

Scotsman: House prices slashed in one-day Scottish property clearance sale

DOZENS of homes will be sold at knock-down prices in a one-off, multi-million-pound, property clearance sale today, estate agents have announced. Some houses will have discounts of up to 40 per cent, and nearly 100,000 off. The sale follows the biggest price fall in at least 16 years in the Scottish housing market.

Posted by quiet guy @ 11:54 AM 10 Comments

Keep hold of your pounds they may stretch further than you think!

The Telegraph: Nearly a million buy-to-let properties are standing empty

Almost 1m homes are standing empty across the United Kingdom, and the vast majority more than four out of every five are believed to be owned by private landlords. An empty home could just as easily be a rundown terrace house in an urban back street as a luxury newbuild apartment in a city centre filled with identical blocks. It might be empty because a glut of rental property means no tenants, or because vandalism, or simple disrepair, has made it unlettable.

Posted by cheekie charlie @ 11:35 AM 1 Comments

The US is an oil importer, burning up 25% of the world's production

Energy Bulletin: The Five Stages of Collapse

I don't mean to imply that every part of the country will suddenly undergo a spontaneous existence failure, reverting to an uninhabited wilderness. I agree with John-Michael Greer that the myth of the Apocalypse is not the least bit helpful in coming to terms with the situation. The Soviet experience is very helpful here, because it shows us not only that life goes on, but exactly how it goes on. But I am quite certain that no amount of cultural transformation will help us save various key aspects of this culture: car society, suburban living, big box stores, corporate-run government, global empire, or runaway finance.

Posted by malct @ 11:09 AM 13 Comments

How will Job Centre Plus cope with this lot then?

Evening Standard via SOTT: UK: 20,000 jobs go in one week

London bankers were facing a new wave of redundancies today as Britain headed for 20,000 job losses in five days. Citigroup is to send redundancy notices to 10,000 workers worldwide, many in Canary Wharf, while Royal Bank of Scotland is to shed 3,000 investment bankers, including hundreds in the City, within a month. In addition, Clydesdale and Yorkshire banks are to axe 350 jobs next year, the union Unite said today. The scale of the cuts means 20,000 jobs have gone across the country since Monday as the economic downturn strengthens its grip and sends unemployment soaring. In just a week some of the country's biggest names - including BT, Virgin Media, GlaxoSmithKline and Taylor Wimpey - have slashed jobs.

Posted by malct @ 11:06 AM 0 Comments

Full length programme: Property - the end of the affair?

The Money Programme / Yahoo! Video: The Money Programme: Property - the end of the affair?

BBC2's The Money Programme investigates whether buying, or renting is more profitable over the long term. (Full recording)

Posted by garrincha @ 11:01 AM 0 Comments

G20 could be bun fight

The Times: Saving car giants will cause havoc, Gordon Brown warns US

Tensions at the start of the G20 summit run high as Prime Minister deems return to 1930s policies unacceptable If we get into a situation where countries made decisions irrespective of what happened anywhere else, then we will see the same problems of other times. The dividing line here is between an open society capable of trading round the world, against a protectionist response that happened in the 1930s and is totally unacceptable. The EU said that it was ready to take action against the US at the World Trade Organisation if aid for the stricken US car industry was judged by the European Commission as illegal under international rules.

Posted by gardeniadotnet @ 09:58 AM 9 Comments

Crash, Plunge, Meltdown!!!

MailOnline: Property crash is so bad even the 'For Sale' signs aren't selling

We had been warned the housing market was in meltdown. But now come signs the plunge could be even worse than we had feared - as even 'For Sale' boards themselves are not selling.

Posted by v stor @ 07:43 AM 1 Comments

Reality dawns, the housing market is BUST

TimesOnline: House price recovery 'could take ten years'

Homeowners will have to wait a decade before property prices return to 2007 levels, a leading estate agent said yesterday

Posted by v stor @ 07:32 AM 3 Comments

Times takes over the comedy club

Times: First-time buyers may lose race to investors

First-time buyers hoping that falls in house prices will mean they finally make it on to the housing ladder may be disappointed because the size of deposit required by lenders means that by the time first-timers have saved up, buy-to-let investors with big deposits will have snapped up all the bargains. Savills said that it did not expect mortgage availability to improve for first-time buyers until at least 2010, by which time, it predicts that house prices will be on their way back up, meaning that would-be homeowners could miss out on the chance to secure their first home at a good price.

Posted by little professor @ 01:08 AM 16 Comments

Poor BTLers :(

Citwire: Buy to Let landlords face new competition

Buy to let landlords face increasing competition from developers who are unable to sell their new build properties and so are renting out brand new apartments and houses. This increases the amount of properties available to rent at a time when demand from tenants in some areas is likely to fall as unemployment takes a grip and pay increases become a thing of the past. Meanwhile, BTLers continue to be squeezed by the shortage of mortgages. It's about time lenders started to play ball and pass the rate cuts on to landlords, said Simon Gordon of the National Landlords Association. Part and parcel of the government bailout was the requirement for lenders to start lending to consumers. It's critical for the health of the property market for landlords to have access to mortgage finance"

Posted by little professor @ 01:06 AM 3 Comments

Friday, November 14, 2008

Even companies that make bad cars are woth bailling out

Bloomberg: GM Collapse Would Cost U.S. Up to $200 Billion, Forecaster Says

Yip Yip finar finar To big to fail...Anyone got a note of their pension commitments? To big to fail, and many muni bonds downgraded to junk, WHO exactly wants in on that action? I hope it is not my pension fund! Why exactly is the USD so strong?

Posted by yoss @ 11:12 PM 0 Comments

HBOS shambles latest

BBC: HBOS sees risk of nationalisation

HBOS says that it could face nationalisation if its proposed takeover by Lloyds TSB is not approved by shareholders. It said it would need significantly more capital were the deal with Lloyds to collapse, making the loss of private sector status more likely. HBOS urged shareholders to vote in favour of the merger. Two former top bank executives had opposed the deal, saying it should remain independent.

Posted by jack c @ 10:40 PM 0 Comments

Greed and human nature lead to the financial crisis, not some conspiracy.

Mint: A Visual Guide to the Financial Crisis

Almost overnight, the talking heads went from perpetuating the euphoria of investors to rushing to pronounce the economy dead. Last year, when lenders started dropping like flies as foreclosures rose and margins were called, the problems of Wall Street became more and more apparent, and lending guidelines were tightened to the point that many individuals were stuck in their time-bomb loans, and thus began a vicious cycle. But what led to this? Here is a visual guide to help you understand the events leading up to the bailout.

Posted by nopensionnohouse @ 08:50 PM 27 Comments

Repossession, repossession, repossession

Channel 4: Location, Location, Location a Survival Guide

This is just a general sort of reminder for Monday evening at 9 o'clock. We can discuss on Tuesday who had the overwhelming urge to smash their TV in, and who succumbed to it ...

Posted by mark wadsworth @ 08:11 PM 13 Comments

You can't make this stuff up, boy America's in trouble.

Washington Post: Kashkari Accused Of Bailout Bait and Switch During Angry Hearing

Neel Kashkari, the fox appointed to guard the henhouse and front the multi-trillion dollar bailout, faced angry questions from Dennis Kucinich and Rep. Darrell Issa during a hearing today, as Issa accused him of playing a bait and switch game with taxpayers money. Cash n Carry, I mean, Kashkari, did not do well in the proceedings, have a listen to the youtube clips on the original source, here.

Posted by planning4acrash @ 07:12 PM 5 Comments

Food Riots in America will Cause UK House Prices to Rise

Sorry I can't Remember, it's my age: Celente Predicts Revolution, Food Riots, Tax Rebellions By 2012

The man who predicted the 1987 stock market crash and the fall of the Soviet Union is now forecasting revolution in America, food riots and tax rebellions - all within four years, while cautioning that putting food on the table will be a more pressing concern than buying Christmas gifts by 2012. Gerald Celente, the CEO of Trends Research Institute, is renowned for his accuracy in predicting future world and economic events, which will send a chill down your spine considering what he told Fox News this week. Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts. satire should be censored - it's no jo -

Posted by malct @ 06:41 PM 21 Comments

Living by card and die by card

BBC: 'Surprise' leap in card spending

Some 497 million purchases were made on on debit cards in September, a 12.7% rise on the previous month, according to UK payments association Apacs. Is this because a) we are out of recession now b) we are spending while we can c) just a blip d) paying off debt by racking up more

Posted by peter_2008 @ 05:19 PM 6 Comments

Could the UK repeat Japans 1990s experience

FT: The next lost decade?

Could the UK repeat Japans 1990s experience of minimal growth, falling asset prices and deflation?Both countries share similar characteristics prior to the initial downturn. Unemployment was low and inflation was under control, but just starting to rise. Asset prices soared, driven by increased borrowing. While there are similarities, there are also some important differences. The UK does not suffer from Japans excess capacity created by overinvestment. Unfortunately, the UK also has some less favourable characteristics. It starts the downturn with a weaker fiscal position than Japan and a very low household saving rate.

Posted by jack c @ 04:19 PM 20 Comments

Coming to a town near you ?

Bloomberg: Icelanders Protest Government Failure to Clinch Loan

Nov. 14 (Bloomberg) -- Icelanders will take to the streets in their thousands tomorrow to protest the government's failure to clinch a $6 billion International Monetary Fund-led loan while countries in less dire economic straits jump the IMF queue.

Posted by mrmickey @ 04:14 PM 4 Comments

Mortgage availability update (LTV's)

BBC: Low-deposit mortgages evaporate

Mortgage deals for people offering a 10% deposit have almost evaporated from the market, according to figures obtained by the BBC. Only 66 deals of this kind are still available, compared with 586 three months ago and 1,197 in February. The figures, from Moneyfacts, reveal how the dramatic financial downturn has almost killed off traditional deals for those without large savings. Mortgage brokers say they will not return until house prices level off.

Posted by jack c @ 03:52 PM 13 Comments

The great British property myth

MoneyWeek: The great British property myth

"Booms and busts may come and go, but in the long run the British people know that 'you can't go wrong with bricks and mortar' and that 'renting is dead money'. But is this really the case? In conjunction with the BBC's The Money Programme, we decided to run the numbers and find out whether buying a house in Britain really always makes more financial sense than renting one."

Posted by damien @ 03:42 PM 0 Comments

Fun: Hedge Fund Managers caption competition

US Gov Bonds auction - "Theres just no interest in it."

FT Alphaville: The parabolic Fed: divorcing monetary policy from money

Following up on my post on Monday on what to watch this week - Treasury sales as the US tries to fund itself and the bailouts. Not a train wreck yet, but getting closer. Yield on 30 year bonds - "the lowest since regular sales of the security began in 1977". Shorter term - "The U.S. sold $34 billion in four-week bills yesterday at the lowest rate on record." The article goes into some more technical central bank theory related to a Bernanke speech in 2004 which I don't fully understand. He was talking about a Zero Interest Rate Policy ZIRP. I think he is saying that a ZIRP, and increasing the money supply, discourages people from hoarding cash in their portfolios and encourages investment into higher yielding corporate bonds and stocks, which is needed to get the economy going again.

Posted by mountain goat @ 02:38 PM 4 Comments

What investors should fear the most the state

MoneyWeek: Russia shows what investors should fear the most the state

You can't buck the market forever. And even though there have been plenty of bail-outs, prices just keep on falling. But governments don't seem to learn

Posted by damien @ 02:26 PM 0 Comments

Brown Makes an Ass of Himself Abroad

Guardian: Brown: major countries must cut taxes

"Gordon Brown tonight called on the world's most powerful industrial nations to agree a programme of immediate and coordinated tax cuts to prevent the global economy sliding deeper into recession." The sheer arrogance of this amazes me, has any other leader, ever told other countries around the world to cut their taxes ? Is it just me or does anyone else think that Gordon Brown has lost it completely ? I know there is a tendency for Brits to stand behind a leader and prove that British is best but this is getting embarrassing.

Posted by andrew @ 02:13 PM 9 Comments

Mortgage repossessions in Northern Ireland has rocketed by a massive 93% during the third quarter of

Belfast Telegraph: Reposessions in Northern Ireland go up by 93%

The figures reveal the true extent on the credit crunch on property owners with a soaring number unable to keep up repayments on their homes.

Posted by dave in belfast @ 01:43 PM 0 Comments

Property: The End of the Affair ?

BBC2: Property: The End of the Affair ?

BBC last night. I'm presuming most of the "savvy" BTL editors & senior producers have now full dumped their "portfolios".

Posted by doomwatch @ 01:23 PM 10 Comments

Browns' Debt Iceberg

Mail Online: Official figures are only the tip of a terrifying iceberg of debt that amounts to 150,000 for every family

Take a look at this depiction of an iceberg. It provides a frightening illustration of just how much trouble we are in, and explains why the markets are in turmoil and the pound is in freefall as investors around the world lose confidence in Britain.Our true Debt is 157per cent of our GDP.This makes us the most indebted nation in the developed world, paying interest of 263million a day.

Posted by sold out @ 12:11 PM 7 Comments

Bankruptcy numbers rocket Bankruptcy figures jump in third quarter of 2008

Surprised more isn't being made of this by the media - businesses going bust up 26.3% YOY, people going bankrupt up 9.5% YOY - and remember that's completed bankruptcies so all entered the system a while ago.

Posted by jay marsh @ 12:03 PM 0 Comments

This is a snapshot of the world, interesting

cnn: G-20 gets down to business

I think there are a couple of prices which appear out of date, such as petrol in the USA, i have been reliably informed it is around $2.85 a gallon , this article is interesting when you look at the figures.

Posted by mark @ 10:51 AM 4 Comments

JCB announces almost 400 job losses

contract Journal: JCB announces almost 400 job losses

The plant manufacturer has already announced over 700 job losses this year but said the extreme deterioration in business levels and confidence around the world has lead to a significant reduction in orders. *******WITH ALL THIS DAILY BAD NEWS, WHEN WILL HOUSEPRICES REALLY DROP, OR WILL SELLERS CONTINUE WITH STUPIDITY?*********

Posted by mark @ 10:36 AM 14 Comments

will this affect houseprices?

bbc: Eurozone officially in recession

The eurozone has officially slipped into recession after EU figures showed that the economy shrank by 0.2% in the third quarter. This follows a 0.2% contraction in the 15-nation area in the previous quarter from April to June. Two quarters of negative growth define a technical recession. The news was widely anticipated and follows data showing that Germany and Italy, two of the biggest eurozone economies, are already in recession.

Posted by mark @ 10:27 AM 8 Comments

Surviving the recession, hang onto the job you have

WSJ: Stick With the Job You Know, More Employees Are Saying

This is from the Wall Street Journal, but I think it applies to the UK too and not just managers "A growing number of professionals are saying "no, thanks" to prospective employers asking them to change jobs. Spooked by the shaky economy, 46% of U.S. middle managers polled in mid-September said switching employers in the current environment is risky, according to a survey by Accenture Ltd. Just 13% of respondents said they were actively looking for a new job, down from 30% the last time Accenture conducted a similar survey in 2005. When an employer needs to lay off workers, "sometimes it's last in, first out,"

Posted by mountain goat @ 10:06 AM 4 Comments

HSBC is considering repossessing its own Canary Wharf headquarters

Independent: HSBC may be forced to repossess its own home

The banking giant HSBC is considering repossessing its own Canary Wharf headquarters, as it holds talks with the troubled Spanish property company that owns the building. Metrovacesa, which bought the building from HSBC for more than 1bn in a sale and leaseback agreement in 2007, is facing increasing financial difficulties and looks unable to service the debt it raised from HSBC itself to buy the skyscraper. HSBC helped Metrovacesa at the time by giving it a bridging loan of 810m, with the idea being that it would be refinanced. The crash in the real estate and mortgage markets completely changed the parameters in the debt market, however. The loan comes due on 28 November and it looks almost impossible that it will be rolled over.

Posted by jack c @ 09:45 AM 38 Comments

But it's different here!

BBC: Big fall in Scottish house prices

Scottish house prices have suffered their biggest quarterly fall for at least 16 years, according to research by Lloyds TSB. The bank's Scottish House Price Monitor showed the average domestic property dropped in value by 4% in the three months to 31 October. It said the fall was the largest in the 16-year history of the monitor. Whilst prices are still up 4.9% on an annual basis, they have fallen by upto 9.1% over the last quarter.

Posted by little professor @ 08:20 AM 5 Comments

Housing market 'far worse' than figures suggest

The Independent: Housing market 'far worse' than figures suggest

Online estate agent says latest figures underestimate fall in prices by two-thirds

Posted by becky @ 07:49 AM 17 Comments

peak to present decline GBP vs Euro -22% - try to keep up HPC

Timesonline: Pound sinks to record low against the euro

"Should the depreciation of sterling turn into a rout, we may even see the current policy of aggressive cuts in interest rates by the Bank of England suspended, if not reversed. For the moment, the Bank seems content to watch sterling fall." ....would this be because his paymaster GB sold half the countries gold reserve when gold was at an all time low and then bought euros at an all time high (euro/ GBP exchange rate was 1.60 euro to the pound). The question needs to be asked: did he do this to capitalise on a destroyed sterling, and keep sterling, or did he do this to capitalise on a destroyed sterling and use its destruction to force the UK population into believeing that it is imperative we join the Eurozone???

Posted by bystander @ 07:06 AM 13 Comments

UK home values 'to plummet 50pc from peak'

Independent Ireland: UK home values 'to plummet 50pc from peak'

UK property prices could fall by 50pc from their peak within the next 12 months. A conference of the Royal Institute of Chartered Surveyors (RICS) was told that about 100bn (125bn) could be wiped off the value of UK properties. So says Savills.

Posted by gonnabuyahome @ 01:48 AM 1 Comments

Thursday, November 13, 2008

Cyclical thinking - well done!!!!

Timesonline: The good news - house prices will rise again (and then they'll fall)

"Yolande Barnes is head of research at the property company Savills, which publishes its house-price forecast today" .....says it all really!!!!

Posted by bystander @ 10:43 PM 7 Comments

Vote Housepricecrash censorship

Webmaster has added a filter and banned - I added a poll on the link above, how do you feel about it?

Posted by planning4acrash @ 10:04 PM 60 Comments

Should Government stop throwing money into the money hole?!

A Quick Look At The Stats

CNNMoney: 11 economies in decline

Sinking crude prices are a tremendous blow to this oil-driven economy. The stock market is also suffering huge losses, dragged down by the country's oil giant Petrobras. Meanwhile, Brazil's real is down 35% against the dollar, since oil set a record high in July. President Bush and other officials will meet Friday and Saturday to discuss the global financial crisis. Credit has stopped flowing, economies have slowed down, consumer prices have soared, unemployment is on the rise and stock markets are plummeting. Central banks have initiated programs costing trillions of dollars, but there is little sign that the crisis has abated.

Posted by plato @ 09:17 PM 0 Comments

BBC -" we all knew the bubble that was getting ever more inflated, couldn't last forever"

BBC: Property: The end of the affair?

Escalating property prices have been a staple of dinner party conversation for years. But in the last year, they have been replaced by a new topic: falling property prices. There is no doubt that many people made a lot of money out of property in the last 10 to 15 years, while many others in their 20s and 30s have seen their dream of home ownership slip away. But we all knew the bubble that was getting ever more inflated, couldn't last forever and would eventually burst. Burst it did, around autumn last year - and we have been on an economic downward spiral since then.

Posted by jack c @ 08:58 PM 12 Comments

We won the battle of the Wharf

evening standard: We won the battle of the Wharf

Fitzpatrick Construction should be banned from UK

Posted by pacific @ 07:01 PM 0 Comments

BBC turns on Brown at last!

BBC: Brown blew my legacy, says Major

Sir John said Labour "has as much financial blood on its hands as any banker". He said Mr Brown took credit for the years of economic growth he inherited from the Tories in 1997. And the former Tory PM accused Mr Brown of presiding over a debt-fuelled boom in property and asset prices.( ...more in the Times)

Posted by alan @ 06:42 PM 29 Comments

Germany goes into recession

Bloomberg: Euro Falls as German Economy Enters Worst Recession in 12 Years

The euro fell to a two-week low against the dollar after Germany's economy entered its worst recession in at least 12 years, spurring speculation the European Central Bank will cut interest rates. The 15-nation currency also pared gains against the yen after a German government report showed the biggest contraction over two consecutive quarters since 1996. The yen declined versus the Australian dollar, after yesterday surging the most in three weeks, as currency intervention by the Reserve Bank of Australia fueled speculation other central banks may follow suit.

Posted by 51ck-6-51x @ 05:36 PM 7 Comments

Will we see a run on the pound?

Mish's: UK on Brink of Meltdown

"Congratulations (of sorts) go to the UK as British household debt is highest in history. I have long maintained that the UK was in as bad a shape as the US, if indeed not worse. Evidence is starting to build to support that thesis. The pound is highly likely to roll back the entire move up off the 2001 low, if indeed not a lot more. Central bankers are going to be shocked at how little they can do about this." Mish doesn't use hysterical language like "meltdown" lightly, and he has been right every step of the way so far. I think I'll move my assets away from Sterling for a while.

Posted by drewster @ 05:33 PM 35 Comments

There's the "D" word again.

Reuters: Soros predicts possible depression

WASHINGTON (Reuters) - George Soros, chairman of Soros Fund Management, testified at a U.S. House Oversight and Government Reform Committee hearing on Thursday: * Said "a deep recession is now inevitable and the possibility of a depression cannot be ruled out." * Said hedge funds were an integral part of the financial market bubble which now has burst. * Said hedge funds will be "decimated" by the current financial crisis and forced to shrink their portfolios by 50-75 percent.

Posted by flintster1994 @ 04:48 PM 7 Comments

No end in site for Sterlings demise!

Telegaph: Sterling tumbles as Bank of England opens the door to deep rate cuts

Sterling has been falling sharply against both currencies as the news from the economy has darkened over the past couple of months, and today it slide to below $1.49 and hit a record low of 84.57 against the euro. "The UK is looking at the steepest recession of the G-7 countries and the sharpest cut in interest rates," said Simon Derrick, a currency strategist at Bank of New York. "Investors are cautious about putting their money here when they can get a better return elsewhere." Bank of England Governor Mervyn King yesterday indicated that more aggressive interest rate cuts lie ahead as the Bank's Monetary Policy Committee does everything within its power to limit the length of the recession that the UK now faces.

Posted by flintster1994 @ 04:17 PM 19 Comments

getting serious...

Forbes: Tables Turn On Japanese Banks

Japanese banks have are revealed by Forbes to be undercapitalised and needing assistance. The Japanese government also proposed supplying the IMF with 100 billion US dollars recently (not mentioned).

Posted by stillthinking @ 03:26 PM 3 Comments

Last of the bubbles

Guardian: Credit crunch hits the art market

Thought I'd introduce a bit of culture amongst the general vulgarity here. Until recently the art market was being cited as withstanding all the crunching going on. Not any more. A Hirst for a couple of quid? Overpriced. However, I'd take the Bacon for a hundred - I'm just a poor art collector.

Posted by letthemfall @ 03:08 PM 4 Comments

Sterling Crisis 2008

The Market Oracle: British Pound Crashes to New Lows as Economic Crisis Deepens

The foreign exchange markets are witnessing heavy and sustained selling of sterling which continues following the Bank of England's inflation report and statement on the economy. The British Pound has fallen below /$1.50 to currently stand at 149.12, and to a new low against the Euro of 119. The fast developing sterling crisis illustrates the systemic failure of the Bank of England and Labour Government to manage both the economy and the credit crisis and marks another marker following last weeks panic interest rate cut of 1.5%, as the government took control of monetary policy back from the Bank of England and effectively ordered the Bank to cut interest rates by 1.5% despite inflation hitting 5.2%.

Posted by nadeem walayat @ 03:02 PM 0 Comments

Fixing up the US T-bill repo market

N.Y. Fed: Treasury Market Practices Group Endorses Several Measures to Address Widespread Settlement Fails

Special collateral repo rates cannot exceed the Treasury general collateral repo rate. As a result, settlement fails across a variety of CUSIPS can similarly become widespread and persistent when the Treasury general collateral repo rate is near zero as is currently the case. [here, the NY Fed are proposing a penalty system to stem the spread.] TMPG understands that the creation of such a facility is not possible in a short timeframe. Progress by the private sector on the preceding initiatives should not be dependent on the development of a backstop standing Treasury facility.

Posted by 51ck-6-51x @ 02:32 PM 8 Comments

Does anyone remember the low of 1.0360

yahoo: Technical Analysis: Sterling - the new basket case?

The closest we came to that was in February 1985 when Sterling was around 1.0360. Could we get back down there?

Posted by mark @ 02:18 PM 11 Comments

Friends Provident city centre job losses

manchester evening news: Friends Provident city centre job losses

Friends said it would quit its offices at the Manchester Express building from the end of 2009 and consolidate operations at its site in Spring Gardens. The firm employs 465 people at the Express building, in customer service, IT and other head office functions. The Unite union claimed today that 280 jobs would go as a result of the shake-up, but Friends said the final number of redundancies would not be known until a consultation period is completed.

Posted by mark @ 02:11 PM 0 Comments

Is this a wise move?

contract Journal: 100m Hull skyscraper given two-year deadline to start

The developers of Hulls tallest building have been given a two-year deadline to begin work on the 100m scheme. Formerly called Clarence Mill, the skyscraper scheme has been renamed Manor Mill after developers Manor Property Group. The development includes a 21-storey tower, 10-storey hotel, 9-storey building for student accommodation, a casino, restaurants, offices and shops. A spokeswoman for Kingston-Upon-Hull City Council said it was approved on the condition that building work start within two years to ensure the project does not stagnate.

Posted by mark @ 02:03 PM 5 Comments


MSN Money: More house price falls to come

Those hoping for a quick end to falling house prices are likely to be disappointed. Evidence suggests we are still a considerable way from the bottom. In a housing bubble, on average prices lose 70% of the gains made on the way up before bottoming out. So if this is a typical bubble, the fall would be 97,000, taking the price of the average house back down to just 103,000, down 48.5% from the peak of 200,000 last year. Some commentators, however, see the gloomy headlines as far too alarmist. One is Stuart Law, chief executive of property investment specialist Assetz, who predicts UK house prices will fall 10-15% in total from their peak last year, based on the FT index, which has fallen only 4.8% so far.

Posted by little professor @ 02:01 PM 9 Comments

BBC does its bit to tow the "deflation anytime soon now" line

BBC 'News': Mervyn predicts inflation-free zone

Obviously no-one has told the BBC that the Bank of England's inflation predictions have persistently and consistently underestimated inflation for at least five years. This latest is particularly pernicious, and is akin to church leaders telling the impoverished to ignore their current hardships and think instead about a wonderful afterlife of bounty and comfort.

Posted by paul @ 01:52 PM 3 Comments

Merryn talks sense as always

Moneyweek: Why there's still no cheer for property prices

So the point stands: if you can't get a loan, what difference does it make that base rates are the lowest they have been since the 1950s? We endlessly hear, not least from Gordon Brown, about how there is massive "pent-up demand" for property in the UK. But this isn't a concept that makes any sense in economic terms: demand isn't demand unless it is backed by cash.

Posted by sold out @ 01:26 PM 3 Comments

Arbury Park is like a construction site. It's like a rubbish dump

Guardian: Recession turns desirable suburb into desolation row

Welcome to Arbury Park, a "contemporary, attractive and vibrant" private development of 900 homes in affluent Cambridge.The master developer, Gallagher Estates, promised shops, cycle lanes, bus routes, a multi-function hall, all-weather sports pitches, children's play areas, and even a "sensory garden" for disabled families. But............The pavements on their street are still unfinished. "They said it was going to be a new luxury place but Arbury Park is like a construction site. It's like a rubbish dump," said Mr Macaulay. Antisocial behaviour has flourished. Residents, many with young families, complain of hooded gangs roaming the streets and robbing garden sheds.

Posted by sovietuk @ 01:06 PM 2 Comments

Would the UK be in a position to do this with? No ....perhaps borrow $100 billion instead.

Times: Japan to offer $100 billion to the IMF

Japan is preparing to tap its foreign exchange reserves to the tune of $100 billion (76.2 billion) in an offer to the International Monetary Fund (IMF), government sources have told The Times. The Japanese offer, which will be unveiled tomorrow in Washington, will dramatically increase the IMF's ability to lend to emerging economies savaged by the global financial crisis. Japan is already the second-largest donor to the IMF, and has the world's second-largest stash of foreign reserves - some $980 billion.

Posted by sovietuk @ 12:53 PM 0 Comments

Tokyo's Heartland bar is a barometer of the times...

The Times: Japanese say goodbye to Western playboys

"Peter, 36, a former sales trader at a large US investment bank, believes that the women of Heartland have developed a sixth sense for layoffs. The five-year reign of the Roppongi Hills scene bred a pretty canny strain of Japanese woman. I fell in love with at least one of them. It is scary to see how quickly they've disappeared from the bars. And they started disappearing early: these girls are a market indicator to which we should all pay attention.

Posted by doom&gloom @ 12:42 PM 6 Comments

The pound has nowhere to go but down

MoneyWeek: The pound has nowhere to go but down

With unemployment up, interest rates in free-fall and a recession looming, the pound is suffering. And with sterling so weak, the Chancellor will have to deliver a very carefully-considered pre-Budget report to avoid sparking a currency crisis.

Posted by damien @ 12:07 PM 25 Comments

When will the world learn - "you can't buck the market"

BBC: Court closes Kuwait stock market

The Kuwait's stock exchange has been closed until 17 November following an unprecedented court order. A local court ordered the closure after investors complained that the government was not doing enough to stem heavy stock market losses. The emirate's stock exchange, the second largest in the Arab world, has fallen 43% since June. Kuwaiti sovereign wealth funds have bought hundreds of millions of dollars of stock, but the slide has continued. The central bank has also injected billions of dollars into the system in an effort to protect the Kuwait from the global financial turmoil.

Posted by jack c @ 12:01 PM 0 Comments

Peter Schiff

Are we seeing the start of financial education for the masses? One to watch

Channel 4 Television: "The Ascent of Money" on Monday Evening

"In this timely six-part series, historian Niall Ferguson tackles the story of money and the rise of global finance. He argues that behind every great historical phenomenon empires and republics, wars and revolutions there lies a financial secret. " Haven't read his book so don't know how much I will agree with, but will reach an audience of a few hundred thousand no doubt, so will be an interesting one to watch

Posted by doom&gloom @ 11:55 AM 5 Comments

Peter Schiff had with Arthur Laffer on CNBC back on August 29, 2006 8/28/2006-Peter Schiff Predicts The US Economic Collapse With Unbelievable Accuracy

Consider watching this video of a debate that financial analyst Peter Schiff had with Arthur Laffer on CNBC back on August 29, 2006. Schiff predicted the deep recession that is now underway and made mention of Chinas role in our unfolding economic troubles. Laffers talk about our economic policies working beautifully makes him look utterly ridiculous in todays climate. Posted by malct @ 11:30 AM (65 views) Add Comment

Posted by malct @ 11:39 AM 5 Comments

this has to be read...

ny times: Heady Days Gone, City of London Struggles

Greed is what the City represents, said Geraint Anderson, a former banker at Dresdner Kleinwort, whose novel Cityboy a sordid tale of excess and misdeeds in the City of London has become a best seller here. They cheat, they lie, they do all they can to make more money.

Posted by mark @ 10:51 AM 6 Comments

OMG people returning things because they are skint, this is a new level

ny times: Retailers Feel Pinch of Returns

Shopping at Nordstrom in Miami this month, Maria Kakouris indulged herself with a $200 pair of satin-and-snakeskin pumps. Then came a spasm of buyers remorse. Those shoes they are still in my car with the receipt, said Ms. Kakouris, a real estate agent. Im thinking, where am I going to wear them? In less challenging times, Ms. Kakouris might have hung onto the shoes. But now she is more circumspect. Theyre going right back where they came from, she said.

Posted by mark @ 10:47 AM 1 Comments

Really i thought we could weather any storm..

this is money: Ministers admit small shops are under threat

The Government added that the 'balance has tipped too far' against local stores in many town and city centres. ****NO DOUBT TESCOS WILL TAKE OVER****

Posted by mark @ 10:43 AM 25 Comments

Rightmove loses 300 estate agents a month

this is money: Rightmove loses 300 estate agents a month

Property website Rightmove today reported that up to 300 estate agents were quitting the service each month as they struggled to survive the property downturn

Posted by mark @ 10:38 AM 2 Comments

Johnston to axe more jobs as ad sales stall

daily mail: Johnston to axe more jobs as ad sales stall

The Yorkshire Post and Scotsman owner has already slashed over 900 jobs, or an eighth of its workforce, this year. And boss Tim Bowdler warned that he would 'continue to look at managing costs' while the economic downturn intensifies. The turmoil in the regional newspaper industry was underlined by a grim trading updating from the company yesterday. Property ad revenues have plummeted 48% since July as the housing market ground to a halt, with rising 'situations vacant' adverts down a third amid soaring unemployment.

Posted by mark @ 10:37 AM 0 Comments

Even more new builds in manchester, like it needs them!!!

contract Journal: Grangefield's Harley St of the North approved for Manchester

The scheme is planned to regenerate a massive site in Ardwick, near Piccadilly station, and will include 1,849 new homes, a hotel, offices and shops.

Posted by mark @ 10:22 AM 1 Comments

How will this affect the stockmarkets and shops if people cant get in to work!

contract Journal: Tube electricians call two strikes over pay

The Rail, Maritime and Transport (RMT) union said its members at EDF Energy Powerlink will walk off the job for 36 hours on Sunday night and on 7 December.

Posted by mark @ 10:20 AM 2 Comments

Hedge funds lose $100 billion in assets

cnn: Hedge funds lose $100 billion in assets

About $60 billion of the losses during October were the result of investors pulling their funds out of investments as Wall Street got pounded.

Posted by mark @ 10:18 AM 0 Comments

In the USA the government would be bailing out these fraudsters ...

BBC: Colombians riot over pyramid scam

Colombian Vice-President Francisco Santos warned citizens to avoid pyramid schemes. "When someone promises to double your money in six months they are trying to trick you," he said. "Nothing is free in this world and that is not going to change." A number of bogus companies have vanished in recent months after promising depositors interest rates as high as 150%. Our correspondent says some of the schemes have actually paid out money to investors to launder drug profits. Pyramid investment schemes are said to be often more popular than regular savings accounts in Colombian banks, which charge high fees.

Posted by mark wadsworth @ 10:14 AM 2 Comments

More jobs gone.

Telegraph: BT cutting 10,000 jobs as downturn bites

The telecoms giant BT is cutting 10,000 jobs, it has announced, as slump in the British economy begins to bite.

Posted by sovietuk @ 09:29 AM 3 Comments

So why wasn't it a problem on the way up?

FT: The Bank rethinks importance of house prices

The Bank of England has often insisted that the relationship between house prices and consumer demand is tenuous. But now it appears to be engaged in a sober reassessment of the significance of house prices for the economy and its role in consumption, pointing to its particular role as collateral for bank borrowings. The Bank noted that its own data showed that the level of mortgage equity withdrawal had fallen sharply. Moreover, it pointed out that household indebtedness much of it related to housing had increased sharply since the 1990s slump, hitting 170% of annual income in 2008. "Lower house prices reduce the amount of housing equity that homeowners can borrow against. The Bank noted that a resumption of lending was critical to its forecasts of economic recovery.

Posted by little professor @ 09:19 AM 3 Comments

Riots in Columbia at collapse of get rich quick schemes

BBC: Columbia Pyramid Scams Collapse

Colombian Vice-President Francisco Santos warned citizens to avoid pyramid schemes. "When someone promises to double your money in six months they are trying to trick you," he said. "Nothing is free in this world and that is not going to change." Wise words. If only the citizens of UK, its banks and its government had taken this rational approach. In Columbia they're called Pyramid Schemes. Here it's called the property market. In Columbia they allow the schemes to fail and prosecute the criminal behind them. Here the government taxes all of us, trashes public finances and the currency in order to bail the schemes out and reward those that run them. WE are the 3rd world economy here.

Posted by ingermany @ 06:53 AM 0 Comments

We told you so! (and so did many, many economists)

Guardian: Paulson abandons plans to buy up America's toxic mortgage assets

The US government has scrapped the central plank of its $700bn financial rescue strategy by abandoning plans to buy toxic mortgage-related assets which have weighed down the balance sheets of troubled banks and Wall Street institutions. In a sharp about-turn, treasury secretary Henry Paulson announced yesterday he no longer believed that purchasing assets would be the most effective use of the administration's bail-out fund. "The facts changed and the situation worsened," said Paulson, who added that he would "never apologise" for amending his approach in the light of changing circumstances. Instead, Paulson intends to use the bail-out fund for further injections of capital into banks in return for equity. This programme is likely to be broadened to non-bank financial institutions.

Posted by drewster @ 01:16 AM 3 Comments

Credit destruction exceeds central bank printing, hence deflation

Telegraph: Abandon all hope once you enter deflation

The price of white truffles has fallen 84pc. Fines wines have dropped 65pc. Lobsters are off 52pc. Deflation has reached the City. It has engulfed housing and now threatens to spread through the broader economy, lodging like a virus in the British and global monetary systems. Mervyn King, the Governor of the Bank of England, says it is now "very likely" that the UK retail price index will turn negative next year. This is a drastic reversal of the oil and food spike that played such havoc with monetary policy over the summer. The curse of deflation is that it increases the burden of debts. Incomes fall: debts stay the same. This way lies suffocation. [Personal gloat: it's nice to be debt-free and mortgage-free!]

Posted by drewster @ 01:12 AM 42 Comments

the R word

bbc: recession in 2009

The Bank of England says the UK has probably entered a recession in the middle of 2008 and is likely to continue to contract well into 2009. In its quarterly inflation report, the Bank warns that the economic landscape has changed dramatically since August. It says that the UK economy could shrink by 2% over the next year, much worse than its previous forecast. Bank governor Mervyn King also said the Bank would be prepared to cut interest rates further if needed. "[It is] very difficult to know precisely how long we'll be in recession," Mr King said. "I think we probably are in recession now." The Bank now also expects inflation to decline to 1% by 2010, below its 2% target, in a dramatic change to its last forecast. This would mean that the Bank had scope for further rate cuts.

Posted by k @ 12:45 AM 0 Comments

Wednesday, November 12, 2008

Safe as houses

The Sun: Bricks and Slaughter

THE credit crunch is demolishing our building industry. Construction has been hit even harder than the finance sector. New homes, shops and offices stand unfinished and remain under scaffolding in developments across the country. Taylor Wimpey have seen their share value collapse from 5.7BILLION to just 105million. More than a million homes are waiting for buyers but industry experts estimate there is only one potential buyer for every 15 properties. An auction in Leeds last week saw a flat that last year cost 400,000 go for just 159,000.

Posted by little professor @ 11:31 PM 12 Comments

Brown's economic record exposed as a disaster

The Times: Who's to blame? Look in the mirror, Mr Brown

A former Prime Minister accuses Labour of squandering the golden economic legacy that it was bequeathedJohn Major Sixteen years ago an economic gale blew away a vital part of my economic strategy; now, a more comprehensive storm has undone the entire economic strategy of the Labour Government....... Who ignored the debt spiral as it built up? Who weakened regulation and allowed Northern Rock to offer 125 per cent mortgages? Who diminished Bank of England control over our banking system? Who wrecked final-salary pensions with a 5 billion-a-year tax levy? Who ignored the risks of the house price and equity boom? A glance in the mirror shows him (Brown) the culprit.....

Posted by dave @ 10:58 PM 0 Comments

Stocks beaten down by changes in bailout plan, concerns over consumer spending, economy

NEW YORK (Associated Press): Stocks plunge for third straight session

"A disheartened Wall Street fell for the third straight session Wednesday as investors absorbed another series of dismal corporate reports and news that the government won't buy banks' soured mortgage assets after all. The Dow Jones industrials fell 340 points, and all the major indexes dropped more than 3 percent." --- Well, duh, the banker takeover bill, known by the proles, in newspeak, as the "Bailout Bill" was about getting freedom to spend money freely on whatever, whenever, however much, without fear of any legal recourse. So, of course they won't buy bad assets if they have freedom to buy good assets!!!

Posted by planning4acrash @ 08:47 PM 1 Comments

Viva Liberty! Down with Keynes!!

Mises Institute: Monetary Freedom and Its Opposite

As we enter the era of decline for the dollar (Sterling) all sorts of reforms will be used to address this decline and the economic instability it causes. However, reforms designed on Wall Street or in Washington will not work and will amount to nothing more than rear guard action by the moneyed interests that control the government. The only true path to reform is monetary freedom. Mises wrote (almost 100yrs ago) that the era of inflation will come to an end once people realize that the process of inflation is ongoing with no end in sight. At that point people will stop holding dollars and dollar-denominated assets. In conclusion: What we need is monetary freedom and we must tear down and destroy its opposite, the Federal Reserve. End the B(w)ank of (un)England and the ECBleurgh.

Posted by planning4acrash @ 08:08 PM 0 Comments

What can you say!

Daily Mail: Buy an MP4 player and win £8m of London flats.

An £8 million block of London flats went up for grabs today in Britain's biggest free prize draw which is set to raise £600,000 for Great Ormond Street Hospital Children's Charity. Up to 200,000 entry tickets for the raffle to win the entire development of 11 Whitechapel apartments are being given away by property developer MIA Developments Ltd. The raffle tickets are being given to people who buy a £60 MP4 player from the developer who claims the move escapes sanction by the Gambling Commission because entry is then free, unlike other recent property raffles which have been shut down for not holding lottery licences.

Posted by mark @ 07:05 PM 11 Comments

The BOE did not say, that it is prepared to slash interest rates to zero to DESTROY the economy.

Bloomberg: Bank rates head for zero per cent

They talk to us like children, cutting interest rates to zero would destroy our currency, the value of our wages, pensions & savings. This is a tax on savers & socialist welfare for borrowers, but, our government has been run by bankers since the beginning of the Bank of England in the 1600's, &, via derivatives, they make more money selling debt, &, via lobbying, they have driven fractional reserve requirements to zero, so, they don't need us savers now. They will therefore destroy us. & don't think that it stops there, rates can fall heavily into the negative. I went to a shop today where I was told that the banks now charge 10% on switch payments. Charges plus low interest equals a negative rate overall for the economy, so stop using switch in shops, take cash. & please get some gold!

Posted by planning4acrash @ 07:01 PM 18 Comments

And the job cuts continue...

reuters: Morgan Stanley plans broad job cuts

Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) plans to cut 10 percent of staff in its institutional securities unit and 9 percent in asset management, it said on Wednesday, as it copes with a deteriorating economy, disrupted capital markets and falling asset values.

Posted by mark @ 06:56 PM 0 Comments

The latest run................

BBC: Credit crunch hits church savers

The Presbyterian Mutual Society in Belfast has said it is stopping repayments to members because it cannot meet demand for withdrawals. The society, set up in 1982, is a separate legal entity from the Presbyterian Church in Ireland. The society has assets of 300m and about 9,500 shareholder accounts. The society's Colin Ferguson said "nervous investors" were moving their money because the PMS was not covered by the government's guarantee scheme. "The funds have not disappeared," he said. "It is simply a matter of the society having insufficient cash to meet the demands for withdrawals - the funds are now sitting in the commercial property that we own and in loans that we have made."

Posted by jack c @ 06:37 PM 4 Comments

UK and Holland put thumb-screws on Iceland, revenge for viking attacks centuries ago

FT: Icelands rescue package flounders

An international bail-out of crisis-hit Iceland appeared to be unravelling on Tuesday night as the International Monetary Fund withheld official backing for the $6bn plan...There are deep suspicions in Iceland that the UK government has put pressure on the IMF to delay the loan until a dispute over the compensation Iceland owes savers in Icesave, one of its collapsed banks, is resolved...but a government spokesman denied this saying London had in no way blocked the IMFs loan to Iceland". ..However, Dutch finance minister, told Dutch television that The Hague would oppose the IMF plan until their compensation dispute was resolved. Luckily we have powerful allies as Britain and Germany have the same problem with Iceland,

Posted by mountain goat @ 06:21 PM 1 Comments

Browns Sterling Crisis

The Spectator: Sterling plummets on the back of Brown's debt-fuelled economy

The sterling crash has now begun in earnest. The pound has today (today!) fallen 9% against the Yen and is off 4% against the dollar to a lowly $1.56 with forecasts of $1.40 or lower next year. Against any other currency you may mention, its now plunging.

Posted by sold out @ 05:55 PM 13 Comments

Guide to Deflation

I The truth about deflation

The critical take-away is that we are indeed experiencing short term deflation. We call it disinflation here in the context of Ka-Poom Theory to keep readers from confusing the process with the start of a deflation spiralwhich cannot happen under a floating exchange rate, fiat money system. The only way it could is if governments around the world all got together and decided to crash the global economy. That strikes us as unlikely. More likely one or more will move to reflate using currency devaluation.

Posted by sold out @ 05:43 PM 0 Comments

Light relief to take your mind off sterling's death spiral

Forbes: The Financial Crisis, From A-Z

A is for America, the big swinging Richard whose dysfunction started it all. Think also of accountability (lack of); AIG(which has cost the U.S. $140 billion, and counting--who knew insurance could be so exciting!); assets (what assets?), and Adam Smith, who's slapping us about the face -- with his invisible hand. M is for where it all started: the mortgage (which, aptly, means death-pledge). Like the dog, it comes in a variety of breeds, "sub-prime" being a cross between a pit bull and a chihuahua.

Posted by mountain goat @ 05:13 PM 1 Comments

Euro costs 84p

BBC: Euro -vs- Sterling

Euro hits (another) record high against Sterling.

Posted by mrr19121970 @ 04:39 PM 0 Comments

The interest rates rollercoaster continues to plummet

The Evening Standard: Bank rates head for zero per cent

THE Bank of England said today it is prepared to slash interest rates to zero to save the economy. Governor Mervyn King said the official cost of borrowing would be cut to whatever level is necessary to boost confidence and stave off a long and deep recession. Because this worked for the Japanese :)

Posted by hubbers @ 04:37 PM 0 Comments

Seriously, is the plan to just try and waist as much fictional money as possible! Makes you wonder.

Bloomberg: Paulson Shifts Focus of TARP to Bolster Consumer-Lending Market

Nov. 12 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson plans to use the second half of the $700 billion financial rescue program to help relieve pressures on consumer credit, scrapping an effort to buy devalued mortgage assets. ``Illiquidity in this sector is raising the cost and reducing the availability of car loans, student loans and credit cards,'' Paulson said in the text of a speech today in Washington. ``This is creating a heavy burden on the American people and reducing the number of jobs in our economy.''

Posted by flintster1994 @ 04:10 PM 7 Comments

Is it just me or is "recession" so yesterday? "Depression" is the new black!

Telegraph: Ken Clarke warns Britain is on the brink of 'meltdown'

Mr Clarke, 68, said the British economy is headed for a "catastrophic crisis" that will be "far worse than anything that has occurred in my lifetime". "There will be a very serious recession next year," he said in an interview with Telegraph TV. "I think the big problem in 2009 will be the catastrophic fall in consumer spending demand, spending in shops will get worse." Mr Clarke, who as Chancellor of the Exchequer between 1993 and 1997 led Britain's recovery from Black Wednesday, called for a temporary cut in VAT to boost spending. Speaking as the Office of National Statistics revealed unemployment has reached an 11-year high of 1.82m, Mr Clarke said the number of jobless could soon reach three million.

Posted by flintster1994 @ 03:57 PM 17 Comments

Government "woefully unprepared" in respect of rising unemployment

mortgagestrategy: Government ill-prepared to handle 1.82m unemployed

The Liberal Democrats have accused the government of being "woefully unprepared" to handle the 1.82 million revealed today to now be unemployed in the UK. The figure is the highest for a decade but the Liberal Democrats say the Jobcentre network had actually been scaled back to deal with the reduced number of unemployed people seen during the boom.As a result it says it is now struggling to cope with the consequences of the bust.Jenny Willott, shadow work and pensions secretary for the Liberal Democrats, has also hit out at the Conservative Party's call for tax breaks yesterday to help firms keep staff in work. She says: The Conservative plans announced yesterday are not the answer. It didnt work in the 1990s and it wont work now. "Companies wont take on staff they dont need.

Posted by jack c @ 03:54 PM 0 Comments

Banks latest move - Debt for equity swap considered

mortgagestrategy: Banks set up private equity divisions to combat bad debts

KPMG says that the banking industry is setting private equity style departments as their ownership of businesses increases in the worsening economic environment. It says that with bad debts multiplying in businesses and no market to sell on distressed debt, a debt for equity swap is an option for a lender whose interest cannot "crystallised".Philip Davidson, head of restructuring at KPMG, says: We predict a large increase in debt for equity swaps as trading conditions worsen, particularly in the first half of next year. "This changes fundamentally the role of the banks relationship with a business, particularly where banks end up with a controlling interest. "Each of the big commercial banks has set up a department to manage their increased ownership responsibilities.

Posted by jack c @ 03:41 PM 0 Comments

All this money and still it is recession.. it is a big joke..

CNN: Where the bailouts stand

Every day brings more news about the government's efforts to fix the economy. Here is how the plans are taking shape.

Posted by mark @ 03:35 PM 0 Comments

U.S. Slump May Be Longest in Decades as Growth Fell Off `Cliff'

bloomberg: U.S. Slump May Be Longest in Decades as Growth Fell Off `Cliff'

`Serious Recession' ``We're in for a pretty serious recession,'' Jeffrey Frankel, a member of the business-cycle dating committee of the National Bureau of Economic Research, said in a Nov. 10 interview with Bloomberg Television. ``There's a chance it'll be the worst postwar recession.''

Posted by mark @ 01:54 PM 0 Comments

There you go then. A year long hangover and then let the partying resume! Phew!

Timesonline: Bank forecasts one-year long recession for UK

The Bank of England said today that the country is set for a deep one-year long recession with annual output set to shrink by as much as 2 per cent in 2009. In its quarterly Inflation Report, the central bank said that the country probably entered a recession in the third quarter of this year, and predicts there will be no recovery until the second half of next year.

Posted by flintster1994 @ 12:40 PM 23 Comments

Another Govt mantra crumbling

Independent: Unemployment leaps to an 11-year high

"Unemployment reached an 11-year high today when another huge increase in the numbers looking for work edged the total closer to the two million mark."

Posted by letthemfall @ 11:48 AM 5 Comments

Bloomberg News should be congratulated for filing suit against the Federal Reserve

Canada Free Press: Fed Covers Up Financial Crisis

The American taxpayer is entitled to know the risks, costs and methodology associated with the unprecedented government bailout of the U.S. financial industry, said Matthew Winkler, the editor-in-chief of Bloomberg News. Another way that the media can begin to fix the blame for the financial meltdown is to cover the views of those who predicted the crisis and understand how it happened. Consider watching this video of a debate that financial analyst Peter Schiff had with Arthur Laffer on CNBC back on August 29, 2006. Schiff predicted the deep recession that is now underway and made mention of Chinas role in our unfolding economic troubles. Laffers talk about our economic policies working beautifully makes him look utterly ridiculous in todays climate.

Posted by malct @ 11:30 AM 1 Comments

Bank signals further rate cuts may be needed

reuters: Bank signals further rate cuts may be needed

Tell you what, just give everyone a million quid for free that will stop recession...

Posted by mark @ 11:22 AM 1 Comments

One for the gold bugs

FT: Gold prices poised for gains

"If this is the case, inflation will most certainly be rising in an environment where rates are being cut". The headline appears to rest on a big if.

Posted by letthemfall @ 10:48 AM 22 Comments

Barclays Better Get Ready To Toe The Gummint Line Then

TimesOnline: Investors threaten revolt over Barclays fundraising

Some of Barclays biggest shareholders are threatening to vote against the banks 7.3 billion fundraising that includes a preferential placing to investors in the Gulf. Legal & General Investment Management and Aviva Investors are said to be concerned about the high dilution of existing investors and the cost of the funding.

Posted by renting2 @ 10:29 AM 0 Comments

Peston in 'sense of humour' shock

BBC: The rising taxpayer burden

VW, the stressed German carmaker, is trying to raise 2.8bn (2.2bn) from the European Central Bank. It plans to raise cash from the ECB in exchange for 2.8bn of securities backed by car loans. In effect, the ECB - and ultimately taxpayers in the eurozone - would be financing purchases of automobiles. Crikey, is all that comes to mind. What next? Perhaps Marks & Spencer will be able to dump its unsold jumpers and knickers on the Bank of England, in exchange for a bit of useful short-term credit.

Posted by gardeniadotnet @ 10:25 AM 13 Comments

Negative equity - scary figures Negative equity dealing with the wolf at the door

I realise that negative equity is going to be a big problem for many. Are these estimates not a bit over the top?

Posted by kaz @ 10:19 AM 3 Comments

run forest run, run on the bank forest

bloomberg: ING Posts First Loss, May Have Additional Writedowns

ING Groep NV, the financial-services firm that got a 10 billion-euro ($12.6 billion) lifeline from the Netherlands last month, said writedowns amounted to 1.51 billion euros in the third quarter and may extend through year end. The loss for the quarter ended Sept. 30, the first since the company was created in 1991, was 478 million euros, or 22 cents a share, it said today in a statement. That was less than the 500 million-euro loss it forecast last month and compared with net income of 2.31 billion euros, or 1.08 euros, in the year-earlier period. ING rose as much as 3.8 percent in Amsterdam trading.

Posted by mark @ 10:08 AM 1 Comments

Manufacturing jobs fell to 2.86 million, the lowest figure since records began !

BBC: Unemployment reaches 11-year high

The number of people out of work in the UK in the three months to September jumped by 140,000 to 1.82 million - the highest in 11 years. The unemployment rate rose to 5.8%, up from 5.4% in the previous quarter, according to official figures. The number of people claiming the Jobseeker's Allowance rose by 36,500 to 980,900 in October - the highest monthly increase since 1992. Economists say unemployment in Britain could soon reach the two million-mark. The number of manufacturing jobs fell to 2.86 million, the lowest figure since records began in 1978. The so-called claimant count - those claiming the allowance - has now increased for nine months in a row and is 154,800 higher than a year ago.

Posted by jack c @ 10:05 AM 4 Comments

the smallest gate in the world

rightmove: The Bramhall Salisbury

just had to post this, the credit crunch must be bad for some builders, this one was clearly trying to save money on the gate, bit small but hey its a

Posted by mark @ 09:58 AM 1 Comments

Sellers getting desperate Asking Price Cuts Deepen

Seem to be moving to a new stage in the cycle, from fear to capitulation. "Housing market sentiment, across all regions of England, Wales and Scotland, tumbled further this month. Asking prices of 200,000 homes on the market were cut in October (187,000 in September), by an amount on average equal to 20,194. Deeper cuts in asking prices over coming months are to be expected."

Posted by tinecu @ 09:29 AM 2 Comments

So what happens if further rate cuts?

Independent: Jeremy Warner: Sterling crisis threatens Brown's reflationary plans

As Gordon Brown plans his reflationary strategy, an old bogey has returned to haunt the Government's ambitions the possibility of a sterling crisis. With the pound falling to a new 12-year low against a trade-weighted basket of currencies and an all-time low against the euro, it might be argued that it has already arrived.

Posted by quiet guy @ 09:23 AM 14 Comments

That's not very nice.

Los Angeles Times: Goldman Sachs urged bets against California bonds it helped sell

Goldman, Sachs & Co. urged some of its big clients to place investment bets against California bonds this year despite having collected millions of dollars in fees to help the state sell some of those same bonds. The giant investment firm did not inform the office of California Treasurer Bill Lockyer that it was proposing a way for investment clients to profit from California's deepening financial misery.

Posted by gardeniadotnet @ 09:14 AM 6 Comments

The TUC has called for an increase in jobless benefits

The press association: The TUC has called for an increase in jobless benefits

The Government has been urged to increase jobless benefits to help the growing ranks of unemployed against a "catastrophic" fall in their income. The TUC said current levels of jobseeker's allowance were not enough to live on and would be worth more if they had kept pace with earnings over the past 30 years.

Posted by khards @ 08:54 AM 0 Comments

You can't make it up, he's actually relishing it. He think's its a good thing.

Live Leak: Gordon 'NWO' Brown said "Today's challenges are birth-pangs of new global order."

British Prime Minister Gordon Brown called for shaping a truly global society and better international coordination of fiscal and momentary policies in a speech at the Lord Mayor's banquet here on Monday. He said that G8, the International Monetary Fund (IMF) and World Bank must change to meet new realities and Britain and the United States must provide leadership in efforts to build stronger international order. And the British govern ent is to work with G20 partners to build new Breton Woods with reformed IMF. "Together we can seize this moment of change to create age of a truly global society," he said. "Today's challenges are birth-pangs of new global order."

Posted by planning4acrash @ 08:14 AM 11 Comments

Broke Britain

the independant: The domino effect: Road to recession

It began with the banks. Then house prices began to tumble. In the months that followed, the shock waves spread, engulfing first high streets, then factories and thousands of jobs. In this gripping account, Paul Vallely travels across Britain to meet the people whose lives and livelihoods have fallen victim to the domino effect that left a nation broken

Posted by sold out @ 07:24 AM 7 Comments

No Tracker benefits for new borrowers

Telegraph: Borrowers taking out popular mortgages paying highest rates in seven years

Tracker mortgages 'track' changes in the Bank of England base rate and have become increasingly popular over the past few years. More than four million people of the 11.7 million who have a mortgage now have the loans. Many of those on fixed rates have tried to changed to trackers to take advantage of the Bank of England cuts. However, banks and building societies have been accused of cynically manipulating the rates on offer to deprive new borrowers from benefiting from recent base rate cuts. The rates on offer are now comparable to the uncompetitive standard variable rates offered by lenders.

Posted by sold out @ 07:10 AM 8 Comments

Buckle Up

The Market Ticker: FAIL: One Word For Them All

President-Elect Obama is no dummy, and if we're going to have that sort of dislocation I'm quite certain he wants George Bush to be the one who has his hands all over it - as well he should, given that this is his administration and Treasury Department, along with his Fed Chairman, that has created the mess in the first place. I put the odds of the plates falling within the next two months - and possibly within the next couple of weeks - at one chance in three. If the plates fall we are going to have a very serious "event" in this country in the markets and in the economy - much worse than what we've seen to date. As in 10 million jobs lost almost all at once. A depression. And a new leg down in the market - 30-50% - essentially straight down.

Posted by gardeniadotnet @ 07:03 AM 0 Comments

Russia faces its own Black Wednesday

Telegraph: Russia lifts rates to 12pc to save Rouble as crisis deepens

Russia's central bank has raised interest rates a full percentage point to 12pc to prevent a collapse of the rouble following a day of mayhem on the Moscow markets, prompting concerns that the financial crisis may be spiralling out of control. The surprise move last night came after the authorities had spent $7bn of foreign reserves in a matter of hours trying to defend the currency, at a lower level. The central bank has now spent $84bn of its reserves over the last month. "If people lose confidence, we could have a massive run on the banks: then the game is up." Expecting trouble, the Kremlin has mobilised the police to crush dissent. "Anti-crisis groups have been set up in the regions to intercept any early indications of destabilisation," said the president.

Posted by drewster @ 02:13 AM 12 Comments

The road ahead is grim

Independent: 5,000 jobs axed as City forecasts 3m by 2010

More than 5,000 job losses were announced yesterday by some of the UK's leading companies, ahead of new official figures that are expected to show the highest number of people out of work since 1998 and well on track to exceed two million by Christmas.

Posted by sovietuk @ 01:58 AM 0 Comments

Tuesday, November 11, 2008

$2 Trillion theft. They are simply common thieves on steroids.

Bloomberg: Fed Defies Transparency Aim in Refusal to Disclose (Update2)

The Federal Reserve is facing a lawsuit after it failed to comply with congressional demands for transparency and disclose the destination of at least $2 trillion dollars in bailout funds, underscoring once again the failure of top down socialism and the folly of trusting the foxes to guard the henhouse, underscoring age-old problem of top down socialism and letting the fox guard the henhouse. Sourced from prisonplanet

Posted by planning4acrash @ 11:11 PM 11 Comments

Funding Crisis

CNBC: US May Lose Its 'AAA' Rating

The U.S. might have to look at a default on the bankruptcy reorganization of the present financial system and the bankruptcy of the government is not out of the realm of possibility.

Posted by gardeniadotnet @ 11:07 PM 0 Comments

Why should i save, pay a mortgage or any bills... i am going on dole...

bbc: City social housing goes upmarket

The Curzon development, built on the site of the old cinema of the same name on the Ormeau Road, may be sold to a housing association. Clanmil Housing confirmed to the BBC that it is in negotiations with the property's owner to buy all 61 flats.

Posted by mark @ 09:39 PM 1 Comments

No. 2 mall operator warns of bankruptcy

CNN: No. 2 mall operator warns of bankruptcy

General Growth Properties Inc., the No. 2 mall operator in the United States, has warned that an ongoing slump in retail sales, combined with the credit market lockdown, has pushed the company to the brink of bankruptcy. Chicago-based General Growth Properties (GGP) said in an SEC filing late Monday that it has $900 million of property secured debt and $58 million of corporate debt that's coming up for renewal by Dec. 1. It also faces another $3.07 billion in debt that matures in 2009.

Posted by mark @ 09:33 PM 4 Comments

More chunky job losses

Telegraph: Virgin Media to axe 2,200 jobs

This is turning into a disturbingly steady flow of significant job losses, albeit this one's not until this time next year: Virgin Media, the content and communications group, is planning to slash 2,200 jobs, or 15pc of its workforce, under a sweeping restructure. The surprise redundancies, which are part of Virgin Media's planned cost savings of up to 120m over the next four years and are expected to be completed by 2012, were attacked by the Communication Workers Union (CWU).

Posted by dohousescrashinthewoods @ 09:29 PM 3 Comments

Moral Hazard

International Herald Tribune: Fannie Mae and Freddie Mac plan to help cut loan burden of homeowners

The program will be offered to people who are at least 90 days behind on their payments, according to government officials. The goal will be to modify the mortgage - most likely by reducing the interest rate - so that the monthly loan payment is no higher than 38 percent of the borrower's monthly income. The government plan could help as many as 300,000 families that are delinquent in their mortgage payments, and the costs would ultimately be picked up by taxpayers. But people with knowledge of the details said Tuesday that it was more limited than a program advocated by Sheila Bair, chairman of the U.S. Federal Deposit Insurance Corp.

Posted by dohousescrashinthewoods @ 09:20 PM 0 Comments

Bailout Blues!

Bloomberg: Revised AIG Terms Begin Treasury Transfusions to 'Zombie' Firms

The revised bailout of American International Group Inc. marks a new phase in the government's effort to shore up financial markets: It's the first time cash from the rescue fund Congress created last month has been committed to a failing company. Taxpayers are ``keeping the zombie alive,'' said Robert Eisenbeis, former director of research at the Atlanta Fed. ``We keep getting deeper and deeper into these holes.'' and ``Are you going to do General Motors and Ford, and, if you do those, are going to go on and do retailers?'' said William Isaac, chairman of the Secura Group LLC. `` Where does it stop? That is a very difficult decision we are going to face.''

Posted by alan @ 09:14 PM 2 Comments

Coming soon to a bank near you.

MarketWatch: Fannie, Freddie to modify more mortgages

In their most aggressive move yet to stem a tide of home foreclosures, the government and the housing industry said Tuesday they'll try to modify hundreds of thousands of mortgages to make them affordable. mortgage firms will rewrite the terms on some overdue mortgages so the homeowners won't pay more than 38% of their incomes. Modifications could include deferring some of the principal owed, lowering interest payments or extending maturities to as much as 40 years.

Posted by gardeniadotnet @ 07:44 PM 7 Comments

Gordon demands this and that again

Reuters: Brown demands responsible credit card lending

Gordon Brown demands that the chief executives of the major credit card companies explain to ministers why they are hiking rates for borrowers. He wants "clear principles to apply to the costs people face on their existing debts" and a "new responsible approach to lending"; talk about the Pot calling the Kettle!

Posted by enuii @ 07:42 PM 6 Comments

The man who broke Britain

wikipedia: Gordon Brown...........

Pensions, gold, savings, balance of payments and now currency.....the man who broke britain

Posted by hpwatcher @ 07:32 PM 4 Comments

GM: Stock down 90% this year as layoffs continue

CNN: GM: Stock down 90% this year as layoffs continue

General Motors' stock price plunged another 15% Tuesday as the battered automaker said it plans to lay off nearly 2,000 hourly workers.

Posted by mark @ 06:17 PM 1 Comments

Will sudden Sterling/Dollar/Euro devaluations cause correction here?

Bloomberg: Ruble Devaluation Concern Triggers 13% Plunge in Russian Stocks

"Russia's ruble fell the most in two months and stocks tumbled as the central bank scaled back its defense of the currency amid the country's worst financial crisis since the 1998 devaluation." "Russia drained 19 percent of its currency reserves to stem a 17 percent slide in the ruble against the dollar since the start of August, prompting warnings of possible downgrades from Fitch Ratings and Standard & Poor's." Russian stocks fell 65 percent this year, compared with a 42 percent slide in the MSCI World Index of developed nations. - Look for more if oil continues to fall.

Posted by planning4acrash @ 05:08 PM 2 Comments


reuters: Brown ready to borrow to boost economy

At some point all this money will need to be paid back, this is the most stupid thing i have ever heard.....

Posted by mark @ 03:53 PM 33 Comments

What happened to Anne's hair-do?

Times: Stamp duty savings leap but house market shrinks

Has she put two fingers in a wall socket? Was she getting ready to go to a property dinner party? Her voice was breaking down, she was fighting tears... "let's be realistic!" never heard her saying these words

Posted by confused76 @ 03:23 PM 0 Comments

This is absolutely hilarious ...

BBC: Loopholes clear couple's debts

"Amanda and Basil Rankine ran up debts of 120,000 after their mortgage advice business collapsed and they found themselves unable to afford their monthly payments... they managed to have a number of their 13 credit cards and loans written off, to the tune of 37,000, including the sum from HSBC... a legal technicality - which meant the lenders could only claim the money back while the court proceedings were going on - meant the couple still managed to get most of their debts frozen. That took their total debt clearance to 100,000, leaving more than 20,000 outstanding. However, a legal bill of 100,000 left the Rankines back where they started."

Posted by mark wadsworth @ 02:11 PM 19 Comments

Is tescos boss looking to be next PM???

reuters: Tesco CEO calls for review of UK business rates

Tesco (TSCO.L: Quote, Profile, Research), Britain's biggest retailer, has called for changes in the way business rates are calculated in Britain, saying the current system unfairly hits store groups and should be reformed to encourage investment. *******hmmm how unfair is tescos to suppliers and local corner shops??********

Posted by mark @ 01:47 PM 7 Comments

Helping you keep track

BBC: Digest of today's house price statistics

A raft of housing statistics were released today from the Royal Institute of Chartered Surveyors, the Council of Mortgage Lenders, and the Department of Communities and Local Government. The squeeze on mortgages was confirmed by data from mortgage lenders, while an industry survey showed that the number of sales hit a 30-year low. UK house prices in September were 5.1% lower than a year ago according to official government figures, making the average UK house price 208,583.

Posted by little professor @ 01:27 PM 4 Comments

Government spin machine still humming smoothly

Metro: House prices falling at record rate

The annual rate at which house prices are falling continued to accelerate during September to hit a new record of 5.1%, Government figures show.

Posted by mark wadsworth @ 01:24 PM 1 Comments

Will the bond market call a halt to the bailouts or does the fed print money?

Barron's: Uncle Sam's Credit Line Running Out?

A steep yield curve as there is at the moment usually signals a recovery but... "The steepening of the Treasury yield curve has been accompanied by an increase in the cost of insuring against default by the U.S. Treasury. It may come as a shock, but there are credit default swaps on the U.S. government and they have become more expensive -- in tandem with an increase in the spread between two- and 10-year notes. This link has been brought to light by Tim Backshall, the chief analyst of Credit Derivatives Research. The attraction of investors to the short end of the Treasury market is "juxtaposed with the massive oversupply and inflationary expectations of the longer end," he writes."

Posted by mountain goat @ 01:14 PM 7 Comments

lack of available mortgages

BBC: Mortgage squeeze 'stifles' market

CML figures released on Tuesday, showed 35,000 loans for house purchases had been granted in September, down from 41,000 the previous month.

Posted by gardeniadotnet @ 12:53 PM 11 Comments

Phew, and this is public sector - Postal levels down?

KLSA TV: US Postal Service Looks To Cut 40,000 Jobs In First Layoff In History

SHREVEPORT, LA (KSLA) - "We lost 2 billion dollars and like any other business we have to stay afloat." And to keep from sinking, the United States Postal Service is considering cutting thousands of jobs nationwide. Lavelle Pepper with the post office in Shreveport says they too are feeling the affects of the same disease hitting the country... a struggling economy. "We employ about 685,000 people. If we do layoffs it would include clerks, carriers, mail handlers across all crafts."

Posted by planning4acrash @ 12:41 PM 3 Comments


ThisIsMoney: Thick-skinned bankers from a different planet

Who sets Libor? Only the banks themselves. Every morning, Monday to Friday, unless there's a bank holiday, just after 11o'clock, two people get together in the office of the British Bankers' Association. Sixteen leading banks (including Barclays, HBOS, HSBC, RBS and Lloyds TSB) send them the estimated interest rates at which their bank could borrow money 'were it to do so by asking for and then accepting interbank offers in reasonable market size just prior to 11.00'. The pair discards the bottom four and the top four, and then average out the remaining eight. That is that day's Libor.

Posted by gardeniadotnet @ 11:11 AM 39 Comments

Taylor Wimpey cuts 1000 jobs with no improvement in sight

daily mail: Taylor Wimpey cuts 1000 jobs with no improvement in sight

Builder Taylor Wimpey today warned there was no end in sight to the crisis in the housing market as it axed a further 1000 staff. The firm said that while last week's dramatic cut in interest rates from 4.5 per cent to 3 per cent was welcome, 'there will not be a recovery in the UK housing market in the short term'. Business has gone from bad to worse since the collapse of Lehman Brothers in September sent financial markets and the banking system into meltdown. Mortgage lending in the third quarter of the year was down 70 per cent and has shown no sign of improvement. ******NOTICE THEY DON'T BLAME STUPID HIGH HOUSE PRICES, MAYBE THEY MIGHT BLAME LEAVES ON ROADS OR RAIN FOR LACK OF CUSTOM*****

Posted by mark @ 10:57 AM 5 Comments

screwing us again!!

daily mail: Banks INCREASE interest rates for credit and debit cardholders despite 50-year low in cost of borrowing

Banks have increased interest rates on tens of millions of debit and credit cardholders despite the cost of borrowing falling to a 50-year low. The average annual percentage rate for credit cards has risen from 17.2 to 17.6 per cent since May. It means financial institutions have failed to pass on a cut in interest rates to their customers since the Bank of England dropped its base rate from five to three per cent during the same period.

Posted by mark @ 10:52 AM 11 Comments

Students shown the door as parents fail to pay

daily mail: Credit crunch hits private schools

Private schools are having to throw out increasing numbers of pupils as parents default on fees, according to a leading finance expert. The schools are facing a struggle to survive as pupil numbers fall, largely because increasingly cash-strapped families are finding it hard to pay the soaring cost of fees. The price of a private education has risen by 40 per cent in five years.

Posted by mark @ 10:43 AM 14 Comments

Yell plans 1,300 job cuts in 100m costs drive

times: Yell plans 1,300 job cuts in 100m costs drive

Yell, publisher of the Yellow Pages, is planning to cut up to 1,300 jobs over the next ten months as it presses ahead with a plan to reduce costs by 100 million by the end of March 2010. The job losses, being pushed through by John Condron, chief executive of Yell, will be felt across all the group's divisions and will include cutting management jobs as well as slimming down the sales forces and reducing administrative positions. It marks the second major cost-cutting drive at Yell in little more than a year. During the 12 months to September, about 1,300 jobs were lost, which will have saved about 150 million during its current financial year. The job losses announced today will generate additional savings and demonstrate a clear deterioration in the economic climate.

Posted by mark @ 10:36 AM 2 Comments

Link To RICS Report PDF

RICS: Housing Market Survey October 2008

I Just love reading the EA's Comments. My favourite this month: Market Harborough Leicestershire Rodney Vigne FRICS Strutt & Parker No finance, no confidence and no end in sight!

Posted by wdbeast @ 10:29 AM 3 Comments

Sellers accepting prices must drop

Guardian: Estate agents selling only one house every fortnight as slowdown bites

"New buyer inquiries improved to their least negative reading for 16 months..." That's a relief then.

Posted by letthemfall @ 10:22 AM 3 Comments

This is why governments will never work!! Let the public run it all... no bailouts, no waste, etc

contract Journal: ODA blasted for spending 40m on consultants

Olympic bosses have been accused of unbelievably excessive use of consultants after spending 40m on advisers. Official figures of Olympic Delivery Authority (ODA) expenditure show huge payments made to consultants since its formation three years ago.

Posted by mark @ 10:16 AM 5 Comments

HBOS takeover

Citywire: Bank of China planning swoop for HBOS, reports say

Bank of China is the rival bidder said to be close to making an counter-offer for HBOS, the BBC has reported.The revelation follows news which emerged over the weekend that a foreign bank is considering making an offer for HBOS and is being advised by European American Capital (EAC), a London-based investment firm founded by Tim Goode - a former treasurer of RBS and ex-chief executive of treasury and capital markets at Halifax. European American Capital said it could not comment on the matter.

Posted by jack c @ 10:06 AM 2 Comments


Bloomberg: GM's Skid Quickens as Crunch Raises Bankruptcy Threat (Update1)

Nov. 11 (Bloomberg) -- General Motors Corp., burning cash as U.S. sales slide, is being pushed closer to bankruptcy as it waits to learn whether the auto industry will win a new round of government loans. The prospect of a forced liquidation raises the stakes for GM's quest for new federal borrowing after saying on Nov. 7 it may run out of operating cash as soon as year's end.The failure of GM in an event where the company stops production would cost 2.5 million jobs in the U.S. in the first year, according to a study by the Center for Automotive Research in Ann Arbor, Michigan.

Posted by sovietuk @ 09:59 AM 15 Comments


times online: Starbucks profits dive by 97%

Profits at Starbucks collapsed 97 per cent in the fourth quarter of the year after the ubiquitous coffee chain was forced to absorb the effect of weakening demand and the cost of closing stores earlier this year. As the group admitted to the earnings plunge, shares in the Seattle-based group sank 3 per cent in after hours trading to $9.91 each. Two years ago, the stock fetched $38.41.

Posted by sold out @ 09:43 AM 8 Comments

Tatlor Wimpey 'pessimisitc' about recovery

Property Week: Taylor Wimpey extends debt negotiations but remains pessimistic on UK housing recovery

We remain of the view that there will not be a recovery in the UK housing market in the short term. We welcome the significant interest rate reduction announced last week, and are hopeful that if this is passed on to consumers, then it will help the market to return to stability more quickly. Increased mortgage availability and a return of customer confidence remain the key requirements for a sustained market recovery, it said.

Posted by iain o'neil @ 09:22 AM 0 Comments

Cable gets bearish

Inside Housing: Cable warns house prices could halve

At a conference of London housing professionals on Friday (7 November) Mr Cable said the UK was dealing with the bursting of the third major bubble in house prices since the Second World War. The bubble is now bursting and none of us can predict how far it will go, he told delegates. But the work I saw last week, based on auctions and the rather elementary futures market in housing, suggests that we could be in for something really quite drastic, like a halving of prices from the peak.

Posted by quiet guy @ 09:19 AM 5 Comments

If you though crashing house prices and financial systems were bad, do not read this

Globalia Magazine: Peak Oil could trigger meltdown of society

According to a newly published global oil supply report to be presented by the Energy Watch Group at the Foreign Press Association in London, world oil production peaked in 2006. Production will start to decline at a rate of several percent per year.By 2020, and even more by 2030, global oil supply will be dramatically lower. This will create a supply gap which can hardly be closed by growing contributions from other fossil, nuclear or alternative energy sources in this time frame.

Posted by eternal sceptic @ 08:56 AM 2 Comments

Abbey relaunch tracker products

mail Online: Banks will NOT pass on further interest rate cuts to hard-up customers... except for Abbey

Abbey is the first lender to relaunch its tracker deals after 33 providers withdrew their ranges following last week's surprise 1.5 per cent interest rate reduction. It is also reducing its two-year fixed rate mortgages by up to 1 per cent, giving a new rate of 4.49 per cent for someone with a 40 per cent deposit who pays a 995 arrangement fee, rising to 4.79 per cent for people with only a 25 per cent one. But the group has only one product available to people with less than a 25 per cent deposit, namely a five-year fixed rate mortgage.

Posted by sold out @ 07:26 AM 7 Comments

Unsurprisingly, public trust in senior politicians has fallen in the last two years.

BBC News: Trust in top politicians 'falls'

Committee chair Sir Christopher Kelly called the results "deeply disturbing". And he said a cause was that greater openness "meant people become aware of things which previously were carried on but they didn't know about".

Posted by unplugged @ 01:24 AM 9 Comments

Latest RICS survey out now

Press Association: RICS: New low for house sales

The number of homes changing hands hit a new record low in October but chartered surveyors are optimistic that business will pick up soon, figures have showed. Property sales fell to an average of just 10.9 per chartered surveyor estate agent during the three months to the end of October, down from 11.5 in September, and the lowest level recorded by the Royal Institution of Chartered Surveyors since its survey began in 1978. But surveyors feel more upbeat about the future, with 20% more expecting sales levels to improve during the coming three months, up from just 4% in September. RICS said this optimism was being driven by a trend for sellers to drop their asking price, but it added that it could also reflect expectations of a jump in repossessions.

Posted by little professor @ 12:25 AM 7 Comments

Monday, November 10, 2008

O Rly?

Guardian: Media exacerbated house-price myths, says BBC's Robert Peston

The BBC business editor, Robert Peston, has admitted at an industry conference today that the media were to some extent "complicit in this canard" that house prices would continue to rise. Peston said that the media helped to create "a myth that somehow houses were a one-way bet and that debt never had to be repaid". "The BBC, newspapers and other broadcasters, in news and in features, were complicit in this canard that somehow house prices could only ever rise and that what you have to look at is the interest payments on your debt rather than the principle," Peston said.

Posted by little professor @ 10:15 PM 17 Comments

The nightmare is only just beginning.

Guardian: Circuit City files for bankruptcy protection

Circuit City Stores Inc, the No. 2 U.S. consumer electronics retailer, filed for bankruptcy on Monday just weeks before the start of the holiday shopping season, becoming the largest retailer to file for Chapter 11 since Kmart in 2002. Circuit City fell victim to tighter credit terms from vendors, a draining cash position and decreased consumer spending amid a deepening economic crisis.

Posted by sovietuk @ 09:01 PM 3 Comments

GM to cut production, idle 5,500 hourly employees

reuters: GM to cut production, idle 5,500 hourly employees

General Motors Corp said on Monday it will cut production in North America due to declining demand through the first quarter of 2009. Highlights: * Says production cuts to result in idling of 5,500 hourly employees

Posted by mark @ 08:56 PM 4 Comments

Carnegie Taken Over by Swedish Government, to Be Sold

bloomberg: Carnegie Taken Over by Swedish Government, to Be Sold

Sweden's largest publicly traded investment bank, was seized by the government and will be sold off in parts after accusations that it took ``exceptional risks'' with loans. Sweden's national debt office assumed control of Carnegie Investment Bank AB and Max Matthiessen Holding AB, the two units that make up Stockholm-based Carnegie. The divisions had been used as collateral for a 5 billion-krona ($640 million) loan made by Sweden to shore up Carnegie's funding last month.

Posted by mark @ 08:23 PM 0 Comments

Britains economy is more like a geriatric than the dynamic Cool Britannia

fundsrategy: Why Britains plight is Browns fault too

Gordon Brown persists in presenting Britain as simply a victim of the global financial crisis. Such an approach conveniently absolves him of any responsibility for the mess. But it is becoming clear that Britains position is particularly precarious. The idea of a uniform global crisis certainly does not square with the revised growth forecasts published by the International Monetary Fund last week. While Britains GDP is projected to fall 1.3% in 2009 that of China is expected to rise by 8.5%. Even Africa is expecting growth of 4.7%. Perhaps it is unfair to compare Britain with emerging economies. But the average GDP fall for advanced economies is forecast to be 0.3% next year. Britain is likely to be the worst performer next year with the exception of disaster areas such as Zimbabwe.

Posted by jack c @ 08:00 PM 5 Comments

shoplifters were motivated by need rather than greed. unlike the banks then !

Evening Standard: Crimewave hits high street as recession bites

RETAILERS are suffering a shoplifting crimewave as the economic downturn continues to bite, according to new figures on supermarket theft. Supermarket Tesco caught more than 43,000 thieves in the first half of this year - an increase of 36 per cent on the same period in 2007. Essential items were the most common target, the figures revealed, suggesting that shoplifters were motivated by need rather than greed.

Posted by malct @ 07:51 PM 11 Comments

The China Syndrome

CH4 via Google: Silly Money (part two) - Bremner, Bird and Fortune

Monday, 10 November 2008 Bremner Bird and Fortune: Silly Money Part Two This week, in "The China Syndrome", the three satirists discussed the role of the former Communist country in the global economy. Unlike many countries, China has saved trillions of dollars in foreign reserves. As there are no social programmes, citizens must save around 50% of their money to survive. Families are only allowed one child, so they cannot rely on their income. Their economy has grown by 10% per year for the last 25 years, while a city the size of London is built every year. comment from

Posted by malct @ 05:47 PM 6 Comments

140 jobs to go at two factories

bbc: 140 jobs to go at two factories

First Milk said the loss of a contract worth around 40% of business at the Maelor plant at Wrexham meant they required fewer staff.

Posted by mark @ 05:33 PM 1 Comments

Nationwide latest........

BBC: Nationwide warns on house prices

Britain's biggest building society, the Nationwide, has slashed mortgage lending and says it expects house prices to continue to fall in 2009/10. Its comments came as it said underlying pre-tax profits for the six months to 30 September were down 18% to 322m. Its bad debts rose to 74m, up from 62m last year, as borrowers struggled with their repayments. Net residential mortgage lending was under a third of the total of the same period a year ago, it said. Nationwide said it expected the housing market to remain "subdued", with prices continuing to fall in 2009/10.

Posted by jack c @ 03:54 PM 9 Comments

Well, that's what the bailout said they could do, what the surprise?!

Bloomberg: Fed Defies Transparency Aim in Refusal to Disclose

The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral. Just remember that Obama voted for and campaigned hard to get the bailout in its current form. Congress could have taken a few weeks to improve the bill but were feared into passing it. Financial (t)errorism.

Posted by planning4acrash @ 03:49 PM 2 Comments

Wonder what it will look like in 2010?

Winston Salem Journal: Nationwide's mortgage lending fell 72 pct in 1H

LONDON (AP) -- "British lender Nationwide Building Society said Monday mortgage lending fell 72 percent in the first half of its financial year, as home buyers were deterred by a crashing property market and mortgage rates were boosted by the credit crunch." - Given that Nationwide should hold up better than some, we should be expecting house price to fall more than 72%?! - When you take volumes into account, this doesn't seem out of the picture. Effectively, houses that don't sell, have no price, no market, so, they should be taken into account to get a full picture. Effectively, the non-sales are a result of price fixing. Auction the lot, and you get the proper price.

Posted by planning4acrash @ 03:46 PM 6 Comments

Pension schemes in the red

BBC: Pension scheme deficits worsen

Its latest snapshot of the finances of nearly 7,800 private sector schemes shows that in October their collective deficit stood at 97.3bn. That was worse than the 80.3bn deficit seen the month before. The international financial crisis has severely dented the schemes which a year ago had a surplus of 84.1bn. If schemes stay in deficit then employers will have to make good the shortfall by putting in extra recovery payments, typically within 10 years, to ensure the schemes become solvent again.

Posted by gardeniadotnet @ 03:06 PM 4 Comments

@ new low vs

Reuters: Euro hits record high vs sterling above 82 pence

1 = 0.8208 1 ~ 1.21 The euro hit a record high against the pound on Monday, on expectations of further monetary easing by the Bank of England after a dramatic rate cut last week sent UK rates lower than those in the euro zone.

Posted by 51ck-6-51x @ 02:44 PM 8 Comments

This Guy Is A Nutter!

MSN: Brown hints at tax cuts to help UK

I am amazed by the stupidity of this Labour Govt - yet they still get voted in. Brown should be fired in disgrace for what he has done to the Uk, yet he is still here ready to exact more damage. TAX CUTS funded by BORROWING?????? This just plain insane!

Posted by waitingfor hpc @ 02:11 PM 27 Comments

frying pan to fire to.........

bloomberg: Fannie Mae Reports Record Loss After Asset

Fannie Mae posted a record quarterly loss as new Chief Executive Officer Herbert Allison slashed the value of the mortgage-finance provider's assets by at least $21.4 billion and said it may need to tap federal funds next year. In its first report since being seized by the U.S. government last month, Washington-based Fannie Mae said its third-quarter net loss was $29 billion

Posted by mark @ 02:05 PM 2 Comments

this is a new one zero price target - this is 2008/9 depression stuff

bloomberg: GM Cut to `Sell' at Deutsche, With Target of Zero

General Motors Corp. was downgraded to ``sell'' at Deutsche Bank AG, which set a share-price estimate of zero, and was cut to ``underweight'' at Barclays Capital. GM fell 12 percent to $3.83 at 8:55 a.m. before regular New York Stock Exchange composite trading. The biggest U.S. automaker said Nov. 8 it may not have enough cash to keep operating this year and will be ``significantly short'' by the end of June unless the auto market improves or it adds capital. ``Even if GM succeeds in averting a bankruptcy, we believe that the company's future path is likely to be bankruptcy

Posted by mark @ 02:03 PM 2 Comments

Circuit City files for bankruptcy

cnn: Circuit City files for bankruptcy

Circuit City Stores Inc., the No. 2 electronics seller after Best Buy, filed for bankruptcy protection Monday, thus becoming the latest retailer hurt by a worsening economic downturn. According to the company's Chapter 11 filing with the U.S. bankruptcy court in Richmond, Va., Circuit City (CC, Fortune 500), which currently has 566 operating stores in the United States, will continue to do business and pay its workers while it restructures debt and its business operations.

Posted by mark @ 01:59 PM 0 Comments

Will the US soon be Bankrupt?

Bloomberg: Fed Defies Transparency Aim in Refusal to Identify Bank Loans

The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral

Posted by alan @ 01:21 PM 4 Comments

Fear of depression

M&M: Why Washington Cannot Prevent Depression

The dire reality: Washington is not God. It cannot save the world. It cannot prevent the next depression.

Posted by gardeniadotnet @ 01:11 PM 9 Comments

Bank executives enjoy SECRET 300,000 champagne party

daily Mail: Bank executives enjoy SECRET 300,000 champagne party

The Royal Bank of Scotland has blown 300,000 on a secret champagne junket for executives - less than a month after being given a 20billion handout by the taxpayer. Bankers and their partners enjoyed the lavish party to mark their 'success' after a year in which the collapse of the banking industry led to global financial meltdown. The supposedly stricken bank laid on the celebration amid extraordinary secrecy to try to prevent details reaching the public, even cancelling the original venue, a top hotel in Hampshire, and transferring the party 350 miles north to Edinburgh.

Posted by mark @ 12:53 PM 12 Comments

Car firm Pendragon stutters towards 30m loss

ldpbusiness: Car firm Pendragon stutters towards 30m loss

THE owner of the Stratstone and Evans Halshaw car dealerships warned today it expected to make losses of 30m this year. Nottinghamshire-based Pendragon also said it had made 2,500 jobs redundant over the past year equivalent to 20% of its workforce as it faces up to the impact of the economic downturn on the car market. It also expects that 75 of its dealerships will have closed between June 2007 and the end of this year, but it said the actions taken and the impact of recent interest rate cuts will lead to improved trading next year. Pendragon is heavily exposed to the domestic market, with all but a handful of its 300-plus dealerships based in the UK.

Posted by mark @ 12:43 PM 0 Comments

Hundreds of jobs lost at Greenberg Glass Emergency

ldpbusiness: Hundreds of jobs lost at Greenberg Glass Emergency

MOST of the 300 people employed by the collapsed Greenberg Glass Emergency have lost their jobs, administrators say. The firm is part of the Liverpool-based Greenberg Glass Group although its main base is in Liverpool. The groups other division - Greenberg Glass Contracts - was put into administration two weeks ago.

Posted by mark @ 12:41 PM 0 Comments

Fresh fears over Vauxhall jobs at Ellesmere Port

ldpbusiness: Fresh fears over Vauxhall jobs at Ellesmere Port

General Motors, which owns Vauxhall, employs about 3,700 workers at plants in Luton and Ellesmere Port, Cheshire, which produce about 215,000 vehicles a year. It needs at least 7bn to pay its bills each month, the Daily Mail reported.

Posted by mark @ 12:39 PM 0 Comments

this is pretty major...

reuters: Deutsche Post's US plans threaten 40,000 jobs-report

Some 40,000 Deutsche Post (DPWGn.DE: Quote, Profile, Research) in the United States are at risk as the group steps up plans to turn round its loss-making DHL express delivery company there, a German newspaper report said on Sunday.

Posted by mark @ 12:32 PM 0 Comments

Porsche earned eight times as much from its VW option trades than from actually selling cars

GulfNews: Porsche admits making $8.7b from VW option trades

Frankfurt: Porsche has fuelled the controversy over its stake building at rival Volkswagen by revealing it had earned eight times as much from its VW option trades than from actually selling cars. The company said it made 6.83 billion euros ($8.7 billion Dh31.93 billion) from trading in VW options, plus another 1 billion euros from the rising value of its Volkswagen stake, in the fiscal year that ended in July.

Posted by malct @ 12:26 PM 7 Comments

Ominous legal precedent

Telegraph: Lenders can sell borrowers' homes after two missed payments, High Court rules

"Familes risk losing the homes after missing just two mortgage payments, following a High Court ruling. The judgement reinforced a law from 1925 which allows lenders to sell the homes of people in arrears independently without needing to obtain a court order." In this case, the lender GMAC also stated "it would not have appointed a receiver had the case involved a residential home loan, rather than a buy-to-let mortgage. However, the ruling does give GMAC, along with all other mortgage lenders, the right to do so with a residential loan if they so wished."

Posted by quiet guy @ 12:13 PM 15 Comments

When will it be time to buy stocks and property again?

MoneyWeek: When will it be time to buy stocks and property again?

As consumers rein in their spending, companies are facing much tougher times, with bankruptcies soaring already. Thats bad news for stocks but it could be even worse for the property market...

Posted by damien @ 12:10 PM 1 Comments

Housing slump to continue to 2010, survey warns

contract Journal: Housing slump to continue to 2010, survey warns

Construction Confederation chief executive Stephen Ratcliffe said: It is clear that the dramatic downturn in the housing sector is now being followed by sharp falls in the commercial and industrial sectors. This is made all the more painful because contractors are caught in a pincer movement between falling demand and rising costs. The inevitable result is lower margins.

Posted by mark @ 11:58 AM 0 Comments

only 40%?? and the rest

Contract Journal: Fancy a 40% discount on a house? Then just wait, says the futures market

The futures market has downgraded it expectations for house prices which now points to a fall in cash terms of more than 40% from the peak in August last year to the bottom of the market in 2011. According to Tradition Future HPI an average house measured by the Halifax index will drop from 201,081 in August 2007 to 114,347 in October 2011. In real terms that is a drop of more than half.

Posted by mark @ 11:56 AM 3 Comments

These bailouts are now taking the P**S

cnn: AIG: Bailed out again

Fed restructures loan and creates 2 programs to rescue insurance giant from bad bets. Treasury buys $40 billion in shares. AIG quarterly loss: $25 billion.

Posted by mark @ 11:54 AM 0 Comments

Cracks showed long before it all caved in

Guardian: Cracks showed long before it all caved in

A triple blow came on Thursday: Halifax said house prices had tumbled by 15% in the year to October, while the Society of Motor Manufacturers said car sales were down 23%. And government data showed new housing construction orders had fallen by a third. The real economy is in trouble. Those Halifax figures were extraordinary in that they showed house prices had already fallen - in just a year - by more than they did in the housing bust of the early 1990s, in nominal terms at least.

Posted by rex @ 11:45 AM 0 Comments

This is even better than 'Palinfreude' - departing Bush-ites in deep doo-doo

Economix blog: Losing Is Tough; Selling May Be Tougher

An exiting army of Republican foot soldiers is faced with the prospect of selling its Washington-area homes in the worst housing bust since the Great Depression.

Posted by montesquieu @ 11:42 AM 0 Comments

What to watch this week: US tries to sell its exploding debt

Reuters: TREASURIES-Fall as Asian shares rally, auction eyed

Longer-dated Treasuries were vulnerable as $55 billion of supply hits the market this week in the Treasury's quarterly refunding, significantly above the $18 billion refunding in November last year. The government's sale of new issues will kick off later in the day with new three-year notes, followed by new ten-year notes as well as re-opened 30-year bonds later in the week. "The immediate focus of the market has shifted from the depth of the economic slowdown to the bond auctions this week, as the market wants to see how supply will impact the market in the long run," says Ryuji Shimai, a market analyst at Shinko Securities in Tokyo.

Posted by mountain goat @ 10:44 AM 0 Comments


FT: Santander to launch 7.2bn rights issue

This is a total surprise for the market, said a trader at brokerage Venture Finanzas. MADRID, Nov 10 - Santander has agreed to launch a 7.2bn ($9.24bn) rights issue, priced at a heavy discount to Fridays closing price, and postpone a series of asset sales until market conditions improve.

Posted by renting2 @ 10:23 AM 10 Comments

Tax revenue on life support

Telegraph: VAT must be slashed to avert crisis, warns CEBR

The government has discovered that they might not get anything with vat at 17.5 so they are going to cut it. The article points out that this will stimulate foreign manufacturing not the UK as we import everything. However, they are to be applauded for admittedly being forced into "cut public spending and taxes" mode, although they aren't actually cutting any public spending and they intend to increase it. I am guessing that our noble leaders are looking at some pretty dire news which we don't have yet.

Posted by stillthinking @ 09:58 AM 29 Comments

More money for AIG

Wall Street Journal: U.S. Throws New Lifeline to AIG, Scrapping Original Rescue Deal

The U.S. government reached a deal Sunday night to scrap its original $123 billion bailout of American International Group Inc. and replace it with a new $150 billion package.

Posted by gardeniadotnet @ 09:51 AM 3 Comments

Musical chairs

This is Money: Council house tenancies for life to be axed

Social housing shortage to be fixed by kicking people out of social housing to free up spaces (?). This is a good idea but depends on how many people fluked access to cheap social housing. Frank Dobson apparently became a cabinet minister while in subsidised public housing. I have personally felt it is a bit unfair that social housing once acquired, seems to be entirely unconnected with wealth. A more cynical explanation would be that they are trying to support the collapsing flat market by turfing out potential buyers. Anyway, I agree with this move. They might be too incompetent to actually achieve this of course, or it might take four or five years...

Posted by stillthinking @ 09:49 AM 6 Comments

HSBC Holdings plc - Q3

Reuters: HSBC's profit up on year, takes $4.9 billion hit

Europe's biggest bank HSBC Holdings said its profit in the third quarter was ahead of a year earlier as growth in Asia helped offset almost $5 billion in bad debts on U.S. home loans and asset writedowns. ... HSBC and other banks have reclassified how some assets are accounted for under new rules. Without the reclassification HSBC said its third-quarter writedown would have been $835 million higher.

Posted by 51ck-6-51x @ 09:46 AM 2 Comments

More rate cuts coming?

The Guardian: Bank likely to predict 1.5% fall in output

The Bank is expected to slash its growth estimates in its quarterly assessment of the economy on Wednesday, raising the prospect of still further interest rate cuts. In its August inflation report, the Bank had predicted modest economic growth of 0.5% next year and 2.25% in 2010. But conditions have deteriorated rapidly since then and the Bank is expected to make an abrupt U-turn. It is now likely to forecast a fall in output of 1% to 1.5% next year.

Posted by 51ck-6-51x @ 09:16 AM 4 Comments

I wonder where abouts the estate agents are in the "handouts" queue?

Times: Barack Obama backs plea for Henry Paulson to extend bailout to car industry

Barack Obama, the US President-elect, has thrown his weight behind a plea to Henry Paulson, the Treasury Secretary, to use some of his $700 billion (444 billion) bailout fund to rescue America's car companies. Nancy Pelosi, the Democrat Speaker of the House of Representatives, and Harry Reid, the Senate Majority Leader, are believed to have sent a letter to Mr Paulson asking him to offer a financial lifeline to General Motors, Ford and Chrysler.

Posted by flintster1994 @ 09:05 AM 0 Comments


The press Association: Brown seeks new world order

"As America stands at its own dawn of hope, so let that hope be fulfilled through a pact with the wider world to lead and shape the 21st century as the century of a truly global society."

Posted by sold out @ 08:16 AM 17 Comments

Gordon Brown blurts it out ...

BBC: PM to urge global finance reform

Taken straight from the BBC article: "And if we learn from our experience of turning unity of purpose into unity of action, we can together seize this moment of change in our world to create a truly global society," Mr Brown will say, according to pre-released extracts of his speech. The UK, the US and Europe are key to establishing a new world order, he will argue.

Posted by mark wadsworth @ 07:28 AM 5 Comments

Sunday, November 9, 2008

The reality for Iceland

the new york times: Stunned Icelanders Struggle After Economys Fall

REYKJAVIK, Iceland The collapse came so fast it seemed unreal, impossible. One woman here compared it to being hit by a train. Another said she felt as if she were watching it through a window. Another said, It feels like youve been put in a prison, and you dont know what you did wrong. This country, as modern and sophisticated as it is geographically isolated, still seems to be in shock. But if the events of last month the failure of Icelands banks; the plummeting of its currency; the first wave of layoffs; the loss of reputation abroad felt like a bad dream, Iceland has now awakened to find that it is all coming true.

Posted by sold out @ 10:51 PM 4 Comments

Things about to get very sticky indeed

Guardian: Buy one car, get one free: dealer's offer as desperation takes hold in showrooms

A car dealer desperate to shift stock has stunned the motor industry with an extraordinary offer: buy one car - and get another one free. Car industry experts described the offer as "almost unbelievable" and said it was a sign that the car market was in crisis. Struggling consumers fearful for their jobs have been deciding to hold on to their existing vehicles. This week alone four big car dealerships called in the administrators, with the loss of more than 400 jobs. More are predicted to fail over the next few months. It won't be just cars.

Posted by sovietuk @ 10:02 PM 12 Comments

Gulf hpc Dubai seeks to shore up real estate market

The Dubai government on Sunday formed a high level committee to tackle the impact of the widening financial crisis on the emirates once booming property market.

Posted by mken @ 09:23 PM 3 Comments

The city centre crash is even worse

Telegraph: Britain's city centres left reeling by house price crash

At an auction organised by Allsop last Monday, a flat in an upmarket area of Leeds that was bought for 400,000 in July 2007 sold for just 159,000. A reduction of 60pc. At the same auction a flat in the city centre of nearby Wakefield, bought for 189,000 on October 31 2007, sold for just 69,000. They were not the only bargains on offer. The auction was originally planned to run for two but was extended to four

Posted by aje141269 @ 08:45 PM 5 Comments

Allan Watt explains the coming Bretton's Wood's system in the longer perspective.

Allan Watt's: Bretton Woods Part 2:

The NGOs have got the Goods For the Second Part of Bretton Woods, Itemized, Too Many to List Them.

Posted by planning4acrash @ 08:19 PM 6 Comments

Propaganda or real deflation?

Daily Mail: Credit crunch Christmas: Bargain bonanza for shoppers as prices are slashed up to 70%

Figures from the British Retail Consortium show that electrical goods and fashions are cheaper than they were a year ago, with further falls in the pipeline. So, you will be able to cover yourself with fake fiber from China, but no chance of a healthy organic meal. Seems like propaganda based on dud BOE inflation stats. Tho, I do wonder if Estate Agents will follow suit!

Posted by planning4acrash @ 07:49 PM 36 Comments

Obama Considering Jon Corzine, Another Former Goldman Sachs Chief Executive, For Treasury Secretary

New Jersey News: Corzine is being considered for Treasury secretary, two N.J. Dems say

Change can happen. Change we need. Yes, friends, change is having different former CEOs of Goldman Sachs serving as Treasury Secretary. Gov. Jon Corzine, a multimillionaire and former Wall Street chief executive, is being actively vetted by the Obama transition team as a possible candidate for Treasury secretary in the new administration, two New Jersey Democrats familiar with the process said early this morning.

Posted by planning4acrash @ 07:45 PM 3 Comments

Infaltion or Deflation? You decide.

Telegraph: The day the Bank of England cut interest rates to 3pc is the day it lost its marbles

As regular readers will know, for months - years! - I've banged on about the inflationary dangers of cutting interest rates too sharply. In August 2005, the Bank of England's Monetary Policy Committee lowered rates to 4.5 per cent, when CPI inflation was on its 2.0 per cent target - but definitely on the way up. Back then, I accused the Bank of treading "a perilous path", while risking "a further acceleration in the growth of credit". In December 2007, during the first wave of the sub-prime crisis, the Bank cut rates to 5.5 per cent, with the CPI already at 2.1 per cent. Even in those tranquil times, interbank rates still rose despite the MPC's rate cut - and I observed the Bank had "shot its bolt".

Posted by flintster1994 @ 05:34 PM 9 Comments

And these people are supposed to be experts?

Times: Land Securities drops demerger as losses soar

LAND SECURITIES is expected to lay bare the full extent of the commercial-property bloodbath this week when it puts plans for a demerger on ice and unveils a shock 20% drop in the net value of its assets. A virtual shutdown in commercial-property lending has combined with falling occupier demand and a steep decline in rents to push values down sharply since the collapse of Lehman Brothers in September. Analysts were this weekend slashing forecasts for Land Securities half-year results to show a fall of more than 20% in its net asset value per share from 19.56 to between 15 and 16.

Posted by mark wadsworth @ 05:13 PM 0 Comments

There is cash in houses-from depression

Yahoo: Cash found in Ohio house's walls becomes nightmare

CLEVELAND A contractor who found $182,000 in Depression-era currency hidden in a bathroom wall has ended up with only a few thousand dollars, but he feels some vindication.

Posted by mark @ 04:37 PM 7 Comments

Blanchflower branches out as he forsees redundancy, calling everyone fat b*stards!

Guardian: We're all getting fatter and it may be contagious, claim economists

Obesity could be socially contagious, according to new research by two of Britain's leading economists. Professor David Blanchflower, who sits on the Bank of England's monetary policy committee, and Professor Andrew Oswald, an expert on the economics of wellbeing, claim that the nation's expanding waistline could be down to people subconsciously trying to 'keep up with the weight of the Joneses'.

Posted by flintster1994 @ 03:15 PM 24 Comments

Two-mortgages Prezza

Daily Mail: Credit crunch will lose John Prescott 200,000 on luxury London flat

John Prescott's attempt to follow Tony Blair in becoming a property magnate is lying in tatters as he falls victim to the housing crash. A two-bedroom Central London flat the former Deputy Prime Minister bought for 740,000 with a mortgage last September has fallen in value by 100,000, say analysts. It is likely to have dropped by more than 200,000 in the next 18 months. At 70, Mr Prescott is unusual in being burdened by two mortgages. His 8 bedroom Hull home, which has turrets at the front and back, is worth about 450,000.

Posted by little professor @ 01:44 PM 15 Comments

More Sound Fundamentals

Telegraph: City of London recession to trigger 11bn tax revenue 'black hole'

As investment banks, hedge funds and private equity firms three of the principal drivers of the Square Mile's explosive growth of recent years cut tens of thousands of jobs, the Centre for Economics and Business Research (CEBR) expects the Treasury to face an overall City-generated taxation "black hole" of more than 10bn.

Posted by alan @ 01:13 PM 13 Comments

Free Cheap Giveaway Money Worldwide Yet No Fix!!

bloomberg: China Announces 4 Trillion Yuan Economic Stimulus

China announced a 4 trillion yuan ($586 billion) stimulus plan to spur expansion in the world's fourth-largest economy, helping sustain global growth as the U.S., Europe and Japan teeter on the brink of recession. The funds, equivalent to almost a fifth of China's $3.3 trillion gross domestic product last year, will be used by the end of 2010, the Beijing-based State Council said today on its Web site. China will adopt a ``pro-active fiscal policy'' and pursue a ``moderately loose'' monetary policy, it said.

Posted by mark @ 12:55 PM 5 Comments

They let the cat out the bag here...

Gulf News: UK's spending plan unlikely to bolster economic revival

I don't think that an article warning of the consequences of international investors pulling out of the UK being published in Gulf News is particulary good news... Apparently without the global capital markets we are another Iceland as we already completely dependant on them to stay afloat. There seems to be an inherent contradiction here though, in that while arguing against deficit spending as a cause of confidence breakdown and fund withdrawal->Iceland, the author suggests monetary policy (slashing interest rates) is a better option ignoring the fact that lower interest rates will also cause funds to be pulled out of the UK, as they search for a better return elsewhere. Perhaps all we can do now is cross our fingers.

Posted by stillthinking @ 12:19 PM 3 Comments

Have you ever heard of anything so funny?365,000 for a flat in Dundee! Lol

BBC News: Luxury apartments 'will go ahead'

The firm behind a multi-million pounds luxury housing development in Dundee has promised customers that the project will go ahead. Fears had been raised about the future of the 202 Riverside apartments after developers Duncarse shut their city office and phone calls were unanswered.

Posted by flintster1994 @ 11:17 AM 14 Comments

Business school suggests businesses must become more ethical to survive

Harvard Business Review: Why Traditional Recession Tactics Are Doomed To Fail This Time

How should boardrooms respond to the macro crisis? Is it just a case of recession-as-usual: budget-paring, personnel-slashing, and portfolio-trimming? Not a chance. The tactics of recession-as-usual are neither necessary nor sufficient for firms to weather the global economic superstorm - because it's no ordinary squall, but a once-in-a-lifetime gale ripping up the very foundations of the global economic order. eg. if Starbucks wants to grow in developing countries, it cannot just rely on a handful of new stores serving fatter-margined deluxe water to a new global bourgeoisie -- rather, to make growth sustainable, Starbucks must reinforce and support fair trade, responsible relationships, and account not just to count profits

Posted by doom&gloom @ 10:31 AM 4 Comments

Countrywide estate agents downgraded

Times Online: Countrywide joins company danger list

"FEARS are mounting over the financial health of the UKs biggest estate agency, Countrywide owner of Mann , Bairstow Eves and John D Wood, the west London chain."

Posted by dhe @ 09:49 AM 0 Comments

New! Transparent Banking! Buy Now!

The Times: Lloyds TSBs secret 10bn loan to HBOS

LLOYDS TSB is secretly providing financial support to HBOS through a 10 billion loan facility, in a covert agreement between the two banks.

Posted by gardeniadotnet @ 08:58 AM 4 Comments

This (HP) sucker's going down

Times Newspaper: Banks defy Brown over new rate cut

The banks will not and cannot reduce IRs any further. "HIGH STREET banks have told Alistair Darling that they will not pass on any further interest rate cuts to consumers and businesses. " The VIs realise a short and very sudden HP correction followed then a return to business as usual with a return of comission revenue is the bext outcome for them. So all you property moguls, hold onto your hats, this sucker's going down as Dybya would say :)

Posted by voiceofreason @ 08:51 AM 9 Comments

Sudden consolidation raises questions about regulation, consumer impact

MSNBC: Just 3 superbanks now dominate industry

So then, the "crisis" caused by the derivatives created by these banks was used to consolidate their power, whilst the central banks who created the money that fueled the boom, via the Bretton's Wood break with gold during the 1970's, have gained control of the major banks via IMF/World Bank style conditions forced onto the large investment banks. This is a marriage of government and corporations, it is corporatism, or, corporate fascism. Given that we need regulation of money to maintain our wealth, our wealth does not appear safe in this circumstance.

Posted by planning4acrash @ 01:08 AM 10 Comments

Credit crunch? Meet the Nation Crunch.

Plata: The strange case of falling international reserves

If the Reserves are no longer growing but diminishing, this might indicate that the exporting countries are no longer buying and accumulating more US, British and European debt. If they are not accumulating more foreign currency bonds and debt, then the fiscal deficits of the US, the Brits and the European Union countries are no longer being funded especially important to the US, which is running an immense fiscal deficit, what with the US Treasury going into debt like a drunken sailor on account of the need to bail-out all and sundry debtors. What do they do when this occurs? The only thing they can, buy their own treasury bonds, monetize the debt, causing huge inflation in an economic death throw.

Posted by planning4acrash @ 12:27 AM 6 Comments

Saturday, November 8, 2008

Showdown (Grand Finale) approaching

Banks defy Gordon Brown over new interest rate cut: Times

High Street banks have told Alistair Darling that they will not pass on any further interest rate cuts to consumers and businesses. At an emergency meeting, bankers warned the chancellor that they were not charities. They said they could not afford further to reduce mortgage payments and interest rates to businesses if, as expected, the Bank of England continued to cut rates as the economy fell deeper into recession.

Posted by sovietuk @ 10:37 PM 7 Comments

Even a broken clock is right twice a day

Market Oracle: UK housing forecasts

What is the value of typically the same housing bear market / crash forecast that is rolled out every few months? This article takes a look back at Capital Economics that has been grabbing the headlines of late of having forecast the UK housing market crash of 2008. However if you dig a little deeper the actual accuracy of Capital Economics housing market forecasts evaporates into thin air. It's not Capital Economics fault for being crap at forecasting UK house prices, but rather the mainstream media not having any clue what they are reporting on instead of churning out the same repetitive drivel labeled as financial journalism

Posted by little professor @ 06:28 PM 10 Comments

Interesting article... might solve inflation too..

bloomberg: Forget Corn: Mushrooms May Hold Key to Energy Crisis

``In 2010, we will have enzymes commercially available and a process that will allow our customers to produce at around $2.50 per gallon,'' Novozymes Chief Executive Officer Steen Riisgaard said in a September interview in Copenhagen. *******Not in the UK, we will still get screwed on fuel******

Posted by mark @ 06:19 PM 6 Comments

Dublin's Early Christmas Lights Fail to Ease High Street Gloom

bloomberg: Dublin's Early Christmas Lights Fail to Ease High Street Gloom

Christmas is coming early to Dublin this year as city officials try to dispel the gloom from the country's first recession in two decades.

Posted by mark @ 06:18 PM 1 Comments

Silver lining to houseprice falls

bbc: Price falls cut inheritance tax

Inheritance bills can be cut if property left in a will falls in price after the date of death. With house prices down 14% in a year and share prices falling by 30%, estates valued a year ago can be worth far less when the tax has to be paid. The Revenue may be sympathetic and make some cut in the tax. Alternatively, the tax must be cut if the executors sell property within four years or shares within 12 months at a lower price than the valuation.

Posted by mark @ 06:06 PM 5 Comments

19 banks failed this year

CNN: 2 more banks go belly-up

Regulators close down Franklin Bank, a Houston bank with $5.1 billion in assets, and Security Pacific Bank of California, with assets of $561 million, raising the tally of failed banks this year to 19.

Posted by mark @ 05:50 PM 0 Comments

Ignore the headline - somebody's been cribbing our own conclusion

Guardian: Tesco boss put pressure on Bank to cut rate

"The latest forecast from Tradition Future HPI, which uses the futures market as a guide to where house prices are heading, is its grimmest to date. It predicts the average house price will fall to 114,347 by October 2011, a drop of 43% from the peak in August last year." Which is in line with the average 42% fall that we predicted in the fun online poll on this site.

Posted by mark wadsworth @ 04:52 PM 8 Comments

Tracker mortgage news

Times: Outlook for tracker mortgages not so bright

For many households the benefits of yesterday's mortgage cuts could be modest. The 4.2 million homeowners on existing mortgage deals pegged to the base rate - about a third of the UK mortgage market - will be celebrating this weekend. Their mortgage repayments are guaranteed to drop on December 1.

Posted by kaz @ 03:36 PM 11 Comments

The crash to end crashes

Guardian: Bringing the house down

... and hence housing booms. Interesting perspective not really discussed before.

Posted by letthemfall @ 01:08 PM 8 Comments

I've never seen so many bankers, lawyers, doctors and actors'' with valuable things to pawn

Bloomberg via TS: Down and Out in Beverly Hills: Rolexes, Picassos Hit Pawnshops

Beverly Loan is a pawnshop. Not just any pawnshop, but the kind that caters to people who hock Cartiers, Harley- Davidsons and Oscar statuettes when they need cash. They really need it now, Tabach-Bank said from a third-floor office, protected by bulletproof glass, off his showroom in the Bank of America building near Rodeo Drive. ``I've never seen so many bankers, lawyers, doctors and actors'' with valuable things to pawn, he said. He pointed to an 18-carat white gold bracelet with 69 diamonds ($2,900) and an 18-carat yellow gold Rolex Yachtmaster II (``a steal'' at $18,500). With credit drying up at regular lenders, ``in many cases now, we're not just the bank of last resort,'' Tabach-Bank said. ``We're the bank of only resort.'' also at TS

Posted by malct @ 12:52 PM 0 Comments

All you need is cash

Guardian: The true cost of borrowing

"Homeowners are kidding themselves if they believe the banks are about to provide a bonanza of cheap mortgage deals on the back of lower base rates. Banks are not bust one minute and fountains of cheap money the next. It couldn't, and shouldn't, work like that."

Posted by letthemfall @ 12:47 PM 3 Comments

Two More For The Grinder (yawn)

Wall Street Journal: Regulators Seize Houston, Los Angeles Banks

Regulators seized a $5.1 billion Houston bank chaired by mortgage bond pioneer Lewis Ranieri and a small bank in Los Angeles Friday, raising the number of failures this year to 19 and showing how even the most experienced financial executives are struggling to survive the current crisis.

Posted by renting2 @ 12:07 PM 0 Comments

Cheaper mortgages - but only for the few

FT: Property will stay in the doldrums

"We endlessly hear, not least from Gordon Brown, about how there is massive pent-up demand for property in the UK. But this isnt a concept that makes any sense in economic terms: demand isnt demand unless it is backed by cash."

Posted by letthemfall @ 11:38 AM 3 Comments

Around 30 lenders instantly withdrew their tracker mortgages after the 1.5% cut


Manipulation of interest rates is fixing of the price of money. On private markets, money is expensive because most institutions are bankrupt. So, government are artificially depressing the price of money to sustain low sterling prices. BUT, only the favored institutions can get enough money from the BOE to track base rates, so, this price fixing results in scarcity of money at base rate. And, don't think rates cannot go negative. Card issuers are beginning to charge for withdrawals, charge for accounts, charges plus 0% interest rates equal negative interest rates. Only banks with direct links to BOE liquidity can continue trading. Only those financiers allied to the British Establishment survive & then later purchase assets at pennies on the pound; scorched earth policy.

Posted by planning4acrash @ 11:07 AM 4 Comments

This will weaken the high street lenders - will it tip some over the edge?

Telegraph: Savers rush for best deals as banks forced by Alistair Darling to cut rates

Hundreds of thousands of savers have rushed to move their funds to the few remaining high-paying deposit accounts, after the dramatic Bank of England rate cut left the savings market in chaos.

Posted by paul @ 10:19 AM 25 Comments

It's Knuts to Phil and Kirsty

The Guardian: Location, Location, Location, but not in Knutsford

Don't get me wrong, Phil Spencer was as enjoyable to watch as his property price predictions were bonkers - but now the market has bitten back and Phil's company is shutting up shop in the North East. BTW has anyone asked David Cameron whether Kirsty is still advising the Tories about housing?

Posted by freewheelin' franklin @ 09:01 AM 0 Comments

The goverments final roll of the dice to revive a bust housing market

TimesOnline: Banks buckle under pressure from Alistair Darling

The banks caved in to government pressure to reduce mortgage costs yesterday, but immediately sounded warnings that they would refuse to pass on any further interest rate cuts.

Posted by v stor @ 08:26 AM 0 Comments

Friday, November 7, 2008

US Dollar to collapse as China and the world grinds to a halt

Market Oracle: How to Survive the Coming US Dollar Collapse

"I would like to point out that in the last great depression in the US in the 1930's, we did not have a combination of a currency crisis with the economic crisis. The USD, although it fell compared to gold, held up well. Deflation increased the value of anything called cash, including gold. This time, the outcome will be different. This time, the US faces an economic depression AND a currency crisis soon after." He recons 2-4 years time, I recon October 2009.

Posted by mountain goat @ 08:52 PM 11 Comments

Capital Economics UK Housing Market Forecasts

The Market Oracle: Capital Economics UK Housing Market Forecasts

What is the value of typically the same housing bear market / crash forecast that is rolled out every few months? This article takes a look back at Capital Economics that has been grabbing the headlines of late of having forecast the UK housing market crash of 2008. However if you dig a little deeper the actual accuracy of Capital Economics housing market forecasts evaporates into thin air.

Posted by nadeem walayat @ 06:05 PM 0 Comments

The Bankruptcy Bubble Financial crisis: Almost 300 people a day declared insolvent

The number of individual insolvencies rose to 27,087 in England and Wales in the third quarter - an 8.8 per cent increase on the previous three months and 4.6 per cent more than during the same period a year earlier, according to the Insolvency Service. At the same time, the number of companies put into administration rose by more than 50 per cent year-on-year to 1,007 in the three months to the end of September. Financial experts warned the rise is just the beginning, with worse figures expected next year as the looming recession unfolds.

Posted by plato @ 06:00 PM 4 Comments

Vultures still at it

This Is Money: Buy-to-let clubs target sale-and-rent-back

More than 20 buy-to-let property clubs are encouraging members to strike controversial sell-and-rent-back deals with desperate homeowners trying to avoid repossession. Desperate home-owners are made a discounted offer on their home with a contract that allows them to carry on renting it. However, they have been critcised for frequently offering only 60% of the value and the rental contracts are often not as secure as is claimed. Some of the property courses suggested that investors could extract more money from tenants by selling an option to buy their house back. Another company advised kicking tenants out after six months to lessen risks of rent defaults.

Posted by little professor @ 05:21 PM 10 Comments

Just 48 shopping days to Christmas left, all days being shopping days now.

Evening Standard: Fight back - we don't all have to shop till we drop

Except it's visibly not working this time, interest rate cut or no. If you wander into the stores, there may still be people there but they are behaving quite differently. They have an air of detachment, even disaffection. They pick items up, look them over, check the price, and then put them down. They often head back out of the store empty-handed, their urge to buy defeated by their wish to save money. That's the West End. The scene at Westfield is different.

Posted by malct @ 05:02 PM 0 Comments

UK Housing Market 15% Crash Forecast Fulfilled

The Market Oracle: UK Housing Market 15% Crash Forecast Fulfilled

The latest house price data by the Halifax shows that UK house prices have fallen by more than 16% from the peak of August 2007 and October 2008. The crash in both US and UK housing markets over the last 12 months was increasingly followed in September by the bankrupt banks collapsing one by one like a chain of dominos with governments rushing to their rescue during September and early october to the tune of unheard of amounts of tax payers money that now runs to collectively over $3 trillion. This first triggered near panic interest rate cuts in October of 0.5% which was yesterday followed by true panic cut of 1.5% which takes UK interests rates down to 50 year lows.

Posted by nadeem walayat @ 04:23 PM 0 Comments

Banks and BSs have now capitulated, allegedly

Metro: Lenders vow to pass on interest rate cut

Further to my earlier post "What's in it for Lloyds TSB?", the banks and BSs have staged a tactical retreat and cut SVRs. But no doubt they will make it more difficult for people to qualify for SVR, via lower maximum LTV or income-multiples. We'll see.

Posted by mark wadsworth @ 03:02 PM 36 Comments

Will ford cut Jobs in the UK too?

CNN: Ford posts $3B operating loss

Automaker announces further job cuts, other cost savings as it tries to stem losses.

Posted by mark @ 02:48 PM 2 Comments

House price crash cancelled (part 2)

London Evening Standard: Today's hot news: invest in bargain bricks and mortar

"THE sensible response to the base rate reduction is to take your savings out of the banks and building societies and put it into property."

Posted by papabear @ 02:33 PM 0 Comments

House price crash cancelled (part 1)

London Evening Standard: Agents say cut will kick-start house market

Peter Rollings, managing director of west and central London agent Marsh & Parsons was also optimistic. He said the huge fall in rates was "a pretty good reason to get back in the market". Mr Rollings said he had emailed all 3,780 buyers registered with the firm, urging them to make their move before prices start to go up again.

Posted by papabear @ 02:31 PM 0 Comments

Apparently there is a housing shortage

Guardian: We still need places to live

Apparently there is a housing shortgage, and we need to build lots more houses, or house prices will shoot back up again. Where I live, there are between 6 and 300 homeless people, depending on who you ask, and around 1500 new build flats being constructed at the moment. Even if all the homeless people do get housed, and I doubt they will, who's going to buy the remaining places. Not to mention that there are a lot of empty places already.

Posted by jonb @ 01:50 PM 18 Comments

US job losses much worse than thought; Payrolls fall 240,000

MarketWatch: Unemployment rate leaps to 14-year high 6.5%

The U.S. unemployment rate jumped to a 14-year high of 6.5% in October as nearly a quarter million jobs were lost, the Labor Department reported Friday. U.S. nonfarm payrolls fell by 240,000 in October following a revised decline of 284,000 in September, which was the largest job loss in seven years. So far in 2008, a total of 1.18 million jobs have been lost, with 651,000 coming in just the past three months.

Posted by gardeniadotnet @ 01:46 PM 2 Comments

What's in it for Lloyds TSB?

Metro: How the mortgage rates compare

Here is how the standard variable rates (SVRs) of the UK's largest banks and building societies compare. Halifax - 6.50%. Abbey - 6.94%, dropping to 5.44% on December 1. Nationwide - 6.19%. Britannia Building Society - 6.30%. RBS - 6.69%. Cheltenham & Gloucester (Lloyd's TSB) - 6.50%, dropping to 5% on December 1. Woolwich (Barclays) - 6.64%. First Direct (HSBC) - 5.50%. Apart from HSBC and Abbey who are playing their own game, Lloyds TSB are the only ones to meekly drop their rates as commanded. Is it possible that this is part of the quid pro quo for the gummint nodding through the HBOS take-over? In the long run, mortgage interst rates = savings interest rates plus one or two per cent. Who is going to put their savings with Lloyds TSB for 1.5% or 2% less than they can get at Barclays ?

Posted by mark wadsworth @ 01:10 PM 16 Comments

Is Britain heading for a 0% base rate?

MoneyWeek: Is Britain heading for a 0% base rate?

Yesterday's huge interest rate cut signals a long and painful recession for the UK. We've seen something similar before - in Japan, where rates fell to 0%. That resulted in nearly two decades of stagnation. Could Britain be in for the same?

Posted by damien @ 12:59 PM 3 Comments

The real reason for the bailouts

The Nation: The Bailout: Bush' final pillage

The purpose never was to get loans flowing. It was always about the state becoming a giant insurance agency for Wall Street - a safety net for those who need it least, subsidised by those who need it most

Posted by icarus @ 12:56 PM 3 Comments

How Ridiculous

Telegraph: Bank bosses summoned to Treasury and ordered to lower interest rates

Have you ever heard of naything so stupid. Independant banks which 4 weeks ago admitted being bankcrupt are now being orderd to lend money with NO profit margins in a housing market that is dropping ... FAST. I just hope that they do not listen and why should they - we are surposed to be a democratic capitalist country not a socialist dictatorship! Everyday I get up and wonder where you can go in the world for a sane normal life.

Posted by waitingfor hpc @ 12:43 PM 11 Comments

Your money IS guaranteed but good luck getting it back

BBC Business: Icesave refunds will take weeks

Is this the first signs of reinbursement taking months to go through, I tought it would be a matter of days.... delays, delays..... I think the ability to get your hands on your money when YOU want it will make a farce of this compensation scheme. Is NS&I the only safe place except under the matress? (pays about the same)

Posted by pete @ 12:37 PM 0 Comments

Soars like an

Yahoo: Number Of Bankruptcies Soars

The number of people declared insolvent in England and Wales rose by nearly 9% in the third quarter of the year. A total of 27,087 people were made insolvent during the three months to the end of September. That is 8.8% more than in the second quarter of 2008 and 4.6% more than during the same three months of 2007.

Posted by mark @ 12:04 PM 1 Comments

Properties lose 30k from value

THE SUN: Properties lose 30k from value

Excellent it is in the SUN.....

Posted by mark @ 12:02 PM 4 Comments


Telegraph: House prices falling by over 900 a week

The average home lost 4,000 in value in the past month 923 a week. Prices are falling far faster than in the early 1990s, when the crash was relatively steady, spread over nearly three years. Economists say house prices have not fallen as sharply as the current 15 per cent a year since at least 1931. Some 45,000 homes are expected to be repossessed this year, but this number is expected to rise, forcing prices still lower and pushing thousands into negative equity.

Posted by sovietuk @ 11:03 AM 28 Comments

Consumer spending represents two-thirds of the nations economic activity

New York Times: Retailers Report a Sales Collapse

Sales at the nations largest retailers fell off a cliff in October, casting fresh doubt on the survival of some chains and signaling that this will probably be the weakest Christmas shopping season in decades.

Posted by malct @ 11:03 AM 4 Comments

Naomi Klein - passes on such an enormous debt burden to the next administration

OpedNews: Real Change Depends on Stopping the Bailout Profiteers

Not only does it transfer billions of dollars of public wealth into the hands of politically connected corporations (a Bush specialty), but it passes on such an enormous debt burden to the next administration that it will make real investments in green infrastructure and universal health care close to impossible. To understand the meaning of the U.S. election results, it is worth looking back to the moment when everything changed for the Obama campaign. It was, without question, the moment when the economic crisis hit Wall Street. Up to that point, things weren't looking all that good for Barack Obama. The Democratic National Convention barely delivered a bump, while the appointment of Sarah Palin seemed to have shifted the momentum decisively over to John McCain.

Posted by malct @ 10:58 AM 2 Comments

The numbers just keep on increasing

Bloomberg: U.K. Personal Insolvencies Rise as Crisis Spreads

The number of individuals in England and Wales no longer able to meet debt obligations rose 8.8 percent from the second quarter to 27,087, the government Insolvency Service said today on its Web site. Company liquidations increased 10.5 percent.

Posted by sovietuk @ 10:49 AM 0 Comments

Coming to UK NOW....

CNN: Mounting job losses fueling foreclosures

Bad loans were originally the main culprit driving homeowners into foreclosure. But now it's unemployment that's fueling the mortgage meltdown.

Posted by mark @ 09:59 AM 0 Comments

Taylor Wimpey to meet holders of its 450m Eurobond debt

contract journal: Taylor Wimpey to meet holders of its 450m Eurobond debt

The house builders had spread the message that the holders were untraceable, which in turn led to the possibility that they were wanting to take a hard line and push the group into administration or receivership.

Posted by mark @ 09:57 AM 2 Comments

Galliford Try makes 50m write-down on housing landbank

contract journal: Galliford Try makes 50m write-down on housing landbank

Galliford Try will write down 50m for its half-year results to 31 December 2008 because of the dwindling value of its landbank. The construction and house building group said it decided to review the value of the land on its balance sheet because of the continuing deterioration in the housing market.

Posted by mark @ 09:56 AM 1 Comments

The property rot will eat away Chancellor Alistair Darling's 37billion rescue package.

Daily Mail: Lenders may have to raise billions more, City analyst warns

British banks may need to raise billions more in fresh capital to see them through the gathering economic crisis, a leading City analyst has warned. In a bleak prognosis for the UK banking industry, Jonathan Pierce of Credit Suisse said Britain's main High Street lenders are 'staring into the abyss'. The economy is 'getting worse, faster than we thought', with spiralling losses from soured loans threatening to erode the newly replenished cash buffers of Britain's biggest domestic banks, said Pierce. Coming on a day that the Bank of England hit the panic button with an unprecedented one-and-half-point interest rate cut, Pierce's warning cemented fears that lenders will suffer for a long time to come.

Posted by mytimeisnigh @ 08:56 AM 3 Comments

When in doubt, blame the banks

Independent: When in doubt, blame the banks

Dominic Lawson gives an alternative view to the Government and media obsession with dropping interest rates.

Posted by becky @ 08:35 AM 2 Comments

Nov. 7 (Bloomberg) -- The age of free money may be at hand.

Bloomberg: Zero Rate World May Lie Ahead as King, Trichet Cut (Update1)

As major central banks slash interest rates with unexpected speed, benchmark borrowing costs are now below core inflation for the first time since the early 1980s, and policy makers are signaling they will go deeper. Yesterday's cuts by the Bank of England and European Central Bank, which came with the Federal Reserve and Bank of Japan on the cusp of zero rates, are a bid to shock life back into their recessionary economies and strained money markets. It may be an uphill battle as consumers and businesses show greater interest in saving than spending, and banks hoard capital rather than lend it. ``It's the race to zero,'' said Stewart Robertson, an economist at Aviva Investors Ltd. in London, which manages about $230 billion. ``There's no obstacle to more rate cuts.''

Posted by jack c @ 08:32 AM 7 Comments

Queen asks why nobody noticed the problems sooner.

press association: Queen brands credit crunch 'awful'

She does not read this site I guess, then she would know lots of us did!

Posted by suzyandjoe @ 08:22 AM 1 Comments

Still being too optimistic

Times: Five experts predict how much further prices will fall

When will the house price crash end and how far will prices fall? Should buyers grab a bargain now, or wait another year, or even longer. Times Money asked five experts for their predictions on how far prices will fall before they reach rock bottom. Martin Ellis (Halifax): -10% Jonathan Davis ( -35% Yolande Barnes (Savills): -10% Nick Bate (Merril Lynch): -10% Nicholas Leeming ( -10%

Posted by little professor @ 08:20 AM 19 Comments

The axe looms at the Times

The Age Newspaper: Murdoch to slash jobs at papers

If Rupert Murdoch is having a cull, surely Anatole Kaletsky/David Smith/Ann Ashworth and other assorted numpties at the Times must be expecting their P45s. If he doesnt have these permabulls (who have made the business and economics sectors of his premier newspaper a laughing stock) in his gun sights, then the old crocodile surely must have lost the plot.

Posted by van hoogstraten @ 04:56 AM 0 Comments

The Australian economy will grow 1.8% in fiscal 2009, according to the IMF, as a $10.4 billion

age: Investors should sell Australia's currency against the US dollar because it may lose 29% as it slumps toward a record amid a global recession, Morgan Stanley said.

The International Monetary Fund yesterday predicted that global growth will slow to 2.2% next year amid the first simultaneous recession in the US, Japan and euro region in the post-World War II era. A growth rate of 3% or less is "equivalent to a global recession,'' the IMF said as recently as April.

Posted by big chris @ 04:37 AM 1 Comments

Facing up to reality

BBC News: Facing up to house price deja vu

Faced with a nosedive in UK house prices, some homeowners are suggesting we learn from the past to prepare for the future.

Posted by quiet guy @ 01:48 AM 6 Comments

Thursday, November 6, 2008

Those were the days eh??

Timesonline: The five craziest mortgage deals of all time

Will we ever see the like of these again? - Definitely if GB has anything to do with it.

Posted by bystander @ 07:55 PM 1 Comments

Who Knew, Who Decided and When?

FT: UK interest rates cut to 3%

"The Bank of England slashed interest rates by 1.5 percentage points to 3 per cent in a wholly-unexpected move" Stand back and consider. Unexpected to GB and AD??????????????? Was it decided days ago? Is a decision like this tenable without approval?

Posted by renting2 @ 07:29 PM 0 Comments

More Duckin' and Divin'

Bloomberg: Credit Swap Disclosure Obscures True Financial Risk

The most comprehensive report on unregulated credit-default swaps didn't disclose bets in the section of the more than $47 trillion market that helped destroy American International Group Inc., once the world's biggest insurer. MBIA and Ambac, previously the world's two biggest bond insurers, lost their top AAA ratings earlier this year because of potential losses on credit swaps sold to guarantee CDOs backed by home loans. Moody's Investors Service cut New York-based Ambac's bond insurance rating four levels yesterday to Baa1, three steps above junk, because of potential losses on the derivatives.

Posted by alan @ 07:19 PM 1 Comments

How many hours do you need to pay your hideously large mortgage? Part 2

The Onion: Struggling Americans Forced To Work Extra-Dimensional 4th Shift

CINCINNATIAccording to a report released Monday by the U.S. Department of Labor, skyrocketing consumer prices coupled with stagnant wages have forced many Americans to work a fourth shift in another dimension in order to make ends meet. The extra-dimensional shift, which occurs on a time axis at right angles to that of normal reality, allows American workers to supplement their incomes, while still maintaining the morning, afternoon, and overnight shifts they need in order to stave off bankruptcy. "The maximum 24 hours of possible work time offered by our plane of existence is simply not enough to provide a living wage in the current economic climate," Labor Secretary Elaine Chao wrote in a letter introducing the report.

Posted by malct @ 06:26 PM 0 Comments

Cost-cutting TfL axes seven infrastructure projects

contract journal: Cost-cutting TfL axes seven infrastructure projects

Seven major infrastructure projects will be cut as Transport for London (TfL) tries to save 2.4bn to pump back into the Tube. Construction of a new Thames Gateway Bridge, extensions to Croydons Tramlink and the mythical Oxford Street tram will all go in favour of increasing capacity on the tube by 30%. Unveiling TfLs 10 year business plan, London mayor Boris Johnson said the projects, all of which are still in design stages, were not being scrapped but let go because they lacked funding for completion. I have not nicked, axed or whacked any scheme, he said. I just wont continue to waste our money, and taxpayers money, on consultants and planners [working] on schemes [that are] either impractical or that simply do not have enough funding.

Posted by mark @ 06:19 PM 6 Comments

Banks now refusing construction companies any new loans

contract journal: Banks now refusing construction companies any new loans

Contractors say that while lending banks are honouring existing loan agreements, no fresh lending is available.

Posted by mark @ 06:14 PM 1 Comments

Steel giant plans to cut 400 jobs

BBC wales: Steel giant plans to cut 400 jobs

Corus has announced plans to cut 400 jobs from its distribution business. The proposed job losses include 95 at the steel giant's plant at Shotton, Deeside and 50 in south Wales. Another 100 jobs will go at eight sites in the West Midlands and 50 in two locations in Leeds.

Posted by mark @ 06:12 PM 0 Comments

A day in an EA

Daily Mail online: Hate estate agents? How about spending a day with them?

A frontline dispatch reveals how smug, pushy agents have been brought low by the credit crunch. 'It's tough making these calls, but your house is worth only what someone is prepared to pay. And we need to get to a point where we're receiving offers.' an EA says.

Posted by peter_2008 @ 06:10 PM 3 Comments

Thank God!!! We are partially saved!

Yahoo: Palin 'Said Africa Was A Country'

Palin 'Said Africa Was A Country'

Posted by crash n burn @ 05:40 PM 10 Comments

Will you be collared by your tracker?

Telegraph: Interest rates: How low can your mortgage go?

The Bank of England's shock decision to cut interest rates to 3pc will be welcome news to borrowers with tracker mortgages. But some of these loans have a sting in the tail: they stop tracking the base rate once it falls to a certain level.

Posted by whostolemyendowment @ 05:09 PM 2 Comments

Buy an overpriced house and some blokes sob story (oh and get stuck with some bird too).

BBC News: Buy pet parrot get our house free

A Lanarkshire pet owner is selling what could be the world's most expensive parrot

Posted by smasheroonie @ 04:57 PM 0 Comments

Sterling Still Holding

MarketWatch: Euro down, pound edges up after rate cuts

"The massive cut by the BoE may ultimately prove positive for the pound, as currency markets begin to factor in the simulative effects of lower U.K. rates," said Boris Schlossberg, director of currency research at Global Forex Trading in New York. Still, the potential for a continued rise in risk aversion amid unsettled financial conditions is likely to leave the euro and the pound under pressure against the dollar, said strategists at Commerzbank.

Posted by plato @ 04:51 PM 13 Comments

Foreclosures are Terminated

LA Times: Schwarzenegger proposes 90-day freeze on pending home foreclosures

"The single most powerful action our state can take to shore up its economy is to help Californians stay in their homes," Schwarzenegger said. "Curtailing foreclosures will stop the downward spiral of home prices, free up needed cash for homeowners, help save jobs and make an immediate positive impact on our economy." - should have stuck to acting Arnie..

Posted by mountain goat @ 04:23 PM 6 Comments

Off topic - All silent on this election front

BBC: Voters go to polls in Glenrothes

Voters are going to the polls in Glenrothes to choose a new MP. Labour is defending a majority of 10,664 in the Fife constituency which was made vacant by the death of John MacDougall in August. The polls opened at 0700 GMT and will close at 2200 GMT. The result should be known by the early hours of Friday. The turnout at the last election in 2005 was 56.1%. The seat borders Prime Minister Gordon Brown's Kirkcaldy and Cowdenbeath constituency.

Posted by jack c @ 03:46 PM 1 Comments

Barretts pull out of school land purchase

Northampton Chronicle & Echo: Schools' 90m land deal collapses

A controversial deal to sell 15 former school sites across Northampton to housing developer Barratt has collapsed. Northamptonshire County Council announced that it planned to sell the former school sites to the developer for a rumored 90m in 2007 Barratt had plans to build about 1,500 houses across the 15 sites.

Posted by hip hater @ 03:41 PM 0 Comments

Royal Worcester in administration

bbc: Royal Worcester in administration

Administrators Pricewaterhouse Coopers (PWC) said it resulted from the firm's failure to sell its Stoke-on-Trent site and the current economic downturn. The company, which dates back to 1751, employs 388 people in the UK at sites in Stoke, Lymdale and Worcester.

Posted by mark @ 03:39 PM 10 Comments

Pity this headline wasn't in the Red top press

Incisive media: House prices in worst crash since early 80's

House prices have plummeted 15% over the past twelve months and are now falling at their fastest rate for over 25 years. The Halifaxs latest house price index shows the Average UK home has lost more than 30,000 in value since peaking in summer 2007. Average house prices fell to 168,176 last month, down 2.2% since September and a 14.9% fall since October 2007, when the average stood at 197,698. Prices have fallen 31,436, almost 16%, since the peak of 199,612 in August 2007.

Posted by jack c @ 03:30 PM 2 Comments

In further response to previous post

Robert Peston: Who benefits from rate cut?

The Treasury spokesman explains why mortgage rates may not go down in response to base rate cut.

Posted by jonb @ 02:26 PM 13 Comments

In response to the previous post ...

BBC: 'No rush' to cut mortgage costs

"We want the banks and building societies to pass on the interest rate cuts to their mortgage holders," Prime Minister Gordon Brown said on Wednesday ... stamping his foot petulantly.

Posted by mark wadsworth @ 02:05 PM 4 Comments

so they are going to pass cuts on then????

Daily Mail: Northern Rock and Lloyds TSB pull tracker mortgages hours before BoE expected to

Two major lenders today pulled their tracker mortgage ranges, just hours before the Bank of England is expected to announce an interest rate cut. Nationalised bank Northern Rock and Lloyds TSB both said they were withdrawing the deals, which automatically move up and down in line with the Bank of England base rate, from the close of business today for repricing. The move comes after a number of other lenders increased their tracker rates in recent days.

Posted by mark @ 01:39 PM 4 Comments

CBI: Lend lend. BANK: Shan't

Will the Bank of England's rate cut help your wallet?

MoneyWeek: Will the Bank of England's rate cut help your wallet?

"Unless you can get a post-tax savings rate of above 5.2% - which will become harder after today's cut - then you are effectively being punished for saving. So, we might be bailing out the banks. But who's there to bail us out?"

Posted by damien @ 01:34 PM 4 Comments

ow does it go confused - mwah ha haaaa

Daily Mail: Location, Location TV star Phil Spencer's property firm hit by credit crunch

It seems not even TV property gurus are immune from the credit crunch as Phil Spencer, star of Channel 4's Location, Location, Location, has been forced to scale down his business empire because of the housing slump. Less than 12 months after it's glitzy launch, the founder of property search company Garrington has had to close his office in Knutsford, Cheshire.

Posted by uncle chris @ 01:30 PM 9 Comments

Company profits will fall further and so will share prices

MoneyWeek: Company profits will fall further and so will share prices

Factory output is down and the services sector is shrinking fast: the UK's recession is already in full swing. And a interest-rate cuts won't make any difference - the only way from here is down.

Posted by damien @ 01:02 PM 3 Comments

Useful list of job cuts

reuters: Job cuts at major financial groups

Following is a summary of some of the biggest job losses at major banks since the start of the credit crisis:

Posted by mark @ 12:58 PM 0 Comments

UK interest rates slashed to 3%

BBC: UK interest rates slashed to 3%

"The Bank of England has cut interest rates in the UK by one-and-a-half percentage points to 3%, its lowest since 1955, in a shock move." This will not end well...

Posted by (cr)ash @ 12:06 PM 72 Comments

Win a London Pad UK Based Developer Launches the Biggest Ever Property Competition

Due to the global credit crunch a UK based developer has launched the biggest property competition of all time. In association with Great Ormond Street Hospital (a children's hospital) MIA Developments Ltd is giving away a block of apartment in Central London valued at 8.25 million.

Posted by landedgentry @ 11:52 AM 0 Comments

"cataclysmic crash" "cataclysmic crash" "cataclysmic crash"

reuters: Equities headed for "cataclysmic crash"

Equities are set for a four- to five-month rally before a "cataclysmic crash" next year, Alex Allen, chief investment officer at fund of hedge funds boutique Eddington Capital Management, said. "At the edges where markets are liquid we've been willing to call the bottom. We're bullish on equities for the next four to five months and then we expect to see the final cataclysmic downleg," Allen said. "Equities will go to at least 50 percent below where they are now. It's going to be as bad as 1929," he said. "Equity markets are extremely expensive."

Posted by mark @ 11:42 AM 11 Comments

0% zero, nil, nothing....

bloomberg: King May Consider Most Radical BOE Cuts Since WWII

The U.K.'s economy will probably be the worst performer in the G-7 next year, with the European Commission forecasting a contraction of 1 percent. The euro-region will grow 0.1 percent, the U.S. will contract 0.5 percent and Japan will shrink 0.4 percent, the Nov. 3 predictions show.

Posted by mark @ 11:36 AM 2 Comments

Administration, Administration, Administration

Daily Mail: Location, Location TV star Phil Spencer's firm hit by credit crunch

It seems not even TV property gurus are immune from the credit crunch as Phil Spencer, star of Channel 4's Location, Location, Location, has been forced to scale down his business empire because of the housing slump. Less than 12 months after it's glitzy launch, the founder of property search company Garrington has had to close his office in Knutsford, Cheshire.

Posted by walter sobchack @ 11:32 AM 0 Comments

UK? or USA?

bloomberg: Citigroup, Goldman Said to Begin Eliminating Jobs

Citigroup Inc. and Goldman Sachs Group Inc., faced with a weakening economy and the prospect of mounting losses, began firing workers as part of the firms' plans to cut more than 12,000 jobs, people with knowledge of the matter said. Goldman, which converted last month from the biggest U.S. securities firm into a commercial bank, yesterday began telling about 3,200 employees, or 10 percent of its workforce, they were out of a job, according to one of the people who declined to be identified because the decisions were confidential.

Posted by mark @ 11:30 AM 1 Comments

It will affect about 3,600 workers across three shifts on the Oxford site.

bbc: Mini production stops for a month

Mini production is to be cut back and the factory closed for a month over Christmas, as the car industry reports falling sales in the UK. Workers at the BMW-owned factories in Oxford and Swindon have been told the two-week Christmas shutdown is to be extended to four weeks this year.

Posted by mark @ 11:22 AM 5 Comments

Rate cuts seem to be baked in now

Telegraph: UK house price fall at fastest rate in 25 years

"UK house prices have fallen 15pc over the past 12 months according to figures from UK's biggest mortgage lender, Halifax, putting further pressure on the Bank of England to cut interest rates today." Article includes an interview with Proffessor Willem Buiter, a founding member of the MPC, who says that the base rates should be cut by 1.5% and expects rates to bottom out at about 2%.

Posted by quiet guy @ 11:20 AM 5 Comments

Things must be really tough in NI for people to owe this much!

bbc: 124m owed in rate arrears in NI

A total of 124m in rates arrears is owed in Northern Ireland, it has emerged - more than double the 2006 figure of 48m.

Posted by mark @ 11:10 AM 0 Comments

wheres kirsty?


TV property guru Phil Spencers business has been rocked by the credit crunch. The star of Channel 4s Location, Location, Location has been forced to scale down because of the housing slump.

Posted by it will happen @ 11:10 AM 0 Comments

we need a job losses map, anyone??

bbc: Concerns raised about Hoover jobs

Concerns have been raised about the possibility of job losses at the head office of Hoover in Merthyr Tydfil. Welsh Assembly Member Huw Lewis says he understands an announcement will be made soon on a plant employing 500.

Posted by mark @ 11:07 AM 0 Comments

UK 1% Interest Rate Cut

The Market Oracle: UK 1% Interest Rate Cut

A cut of 1% would imply that the Government is fully in charge of setting interest rates and dictates behind the scenes the amount to cut interest rates by at each MPC meeting, therefore the Banks monthly meetings are a facade that purely exist for publicity purposes.

Posted by nadeem walayat @ 11:05 AM 0 Comments

Nail in coffin for Manchester Airport??

yahoo: Jobs risk as airline axes flights

UK airline BMI is to stop long-haul flights from Manchester Airport, putting up to 140 jobs at risk. Services to Chicago will end in January 2009, with flights to Las Vegas, Antigua and Barbados after Easter. The firm, which last week revealed it was being taken over by German airline Lufthansa, said the routes were not profitable enough. It comes less than two weeks after British Airways flew its last long-haul flight from the airport.

Posted by mark @ 11:01 AM 3 Comments

Expect some major job losses

yahoo: Worst Car Sales Figures For Years

Sales of new cars have fallen at the sharpest rate in almost 18 years, new figures from the Society of Motor Manufacturers show. There were just 128,352 new registrations in October 2008 - down 23.5% on October 2007. That is the worst figure since June 1991 when sales slumped by more than 31%.

Posted by mark @ 10:55 AM 0 Comments

104,034 investment banking jobs need to go, apparently, including ALL of UBS!!!

FT Alphaville: 104,034 investment banking jobs

Merrill Lynch Layoffs required to maintain compensation ratio: 58,195 Credit Suisse (investment bank only) Layoffs required to maintain compensation ratio: 16,161 Deutsche Bank Layoffs required to maintain compensation ratio: 5,130 UBS Layoffs required to maintain compensation ratio: Everyone JPMorgan (investment bank only) Layoffs required to maintain compensation ratio: 5,647 Morgan Stanley No additional layoffs required Goldman Sachs No additional layoffs required

Posted by disillusioned @ 10:45 AM 0 Comments

A 45% fall in construction reservations results in a 15% cut in jobs.

The Scotsman: Rok in a hard place as jobs axed

THE construction sector suffered new blows yesterday as one major player announced it was to axe about 750 workers and another revealed a 45 per cent drop in reservations. Builder Rok said in a trading statement that it was set to cut its 5,000-strong workforce by 15 per cent as a result of the "rapid" impact of the property downturn. It issued a profit warning for the current financial year. Meanwhile Redrow, the housebuilder with a sizeable regional arm in Scotland, admitted it was selling an average of just 38 properties a week across the UK.

Posted by disillusioned @ 10:32 AM 0 Comments

Rising delinquencies in B&B's mouldering book of buy-to-let mortgages

Financial Times: Mouldering buy-to-let loans are a Treasury priority

Arrears on B&B's buy-to-let loans - the ones contained in the bank's largest securitisation vehicle - are rising sharply. They have to perform a difficult balancing act - encouraging the banks to offer competitively priced loans to home owners and small businesses with one hand, whilst trying "to protect and create value" for the taxpayer-shareholder with the other.

Posted by disillusioned @ 10:28 AM 2 Comments

You can tell that the MPC are going to make a decision ...

Halifax: October House Price Index

... 'cos the Halifax have just released their figures for the previous month.

Posted by mark wadsworth @ 10:23 AM 12 Comments

The number of cranes adorning the London skyline has fallen by a fifth in just six months

Financial Times: Demand for new offices in London tumbles

Developments have fallen by more than half in a year, from 46 this time last year to just 17 in the past six months. But a report today warns that London is still facing a massive oversupply of empty office space in the next few years.

Posted by disillusioned @ 10:23 AM 0 Comments

Another 2.2% off.

BBC News: House prices down 2.2% in October

House prices fell by another 2.2% in October, says the Halifax, pushing the drop in house prices up to 13.7% over the past year.

Posted by garyb @ 09:30 AM 0 Comments

Deflation is the red herring: Get ready for inflation

Market Oracle: President Obama Inherits Great Challenge akin to Carter and Roosevelt

President Obama's election also has historical parallels with the mid 1970's and the election of Jimmy Carter in 1976. Back then America and much of the western world was confronted with deep stagflation which saw gold surge from $35/oz to over $200/oz in 1974. Then gold fell sharply by some 50% - from $200/oz to $100/oz in 1976. This should put the recent fall in the gold price into perspective. After Carter's election in 1976, gold resumed its bull market and surged from $100/oz in 1976 to over $850/oz in January 1980. Similar price increases may be seen in the gold market in the coming years and gold's inflation adjusted high of some $2,400/oz

Posted by sold 2 rent 1 @ 09:28 AM 8 Comments

Halifax House Price Index For October -2.2%

BBC News Ticker: Halifax House Price Index

Details will be published here at the link above shortly.

Posted by wdbeast @ 09:24 AM 14 Comments

The Council of Mortgage Lenders on a collision course with the Government.

Times: Homeowners warned not to expect cheaper repayments

Lenders warned homeowners last night that they should not expect cheaper mortgage repayments even if the Bank of England cuts interest rates today. Alistair Darling has said that banks receiving 37 billion of government funds should maintain lending at 2007 levels. However, the CML effectively gave the green light to its members to disregard the Chancellor's request, saying that it did not make commercial sense to insist or expect that lenders automatically would pass on cuts in Bank rate to borrowers. Melanie Bien, director of Savills Private Finance, the mortgage broker, said: The Government has been calling on lenders to pass on the cut in interest rates to new borrowers. It seems the Government doesn't have very much influence over the Rock.

Posted by mytimeisnigh @ 08:09 AM 11 Comments

Wednesday, November 5, 2008

How many hours do you need to pay your hideously large mortgage?

Mail Online: Thousands of workers face overtime ban after MEPs block Britain's opt-out of Europe's 48-hour week

Lord Mandelson said amongst other interesting things at the bottom of the article: 'To loose the ability to opt out will mean workers cannot boost their earning potential when some are already struggling with high food and energy prices.'

Posted by enuii @ 10:22 PM 31 Comments

If all the economists in the world were laid end-to-end they still couldn't reach a conclusion.

Telegraph: The Queen asks why no one saw the credit crunch coming

Prof Garicano said: "She was asking me if these things were so large how come everyone missed it."

Posted by belfastboy @ 09:39 PM 2 Comments

The next domino to fall

BBC: GMAC warns on mortgage business

GMAC Financial Services has reported an increased loss for the third quarter and warned that its mortgage business, Rescap, may struggle to survive. The firm reported a loss of $2.52bn (1.56bn), against a $1.6bn deficit a year ago, with Rescap losing $1.91bn. "Absent economic support from GMAC, substantial doubt exists regarding ResCap's ability to continue as a going concern," GMAC said.

Posted by jack c @ 08:45 PM 3 Comments

One for the conspiracy nuts

BBC/Youtube: Gore Vidal versus David Dimbleby

I normally hate this sort of thing clogging up the blog, but this was too good to pass up. Consider it my early Christmas present to malct and p4ac. Distinguished statesman and commentator Gore Vidal appears on BBC's election coverage and calls the Republican party a 'Mayan Sect,' while hinting at a NWO-style assassinationa attempt on Obama, and saying he "knows too much". Worth watching for the comedy value alone. Maybe you guys were right all along :O

Posted by little professor @ 08:31 PM 16 Comments

UK capital not immune from house price crash

FT: London house prices to fall 17 per cent by year-end

London house prices are on target to fall by 17 per cent by the end of the year, after a further 0.9 per cent drop in October.House prices in the capital have already fallen by more than 15 per cent since the start of the year, with the latest decline of 0.9 per cent taking the average price of a London house to 245,036. According to the latest Haart London Index, further falls in house prices by the end of the year are unlikely to exceed more than 2 per cent, as house sellers have become more realistic about their asking prices.On average, vendors are now achieving 95.5 per cent of their asking price, Haart found.

Posted by jack c @ 06:37 PM 11 Comments

Location, Location, Location, - Not !


Phil Spencer clearly has flawed judgement - not such a property expert after all ! He is closing his Knutsford office due to a fall in demand for his services - it's been open less than twelve months. However Mr Spencer predicts that house prices will stabalise towards the end of 2009 !

Posted by andym24 @ 05:47 PM 2 Comments

Paragon latest - "buy-to-let sector is being driven by professional landlords"

Mortgagestrategy: First-time landlords at lowest level since 2001

The number of first-time landlords entering the buy-to-let market has fallen to its lowest level since 2001, reveals a survey from Paragon Mortgages. Paragon polled a panel of 200 mortgage brokers as part of its biannual Financial Adviser Confidence Tracking index. It found that in the three months to the end of September first-time landlords accounted for 10.6% of business, compared to the 18.3% recorded at the same time last year. Brokers reported that 55% of their buy-to-let business was for remortgages, with 30% of business coming from landlords looking to expand their portfolios. John Heron, managing director of Paragon, says the results indicate that growth in the buy-to-let sector is being driven by professional landlords.

Posted by jack c @ 05:42 PM 4 Comments

Government-owned lender defies Government

Times online: Banks to defy Government and raise mortgages rates

Northern Rock, the Government-owned lender, has announced that it is pulling all its tracker deals for homeowners and landlords and is expected to increase rates when it relaunches the mortgages later this week. It follows a move by Abbey earlier today to increase interest rates on tracker deals by up to 0.5 percentage points.

Posted by sold out @ 05:11 PM 19 Comments

Barack Obama may be the first person in history to start striking coins in his image before taking p

United Liberty News: President Obama Gold Coins

Barack Obama may be the first person in history to start striking coins in his image before taking power. Wed, 09/24/2008 - 2:05am | posted by United Liberty Staff No need to vote in November- the die has already been cast and you can soon buy the commemorative gold coin to prove it. A UK company has started producing gold, silver and platinum coins featuring the profile of Senator Obama and the words, President of the United States. The Democrat Party must feel pretty sure about the elections outcome as theyve already ordered several to hand out to the party faithful in a few weeks. The coins wil also be produced for public consumption should there prove to be substantial demand.

Posted by malct @ 04:57 PM 11 Comments

Slow sales and tight credit are killing small companies unable to weather the downturn.

CNN: Victims of the crash

the first one is part owned by british company aga......hmmm

Posted by mark @ 04:28 PM 3 Comments

Flogging a dead horse News: Politicians Urge Mortgage Lenders To Pass On BoE Rate Cut

Mortgage lenders have been urged by MPs and business secretary Lord Mandelson to pass on any Bank of England interest rate cuts to borrowers....Lord Mandelson said the public would be surprised if mortgage rates did not fall after further cuts in the base rate. "surprised" Ha Ha Ha!

Posted by tinecu @ 04:18 PM 0 Comments

Will they cut more soon?

bbc: Building firm Rok cuts 750 jobs

A Devon-based building company is cutting 750 jobs across the UK as part of cost-cutting plans after a sharp slump in business. Exeter-based Rok said projects worth more than 150m had been shelved or cancelled by public and private clients following the economic downturn. The downturn's "speed and severity" prompted the 15% cut of its 5,000 staff, mainly in white-collar roles.

Posted by mark @ 04:11 PM 1 Comments

MSPs campaign over HBOS takeover

bbc: MSPs campaign over HBOS takeover

Three MSPs have launched a campaign to put the 12.2bn HBOS takeover on hold to ensure other options are explored. Lib Dem leader Tavish Scott, the SNP's Alex Neil and the Independent MSP Margo MacDonald said HBOS directors were not acting in shareholders' interests.

Posted by mark @ 04:10 PM 3 Comments

ha ha ha ha ha ha ha ha ha ha ha ha ha

contract journal: Buyers wary of bidding for David McLean due to 'unsellable' flats

Potential purchasers of David McLean Homes have been scared off any deal over fears the business has too many unsold flats on its books.

Posted by mark @ 04:04 PM 2 Comments

Anyone put a deposit down for a piper home? tough luck!

contract journal: Piper Construction Midlands ceases trading, 30 job losses

House builder Piper Construction Midlands has ceased trading, resulting in the loss of 30 jobs. The 50-year-old firm built residential properties under the name Piper Homes.

Posted by mark @ 04:00 PM 1 Comments

Typical of the UK systems, business and Governments

contract journal: Former Alfred McAlpine Slate MD charged with fraud

Christopher Law, the division's former managing director, was charged with three separate offences relating to a three-year period between 1 January 2004 and 26 February 2007. He is alleged to have exaggerated sales in accounts filed to the parent company Alfred McAlpine, which was taken over by Carillion late last year.

Posted by mark @ 03:59 PM 1 Comments

500 jobs at risk

contract journal: 500 jobs at risk

Timber products manufacturer Palgrave Brown has entered into administration, placing nearly 500 jobs at risk.

Posted by mark @ 03:58 PM 0 Comments

Obama's new homes

Another Buy-To-Let Landlord?

BBC News: Army interpreter guilty of spying

The court heard he sent coded messages to an Iranian military attache in Kabul telling him "I am at your service". He was also 25,000 in debt and had four mortgages on flats in Brighton. Bang goes his Army pension & his flats too.

Posted by stevie dee @ 03:28 PM 0 Comments

No Change Is On The Horizon

CNN: Ron Paul comments on the election.

Here finishes my coverage of the US Election. Ron Paul points out that Obama will not cut spending, government will get bigger and more intrusive, foreign policy will remain the same and unpopular bailouts will continue. He sums up my opinions, which I fear will become self evident as true over the following 6 months. I fear that the economy will now enter a state of flux and danger.

Posted by planning4acrash @ 03:07 PM 1 Comments

Is capitulation setting in?

Rightmove: 1 bedroom flat - reduced 39%

I noticed this for a 1980's built flat on a leafy road near where I live, not one of those flats thrown up in the City Centre in the past few years which have crashed. What caught my attention was "REDUCED BY 45,000 (39%)". Still not cheap mind you. The bottom end of my Rightmove search had a few "BRIDGFORDS "SALE" flats. Anyone else noticed asking prices crashing like this? BRIDGFORDS "SALE" WAS 115,000 NOW OFFERS OVER 70,000 REDUCED BY 45,000 (39%) Situated in a popular purpose built development ...

Posted by mountain goat @ 02:56 PM 16 Comments

ENJOY the best analysis of US and UK facts, history and fun in 50 minutes!

Forum for Stable Currencies News: Silly Money: a brilliant video by Bremner, Bird and Fortune

Ive always hoped that comedians would take on the issue And you can be sure that Bremner, Bird and Fortune did an excellent job of mixing significant and relevant cuttings. ENJOY the best analysis of US and UK facts, history and fun in 50 minutes! If only it wasnt as tragic as it is given the thousands and millions of victims in an hour of video An interview with Rory Bremner is published here by the Telegraph.

Posted by malct @ 02:47 PM 6 Comments

Interest Rate Cuts To The Rescue

MSN: Bank under pressure to slash rates

This is like sending Danger Mouse to fight Blade! Inflations has not gone away and as we cut IR's the pound falls in value and imported inflation goes up! This is not the magic bullet that people think. Also look at the poll 65% of peole say cut rates to stop recession. If only it was that easy. I put one job in the job centre and got 50 applicants in 6 hours!!!!!! Not been like that for years!!!!

Posted by waitingfor hpc @ 02:28 PM 0 Comments

Property scandal...2004

The New Statesmam: Property scandal

A few rich people, many of them aristocrats, own 69 per cent of the land in Britain. As a result, house prices are so high, millions can't afford to buy a home. The NS launches a campaign to end this feudal system. Maybe Kirsty Allsop should read this !!!

Posted by thecountofnowhere @ 01:48 PM 0 Comments

Relief for Third World Countries

Daily Mail: Credit crunch hits the gap year as cash-strapped parents refuse to fund 'rite of passage' trips

The gap-year trip is the latest victim of the credit crunch, new university entrance figures suggest. In recent years the long trip abroad has been a rite of passage for an increasing number of school leavers, who take a year off before starting their degree courses.

Posted by sold out @ 01:34 PM 4 Comments

Manufacturing jobs plummet

Reuters: UK manufacturing shrinks at record pace in Sept

Britain's manufacturing sector shrank last month at the fastest rate since records began almost 17 years ago as levels of output, new orders and employment registered unprecedented declines. The figures compounded fears that Britain has entered its first recession since the early 1990s and boosted expectations the Bank of England could cut interest rates next week.

Posted by dohousescrashinthewoods @ 01:29 PM 1 Comments

Building jobs plummet

Reuters: UK construction sector shrinks at record pace in Oct

Britain's construction sector shrank last month at its fastest pace since records began more than a decade ago after falling house prices and tight credit took their toll, a survey showed on Tuesday. The Chartered Institute of Purchasing and Supply/Markit construction index fell to 35.1 from 38.8 in September. That was the eighth consecutive month the index has been below 50, the level which marks contraction, and the lowest since the series began in 1997.

Posted by dohousescrashinthewoods @ 01:27 PM 0 Comments

Half of first-time buyers put down deposits of 67,000 - with help from their parents

Daily Mail: Half of first-time buyers put down deposits of 67,000 - with help from their parents

"First-time buyers who get financial help from their parents are putting down an average deposit of 67,000 in London - 15,000 more than their average salaries according to figures released today. The Council of Mortgage Lenders said those who do not receive any parental help in the capital put down 19,000, despite earning an average of 57,000 a year."

Posted by becky @ 01:26 PM 16 Comments

White collar jobs plummet

Reuters: Recruiters report record fall in jobs

Recruiters reported a record fall in job appointments and the first drop in wages for five years in October, industry group the Recruitment and Employment Confederation said in a survey published with accountants KPMG on Wednesday. Demand for staff shrank sharply and both permanent and temporary staff appointments were at their weakest level since the start of the survey in October 1997. (Headline as seen it City AM)

Posted by dohousescrashinthewoods @ 01:19 PM 0 Comments

General Motors is on verge of collaspse

bloomberg: GM's `Time Is Very Short' for U.S. Government Aid, Altman Says

does this mean Saab, Vauxhall etc... will go or will they get a bailout?

Posted by mark @ 01:10 PM 2 Comments

Let's keep to the point: Prices are Collapsing

CityWire: London house prices collapse

Knight Frank have issued a report saying ... "Since the peak of the market in March this year, prices have fallen by 13.4%, with the six monthly decline in prices (May to October) showing what can only be described as a dramatic collapse, a fall of 12.4%." As they say though, prices rose most steeply around those parts too. So are falling most steeply. Probably because the epicentre of this boom 'n bust is The City. As JU would say, expect much bigger falls.

Posted by voiceofreason @ 01:07 PM 9 Comments

Keynes on steroids. Yet more money printing for special interests.

Russia Today: Medvedev calls for reform of world financial system

We will need a new international agreement. The financial system must have common sources, which implies a multiplicity of world financial centres and reserve currencies. We need to form a new risk-management system,which would be based on new techniques, not the principles that the Bretton Woods agreement was based on, Medvedev said. (It won't solve diddly squat, and will serve to destroy the global economy)

Posted by planning4acrash @ 01:05 PM 2 Comments

Funding Drought Slams Chinese Plans as Banks Shun Plea to Lend

bloomberg: Funding Drought Slams Chinese Plans as Banks Shun Plea to Lend

Wang Yi, who employs 300 people making children's raincoats on China's east coast, is worried his company won't survive the next year as exports dry up. The apparel manufacturer, which supplies European supermarket chains Tesco Plc and Aldi Group, needs a 600,000 yuan ($88,000) loan by Jan. 31 to stay afloat. China's state-owned banks rejected his previous applications. ``There's no point trying them again,'' says Wang, 40, standing in his two-story factory in Pinghu, about 90 kilometers (56 miles) southwest of Shanghai, where one floor is half empty. ``They prefer big customers.''

Posted by mark @ 01:04 PM 0 Comments

Threat of more job cuts as credit crunch contagion spreads to commercial work

contract Journal: Threat of more job cuts as credit crunch contagion spreads to commercial work

The recession in construction is looking increasingly desperate as the giant commercial sector appears to be heading for a nasty fall.

Posted by mark @ 12:58 PM 0 Comments

Stewart Milne plans more redundancies, upto 117 jobs could go

Contract Journal: Stewart Milne plans more redundancies, upto 117 jobs could go

Aberdeen-based house builder Stewart Milne Group will axe another 44 staff; just months after announcing 300 employees would go from across the UK. The company said the 44 jobs would be lost after a 30-day consultation period and that another 73 jobs are under threat.

Posted by mark @ 12:55 PM 0 Comments


contract Journal: Rok's share price plummets 50%

Roks share price fell off a cliff at 8am this morning as news surfaced that it was cutting 750 job, 15% of its workforce.

Posted by mark @ 12:54 PM 0 Comments

Fall in eurozone retail sales

bbc: Fall in eurozone retail sales

Of the 15 eurozone economies, Germany suffered the biggest drop in retail trade from August, falling 2.3%. Compared with September last year, Spain suffered the biggest drop, with trade falling 7.1%.

Posted by mark @ 12:51 PM 1 Comments

This is especially challenging for an aging population or those with memory deficits to cope with.

Toronto Star: New credit cards may shift unauthorized-transaction liabilities to the holder

Notice how youre being encouraged to use credit for small purchases now, and there;s no requirement to sign anything? Its the new money. Observe the past centurys de-evolution of money away from an objective standard of value: gold (holds its own value) -> fiat paper (where the state taxes the populace through inflation) -> credit (where you are directly taxed by the central credit-issuing agencies). Next, banks will be securitizing peoples credit card debt and selling that through derivative transactions, if they arent already. Anything to consolidate the world financial system. So what we need isnt a new cryptographic pin chip, what we need is real money again. Ellen Roseman, Toronto Star November 2, 2008

Posted by malct @ 12:49 PM 1 Comments

This cannot be good

bbc: Farm borrowing at record levels

Farmers are borrowing money at record levels as higher dairy prices and better harvests encourage them to buy land and new machinery. However, analysts also said that volatility in grain prices and rising fuel and fertilizer prices had increased overdraft borrowing. Figures from the Bank of England showed that lending to the farming industry stood at 10.6bn in the third quarter. Lloyds TSB said that the figure was an all-time high.

Posted by mark @ 12:48 PM 4 Comments

We made a mistake as a society in promoting homeownership as a universal achievable goal.

Dollar Co.: Best Quotes of October 2008

one example :- No commentator could explain why banks have all run out of capital at the same time, while making obscene profits. My explanation is simple. There have been no profits, obscene or otherwise. The banks were paying out phantom profits in the belief that their capital accounts were in good shape. They werent. The banks were unaware that the falling interest rate structure has been making inroads on their capital. Since all banks have been working with microscopic capital ratios as a result of 28 years of capital erosion, the failure of one single bank would trigger the domino-effect on the rest. A.E. Fekete

Posted by malct @ 12:45 PM 1 Comments

'Sad blow' as contractor jobs go

bbc: 'Sad blow' as contractor jobs go

The County Down company has operated in the town for more than 40 years and was once the largest employer in the area with more than 300 staff.

Posted by mark @ 12:44 PM 0 Comments

Hearts bleeding thereof

Manchester Evening News: TV guru closes office

Phil Spencer has been forced to close the Knutsford office of his Garrington empire

Posted by government planner @ 12:40 PM 4 Comments

I thought a tracker was just that - it tracks BoE base rates....or am I just 'stupid'?

Firstrung: 30 of the UK's mortgage lenders yet to inform customers whether last month's base rate cut will be passed on

Analysis by has revealed a deafening silence in the mortgage world, as 30 of the UK's mortgage lenders have yet to inform their customers whether they will be passing on last month's surprise base rate cut and by how much.***I bet that if interest rates were to start to creep up again (though no likely at the present time}....a nano second afterwards the lenders would follow suit!

Posted by whostolemyendowment @ 12:18 PM 5 Comments

Recession is here

Firstrung: U.K. factory production is falling at its fastest rate since the 1980's

Manufacturing output decreased by 1.3 per cent in the third quarter of 2008 compared with the second quarter of 2008. Output decreased in 11 out of the 13 sub-sectors and increased in two sub-sectors. Factory production fell for a seventh month in September, the worst streak for almost three decades, adding to evidence the economy is in its first recession since 1991...

Posted by converted lurker @ 10:46 AM 1 Comments

US Housing - The Biggest Speculative Manias of All Time

Market Oracle: The Great American Housing Market Nightmare Next Phase

Comparing Tulip and South Sea bubbles to US housing

Posted by sold 2 rent 1 @ 10:27 AM 3 Comments

UK Banks to follow?

guardian: UBS executives must hand back bonuses

Senior UBS executives and board members will be forced to hand back Sfr60m (32m) in bonuses paid out last year, the Swiss bank said today.

Posted by mken @ 10:16 AM 2 Comments

Ambrose talking up the US again

The Telegraph: America's companies reconquer the world

America's corporate giants have regained their place as the world's most valuable companies, reflecting a profound shift in the global power structure as the deep strengths of the US economy reassert themselves.

Posted by sold 2 rent 1 @ 10:08 AM 14 Comments

Forget those Depression rescue plans and focus on his vision for a more fulfilling life

The Times: The hippy guide to Keynesian economics

Alistair Darling, the Chancellor, may be basing his economic rescue plan on the idea that a lot of what Keynes wrote still makes sense, but he doesn't know the half of it.

Posted by gardeniadotnet @ 09:42 AM 2 Comments

Obama's fundraising revolutionized the way presidential campaigns are financed

Bloomberg: Obama Leveraged Record Fundraising, Spending to Defeat Rivals

Nov. 5 (Bloomberg) -- Barack Obama obliterated every political fundraising and spending record in U.S. history. The Illinois senator harvested more campaign cash than anyone before him, using both the Internet and traditional high-roller dinners to bring in more than $650 million from some 3 million donors for his presidential campaign. The 2004 Democratic presidential nominee, John Kerry, raised less than half that amount, as did George W. Bush and Al Gore combined in 2000.

Posted by malct @ 08:43 AM 37 Comments

Anyone surprised by this?

The Times: Jobs in peril as the relationship between banks and companies worsens, says CBI

The Federation of Small Businesses said yesterday that there had been no improvement whatsover in bank lending since political pressure on the banks to maintain lending, led by the Prime Minister and the Chancellor, began to build last month.

Posted by gardeniadotnet @ 06:56 AM 4 Comments

Bears and Goldbugs speak

Bullionvault: Gold Jumps on US Election-Day as Investors Worry About "Huge Amount" of Money Going to Banking Rescues

The gold investing community seem to think that Obama will continue the bailout. No surprise, given that Leader of the House, Nancy Pelosi (Democrat) supported the bailout and blocked impeachment of Bush. I expect to see an expansion of Bush's Policies. I expect further inflation and dollar depreciation, dragging us down as we compete further. The EU is already raising tariffs on imports in a trade war in response to a weak US Dollar. We'll get further price controls, including on housing, prolonging the inevitable housepricecrash with the financial hair of the dog treatment.

Posted by planning4acrash @ 04:19 AM 9 Comments

Great way to avoid accountability!

NPR: Californians Misplaced From Foreclosures Not Sure Where To Vote

The housing meltdown has prompted some unusual questions for state and county elections officials. Some Californians who have recently lost their homes to foreclosure aren't sure where to vote next week. California Secretary of State Debra Bowen says those who have moved to temporary housing can still cast ballots.

Posted by planning4acrash @ 03:30 AM 1 Comments

Tuesday, November 4, 2008

Gold up 5%, dollar down, stocks up. What election implications for the economy?!

Prison Planet: Obama Win Will Not Change Rigged Economy

What Impact? I see more intervention, Obama gained 4x more money from Wall Street than McCain, so, I see no end to the bailouts and think that intervention and price fixing will delay the crash, and extend the housepricecrash, making it more severe in the long run. So, instead of being able to buy a reasonably priced property now, we will need to wait another 10yrs, Japan style. We may see welfare for poor home owners, but, no policy to ensure cheap prices, to ensure that poor people can actually afford without crazy multiples. I'm just looking for the few good Congressmen/Senators and a boost for third parties. Hopefully peeps can add to this thread to contribute their thoughts. planning4acrash

Posted by planning4acrash @ 11:45 PM 15 Comments

Don't expect any BoE interest rate cuts to be passed on....

Telegraph: Mortgage firms feel pinch as funds dry up

Of the various factors which determine mortgage pricing the starting point is the cost of funds to the lender. Other factors include the availability of funds (which has been a problem all year), how competitive the lender wants to be, competitor pricing and how risky the lender considers a particular type of mortgage.

Posted by whostolemyendowment @ 09:18 PM 4 Comments

Way off topic unless you expect the kids to sort this mess out

Daily Mail: Dumbing down outcry as one in five GCSE pupils thinks the Sun orbits the Earth:

One in ten GCSE pupils did not know that a rechargeable battery could be used more than once Among the questions proposed was one that asked if a nurse should stay clear of X-rays 'to avoid melting her mobile phone'. Mr Gove said: 'It's not as though these questions are rigorous tests of scientific knowledge. One exam board asks if we look at the stars through telescopes or microscopes.' He added: 'There is a desperate need to assert the importance of rigour and excellence in education if we are to avert further decline, but almost every step the Government takes is in the opposite direction.' Nick Seaton of the Campaign for Real Education said: 'It's a national scandal. When you get laughably easy questions like this which may help politicians to reach targets but mean cont.

Posted by malct @ 08:08 PM 24 Comments

Financially troubled plants are being abandoned by the boss, leaving behind unpaid workers and debts

Los Angeles Times: Some owners deserting factories in China

Reporting from Shaoxing, China -- First, Tao Shoulong burned his company's financial books. He then sold his private golf club memberships and disposed of his Mercedes S-600 sedan. And then he was gone. And just like that, China's biggest textile dye operation -- with four factories, a campus the size of 31 football fields, 4,000 workers and debts of at least $200 million -- was history.

Posted by malct @ 07:53 PM 4 Comments

"If in Venezuela, something similar should occur I will not give you bankers even one cent

Reuters: Chavez warns would seize any bank failing in crisis

CARACAS, Nov 3 (Reuters) - Socialist President Hugo Chavez vowed to seize any Venezuelan bank that fails due to the world financial crisis, criticizing the United States and other rich nations for spending to save banks rather than on the poor. "If here in Venezuela, God forbid, something similar should occur, or even appears set to occur, have no doubt I will not give you bankers even one cent," Chavez said late on Sunday at a political rally. "I will take your bank away from you. ... I will expropriate your banks."

Posted by malct @ 07:35 PM 2 Comments

Adding to AIGs woes is the brain drain as talented executives rush to the exits.

Bnet FSI: Despite $143 Billion Bailout, AIG May Be Tottering Towards Collapse

Claiming to be solvent in September, AIG has been spending nearly $123 billion of the emergency Federal Reserve lending made available in September and October to keep the firm from going under. The money was part of a total of $143 billion in loan money given by the federal government to assuage fears that AIG was so large and intertwined with the financial community that its failure would have a disastrous domino effect. Burning so much money so fast has raised suspicions that AIG had already incurred billions of dollars in losses when the federal government extended it the $85 billion emergency line of credit. According to media accounts, AIG has not provided details of how it has spent the money.

Posted by malct @ 07:16 PM 1 Comments

My house is worth a fortune

UK Homeowners in denial over housing slump: AOL Money

Stumbled over this one. All part of the sticking asking price syndrome.

Posted by letthemfall @ 06:33 PM 6 Comments

Bankers wave fingers to Brown

Financial Times: Lloyds distances itself from government

Lloyds TSB tried to minimise the likely impact of state ownership by casting doubt on the governments ability to exert significant influence over the banks management.

Posted by peter_2008 @ 05:38 PM 4 Comments

The Worlds Oldest Profession hit by recession

Los Angeles Times: In this economy, even sex doesn't sell

Signs of the economic free fall have cropped up in many of Nevada's 25 or so legal brothels. The Mustang Ranch, for example, has a steady stream of customers, but the number of women vying for work has soared. Even a 74-year-old applied. This summer, the Shady Lady gave $50 gas cards to those who spent $300. The Moonlite Bunny Ranch offered extras to customers paying with their economic stimulus checks.

Posted by sold out @ 05:38 PM 3 Comments

Mandys' warning to Bankers

Times online: Mandelson warns banks to pass on rate cuts

Lord Mandelson upped the stakes in a row with UK banks this morning by warning that they face a customer backlash if they do not pass on interest rate cuts to customers. Britain's Business Secretary fired the latest salvo after an awkward 24 hours in the Gulf, which saw a senior HSBC banker travelling with the Prime Minister being attacked by No. 10 for saying that customers would not benefit fully from rate cuts.

Posted by sold out @ 03:53 PM 14 Comments

Pushing a piece of string

Metro: Abbey raises tracker mortgage rate

Wherein Abbey announce that they have no intention of reducing mortgage rates by preempting a possible BoE rate cut on Thursday by raising its tracker rates for new borrowers by 0.5% from today. All these people who believe that cutting BoE rates is 'the answer' are going to have to learn that a) it isn't and b) it doesn't have any effect on actual mortgage rates anyway.

Posted by mark wadsworth @ 03:44 PM 8 Comments

Staying ahead of the game

Wall Street Journal: Massive Effort to Save Mortgages

J.P. Morgan Chase & Co. launched an ambitious plan Friday to modify the terms of $70 billion in mortgages for borrowers who are behind on their payments or soon could be. The move by the New York bank will cover as many as 400,000 borrowers. They'll be moved into loans carrying lower interest rates, smaller principal amounts or other more-affordable terms.

Posted by 51ck-6-51x @ 02:26 PM 2 Comments

Was this one of the biggest speculative manias of all time?

Market Oracle: The Great American Housing Market Nightmare Next Phase

One of the greatest blunders of our time is made by those who blindly assume home prices are so low they couldn't possibly go any lower....The end of the decline in home prices will come only when there are no new economic forces driving them down.

Posted by whostolemyendowment @ 02:08 PM 14 Comments

endgame in the credit crisis a bloody stand-off between investors and governments?

MoneyWeek: How safe are government bonds?

"On the surface nothing remarkable is happening the 30 year US Treasury bond yield recently hit an all-time low of 3.88%, as investors sought a safe haven during equity market turbulence. Yet while nominal bond yields have declined, the credit risk component of US Treasuries has risen by 25 times in little over a year...This has perplexed, and even amused, some market observers...Any "default" would at least be through the time-tested mechanism of inflation and currency devaluation, according to this view. On the other hand a longer-term examination of debt markets reminds us that, throughout human history, regular default is more the rule than the exception...particularly in times of severe economic duress." - Isn't that what we have now? or at least coming soon, October 2009 is my guess

Posted by mountain goat @ 02:05 PM 2 Comments

Snouts in the trough (November 2008 - part 1)

Mortgagestrategy: Hornby snags six month consultancy deal with Lloyds

Lloyds TSB has confirmed reports that HBOS' chief executive Andy Hornby has been employed as a consultant at Lloyds TSB on a rumoured 60,000 a month. He will be employed for six months at the firm. A spokeswoman for Lloyds TSB says: It is true - Andy Hornby has been employed for six months consultancy services, but its not a fixed contract. He has been involved for 10 years with HBOS and hes got huge wealth of experience to draw upon. But the move has sparked outrage in Scotland with SNP MP Alex Neil arguing that the deal "stinks to high heavens". He says: "How can HBOS shareholders be sure that Hornby will try to get them the best deal in the takeover talks if he is getting paid such a huge sweetener by Lloyds TSB?"

Posted by jack c @ 01:42 PM 3 Comments

We're still a long way from the bottom

MoneyWeek: We're still a long way from the bottom

With house prices falling, US consumers are turning to their credit cards to make ends meet. But as bad debts soar and banks tighten up on loans, they are running out of options. And thats bad news for the rest of the world - we could see the first global recession since the second World War.

Posted by damien @ 01:16 PM 1 Comments

Let's play the blame game

The Times: Banking crisis has roots in Brown reforms

The current banking crisis has its roots in banking system reforms introduced by Gordon Brown in his days as Chancellor, a report claimed today.

Posted by 51ck-6-51x @ 12:45 PM 4 Comments

A bit rich coming from the property porn channel

Channel 4 News: Wait for affordable housing soars

Waiting lists for affordable housing have soared by two-thirds during the past five years in areas of England that are popular with second homeowners, figures have shown.

Posted by whostolemyendowment @ 12:43 PM 1 Comments

No longer be able to use your property as a cash cow?

Introducer Today: Faith in property has plummeted

People's faith in using property to fund their retirement has plummeted, according to new research.

Posted by whostolemyendowment @ 12:30 PM 0 Comments

Very worrying turn of events!

Telegraph: France threatens to seize banks, German bail-outs escalate

Politicians using tax-payers money to blackmail private companies. Expect Brown to do the same v. soon. 'The French state has threatened to seize control of the country's banks and fire top staff unless they do their part to stabilise the economy by stepping up lending to companies in need.'

Posted by tyrellcorporation @ 08:58 AM 54 Comments

Something here for everyone

MarketWatch: 12 survival tips

Washington's bailing out banks. There are trillions of dollars of new debt. Lobbyists for auto companies, hedge funds, insurers, foreign banks, even states want more bailout cash. Bankers keep getting big bonuses, but it's peanuts for homeowners? Stop! Do you want to survive? Refocus!

Posted by gardeniadotnet @ 08:29 AM 6 Comments

We don't actually expect many bonuses to be paid at all in the banking sector next year

Independent: We did not take taxpayer for a mug, Darling insists

The level of savings will be there. Indeed, one would expect that, in the next year or two, the domestic economy will be saving more as a fraction of GDP than it has in recent years. So I've no doubt that the savings pool is there."

Posted by matt_the_hat @ 07:44 AM 4 Comments

Snub for Prime Minister during tour of Gulf

Times: HSBC will not pass on Bank's rate cut

Downing Street expressed its frustration with HSBC after a bank executive travelling with Gordon Brown on his trip to the Gulf said that it would not pass on all of any reduction.

Posted by gardeniadotnet @ 07:26 AM 16 Comments

Monday, November 3, 2008

Oh The Immorality of Modern (online) Times

Times Online: Gazundering is back

Yet another folksy fable about hard up home makers feeling the pinch: Watch out, if you look for a last minute discount the seller might be so annoyed they'll refuse to sell to you! Or even worse, they'll tell the neighbours what you did!!!

Posted by rentedroof @ 11:05 PM 3 Comments

Is this the start of hyper-inflation in the USA?

Gary The Federal Reserve Is Inflating at 341% per Annum.

I have never seen anything like this. The adjusted monetary base over the last eight weeks has risen at 341% per annum. The increase in the monetary base is $300 billion.

Posted by james stephenson @ 10:57 PM 0 Comments

Abbey/Nationwide raise their tracker mortgage rates prior to expected Base Rate drop

Moneymarketing: Lenders hike up trackers yet again

Abbey and Nationwide have raised their tracker mortgages on the eve of an imminent Base Rate drop. Nationwide revealed a maximum 0.4 per cent hike in trackers on Friday, and now Abbey has followed suit with a 0.5 per cent. Lenders attracted criticism last month after they put up trackers for new borrowers straight after the Bank of England lowered Base Rate. They have now repeated the strategy just before Monetary Policy Committee could reveal a very probable Base Rate drop by as much as 1 per cent, according to some economists. Abbey says this move is a response to competitor moves, and means its 85 per cent tracker has been removed, and its 60 and 75 per cent tracker is now 0.5 per cent higher.

Posted by jack c @ 07:43 PM 23 Comments

How many private sector workers have sacrificed a pension for an overpriced house?

Daily Mail: Brown's 17,000 tax raid on EVERY private pension... as value of cushy public sector schemes soars to 1trillion

Some interesting numbers here, 'the average private sector worker retires with a pension worth about 1,700 a year, the average public sector worker will retire with a pension worth 17,091 a year.' Not forgetting that while Private sector workers pay 14billion a year into their own retirement funds they also contribute around 21billion via taxation for the pensions of retired public sector workers.

Posted by enuii @ 07:34 PM 22 Comments

a debate on the global financial meltdown to position the world organization squarely at the center

Boston News: UN calls for sweeping new "Bretton Woods" system

Home / News / Local / N.H. UN calls for sweeping new "Bretton Woods" system October 30, 2008 Email| Print| Single Page| Yahoo! Buzz| ShareThisText size + UNITED NATIONSDiplomats and economists are pressing for new global financial rules, seeking an update of the World War II-era system created at New Hampshire's Bretton Woods. Nobel Prize-winning economist Joseph E. Stiglitz of Columbia University told the U.N. General Assembly that "this is a global crisis and it requires a global response." U.N. General Assembly President Miguel d'Escoto Brockmann convened a debate on the global financial meltdown to position the world organization squarely at the center of a possible fix. Development economist and former U.N. official Sakiko Fukuda-Parr of the New School said that

Posted by malct @ 07:30 PM 3 Comments

followup ....

bbc: Saver finally gets his 24,000

A saver who tried to transfer 24,000 from the UK arm of an Icelandic bank four weeks ago has finally received his money. Rhys Livsey, 29, from Cardiff, withdrew the cash from Kaupthing Edge a day before it was taken over by ING Direct after a financial crisis in Iceland. Mr Livsey had been told his money "had been held up".

Posted by mark @ 06:55 PM 0 Comments

Expect a load of cheap

bbc: Spanish and French car sales dive

New car sales in Spain and France fell in October as consumers tightened their belts in preparation for a prolonged economic slowdown. Sales of new cars in Spain fell 40% compared to the same month last year, while sales in France fell 7.3%, the national carmakers' associations said. Year-to-date sales in Spain are now down almost a quarter. The financial crisis across Europe also means consumers are finding it more difficult to fund large purchases.

Posted by mark @ 06:51 PM 8 Comments

From Renting2 via Gardneniadotnet

Washington Post: Effectiveness of AIG's $143 Billion Rescue Questioned

A number of financial experts now fear that the federal government's $143 billion attempt to rescue troubled insurance giant American International Group may not work, and some argue that company shareholders and taxpayers would have been better served by a bankruptcy filing. "What we see now are a lot of games by the government to keep these institutions going with a lot of cash," she said. "This is to fill holes in companies' balance sheets, and they're trying to hold at bay the charges that our financial system is insolvent."

Posted by malct @ 06:44 PM 6 Comments

The numbers are steadily going up..

TimesOnline: Three million homeowners face negative equity trap

Three million homeowners, or more than a fifth of households, could end up in the trap of negative equity, with mortgage debts larger than the value of their property, as house prices continue to plunge, new City estimates show.

Posted by v stor @ 06:31 PM 1 Comments

A Few last words

msn: The End of The Era

More from the "I told you so lot" he doesnt even mention govt intervention( the Basel regs... An old man at the end of a long cycle says "Here it comes, a Brave New World order. Houses for free and play the music on Mtv, That aint working , thats the way to do it , buy to let and your cheques are free.. So shall ism now or later?

Posted by campin @ 06:05 PM 0 Comments

First Google video of the first show

Google Video: Silly Money (part one) - Bremner, Bird and Fortune

Silly Money (part one) - Bremner, Bird and Fortune

Posted by malct @ 04:53 PM 1 Comments

Slimmed down market will have less on offer....

Guardian: Skipton and Scarborough building societies to merge

Scarborough Building Society today announced it would merge with larger rival Skipton after falling victim to the economic downturn.

Posted by whostolemyendowment @ 04:53 PM 2 Comments

But I thought we were well placed to avoid the worst of the

Telegraph: Britain's economy will hit recession next year, says European Commission

"According to European Union economic forecasts, Gordon Brown will be presiding over one of Europe's highest rates of public debt by 2010 at the same as Britain's economy shrinks. Commission figures published on Monday will make grim reading for the Prime Minister, once praised as a "prudent" role model for other high-spending European governments. They include the prediction that British unemployment will jump to 7.1 per cent in 2009, up 25 per cent on the forecast of 5.7 per cent in 2008. Britain's economy is expected to contract by at least one per cent next year, the worst rate since 1991, while the euro zone and European rivals such as France and Germany avoid recession." With the rest of the article talking about more downsides, even more reason to wait a long, long time to buy

Posted by growler @ 04:05 PM 9 Comments

Thousands of US banks set to apply for government cash

MarketWatch: More banks could get government help

Banks are considering taking government investments under the Troubled Asset Relief Program, or TARP, because not participating in the program may be seen by the markets as a sign of weakness, according to the report.

Posted by gardeniadotnet @ 03:20 PM 4 Comments

Ways to Slow Foreclosures

Bloomberg: Spain Lets Jobless Postpone Half of Mortgage Payments

Up to 500,000 people may people might use this scheme to delay half of their monthly repayments for 2 years. Why only 2 years? How about 10 or 20? Come to think of it, why not just lump the debt on their children and grandchildren?

Posted by ontheotherhand @ 02:47 PM 2 Comments

forcing it to axe 1,400 jobs.

Yahoo: Autos lower as downturn bites

Automobiles & Parts in the doldrums, a week after the engineer warned on full-year profits. The firm, which relies on the automotive sector for two-thirds of its revenues, said annual profit will plunge 20% this year, forcing it to axe 1,400 jobs.

Posted by mark @ 02:35 PM 0 Comments

You think we are at the bottom? Forget about it!

Money and Markets: The Great American Housing Nightmare: Next Phase

Dont underestimate the potential depth, speed and duration of the decline. As the debts are unraveled, the economy comes unglued and the deceptions are uncovered, home prices could continue to plunge much further.

Posted by mario @ 02:08 PM 7 Comments

David Smith: We should have listened to Blanchflower

Times: Lending window is shut but rate cuts will help

Economists do not often get to say I was right all along but maverick monetary policy committee member Danny Blanchflower is able to do so, no doubt to the intense irritation of Mervyn King and the other MPC members. Blanchflower, who spends half his time in the US, has long pushed the view that Britains economy was heading the way of Americas. He consistently argued the MPC was wrong to get hung up on a rise in inflation generated by global energy and food prices, and that it was also wrong to fret about the risks of a wage-price spiral. Such risks, in his view, were negligible. He is the MPCs superdove, voting to cut rates at all 10 MPC meetings this year. And he has been proved right.

Posted by little professor @ 01:17 PM 18 Comments

London House prices in record drop

Property Week: London house prices drop at record rate says Knight Frank

Prime residential prices in central London fell by 3.9% in October, the fastest rate of decline on record, Knight Franks latest market report has found. Since the peak of the market in March this year, prices have fallen by 13.4%. And the six monthly decline in price from May to October - was 12.4%.

Posted by georgie hobbs @ 12:45 PM 0 Comments

As Predicted Here, It Just Gets Worse

Daily telegraph: Northern Rock and B&B will need more taxpayers' cash as housing market worsens

In August, the Government converted 3bn of its loan to Northern Rock into equity to bolster its core tier 1 capital ratio, which had slipped to the dangerously low level of 2.9pc. The Government may have to inject "2bn pounds to 3bn more," into Northern Rock, a source close to the Government has told The Daily Telegraph.

Posted by renting2 @ 12:12 PM 3 Comments

The rebound is a bad sign for markets

MoneyWeek: The rebound is a bad sign for markets

"It's not just house builders and banks who are warning on profits a much wider range of companies are feeling the squeeze. "

Posted by damien @ 12:10 PM 6 Comments

London prices down 3.9% MoM in October

FT: Prices fall 5,000 a day for top London homes

The price of prime London homes - those selling for more than 1m and located in the swankiest areas, such as Mayfair and Belgravia - fell by about 5,000 a day in October, proving that even luxury housing is not immune to the credit crunch. The Knight Frank index showed that prices in London fell by an average of 3.9% in October - the fastest since the survey began in 1976. "The top end of the market appeared resilient and it was thought that the global rich were immune" from the recession, said Liam Bailey, head of residential research at property agents Knight Frank. "Now it appears that nothing is immune."

Posted by little professor @ 11:45 AM 11 Comments

Comedy club has new act for November 2008

FT: New homes shortage to drive up prices

The shortage in new homes is predicted to drive up prices over the longer term, according to New Homes Mortgage Helpline.The new homes mortgage specialist claims that prices for new builds will rocket as the supply and demand imbalance worsens. The number of new home starts has fallen 50 per cent over the last year, according to figures from NHBC for October. Nic Spaull, managing director of New Homes Mortgage Helpline, said: "New homes are a safe option compared to the second hand homes market, as the economic crisis has resulted in the number of new homes built this year falling a long way short of the government's targets.

Posted by jack c @ 11:33 AM 10 Comments

2002 levels and counting!

The Telegraph: Property sales slump by 50pc

Mr Pryor is pessimistic about the market's prospects. "Forget what the figures from Halifax and Nationwide are saying," he added. "Like the official Land Registry figures for July, these are all out of date. This market is falling fast, with many homes now worth over 20pc less than they were at the peak of the market. "We can expect values for many homes to fall further, perhaps to 2002 levels. This means that for some they will have fallen by 50pc 5.7m people have bought since then and those who borrowed more than 90pc of the property value will be in negative equity."

Posted by cheekie charlie @ 11:07 AM 9 Comments

Where builders making more from land appreciation, and now the truth is out?

Contract Journal: House builders' write-downs could rise to 13bn

House builders landbank write-downs, already standing at a figure 2bn, could jump as high as 13bn if the woes of the housing market are faced head-on, according to City analysts.

Posted by whostolemyendowment @ 10:31 AM 17 Comments

no kidding, a child could tell you that!!!

bloomberg: EU Says Europe Economy Probably Already in Recession

The European Commission said the region's economy probably entered a recession this year and will barely grow in 2009, increasing pressure on political leaders to work out a plan to combat the financial crisis at summits this month. Economic growth in the euro area will slump to 0.1 percent next year, the worst performance since 1993, the Brussels-based commission said in a report today. It lowered its forecast for this year to 1.2 percent from 1.5 percent in April.

Posted by mark @ 10:29 AM 0 Comments


reuters: Manufacturing shrinks for 6th month

"There can be no doubt that UK manufacturing has fallen into recession," said Rob Dobson, senior economist at Markit Economics........

Posted by mark @ 10:25 AM 2 Comments

Off message, but all has an impact on market sentiment...

First Rung: Brits are still paying off credit costs from last Christmas

With rising bills and lower disposable incomes, nearly 1 in 4 (24%) Brits are still paying off credit costs from last Christmas. With the UK set to sink further into recession, the latest figures indicate a rise of 29% on last year's post-Christmas financial hangovers....

Posted by whostolemyendowment @ 10:24 AM 4 Comments

the scheme was credited with preventing a catastrophic collapse of the banking system

Wales on Line: MPs will quiz banking system bosses

Nov 3 2008 The heads of the financial authorities are being grilled by MPs over their handling of the banking crisis. Chancellor Alistair Darling, Bank of England Governor Mervyn King and the Financial Services Authority chairman Lord Turner of Ecchinswell are giving evidence to the Commons treasury committee. The session, in a committee room in Portcullis House, opposite the Houses of Parliament, will mark the first stage of the committee's inquiry into the dramatic events of recent weeks.

Posted by malct @ 09:48 AM 0 Comments

The Prime Minister visits Ras Laffan, which could supply up to 20% of Britain's future gas needs

Lancashire Evening Post: Brown due to visit Qatar gas plants

Published Date: 03 November 2008 Gordon Brown is viewing huge gas plants in Qatar as his tour of the Gulf continues. The Prime Minister is to visit Ras Laffan, which could supply up to 20% of Britain's gas needs in the future. On Sunday, Mr Brown claimed victory in his bid to persuade Middle East countries to help bail out economies struggling amid the global downturn. He has said he wants to boost the IMF reserve by hundreds of billions of dollars - much of it from the Gulf's trillion dollar windfall from soaring oil prices.

Posted by malct @ 09:42 AM 2 Comments

Takeover partner Lloyds TSB warned of a sharp fall in profits

Guardian via Newstin: HBOS takes a 5.2bn hit from the credit crunch

Takeover partner Lloyds TSB warned of a sharp fall in profits Britain's biggest home lender HBOS raised its hit from the value of risky assets and bad loans to over 5bn pounds on Monday and its takeover partner Lloyds TSB warned of a sharp fall in profits. The banks said the takeover of HBOS by Lloyds TSB remained on track, however, and Lloyds said it expects to resume dividend payments next year after repaying preference shares taken by the UK government.

Posted by malct @ 09:39 AM 2 Comments

Anyone got access to the full version?

FT: Deep rate cuts forecast amid gloom

A growing number of economists are forecasting large interest-rate cuts as the Bank of England's monetary policy committee and the European Central Bank's governing council meet this week to consider the issue. The ECB and Bank of England last month participated in a synchronised rate cut along with the US Federal Reserve, the Bank of Canada and the Swedish Riksbank, clipping interest rates by half a point.

Posted by malct @ 09:36 AM 4 Comments

" ...Would anyone like to guess what the word behind the Prime Minister's head is in this photo?"

Warmwell News: November 2/3 2008 ~ So much for ending dependency on oil?

On October 17th Gordon Brown was quoted on "The UK must reduce its dependency on oil as an energy source and move to nuclear and renewables, the PM has said. [...] Gordon Brown said the Government's strategy was to move to a low carbon economy and escape the "dictatorship of oil"." And here he is on Sunday, November 2: "The Saudis and other countries in the Gulf States are very important, they are the countries with great revenues and oil wealth. What starts with negotiations in Saudi and elsewhere can end with great benefits for families in Britain."

Posted by malct @ 09:18 AM 4 Comments

And if British TV doesnt have much in the way of considered political an

Telegraph: Bremner, Bird and Fortune: Silly Money

Im obsessed with Robert Peston, says Bremner. Even when I read my children stories at night I find myself drifting into his voice. He adopts a strident wail, stressed in Peston-ishly eccentric places. And ROUND the COR-ner of the CUUU-cumber frame came Mr Mac-GREG-or with a GIANT, one TRIIIILLION POUND bail-out Still, most MPs would probably rather be thought dull than be lampooned. Last year, Bremner called up Margaret Beckett, pretending to be Gordon Brown and she fell for it. Bremner wasnt allowed to broadcast the resultant tape, so he hasnt attempted a similar ruse this time, he says. Then a thought strikes him. I might ring up Robert Peston and give him a bum steer, he says.

Posted by malct @ 08:08 AM 3 Comments

For those who missed it

Channel Four: Bremner, Bird and Fortune: Silly Money

Bremner, Bird and Fortune offer a satirical look at the global financial system in all its astonishing sophistication and stupidity.

Posted by malct @ 07:46 AM 0 Comments

A parody on Gordon Brown's own Downfall

You Tube: Gordon Browns Downfall

Simply Hillarioius!

Posted by ian hills @ 06:53 AM 2 Comments

Sunday, November 2, 2008

40 - 50% drops forecast!

Radio 4 - Moneybox: Affordable homes?

Henry Pryor, founder of the property website, and Dr Andrew Lilico, managing director of consultancy Europe Economics gave us their views.

Posted by dave the dog @ 09:47 PM 6 Comments

Scottish banking on the turn

Sunday Telegraph: RBS and HBOS to reveal further writedowns as economy weakens

Two of the banks which are to receive more than 30bn of taxpayers' money will this week announce billions of pounds in asset writedowns and warn the City that full-year profits are likely to be lower than previously expected.

Posted by mken @ 09:18 PM 4 Comments

Does anyone care about this now the global economy has stopped?

Gaurdian: Giant sail technology could make shipping greener

This is a serious attempt to reduce bunker [fuel] costs and polluting emissions. The kite will be used whenever it is possible on the voyage, and we are convinced it will revolutionise cargo shipping. We would consider fitting them to all our ships," said Christine Bornkessel, a spokeswoman for the Bremen-based Beluga shipping line, which has 52 merchant vessels. Well, the question is, now people have stopped

Posted by last_days_of_disco @ 08:30 PM 4 Comments

Implications for the High Street?

Seatrade: Another woeful week for bulk, reports Baltic

'This market has left most players paralysed with almost incomprehensible numbers talked for tonnage - and the list of ships ballasting, spot or swinging at anchor growing,' comments the Baltic. 'Cargoes were scarce and with credit still tight, stockpiles at Chinese ports, falling steel prices and the ongoing price dispute between Vale and the Chinese bringing activity to a virtual standstill.

Posted by gardeniadotnet @ 04:57 PM 20 Comments

Not much relief for home owners in prospect then!

The Independent: The rate cut you won't see: Bank set to slash interest by up to 1%

Economists in the Square Mile are predicting that the committee, led by the Governor of the Bank of England, Mervyn King, could slash the cost of borrowing in the UK by as much as 1 per cent. This follows the lead taken by America's Federal Reserve Bank, which chopped its rate by 0.5 per cent last week. But the chances of mortgage borrowers feeling the full benefit of any cut are slim. "Even fewer lenders than last time will pass on any rate cut that is made this week," said Darren Cook of the financial information group Moneyfacts. "They won't be able to pass on any of the base rate cuts until money market Libor rates [the interest banks charge each other] decline."

Posted by v stor @ 02:47 PM 2 Comments

Ursa minor - a little Bear Stearns?

Times Online: Hedge fund giant GLG warns investors about big shake-up

ONE of Europes largest hedge funds, GLG, is sending a letter to investors this weekend saying it is to launch a liquidity review of its funds. It is also going to stop investors making withdrawals from its $1.5 billion (930m) Market Neutral fund for six months. The review will decide the best way to preserve capital in GLGs 40 funds.

Posted by dohousescrashinthewoods @ 02:38 PM 5 Comments

71 second video

The Crown bs: Gordon Brown's house price boom and bust

see also three short vids on UK house price crash here - beware some humour involved. plus links to other hpc issue videos

Posted by malct @ 01:36 PM 5 Comments

Demand getting squeezed out

Times Online: Millions in home loan danger zone

Nearly half of borrowers remortgaging next year could be locked out of the best deals by falling house prices. As many as 49% of homeowners who have taken out a loan since the start of 2007 have borrowed more than 75% of the value of their property, Financial Services Authority data revealed last week.

Posted by dohousescrashinthewoods @ 01:30 PM 2 Comments

Rents fall. Landlords surprised.

Observer: Buyers can't buy and sellers can't sell

"... but it's a great time to be a tenant As unsold homes flood onto the lettings market, rents are plunging"

Posted by letthemfall @ 11:32 AM 13 Comments

Rule Brittania!

BBC News: PM calls for more Gulf investment

The engineer of the British economic miracle explains his strategy: "Gordon Brown is set to call on wealthy oil states in the Gulf to invest more money in Britain. The prime minister will tell a meeting of businessmen in the Saudi Arabian capital Riyadh that such investment is vital to create and secure UK jobs."

Posted by quiet guy @ 10:35 AM 12 Comments

The news serfs

BBC News: Fear and dread on debt-hit estate

Many people in the UK are finding the recession and credit crunch means they have to make cutbacks, whether on meals out or on necessities such as food and energy bills. However, for some people paying for the basics is impossible unless they go into debt.

Posted by quiet guy @ 10:30 AM 3 Comments

Barack Obama - After the foreclosure crisis, he warned, the credit cards are next in line.

Media Channel: House of Cards -

While campaigning in Edinburg, Texas, in February, Barack Obama met with students at the University of Texas-Pan American. Just be careful about those credit cards, all right? Dont eat out as much, he said. After the foreclosure crisis, he warned, the credit cards are next in line. While many eyes are focusing on the housing meltdown and its hugely negative effect on an economy clearly moving into recession, few are paying attention to the next bubble expected to burst: credit cards. Combined with the subprime losses, such a credit card nightmare has the potential, experts say, of bringing down the entire financial system and global economy.

Posted by malct @ 10:21 AM 1 Comments

Well, Who'd Have Thought That?

Telegraph: Labour to blame for banking crisis, new report claims

"A report by the Centre for Policy Studies (CPS) to be published on Tuesday will claim the responsibility for the banking crisis lies largely with the Labour Government's decision to remove responsibility for banking oversight from the Bank of England." .................. "Mr Flight said: "The responsibility for the probability of a UK banking crisis can be laid largely at the current Government's door. The roots are in mistaken monetary and economic policies and in regulatory failure."

Posted by renting2 @ 09:05 AM 5 Comments

Increasingly desperate ramping - it's tragic, really

Scotsman: Slump offers a step on to the property ladder

It is a rare shaft of sunlight amid widespread economic gloom. Housing experts say falling prices have led to a range of bargains on the market for first-time buyers while the Government's bank bailout is starting to make it easier to get a mortgage. Experts say there is little to be gained by waiting for property prices to drop any further because the delay between starting the process and closing the deal could mean anyone who waits finds prices have started to go back up.

Posted by little professor @ 12:56 AM 16 Comments

Saturday, November 1, 2008

Anne "angry" Ashworth demands substantial rate cutsby the MPC

timesonline: Property auctions show lots of uncertainty

She demands cuts on three occassions throughout the article - does she not understand that Banks will pass on cuts when they feel like it, not because the MPC lower their base rates, and also by tryin to protect hers and others like her short term gains she is willing to see sterling devalued, savings made redundant and inflation go through the roof. Once this madnes of slashing rates has passed, the MPC will be forced to raise rates much higher than before to control inflation. IMHO

Posted by bystander @ 08:49 PM 4 Comments

When is a done deal not a done deal?

Yahoo News: Ministers in talks with financier over possible rival bid for HBOS

British ministers will hold talks with a leading Scottish businessman over a possible rival bid for mortgage lender HBOS, which has been hit hard by the subprime crisis, the government confirmed Saturday. ( also see )

Posted by whostolemyendowment @ 06:05 PM 4 Comments

They'll go to these lengths to keep on trousering the loot

BBC News: Barclays protects its bankers' pay

Barclays have gone to extraordinary lengths - including screwing their smaller shareholders - to ensure that top execs can carry on paying themselves big salaries and bonuses.

Posted by icarus @ 06:02 PM 8 Comments

New London Skyscrapers and Recession

FT: Skyscrapers portend doom

As the Chrysler and Empire State Buildings raced each other to become the tallest in the world, the 1929 crash saw the economy collapse around them. The World Trade Center towers were completed in the dire stagflation of the mid-1970s which saw New York bankrupt, crime-ridden and at its lowest ebb. The passing of the high-rise baton to Asia with the completion of the Petronas Towers saw the collapse of the Asian markets in 1997. Super skyscrapers appear to be bad news for the economy.

Posted by mountain goat @ 05:47 PM 4 Comments


Safe Haven: What's That Coming Over The Hill, Is It A Monster, A Monster?

Interesting look into the medium future for currencies and international trade. Appreciate doesn't relate directly to property but I guess what everyone on this site has in common might be the desire to use insight toward improving on their wealth. As I've mentioned before the future for sterling looks bleak.

Posted by bellwether @ 05:40 PM 4 Comments

The Assimilation Continues

Wall Street Journal: Fifth Third Bancorp Takes Over Assets in 17th Bank Failure

Freedom Bank, based in Bradenton, Fla., became the 17th bank to fail this year.

Posted by renting2 @ 05:16 PM 2 Comments

Long article.....but worth a read if you're having a slow Saturday....

Economist: The Fed's rate cut - Approaching zero

AFTER the most eventful and creative six weeks in the history of central banking, a half-point interest rate cut by the Federal Reserve on Wednesday October 29th was almost anti-climactic.

Posted by whostolemyendowment @ 04:35 PM 3 Comments

In reality, a country's troubles unwind so fast that the IMF will not have time to decide options

Economist: The IMF - A Quick Fix

The IMF's new scheme to help emerging economies weather financial trumoil...Under the short-term liquidity facility (SLF), approved on Wednesday October 29th, qualifying countries will be eligible for a loan at short notice of up to 500% of their IMF quota, the maximum amount a country is obliged to provide to the IMF.

Posted by whostolemyendowment @ 04:27 PM 4 Comments

FLASHBACK - The Chancellor compared the situation to a dose of food poisoning

Virgin Media: Cash boost to ease mortgage crisis

The Chancellor compared the situation to a dose of food poisoning, where "some aspects of it just have to work their way through the system". ,,,,,,,,,,,,, and this was less than six months ago! ,,,,,,,, Chancellor Alistair Darling said the Bank of England is to make an announcement on plans for a multi-billion cash boost secured on the mortgage assets of high street lenders. ,,,,,,, "But the idea behind it is that it will open up the market and it will begin the process of opening up the mortgage market which will help householders." ,,,,, We are trying to unbung that situation so that the Bank will be making money available to the British banking system.

Posted by malct @ 12:59 PM 1 Comments

Icelandic Central Bank approached the Bank of England in March

Daily Post: Inquiry calls over Icelandic crisis

Nov 1 2008 The Government is facing calls for an investigation following claims that the UK authorities knew as early as April that the Icelandic banking system was in trouble - six months before its catastrophic collapse. Channel 4 News reported that the Icelandic Central Bank approached the Bank of England in March for assistance to support its currency as confidence in its heavily-indebted banking began to ebb away. The following month, Bank of England Governor Mervyn King was said to have asked the International Monetary Fund for an assessment as well as commissioning separate studies of Iceland's banks and its economy. According to the programme, he subsequently turned down the Icelandic request for help

Posted by malct @ 12:45 PM 0 Comments

Can't See it Happening Here

Daily telegraph: JP Morgan to help a further 400,000 struggling homeowners

JP Morgan Chase, America's largest bank by market value, is taking action to help a further 400,000 families struggling with their mortgages. In a major step to alleviate problems in the US housing market, the bank plans to modify the terms on $110bn (69bn) of mortgages.

Posted by renting2 @ 11:49 AM 5 Comments

house prices have a lot further to fall

guardian: Prices of homes dropping at fastest rate since 1952

The average price of a house in Britain is 30,000 less than it was a year ago, Nationwide said yesterday, with prices tumbling in the year to October at their sharpest rate since 1952.

Posted by mken @ 11:17 AM 10 Comments

High Street Halloween

Guardian: House prices plummet

A little light-hearted fluff from the Guardian.

Posted by quiet guy @ 11:11 AM 1 Comments

One For The Deflationists

Commodity Watch Radio: Hugh Hendry of Eclectica

Any Hugh Hendry fans or uber-deflationists might enjoy the latest Commodity Watch Radio . High Hendry gives his take on things while Francis Claessens tells us what the super rich have been doing with their money.

Posted by frizzers @ 10:01 AM 1 Comments

What happened to the shortage of supply?

Glasgow Herald: Crisis as 100,000 homes lie empty

More than 100,000 homes are lying empty in Scotland, a report reveals today. Figures compiled by the Bank of Scotland show 101,019 properties are currently vacant - 4.1% of all houses across the country. The Bank of Scotland called on the Government to reduce VAT on renovating vacant properties to make them more attractive to investors, while homeless charity Shelter said Scotland faced a "housing crisis" and demanded more empty homes be brought back in to general use.

Posted by little professor @ 10:00 AM 12 Comments

I've seen that graph somewhere before ;-)

Guardian: HBOS comes up Blank

Mainstream media begins to join the dots on house prices: "You can see that real prices are now approaching the trend line. Indeed, at the current rate of decline, prices will soon fall below trend. The interesting question is what happens next. Look at last time: prices fell well below trend and stayed there for years, declining by about 40% in real terms from peak to trough. It took until the second quarter of 2002 to get back to the peak achieved in the third quarter of 1989 - almost 13 years."

Posted by alphabetzoo @ 09:15 AM 1 Comments

18% of all properties with a mortgage were in a negative equity position as of the end of September

businessweek: Lots of homes 'underwater' on mortgages in U.S.

Over 7.5 million mortgages or 18% of all properties with a mortgage were in a negative equity position as of the end of September 2008. There are an additional 2.1 million mortgages that are approaching negative equity. These are defined as mortgages within 5% of being in a negative equity position. Negative-equity and near-negative equity mortgages combined account for over 23% of all properties with a mortgage. anyonr got figures for the UK?

Posted by malct @ 09:09 AM 3 Comments

'arry and Saaaandra's neighbours hit by the crunch

Mail: Two houses repossessed in millionaires' row Sandbanks

It boasts the world's fourth most expensive postcode and an array of famous residents. But it seems even Sandbanks is not immune to the credit crunch. Two 1million-plus properties on the exclusive peninsula have been repossessed in recent weeks. A five-bedroom home in the Dorset enclave, nestled between Poole Harbour and Bournemouth, is on the market because its owners were unable to afford their 6,000-a-month repayments after their investment business took a downturn.

Posted by jack c @ 08:52 AM 1 Comments

Not such a good prospect after all Home Inspector Training - a viable career ?

Some people rushed into a new career and seemed as if they may have had their fingers burnt a little. The HCR spoke about was planned to be in the Home Information Pack though was dropped.

Posted by kaz @ 08:38 AM 2 Comments

Struggling Taxpayers fund city bonuses

Telegraph: RBS will pay bonuses to staff despite government bail out

Thousands of staff at Royal Bank of Scotland, which is being bailed out with 20 billion of taxpayer's money, will be paid bonuses this year despite government assurances that City pay would be curbed. The disclosure has been condemned by Vince Cable, Liberal Democrat Treasury spokesman. He said: "The government said they would attach strict conditions on bonuses and it is very clear they are doing nothing of the kind. "The banks are just making complete monkeys of them."

Posted by sovietuk @ 08:09 AM 8 Comments

Lionel Shriver sings from the HPC hymnsheet

Daily Telegraph: We savers are dupes

The fiscal ructions of the past month have systematically punished savers, who have every reason to be kicking themselves for having grimly salted away funds while everyone else was having a party.

Posted by timelash @ 07:56 AM 0 Comments

More worried about empty shop shelves than Greek Debt, but, hey hoe.

Telegraph: Investors shun Greek debt as shipping crisis deepens

The Baltic Dry Index measuring rates for coal, iron ore, and grains, and other dry goods plummeted below 1000 yesterday, down 92pc since peaking in June. The daily rental rates for Capesize big ships have dropped $234,000 to $7,340 in weeks, leaving operators stuck with heavy losses on long leases. Empty ships are now crowding Singapore and other global ports. "It is extremely serious, " said Jeremy Penn, president of the Baltic Exchange. "Freight rates have never fallen this steeply before. It is telling us that world trade in raw materials has slowed dramatically. Shippers are having genuine difficulty obtaining letters of credit from banks," he said. - The rest of the article goes to say that Greece will fall flat because it controls most freight, along with, you guessed it, London!

Posted by planning4acrash @ 12:21 AM 1 Comments

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