October 2010 Archive

Saturday, October 30, 2010

The 2nd crash is rolling

Telegraph: Britain's property market in 'double-dip'

Britain’s property market is in the midst of a “double dip”, economists reveal, as figures show mortgage lending dropping to a tenth of the level seen during the previous month.

Posted by doomwatch @ 09:10 PM 8 Comments

World war 3 ?

Yahoo afp: Iran forex reserves exceed $100bln

"We imported hundreds of tonnes of gold when its price was at an average of 656 dollar per ounce," Bahmani said at the seminar in Tehran on Saturday. "Today its global price has gone up to 1,230 dollars (per ounce). Given the current situation, billions of dollars have been added to the country's foreign exchange reserves." He said the reserves were brought into the country "to avoid being seized by other countries due to sanctions."

Posted by mark @ 06:01 PM 7 Comments

Who signs these deals off?

Daily mail: So astonishing I'm lost for words

I can't even find words to comment on this.No doubt the gestapo fear will put off comments put in writing.I simply do not understand this at all but its true and real

Posted by taffee @ 11:11 AM 36 Comments

Let them go private

FT: Most schools to have budget cut

In my mind's eye I see Michael Gove with a school cap and satchel. If Spitting Image were still going they'd have a field day with him. A bit off topic, but it is the weekend. And it's more interesting than gold. (As ever, search title in Google to view)

Posted by letthemfall @ 10:29 AM 3 Comments

Teetering on the edge?

Guardian: Housing dip feared as mortgage approvals stall

Fears of a double-dip in the housing market were exacerbated today with news that the number of mortgage approvals remained static in September, while net lending (not including redemptions and repayments) was just £112m during the month – down from £1.62bn in August.

Posted by rental john @ 10:20 AM 0 Comments

IMMINENT ! Where have they been hidding?

Mortgage Rates: House Price Crash Imminent

...The report which was published by leading mortgage provider Nationwide backed up unsettling figures from the British Banking Association (BBA) which painted a picture of low mortgages approvals (lowest in the last year and a half), a slow rate of growth and a troubled first time buyer market which has been impacted by the governments announcement of their spending review. Even if when first time buyers aren’t put off by looming job cuts they are finding it practically impossible to find credit.

Posted by rental john @ 10:11 AM 0 Comments

An investment manager talks about saving

Telegraph: Doomsayers are selling Britain short, says top fund manager Tom Dobell

“Unfortunately, we had become complacent that our place in the world was assured. The mistaken idea that rising house prices and hopes of winning the lottery might be a plan for retirement are national characteristics that will have to be amended. “The truth is we are going to have to work hard and save hard. But it was not UK Plc that went bust; it was the government finances that were in tatters because we were living beyond our means. The man in the street was also being encouraged to borrow too much and it is difficult to see how that could have been sustained.

Posted by quiet guy @ 09:46 AM 6 Comments

When the Levee Breaks

Bloomberg: Ireland, Greece Debt Woes Reverse Sovereign Default Swaps Rally

A bondholder showdown in Ireland, slumping Greek tax revenue and political gridlock in Portugal reversed Europe’s biggest sovereign debt rally in three months. The average price of credit-default swaps on Portugal, Italy, Ireland, Greece and Spain rose to 406.5 basis points from 363.5 last week, according to CMA. That’s the biggest weekly increase since Aug. 13. Governments of Europe’s so-called peripheral nations are struggling to lower their budget deficits even as they impose public spending cuts and increase taxes. A review of Greece’s 2009 budget showed the deficit was above 15 percent of gross domestic product, more than previously estimated, and the nation has “serious tax compliance issues,” Finance Minister George Papaconstantinou said this week.

Posted by novice pete @ 12:49 AM 10 Comments

Friday, October 29, 2010

Recovery with shadows.

Insolvency News: £6.8bn Time To Pay arrangements granted

If a company asks for more than one Time to Pay agreement or a further extension on their agreed repayment plan, this indicates their financial difficulties may be extremely serious. We understand that the number of repeated deferrals increased considerably from around 33,000 in September 2009 to 79,000 by early 2010. Without new figures, it is impossible to tell how many companies under the Time to Pay banner are severely distressed and at risk of insolvency.

Posted by novice pete @ 10:28 PM 2 Comments

QE2 arriving

ABC News: Suspicious Device Intercepted At U.K. Airport

The trial run bombs arrive from the "Middle East" to justify the bomb about to be detonated from within

Posted by fallingbuzzard @ 09:48 PM 9 Comments

Capital Economics say 20 percent

ThisIsMoney.co.uk: House prices 'are still 20% too high'

House prices need to tumble by 20% to make homes affordable, economists have said. The claim came as the Nationwide reported a further slowdown in the property market. Property economist Capital Economics said only a fall of a fifth in the average price - bringing the figure down by around £33,000 to £130,000 - will bring homes within reach of buyers.

Posted by quiet guy @ 05:45 PM 12 Comments

Here we go again

Guardian: The return of sub-prime

Even a dog is clever enough to learn, why aren't banks?

Posted by chrisch @ 03:47 PM 8 Comments

Cant Borrow? or Wont Borrow?

Affordable airplane flights hit turbulence

Telegraph: Tax rise will end benefits brought by air travel, warns BA

About how businesses may do worse when the burden of expensive air fares hits profit margin; about how the UK lifestyle of casually flying off on a super holiday might be curtailed; What have air fares got to do with house prices? 1. People using equity to own a home abroad which they can fly to easily - would they sell now..?; 2. General wider observation at how us UK people are gradually feeling the heat turned up on our expectations of what we can afford in life. A lot of people strongly define themselves in terms of their holiday experiences; 3. How a collection of extra burdens on us may add up to a sum of the parts which significantly affects our willingness to buy property at their current prices.

Posted by mdmick @ 12:47 PM 0 Comments

Wishful thinking?

Huddersfield Examiner: Thousands more homes planned for Kirklees

A top planner has outlined proposals to build 26,000 new homes in Kirklees.

Posted by mr g @ 12:32 PM 13 Comments

"house prices are dropping in value by more than a typical salary"

Telegraph: House prices to fall amid drop in mortgage lending

House prices are expected to fall further, experts warn, as figures show the growth in mortgage lending is less than a tenth of the level seen during the previous month. Net lending, which strips out redemptions and repayments, was just £112 million in September, down from £1.62 billion in August, according to the latest mortgage figures published by the Bank of England. The latest lending figures remain in positive territory, but they are unlikely to pick up in the coming months as banks restrict the best deals to borrowers with substantial deposits.

Posted by jack c @ 12:05 PM 11 Comments

Crate & Barrel’s legendary founder says rents and lease structures are a barrier to new entrants

To print, or not to print: that is the question

The Telegraph: Mervyn King must turn off the printing press

All in all, policy-makers are becoming worryingly dependent on further QE for salvation. The argument goes that with mountainous public debt excluding the possibility of further stimulus packages or tax cuts to boost the economy, why shouldn’t we just print more money instead?

Posted by devo @ 11:06 AM 30 Comments

One way to stop US house prices sliding

Telegraph: The Fed's impending blunder

'In a sense QE has worked all too well. M3 has stabilized. The M2 gauge used by the Fed – which was still contracting in May – has been growing annual rate of 8.4pc over the four weeks to mid-October. The pace has been accelerating for months'

Posted by hpwatcher @ 10:49 AM 0 Comments

But the market is booming lol

Yahoo / reuters: September mortgage approvals lowest since Feb

The Bank said mortgage approvals numbered 47,474 in September, down from 47,498 in August. Analysts had forecast a reading of 46,000, and the equivalent measure from the British Bankers' Association hit an 18-month low earlier in the week. The central bank has slashed interest rates to a record low of 0.5 percent and has created and spent almost 200 billion pounds on British government bonds to support an economic recovery, which has been surprisingly strong this year. Analysts expect growth to slow sharply as government spending cuts and tax hikes kick in next year. The housing market has slowed sharply and banks are still reluctant to lend to businesses and consumers.

Posted by mark @ 10:43 AM 0 Comments

Anyone for dollars?

Yahoo / telegraph: Roubini sees US 'fiscal train wreck' ahead

The US economy is a "fiscal train wreck" waiting to happen, US economist Nouriel Roubini warned on Friday. He painted a bleak outlook for the world's biggest economy in a commentary for the Financial Times , saying while President Barack Obama's stimulus package prevented another depression, it was coming to an end with nothing to take its place.

Posted by mark @ 10:10 AM 5 Comments

Won't someone please think of the children?

BBC: Housing benefit bill 'will rise' following reforms

No, please stop; my sides are splitting: "It says increasing rents by up to 80% of the market rate to pay for new homes will mean more tenants having to rely on housing benefit to pay them...The new rents, therefore, would act as a "powerful disincentive" to work, it adds". What, so current astronomical housing benefit doesn't already act as a disincentivisation? This boils my pish, it really does.

Posted by sibley's b'stard child @ 09:59 AM 8 Comments

Keep spinning

Bloomberg: U.K. Retail Index Falls for First Time Since May, CBI Says

A U.K. retail-sales index fell for the first time in five months in October as the government’s planned spending cuts undermined consumer confidence.

Posted by devo @ 09:21 AM 2 Comments

How China is winning commercial war with the west

G Pytel: Currency risk: a Chinese advantage

An excellent article that clearly explains why it makes commercial sense for the Chinese to undercut western companies.

Posted by ant @ 09:20 AM 1 Comments

After all the bragging about Germany the powerhouse pushing forward- how much BS is being fed to us

Yahoo afp: German retail sales in surprise fall

German retail sales in September fell 2.3 percent from August in the sharpest monthly drop since March 2008, official data showed on Friday

Posted by mark @ 09:14 AM 0 Comments

Here comes the default

Telegraph: EU Haircut rattles bondholders

Can't pay, won't pay.

Posted by chrisch @ 09:07 AM 0 Comments

Thatcher's plan to impoverish the public

FT: Thatcher's plan to educate the public

I have long wondered if house prices are correct and it is simply that wages are pitiful hence the 5 times income price relative to the "old" three times income rule of thumb. Here's the proof - the Thatcher government started it, Blair continued and now Cameron will finish it off. "Margaret Thatcher’s first government drew up secret plans to “educate” the British public in the “economic facts of life” and to persuade them to embrace spending cuts and lower pay, Treasury files released to the National Archive show"

Posted by chrisch @ 08:15 AM 8 Comments

So shameless

Daily Express: HOUSE PRICE UP BY 5.2% IN A YEAR

House prices have risen 5.2 per cent since this time last year, official figures revealed yesterday. All regions in England and Wales experienced increases in average property values, the Land Registry said.

Posted by little professor @ 12:10 AM 11 Comments

Thursday, October 28, 2010

One for the HPC ''experts'' (hahahahahah)

Gonzalo Lira: Signs Hyperinflation Is Arriving

''Back in late August, I argued that hyperinflation would be triggered by a run on Treasury bonds. I described how such a run might happen, and argued that if Treasuries were no longer considered safe, then commodities would become the store of value. Such a run on commodities, I further argued, would inevitably lead to price increases and a rise in the Consumer Price Index, which would initially be interpreted by the Federal Reserve, the Federal government, as well as the commentariat, as a good thing: A sign that “the economy is recovering”, a sign that “normalcy” was returning.''

Posted by hpwatcher @ 09:15 PM 26 Comments

"New Low" is a curious statement, but hey, more singing from the same hymn sheet

Daily Finance UK: House Prices Slump To New Low

Basically the same as the last few articles, but i'm just throwing my two penneth' worth in

Posted by thebulltrap @ 08:45 PM 0 Comments

A horror story

The Globe and Mail: The scary actual U.S. government debt

Boston University economist Laurence Kotlikoff says U.S. government debt is not $13.5-trillion, which is 60 per cent of current gross domestic product, as global investors and American taxpayers think, but rather 14-fold higher: $200-trillion – 840 per cent of current GDP. “Let’s get real,” Prof. Kotlikoff says. “The U.S. is bankrupt.”

Posted by devo @ 05:35 PM 7 Comments

One for the Smugdogs, Greenbays, Wilsons, Kirstys etc.

Mortgage Finance Gazette: Land Registry: House prices up 5.2 % in a year

Annual house price growth in September stood at 5.2 per cent, which is the smallest rise seen since December 2009, according to the Land Registry. However, this is also the eleventh month in a row in which the annual figure has remained above zero. The monthly change of -0.2 per cent is the first negative figure seen for six months, bringing the average house price in England and Wales to £166,769. The number of recorded property transactions has increased over the last 12 months, from an average of 50,865 sales per month in April to July 2009, to an average of 57,152 in the same months this year.

Posted by mark wadsworth @ 04:46 PM 18 Comments

While the euro, yen and pound were in line with fundamentals.

Yahoo afp: IMF says dollar 'overvalued'

"While advanced economies have generally avoided intervening in currency markets, some have intervened more recently to limit rapid appreciations, contributing to the above-mentioned tension on this issue."

Posted by mark @ 04:03 PM 4 Comments

Battle-lines drawn-up; who will win?

BBC: Ministers criticise Boris Johnson over benefit comments

He's such a bumbling fool isn't he. He's no doubt acting out of self-interest with one eye on the 2012 re-election but to backtrack on-the-record comments is plain idiotic. "We will not see and we will not accept any kind of Kosovo-style social cleansing of London. On my watch, you are not going to see thousands of families evicted from the place where they have been living and have put down roots."

Posted by sibley's b'stard child @ 03:36 PM 4 Comments

Always expect the unexpected!

Guardian: UK house prices fall faster than expected

October's fall took £2,376 off the value of the average UK home, which now costs £164,381.

Posted by happy mondays @ 02:45 PM 15 Comments

Another monthly fool!

Thisismoney: House prices fall £2,400 in October

House prices have come under increasing pressures in recent months as potential buyers have adopted a 'wait and see' approach until the outlook for both the housing market and the wider economy becomes clearer.

Posted by happy mondays @ 02:38 PM 1 Comments

Green field speculation scam land up for sale

Primelocation: Green field speculation scam land up for sale

The plot was divided in 45 'small plots' are typical for those scammer who buy up green field and then sell it to investors in small plots, telling the investors that there is a chance of gaining planning permission. The typical price of these plots were £10k per plot and so the vendor now ways £10799 (perhaps to get his money back). However, the value of an acre of farm land round there is probably just around £6k.. Good luck to the vendor...

Posted by easybetman @ 02:29 PM 3 Comments

It's only worth what someone is willing to pay

The Bolton News: Thief’s house sale is hit by recession

A CAREER thief who was ordered to sell his house to pay for his crimes has been granted a reprieve by magistrates — because of the recession. He had been told he faced jail unless he paid back £50,000, which he had been ordered to raise through the sale of his house. But the 38-year-old avoided 18 months in prison because he had not been able to sell his Burnden home because of the poor state of the property market. Now, the court has agreed to give him until January to sell the house and has also agreed to accept less money in a bid to secure a sale as quickly as possible.

Posted by jd @ 02:23 PM 0 Comments

25% of US property in negative equity

Citywire: Foreclosure crisis

gulp.....looks like the disaster keeps unfolding over there and is surely an indicator of what's to come over here nothing else to say really but its pretty bad out there

Posted by taffee @ 02:08 PM 0 Comments

All?? aboard the QE2

Bloomberg: Fed Asks Dealers to Estimate Size, Impact of Debt Purchases

With their benchmark interest rate near zero, policy makers meet Nov. 2-3 to consider steps to boost an economy that’s growing too slowly to reduce unemployment near a 26-year high - looks like a buy on the rumour sell on the fact to yours truly. Nice rebound in the Euro and GBP. Will 1.41 and 1.61 hold? The Federal Reserve asked bond dealers and investors for projections of central bank asset purchases over the next six months, along with the likely effect on yields, as it seeks to gauge the possible impact of new efforts to spur growth. - Dont ask me mate!

Posted by techieman @ 01:31 PM 10 Comments

Higher prices for all coming soon

Cnn: The Fed's 'tax on the consumer'

Since Bernanke's comments in August, the dollar index has dropped 7%, while commodities -- which are priced in dollars -- have surged. Crude oil has jumped 14%, while gold has spiked 8%. Prices for cotton, corn, sugar, wheat and coffee also have all hit new highs during the past two months. Ultimately, those lofty prices will trickle down to consumers in the form of higher prices for coffee, bread, pizza, gas, clothing and more.

Posted by mark @ 01:01 PM 2 Comments

Average salary must be less than £2,376 in a month

Yahoo / telegraph: House prices drop in value by more than average salary

House prices are dropping in value by more than a typical annual salary, figures by Nationwide showed today. Britains biggest building society said the average price of a home dropped 0.7 per cent this month, the equivalent of £2,376 in a month.

Posted by mark @ 12:52 PM 1 Comments

"some predict the most desirable parts of London are turning into Manhattan-on-Thames"

Telegraph (Ian Cowie blog): Nationwide house prices fall while millionaire mansions double

Nationwide Building Society figures which show house prices fell by an average of 0.7 per cent this month, indicate the emergence of a two-tier housing market. Ordinary mortals’ house prices are falling as mortgage lending slumps to its lowest level in a decade but the number of mansions fetching over a million pounds more than doubled during the last year, according to Halifax. Britain’s biggest mortgage lender analysed Land Registry data and reports that nearly 3,000 properties were sold for more than £1m – an increase of 118 per cent on the year before.

Posted by jack c @ 12:24 PM 9 Comments

US repos still in a muddle

Business Week: Mortgage mess

$2.5 million owed by one man and still going.... OK its the US but its a fun read.

Posted by chrisch @ 11:23 AM 2 Comments

Don't buy in a flood area

Farmers Guardian: DEFRA cuts flood defences

The lunacy of building on flood plains was always questionable but now some of those houses might be worthless. Make sure you check on the flooding website if you're looking at buying. Even if it doesn't flood the insurance will cripple you.

Posted by chrisch @ 11:16 AM 9 Comments

September Index

Land Registry: -0.2% MoM +5.2% YoY

"The September data shows an annual house price growth of 5.2 per cent, which is the smallest rise seen since December 2009. However, this is also the eleventh month in a row in which the annual figure has remained above zero. The monthly change of -0.2 per cent is the first negative figure seen for six months, bringing the average house price in England and Wales to £166,769."

Posted by phdinbubbles @ 11:07 AM 8 Comments

Dick Turpin, eat your heart out...

Guardian: Private pensions to become compulsory for workers

I can't get my head around this; after all, isn't this the whole point of NI contributions? However, "Employees will still have the right to opt out of the pension arrangements..."

Posted by sibley's b'stard child @ 10:52 AM 5 Comments

Broken Ladder: 3 years without rent, food, clothing – then you can afford a deposit.

HIP Consultant: Is the Property Ladder Broken?

New research out today reveals that the average first time buyer (FTB) would have to save every single penny of their earnings for more than two years to have a chance of getting a foot on the housing ladder. Only 2 years !!!!

Posted by kaz @ 09:29 AM 4 Comments

And QE does NOT cause inflation

Pragmatic Capitalist: QE doesn't work

Thus far, the only thing QE appears to do is drive asset prices higher without being supported by any underlying fundamental change. This is largely due to the psychological impact of QE and the FALSEHOOD that QE = “money printing”. " For the those who rush uninformed to refer to money printing read the article and the comments. There is an intresting discussion as to what central banks are up to (Bernanke in particular) and a suggestion that he is now close to impotent. There will be no drops of money from helicopters because that aint even within his powers.

Posted by bellwether @ 08:05 AM 26 Comments

UK house prices most threatened by surprise interest rate hikes

ArabianMoney: Interest rate rises are the biggest threat to UK house prices

A lot of housing analysts have focused on austerity and rising unemployment as the major risks to the UK housing market. But there is a more obvious risk that few are considering, namely that efforts to keep interest rates down will fail miserably.

Posted by david smith @ 07:33 AM 0 Comments

-0.7% MoM +1.4% MoM

Nationwide: October Index

Clutching at straws, Martin said: "“October saw a continuation of the modest downward trend in house prices that began at the start of the summer. The average price of a typical UK property edged down by a seasonally adjusted 0.7% month-onmonth in October. The three month on three month rate of change – a smoother indicator of the recent price trend – fell to -1.5% in October from -1.0 % in September. This is the largest decline over three months since April 2009, but is still well below the 5- 6% rates of decline on the three month measure seen during the second half of 2008."

Posted by phdinbubbles @ 07:13 AM 46 Comments

Wednesday, October 27, 2010

The mother of all frauds

Credit Writedowns: Bank holiday is best solution for epidemic of mortgage fraud

We have long known that lender fraud was rampant during the real estate boom. The FBI began warning of an “epidemic” of mortgage fraud as early as 2004. We know that mortgage originators invented “low doc” and “no doc” loans, encouraged borrowers to take out “liar loans”, and promoted “NINJA loans” (no income, no job, no assets, no problem!). The President needs to try a different approach, consisting of the following series of steps: 1. Declare a national bank holiday that would close the biggest financial institutions—say, the top dozen or so. Send in the supervisors to examine their books to uncover fraud. Determine which ones are insolvent and resolve them. While resolving them, net their claims on one another (including derivatives).....

Posted by devo @ 07:53 PM 14 Comments

Reducing house prices; squeal vendors squeal

Lovemoney.com: Secret new rules set to reduce house prices

It all adds up to a fairly grim image of the mortgage market. Indeed, in the words of the trade body’s director general, Michael Coogan: “The golden age of home-ownership is over, for the moment."

Posted by doomwatch @ 04:56 PM 11 Comments

Top 20 fallers to watch...

Yahoo: Spending cuts will slash house prices in these towns

"Certain towns may suddenly have a fair proportion of inhabitants without a job. This can lead to them falling behind on their mortgage payments, and possibly repossession. What’s more, if the private sector does not pick up the slack, the lack of employment in those towns will dampen buyer demand, further pushing down house prices."

Posted by bidin'matime @ 04:39 PM 12 Comments

Home-ownerism on the wane?

Citywire: Are we moving to a European renting culture?

Interesting article; not least because of the indignant squealing piggies in the comments section.

Posted by sibley's b'stard child @ 03:55 PM 4 Comments

We all did..............

Yahoo / telegraph: Bank of England didn't see the recession coming, says deputy governor Charles Bean

Charlie Bean has admitted that the Bank of England failed to predict the recession. In a frank speech to the Royal Statistical Society , the deputy governor of the Bank of England conceded that in August 2008 the Bank put the chances of an economic contraction of more than 1.5pc at just 1 in 20

Posted by mark @ 01:51 PM 17 Comments

Fun With Mortgage Equity Withdrawal

Daily Mail: How leaving finances to her husband left Laura £1m in debt and cost her home and her marriage

Basically, they bought their house for £48,000 decades ago, it had risen to £1.25 million at the peak and the husband had MEWed every penny to fund what appears to be a very lavish lifestyle, holidays, private school, two cars, parties etc etc. And now she's complaining..?

Posted by mark wadsworth @ 01:31 PM 21 Comments

Reality beginning to hit home on the EAT site...

Estate Agent Today website: House buyers sit on their hands as mortgage levels drop

Jonathan Samuels, CEO of specialist lender Drawbridge Finance, said: “The latest figures from the British Bankers Association in regard to mortgage lending are a reflection of just how cautious consumers have become."

Posted by rantnrave @ 12:30 PM 5 Comments

Some hints starting to appear???

Yahoo / reuters: Inflation expectations rise in October - YouGov

Britons' expectations for inflation over the coming year rose to 3.0 percent in October from 2.9 percent in both September and August, a survey by Citi/YouGov showed on Wednesday. Inflation has been above the Bank of England's 2 percent target all year. The central bank is confident price pressures will ease in the medium term, but is worried expectations of above-target inflation might become entrenched, leading to a long-term cycle of price rises and higher wage demands.

Posted by mark @ 11:20 AM 2 Comments

Happy 1st birthday to the recovery

Telegraph: Pound jumps on resilient UK growth

Expectations of more QE have been scaled back and yields on the gilts targeted by QE (5 and 10 year) have consequently risen. If George Osborne is correct when he says: ""This gives me confidence that although global economic conditions remain choppy, a steady recovery is under way", then we can expect interest rates to start rising in six to nine months time.

Posted by flashman @ 10:52 AM 79 Comments

Will the UK take the inflation route anyway?

ArabianMoney: How much austerity before much higher oil prices?

The double dip fear is real enough. You only have to look at the 19 per cent cut in public spending rolled out in the UK last week to see a double dip in the making. The UK will join Spain, Portugal, Greece and Ireland which are still in deep recession, and making painful public spending cuts. However, the real question is how long can elected Western politicians take unpopularity before they too revert to the printing press and create inflation and devaluation to deal with their debt mountains?

Posted by david smith @ 10:35 AM 0 Comments

Snatching defeat from the jaws of victory?

BBC: Downing Street denies housing benefit climbdown

In the Commons, Mr Clegg denied that large cities would be "cleansed" of poor people following cuts to housing benefits. He said the suggestion, made by Labour's Chris Bryant, was "deeply offensive to people who have witnessed ethnic cleansing".

Posted by sibley's b'stard child @ 10:27 AM 10 Comments

You all know my views..

Dailymail: 75% of incapacity claimants are fit to work

Incredibly, 7,100 tried to claim because they had sexually transmitted diseases and nearly 10,000 because they were too fat. The disclosure by the Department for Work and Pensions raises fresh questions over how many of the 2.6million people on the existing incapacity benefit are really incapable of being employed.

Posted by mark @ 10:25 AM 16 Comments

Assuming you can afford a mortgage, the cost for FTBers

Bristol Evening Post: Bristol couples need to earn £54,000 to get on housing ladder

COUPLES living in Bristol need to earn a staggering £54,000 a year to stand any chance of getting onto the housing ladder, according to a new report. The National Housing Federation has put together a survey on the state of the property market in the city, which will make for grim reading for people hoping to buy their own home. According to the organisation, the slump in the property market has failed to halt price increases across Bristol – with the cost of the average three-bedroom semi rising by eight per cent over the last 12 months to just over £190,000.

Posted by tudorian @ 10:21 AM 2 Comments

The fun soon to start

Yahoo / telegraph: Interest rates set to rise as economy recovers

Interest rates will start to rise sooner than expected after official figures showed the economy growing at its fastest rate for a decade, economists have said.

Posted by mark @ 10:21 AM 2 Comments

Bloody spongers...

Is the US going bust (in all but name)?

G Pytel: The chickens are coming home to root

The US are doing Chapter 11 on the rest of the world. The are dumping a pile load of toxic waste upon the rest of the world. Where does it lead to?

Posted by ant @ 08:47 AM 0 Comments

The property economy withers

Independent: Housing market declines raise fears of double dip

Supposedly, a drop in mortgage lending spells trouble for the UK economy. 'Gross lending, which includes redemptions and repayments, came in at barely £8bn – 11 per cent lower than last year and only about half the 2008 level before the financial crisis ... The confirmation of a slowdown in the housing market yesterday will add weight to the arguments , according to Howard Archer, at IHS Global Insight. "The BBA report is an unappetising set of data that can only reinforce concern that tight credit conditions continue to pose a significant obstacle to economic activity," he said. "The data will fuel belief that the Bank may have to pull the QE trigger before long."' Wrong way round or is selling each other houses our main 'product' these days?

Posted by quiet guy @ 08:33 AM 5 Comments

3 indices show new drops in US prices

Financial Times Alphaville blog: US House Prices dip again

Four indices were released at the end of last week, and the Case-Schiller has already been mentioned by BBC article below. The FT Alphaville team analyse all four. One shows a slight rise, but the others show drops even before the (seasonally weak) Christmas period. US indices show averages over 3 months, so this covers the late summer. Most interestingly the nearest to realtime survey shows prices down by approaching 6% in this period.

Posted by notyethomeless @ 08:24 AM 0 Comments

Bubble bubble toil and double [dip]

Yahoo Finance: £86,000 house valued at £1

"Hallowe’en came early for one homeowner in Durham this week when Nationwide told him the house he had paid £86,000 a few years ago was worth just £1."

Posted by doomwatch @ 01:06 AM 4 Comments

Tuesday, October 26, 2010

It is coming...

The Telegraph: Interest rates set to rise as economy recovers

Mr Osborne added: “This gives me confidence that although global economic conditions remain choppy, a steady recovery is under way.” Traders said the market had been expecting one interest rate rise next year but that two rate rises were now expected.

Posted by bankside @ 10:48 PM 0 Comments

US house prices fall again in August

BBC: US house prices dip again in August

US house prices began falling again in August after the expiry of homebuyers' tax credits, a survey suggests. Prices were down 0.3% versus the previous month, on a seasonally-adjusted basis, according to the Case-Shiller index of 20 major US cities. The data - which is actually an average of house prices during June, July and August - was lower than expected. Separately, figures showed US consumer confidence rose in October, although it remains at historically low levels.

Posted by jack c @ 04:23 PM 2 Comments

More soothing balm for deficit hysterics

Bill Mitchell: Why budget deficits drive private profit

Business lobbies should be calling for the maintenance of government deficits in the current recessionary climate, in their own interests. Because those deficits are the counterpart of private sector profits and savings. Goes into critical areas of economic theory to argue this.

Posted by nickb @ 02:27 PM 15 Comments

Cotton Prices, Inflation and the Passing of a Great Mathematician

Index Universe: Cotton, Mandelbrot and Human Fallibility

What does the current spike in cotton prices have to do with the passing of one of the twentieth century's greatest mathematicians? And why are policymakers failing to take on board his message?

Posted by paul amery @ 01:33 PM 1 Comments

The Great Housing Rip Off

BBC Panorama: The Great Housing Rip Off?

John Sweeney investigates the so-called 'rogue landlords', housing barons accused of receiving large housing benefits while exploiting the vulnerable.

Posted by doomwatch @ 12:22 PM 0 Comments

Time to Prosecute the Landlords

BBC Panorama: Ousing benefit going to bad landlords

"Reporter John Sweeney discovers that by one estimate housing benefit money totalling as much as £3.5bn a year is going to private landlords deemed bad or neglectful. In his analysis, Sweeney says the result is that some of Britain's poor are now living in 21st century slums." So what is the present group of governing self-serving kn obs doing; cutting funding to Environmental Health Teams; the ones with the only powers to prosecute the landlord sc um

Posted by doomwatch @ 12:14 PM 1 Comments

Legislation should guarantee roof for all citizens

China Daily: Housing a basic right, says NPC

BEIJING - The country's top legislature said on Monday that the right of habitation is "one of the fundamental rights for residents" and should be guaranteed through legislation, as its bimonthly legislative session opened in Beijing. The statement is seen as another major step after the central government introduced a slew of measures to curb rocketing housing prices in the country.

Posted by mark @ 11:30 AM 1 Comments

Institutional investors wanted

MoneyWeek: What Britain can learn from the German property market

Outside the social housing sector, the UK has long been dependent on the small private landlord (the buy-to-let landlord) to provide housing. However, I wonder if this is good enough. Some small landlords are excellent, some are awful. Most suffer from lack of scale (they don't have full-time handymen at their beck and call) and from cash flow problems: when the purchase of a new boiler requires several months' worth of rent to be set aside and there is a mortgage to be paid, not very many tenants get new boilers. But regardless of whether buy-to-let is a good or bad thing, it still isn't able to provide for a market shifting en masse to needing good long-term rental property. For that, we need the institutional sector.

Posted by drewster @ 11:15 AM 8 Comments

The Blue Wing of The Home-Owner-Ist Movement...

Conservative Home: We need house prices to go up

All fairly predictable.

Posted by mark wadsworth @ 10:54 AM 23 Comments

Could stir up some of the usual debates...

BBC News: UK economy grows a faster-than-expected 0.8%

The UK's economy grew at 0.8% between July and September, official figures show, suggesting the economy is recovering faster than expected.

Posted by rantnrave @ 10:42 AM 2 Comments

Suddenly shares look cheap

Yahoo / telegraph: UK economy grows twice as fast as predicted

The British economy grew twice as fast as expected in the third quarter, defying expectations of a sharp slowdown. GDP expanded 0.8 per cent, well above the 0.4 per cent predicted by economists, as the prospects of a double dip recession receded. The latest figures improve the chances that Britain will be able to withstand the effects of the Government's austerity package and will reduce the likelihood of the Bank of England pumping more cash into the economy.

Posted by mark @ 10:08 AM 16 Comments

King Says U.K. House Prices Have Recovered by About Two Thirds

Bloomberg: King Says U.K. House Prices Have Recovered by About Two Thirds

Oct. 25 (Bloomberg) -- U.K. house prices have erased about two thirds of their losses caused by the financial crisis, Bank of England Governor Mervyn King said.

Posted by ant1980 @ 09:43 AM 0 Comments

Is QE II the beginning or the end for financial markets?

ArabianMoney: QEII is a formula for lower and not higher equity prices

The US has just sold the first treasury bonds with a negative yield. These are inflation protected bonds, and that explains why they sell despite actually charging bond holders interest. For the buyers think inflation is going to be so high that these bonds will pay a positive return in the future after the yield is corrected for inflation. That is strangely a vote of confidence in the Fed and its capacity to deliver inflation through printing money. Inflation protected bonds are in fashion for a reason. But will inflation really be good for equity prices, or bonds for that matter?

Posted by david smith @ 08:11 AM 0 Comments

Not that negative - inflation linked

FT: US Treasury sells negative-rate bonds

'The abnormal state of the credit markets came into focus as the US Treasury sold bonds with negative interest rates for the first time and Goldman Sachs prepared to issue its first 50-year debt deal. Both developments on Monday highlighted the difficult choices facing investors at a time when interest rates are at historical lows and the Federal Reserve is moving towards more asset purchases aimed at boosting the economy and staving off deflation. Investors who believe the Fed will succeed in its efforts – which would lead to higher inflation – accepted a yield of minus 0.55 per cent on $10bn of Treasury Inflation Protected Securities – or Tips – which compensate holders if the consumer price index rises.'

Posted by hpwatcher @ 07:57 AM 13 Comments

Please read the whole article before commenting

Guardian: Benefits cut, rents up: this is Britain's housing time bomb

At last the Tories have a final solution for the poor – send them to distant dumping grounds where there are no jobs. This will become a cut that brands this government. The removals will be an invisible migration, not a mass exodus in special coaches. However, these cuts are so extreme and random as to who will be evicted that the political noise will rise to ear-splitting decibels. Next year housing association and council rents will rise from their present heavily subsidised rents to 80% of the market rent for new tenants. Anyone out of work for more than a year will lose another 10% from their housing benefit. This is a departure into the realms of US welfarism, influenced by the architects of American time-limited welfare who have been visiting David Cameron. But that's not all.....

Posted by drewster @ 02:53 AM 65 Comments

Monday, October 25, 2010

Three years late, but never mind.

The Telegraph: Banks should be broken up, Bank of England Governor Mervyn King warns

Mervyn King, Governor of the Bank of England, has thrown his weight behind breaking up the banks as part of wider reforms to protect the taxpayer from another financial industry meltdown.

Posted by devo @ 08:54 PM 26 Comments

Those damn houseprices

Japan times: Chinese demonstrations continue to spread

The situation took a strange twist, however, as protesters in Baoji, Shaanxi Province, appeared to vent their frustration with China's widening income gaps and corruption, carrying green banners that read, "We oppose corruption in the bureaucracy" and "Curb high housing prices."

Posted by mark @ 06:49 PM 2 Comments

Sleepwalking back to disaster

BBC: Miliband: UK economy needs profound change

Ed Miliband has warned that "profound change" is needed to ensure the UK's economy does not return to recession. The Labour leader called for better regulation of financial firms and urged the coalition to focus less on cutting the deficit and more on aiding growth.

Posted by devo @ 06:44 PM 9 Comments

States what Joe Public already knows

The Spectator: Living costs - where the real threat lies

the ‘misery index’ which shows that low wages, smaller hours and RPI inflation of 4.8 percent have combined to make the cost of living higher than any point since 1982.

Posted by mr g @ 06:40 PM 2 Comments

Another 1 off event not going to be taken into account by BOE

Bloomberg: Cotton Jumps 4.2% to Record as China Cold Spell Threatens Crops

Cotton soared to a record, rising the maximum allowed by ICE Futures U.S. in New York, as a cold front threatened to damage the crop in China, the world’s biggest user of the fiber.

Posted by mark @ 06:12 PM 3 Comments

Gov should blanket cut housing benefit

Telegraph: Britain Stares into the abyss again...

A few sections in "living under the threat of housing cuts". Why do they whinge about lack of housing benefit rather than the ridiculous rents? If all HB was cut, surely rents would fall? Problem solved? (from Android phone hence typos)

Posted by voiceofreason @ 05:57 PM 13 Comments

More deficit hysteria antidote

Red Pepper magazine: Countering the cuts myths

Facts, figures and historical perspective on the current UK government debt situation do not support there is a danger of the UK defaulting. The perception of a crisis is being hammed up and used to justify the shrinking of the state for ideological reasons.

Posted by nickb @ 04:37 PM 24 Comments

State Pension - RIP

State pension age could increase to 68 a decade earlier: Daily Telegraph

The pension age seems to be going up on average two years every week in the news. Your pension is actually gone and your house value is about to plummet. So be nice to your kids!

Posted by tom101 @ 04:01 PM 5 Comments

What's wrong with training the 1,000's in the UK can't get jobs?

Telegraph: David Cameron hints at relaxation of immigration cap

Immigration is essentially an attempt - lobbied by UK business leaders - to keep UK wages down. That's what it is really all about....

Posted by hpwatcher @ 02:51 PM 11 Comments

A reality check, what's really happening out there. Property Bee detail below

Rightmove: The reality of the HPC

lunes, 25 de octubre de 2010 08:29:25 a.m. * Brief Description changed: THE SYCAMORES, GRAINTHORPE, LINCOLNSHIRE. We are acting in the popular village of Grainthorpe within easy driving distance of the towns of Louth & Grimsby. sale this spacious four bedroom detached house situated of the above property and have received an offer for of £130,000 Any interested parties must submit any higher offers to the selling agent before an exchange of contracts takes place. * Price changed: from '£160,000' to '£130,000' jueves, 09 de septiembre de 2010 05:39:43 a.m. * Price changed: from '£175,000' to '£160,000' viernes, 13 de agosto de 2010 08:09:04 a.m. * Price changed: from '£185,000' to '£175,000' [Found by n/a] jueves, 08 de julio de 2010 04:26:56 p.m.

Posted by gone-to-colombia @ 02:34 PM 11 Comments

The state of the States' motgages

The Economist: America's property market: Home truths

Preventing foreclosures won’t fix America’s housing mess. Encouraging banks to write down mortgages might.

Posted by 51ck-6-51x @ 02:31 PM 1 Comments

Prices on the rise in most markets

The Economist: Global house prices: Floor to ceiling

Kind of mixed, but it does state that, "British housing is still overvalued—outright falls may loom".

Posted by 51ck-6-51x @ 02:24 PM 0 Comments

"We take violations of proper procedures seriously,"

CNN: Bernanke: We take foreclosure problems seriously

"Now, more than 20% of borrowers owe more than their home is worth and an additional 33% have equity cushions of 10% or less, putting them at risk should house prices decline much further," he said. "With housing markets still weak, high levels of mortgage distress may well persist for some time to come."

Posted by khards @ 02:23 PM 0 Comments

Monday afternoon Bear food

Daily Mail: Fresh concerns over house prices as mortgage lending plunges to its lowest level in TEN years

Mortgage lending dived to its lowest level for a decade during September as activity in the housing market remained subdued, figures showed today. Net lending, which strips out redemptions and repayments, was just £1.6 billion during the month, well down on the previous month's total of £2.5 billion and the lowest figure since October 2000. Lending showed little sign of picking up in the near future, with the number of mortgages approved for house purchase dropping for the fourth consecutive month to hit an 18-month low, the British Bankers' Association said.

Posted by jack c @ 01:50 PM 2 Comments

What can one say? I don't think the cuts are hard enough

Dailypost: Cuts will hit North Wales hard

FEARED cutbacks in spending will hit harder in communities of North Wales more dependent on the income generated from public sector jobs. Research by the House of Commons library revealed how across Denbighshire and Gwynedd more than four in 10 workers were in employment linked to the public sector. Top of the table in North Wales was the Vale of Clwyd where 13,500 jobs, or 45.3% of those in work, were feared likely to be affected to some extent by the job losses caused by spending cuts.

Posted by mark @ 11:48 AM 54 Comments

Miles Shipside - "interesting to see whether the rise of the ‘price pessimists’ will continue"

Bloomberg: One Third of Britons See House Prices Falling, Rightmove Says

The number of Britons who expect house prices to fall outnumbered those forecasting an increase for the first time since 2009 in the third quarter as concerns about the economy mounted, Rightmove Plc said. Some 32 percent of the 25,584 people surveyed said prices will be lower in a year, the operator of Britain’s biggest property website said in a report published in London today. Thirty six percent forecast home values would be “about the same,” while 27 percent said they would be higher. A year earlier, 56 percent predicted higher prices.

Posted by jack c @ 11:02 AM 6 Comments

Murmurs of discontent along the Bund

Independent: Shanghai's property crisis sends youths flocking to the theatre

The Chinese government is facing growing discontent from its young people who are being priced out of the housing market. A new play, Fight the Landlord, has tapped into one of the biggest issues of Chinese youth and is playing to packed audiences in China's economic centre of Shanghai, which is struggling to find homes for its population of 19 million. When one of the characters in the Fight the Landlord asks: "What is a 'landlord' anyway?" the answer speaks volumes about New China – "people with money and power", "people with houses and land" and then there is a discussion of the dictionary definition of landlords – "those who own lands, but don't work themselves but make a living by exploiting tenants."

Posted by drewster @ 10:43 AM 2 Comments

Foreign-exchange strategists say the worst is yet to come for Britain’s legal tender

Bloomberg: Pound Faces Pain as Cameron Cuts Send King to Printing Press

The decline suggests investors are losing confidence in Prime Minister David Cameron’s ability to restore growth while promising the deepest spending reductions in British history to shrink the biggest deficit in the Group of 20. His 81 billion pounds ($128 billion) of cuts through 2015 will force Bank of England Governor Mervyn King to print cash through so-called quantitative easing to prevent a new recession, overwhelming demand for sterling, according to UBS AG.

Posted by mark @ 10:42 AM 12 Comments

Surveying firm overestimated the rent buyer was likely to get by 100%

Guardian: Landlord wins buy-to-let case against surveyor

Emmett Scullion, a self-employed builder from Portsmouth, bought an apartment in Cobham, Surrey, to augment his pension. The property was valued at its asking price of £352,950 in a valuation by local surveying firm Colleys, now part of Lloyds Bank. The survey said the flat could be let for £2,000 a month.

Posted by mark @ 10:19 AM 8 Comments

ONS figures suggest double dip

Independent: Britain stares into the abyss again as household confidence plummets

More support for the view that the HPC is beginning in earnest...

Posted by sceneclub68 @ 10:19 AM 7 Comments

Nice bit of bear food for a Monday morning

BBC News: Households 'shun new borrowing'

Major banks have offered more evidence of a subdued mortgage market in the UK with budget uncertainties also keeping other lending low.

Posted by rantnrave @ 10:18 AM 13 Comments

One off blip wont effect inflation long term.. yeh yeh

Guardian: Rail fares set to rocket by 11% on some routes

The basket system means that a further 5% can be added to the planned rise on certain fares, provided the net increase across the batch of tickets is in line with the official limit. As a consequence, next year's scheduled increase of the rate of inflation plus one percentage point, which comes in at 5.8%, will in fact be 10.8% on some tickets.

Posted by mark @ 10:03 AM 0 Comments

Absolutely nothing learned whatsoever

Cnbc: Property bubble un hong kong-blame the fed

bubbles everywhere during this 'worst recession for 70 years'....which banks bought these loans I wonder..rbs and hbos/lloyds of course along with liverpool dubai lending and casinos in las vegas

Posted by taffee @ 09:42 AM 0 Comments

Credit crunch mark 2 coming soon

Cnbc: Chinese boom town has no people!

despite all the warning signs nothing changed and there are property and asset bubbles everywhere.Banks have been packaging up and selling mortgage backed securities in 'safe' china and hong kong and dubai....interest rates are almost zero across the world yet that was recognised as the cause of the problem....what are they going to say when this all goes pop?

Posted by taffee @ 08:13 AM 7 Comments

Sunday, October 24, 2010

Another article about repossessions

New York Times: One Mess That Can’t Be Papered Over

Is the banks’ sloppy paperwork a matter of simple technicalities that are relatively easy to cure, as the banks contend? Or are there more far-reaching consequences for banks and the institutions that bought mortgage-backed securities during the mania?

Posted by devo @ 10:06 PM 14 Comments

Plan B

FT: UK growth set for sharp slowdown

UK growth will slow to all but zero by the end of the year, prompting the Bank of England to launch a further round of quantitative easing. According to Capital Economics, UK growth could fall from around 1.5 per cent this year to just 1 per cent in 2011. That is significantly below the forecast by both the bank of England and the UK’s Office for Budget Responsibility, raising the prospect that the UK government will struggle to achieve its fiscal targets.

Posted by devo @ 09:59 PM 13 Comments

Slumlord outraged after his BTL hovel is deemed "not habitable" by surveyors

Daily Mail: Homeowner outraged after the property he paid £84,000 for is valued - at just one pound

Paul Rooney, 42, bought the two-bedroom Victorian end-of-terrace for £86,000 in early 2007. But the businessman [err, you mean landlord] was stunned when he applied for a mortgage on the property with Nationwide and valuation officers who visited the house gave it a meager £1 price tag. A valuer working for Nationwide produced a report on September 21 which stated that the house was 'not habitable'. It said that there were 'excessive moisture readings' in the ground-floor walls and that wood touching them could be 'affected by rot'. The document also sought a further engineer's report on the stability of the roof. But Mr Rooney - who had already put tenants paying £550 a month in the house - fears that he may have to sell more properties for low prices if banks refuse to lend.

Posted by drewster @ 05:21 PM 13 Comments

Freezing up

Independent: Don't expect a smooth ride or a speedy sale

Sellers who want to shift their properties in time for Christmas should brace themselves for a challenge. According to September's Hometrack house price survey, the average time a property remains on the market before an offer is received stands at 9.3 weeks. This takes us beyond Boxing Day and is a far cry from the 5.3 weeks recorded in the boom days of September 2003. The latest housing report from the National Association of Estate Agents revealed that the average number of buyers registering on estate agents' books continued to fall in September to 247 (from 250 in August), while sales agreed remained at a stagnant low of seven per branch.

Posted by quiet guy @ 04:34 PM 3 Comments

Now we have social clensing-unbelievable

Observer: Council plans exodus of the poor

there are so many contrarian indicators around,you know something is going to happen.The blt market is not an alternative to social housing in any way shape or form...quite how you can have this during apparently the worst recession for 70 years is beyond me...The only comparison is japan where tokyo properties are 90% in some cases cheaper than 1991 in actual terms despite almost zero interest rates....this is tulips from amsterdam

Posted by taffee @ 11:10 AM 25 Comments

Still ramping

Express: HOUSING MARKET IS SET TO FACE A PERFECT STORM

HOUSE prices are sliding again and George Osborne’s brutal spending review looks set to accelerate the market’s decline. Even before the Chancellor announced his £81 billion cuts, property prices were coming under severe pressure. The prospect of nearly 500,000 public sector job losses will make things worse by increasing the number of distressed sales. Last month mortgage lending hit its lowest level for a decade at just £12 billion, due to a shortage of finance and dwindling confidence, according to the Council of Mortgage Lenders. This followed shock figures from Halifax showing a record 3.6 per cent drop in house prices in September, the biggest fall in 27 years.

Posted by little professor @ 02:34 AM 13 Comments

There may be trouble ahead. But while there's music and moonlight and love and romance. Let's ......

Wall Street Journal: Understanding the Foreclosure Debacle .

Some experts predict that the only way out of the debacle is a huge settlement in which home-loan servicers modify the terms of billions of dollars of mortgages. Depending on how a settlement is structured, the potential losses could hammer banks. Investors who bought securities created out of pools of mortgages now in trouble are worried they could be stuck footing much of the bill. Let's face the music and dance

Posted by khards @ 01:12 AM 6 Comments

Saturday, October 23, 2010

BTL landlords rejoice or see fear? Mixed news...

Citywire: What the Spending Review means for buy-to-let landlords

Comments on the article by relatively upbeat landlords need to be reminded of the other side of the coin, perhaps?

Posted by mick rupert @ 03:34 PM 5 Comments

History repeats itself?

G Pytel: "To the Simple Man"

... not necessarily as farce. Interesting poetic reflection upon the current financial crisis: "Know it’s all hogwash, lies perverted, And when these call out: ‘Shoulder arms!’ That somewhere from the ground oil spurted, With dollars soiling the bright colours; That in their banks there’s something rotten, They smelled some moneybags, it looks, Or cooked some scheme, the oily crooks, For higher import tax for cotton."

Posted by ant @ 10:00 AM 6 Comments

Will ridiculous London house prices be immune?

The Daily Telegraph: Manhattan-on-Thames: can London defy falling house prices?

London house prices compared to wages fell 39% in 1989-92, more than the national average. Supply in the capital is even more constrained than in the rest of the UK, meaning that prices rise more in the boom times and fall more in the bust. (Draw yourself a demand/supply chart if you don't believe me.) Anyone who thinks that we have reached a permanently high plateau and that things are different this time is in for a rude awakening.

Posted by monty032 @ 09:26 AM 4 Comments

Don't panic Mr Mannering

Friday, October 22, 2010

The plight of the young FTB's

Metro: Home ownership dream 'is over' for the young

Another article detailing just how many young people have been affected by high house prices. The number of mortgages taken out by people with only a ten per cent deposit – loans associated with first-time buyers – dived from 245,000 in 2006 to just 28,000 in 2009. Surely investors themselves cannot prop up the market?

Posted by miken @ 11:07 PM 6 Comments

The banks are to blame - Krugman agrees with me

The New York Times: British Fashion Victims

Over-reliance on the financial industry largely explains why Britain, which came into the crisis with relatively low public debt, has seen its budget deficit soar to 11 percent of G.D.P.

Posted by devo @ 08:39 PM 15 Comments

This is bad, very bad

Cnn: We'd like to return these bad loans, please

The foreclosure document fiasco has already caused a major headache for U.S. banks -- and that headache may soon escalate into a migraine. So, investors are trying to force banks to repurchase the securities. That would leave banks exposed to billions of dollars in potential losses if plaintiffs are able to force repurchases based on the errors.

Posted by mark @ 06:51 PM 3 Comments

A man with links to a Bradford criminal gang who funded “a flash lifestyle” with a £360,000 mortgage

Telegraph and Argus: Man jailed for defrauding Birmingham Midshires Building Society

Sentencing him yesterday to 18 months in jail, the judge, Carl Gumsley, said he was “extremely shocked at the reckless attitude of the banks” after hearing evidence at the trial. “The system for obtaining loans is shockingly lax,” he said. Shamsher Khan, 39, invested £100,000 in an overseas account in Dubai and bought luxury goods, Bradford Crown Court heard He was convicted by a jury in August of two charges of mortgage fraud and six charges of money laundering.

Posted by daniel @ 05:03 PM 1 Comments

Bubbles, bubbles everywhere....

Telegraph: Why government bond markets have become the latest mad and bad asset bubble

''In essence, both the UK and US government bond markets have become giant bubbles which are now largely divorced from underlying realities and almost bound to end badly.''

Posted by hpwatcher @ 04:35 PM 11 Comments

Comments

Wall street journal: RBS Places One Blackfriars Tower In Administration

The development of a 52-story tower at One Blackfriars Road, London, was placed in administration by Royal Bank of Scotland Group PLC (RBS.LN), which is reorganizing its real-estate portfolio.

Posted by mark @ 04:32 PM 0 Comments

Jailed, 'pillar of the community' behind money laundering gang

Manchester evening news: Jailed, 'pillar of the community' behind money laundering gang

A property tycoon who ran a money laundering service for organised crime gangs has been jailed for 10 years.

Posted by mark @ 02:20 PM 18 Comments

Meanwhile, back in deluded-vendor land...

Agents Diary: Surveying The Wreckage - Friday

I know, it's only an anecdote of one but - good god - does it put into print just what mentality we're up against. More to the point, despite the fact that Rightmove's 'delusion-index' is much vilified in saner quarters; witness at first-hand the power it wields over public consciousness...

Posted by sibley's b'stard child @ 01:08 PM 1 Comments

Even EAs are starting to see the obvious...

Newspapers and Neutrality

Daily Mail: Home in online: Fed up trudging round with estate agents? A dream home is at your fingertips

The Mail thinks property websites are a good thing, especially the ones they own but fail to tell us about! Top marks to Globrix but can't think why? http://www.guardian.co.uk/media/2010/jan/21/dmgt-globrix - Daily Mail acquires 50% stake in Globrix

Posted by ontheotherhand @ 12:17 PM 3 Comments

Still wasting taxpayers money

Manchester evening news: Hard-up council advertises for £38k ‘Facebook boss’

A cash-strapped council is advertising for a manager – with special responsibility for Facebook and Twitter. The post is one of three communications vacancies advertised by Manchester Town Hall in the past month, despite a recruitment freeze except in ‘exceptional circumstances’. ****Not a hard job a 16 year old could do this********

Posted by mark @ 10:13 AM 9 Comments

The Greater London Council to make a come-back?

Independent: London boroughs study 'super council' merger

While not entirely HPC related, this proposal is significant and may well set a precedent. If nothing else, this will surely lead to a large number of redundancies as services overlap. However, I see that the piggies at the top will be alright Jack: "Under the plans, each authority would keep its council leaders and local ward councillors".

Posted by sibley's b'stard child @ 10:01 AM 3 Comments

More leftie stimulus measures from BOE & Osborne

Telegraph: Gilt yields fall to record low on QE expectations

'Gilt yields hit a record low after the Chancellor indicated he is relying on the Bank of England to safeguard the recovery through monetary stimulus if his £81bn of savings cut too deep. '

Posted by hpwatcher @ 09:03 AM 16 Comments

Northampton keeps £400,000 number plate "heritage" whilst people struggle

BBC News: Councils number plates 'worth thousands'

NH1 is worth an estimated £400,000, but Council leader Brian Markham said the authority did not want to sell. He said: "More importantly, that number plate is part of our heritage - not just for the council but for the town - we've owned that since the first number plates on cars."

Posted by blinktoofast @ 07:32 AM 0 Comments

How shared equity schemes have been helping prop up the market

Moneyweek: How Osborne's axe could hit house prices

'The buyer won't be haggling hard, if at all. They're just glad to have 'a foot on the ladder'. So the overall price paid will be whatever the builder asks for. And as far as house prices go, it looks as though a £200,000 home has been sold, even if it only cost the actual buyer £140,000 upfront. Indeed, John Messenger, RBS housebuilding analyst told the FT earlier this week that, "the shared equity and HomeBuy Direct (government-financed) housing schemes have been the most critical things holding up the housing market." But if you get less money going into the affordable property sector, then there will be fewer of these schemes around. And depending on how significant a prop they've been to the housing market, that'll put more pressure on prices to fall.'

Posted by quiet guy @ 02:35 AM 5 Comments

Thursday, October 21, 2010

Time to reflect

G Pytel: The real end of the Empire

If you are looking for an answer what it is as it is...

Posted by ant @ 11:36 PM 10 Comments

Smelling blood

The Wall Street Journal: Niche Lawyers Spawned Housing Fracas

The housing-market uncertainty stemming from the foreclosure fracas is unabated, despite moves by Bank of America Corp. and GMAC to resume some suspended foreclosure sales. In Florida, with over half a million foreclosure cases, banks that are reviewing their documentation have canceled hundreds of court hearings in recent weeks. Big banks that have said they are finding few or no flaws in the foreclosure process have encountered skepticism from some of the state attorneys general probing the mess, and those authorities are pushing ahead. The great majority of delinquent borrowers don't hire lawyers but leave the home right before getting evicted. Some lawyers who represent financial institutions take a dim view of the growing ranks of lawyers pushing for a different outcome.

Posted by devo @ 10:04 PM 5 Comments

Great money saving idea for UK, we could also legalise prostitutes

Cnn: Legal pot means big savings on law enforcement

Cash-strapped California would get some relief by legalizing pot, but the biggest boost would be thanks to massive law enforcement cuts, not new tax revenue, experts say.

Posted by mark @ 09:08 PM 8 Comments

Left verses right?

The Real News Network: Schiff vs. Henwood on Economic Crisis

Free market guru Peter Schiff debates with Doug Henwood of Left Business Observer on causes and solutions of the bubble and bust from a left and right viewpoint

Posted by the number cruncher @ 08:55 PM 3 Comments

Has HPI caused people to take DIY risks?

BBC News: Suffolk barn wall collapse leaves two dead

Two people were killed when a wall at the site of a barn conversion collapsed on them in Suffolk...

Posted by rantnrave @ 07:20 PM 4 Comments

Consumer spending is slowing

The Telegraph: UK retail sales suffer surprise fall for second month in a row as consumer cut back

This is the second monthly decline in a row and is likely to unsettle retailers nervous about the impact of George Osborne's austerity measures on the High Street, especially the VAT rise to 20pc in January. Howard Archer, chief UK economist at IHS Global Insight, called the fall in retail sales "surprising and particularly worrying given the importance of consumer spending to the economy"

Posted by devo @ 07:19 PM 15 Comments

Property sales in UK fall again

BBC: Property sales in UK fall again, Revenue figures show

House sales in the UK fell in September for the second month in a row, HM Revenue & Customs figures show.

Posted by peter rocker @ 06:53 PM 0 Comments

Rehash of same press release as previous post

Telegraph: House prices to fall, says Bank of England

Nothing of interest in the article, I just liked the headline and especially the fact it appears in a normally Home-Owner-Ist newspaper.

Posted by mark wadsworth @ 05:02 PM 2 Comments

From the idiots mouth

Yahoo: House prices to fall, says Bank of England

House prices will fall next year, the Bank of England has warned, as home loans become harder to secure amid government spending cuts. The warning will add to growing fears about a double-dip in house prices after values dropped by their ever biggest monthly amount in September. The massive job cuts in the public sector and the squeeze on household budgets announced by the Chancellor this week are expected to make it even harder for buyers to secure finance.

Posted by mark @ 03:57 PM 5 Comments

DO'H I get it now

Cnn: Debt busters!

I had been spending over my means for a while. Every month I was spending at least $300, overdrafting my account and feeling horrible about it. I realized I had all these wants and it was an insatiable thing. I would say, "Oh, I love this top from Anthropologie," and then as soon as I got it everything would be great... until I wanted something else. So I knew I needed to do something drastic. And one day, it clicked.

Posted by mark @ 02:33 PM 2 Comments

Who says a HPC will just benefit the BTL brigade?

Estate Agent Today website: Landlords struggle to raise finance to expand

More than six out of ten landlords are finding it difficult to get finance to expand their portfolios...

Posted by rantnrave @ 02:22 PM 5 Comments

The public stick 2 fingers up to Charlie Bean

Reuters: Retail sales fall as economy weakens

Retail sales unexpectedly fell for the second month in a row in September, reinforcing evidence of an economic slowdown as consumers steel themselves for big government spending cuts and tax rises.

Posted by mr g @ 01:42 PM 0 Comments

"Subdued"

Independent: Housing market 'subdued'

The housing market remained subdued during September with falls in both sales levels and mortgage approvals for people buying a home, figures showed today. The number of homes changing hands fell for the second month in a row as potential buyers continued to stay away from the market. Around 78,000 properties worth more than £40,000 were sold during September, well down on pre-credit crunch levels for the month of more than 120,000, according to HM Revenue & Customs. Activity in the housing market looks set to remain muted going forward, with lenders reporting a further drop in the number of mortgages that were approved for house purchase during September. The Bank of England's Trends in Lending report showed that mortgage approvals for house purchases by the major lenders had fallen...

Posted by mark wadsworth @ 12:59 PM 2 Comments

Selling England by the pound...

Bloomberg: Sell Pound as Budget Cuts Will Prompt More Quantitative Easing, UBS Says

Investors should sell the pound as the U.K.’s deepest budget cuts in living memory will likely prompt the Bank of England to step up bond purchases to support the economy, according to UBS AG. “The risk of renewed quantitative easing makes sterling a sell,” Mansoor Mohi-uddin, head of global currency strategy at UBS in Singapore, wrote to clients today. “As Britain continues to run a large trade imbalance, monetary policy may have to be loosened again sharply to support the economy.”

Posted by rob @ 11:32 AM 1 Comments

If you don't have a job dont go the pub simple!

BBC: Spending Review: The nation's reaction

A pub regular called Amanda said: "Don't cut the benefits for the people who are really, really struggling. I don't think it's fair - we are struggling enough as it is. "I live on £174 a fortnight and it's not fair."

Posted by mark @ 11:11 AM 97 Comments

Is this a currency war or what?

NY Times: As Dollar’s Value Falls, Currency Conflicts Rise

With so many economies struggling, it suddenly seems as if it is every nation for itself in the currency markets. Policy makers the world over are worried that economic rivals are trying to turn exchange rates to their advantage, and considering how they should respond to preserve jobs and growth at home.

Posted by mark @ 10:28 AM 3 Comments

Inflation above-target again? Fire-up the presses, cap'n.

Telegraph: Bank of England split three ways as Adam Posen urges extra £50bn stimulus

"On balance, the minutes suggested the Bank is leaning toweards restarting QE. While most MPC members thought the balance of risks had not changed enough to warrant action, some felt the chances that more stimulus would be needed had increased in recent months". Poor Sentance; pishing into the wind month-in, month-out.

Posted by sibley's b'stard child @ 09:57 AM 2 Comments

Wednesday, October 20, 2010

There is no note

The Market Ticker: If This Is True...... KaBOOM

If there are no actual original, endorsed notes, well then we need to get that fact into the open - to force it into the open - because if true, this is the biggest fraud ever perpetrated in human history, and it permeates every single large financial institution in the Western World.

Posted by devo @ 09:41 PM 37 Comments

An easy win for CML

Council of Mortgage Lenders: CML welcomes further reprieve on support for mortgage interest

"The Council of Mortgage Lenders welcomes the extension of the temporary concession on support for mortgage interest announced today under the government's comprehensive spending review. The £200,000 limit on mortgage size and the 13 week waiting period (down from 39 weeks) will now remain in place until January 2012. The CML trusts that the government will review the housing market conditions before that point and decide on whether further continuation would be appropriate. According to the government, this will cost £90 million over the next two years - a modest sum in the overall scheme of public expenditure" I agree. £90m is cheap for keeping property prices high ... ergh, I mean supporting over extended borrowers ...ergh I mean helping families keep a rook over their heads.

Posted by quiet guy @ 08:01 PM 8 Comments

Fox & sons have a sale on! Lol

Telegraph: Mortgage lending drops to 10 year low

“We knew it was going to be a quiet autumn in light of the Spending Review, but this is worse than many had feared. With buyers as cautious as lenders, this is going to be a long, hard winter and further downward pressure on house prices looks inevitable.”

Posted by happy mondays @ 05:35 PM 2 Comments

Another stunning property investment

Telegraph: UK pair sued as well as jailed in Dubai

Ryan Cornelius and Charles Ridley planned to turn the deserts into polo fields (presumably with astro turf?). How could such a thing go wrong?

Posted by chrisch @ 04:53 PM 4 Comments

No-one wants new houses - no autumn bounce

Financial Times: House Sales Gloom for Builders

The much hoped-for uplift in home sales at the start of autumn, a crucial period for UK housebuilders, has failed to materialise, according to a leading industry survey. The survey, conducted weekly by the Home Builders Federation, is for internal use and is regarded by the industry as the best guide to housing demand. Its latest report, seen by the Financial Times, shows the number of deposits on new homes during the first four weeks of the autumn were 14 per cent below the corresponding period in 2008, when the market was badly hit, and only half 2007 levels.

Posted by notyethomeless @ 02:58 PM 14 Comments

The financial madness continues

Greg Pytel: On a slippery slope

This is an eye opener how we are getting shafted. Political wranglings about the budget is simply a theatre.

Posted by ant @ 01:50 PM 3 Comments

The Tyranny Of Growth

Index Universe: The Tyranny Of Growth

Three decades of financial sector bailouts have been bad enough in external costs, notably by imposing unaffordable asset prices on all of us. But the most toxic legacy of the bailout culture has been to breed unsustainable assumptions of permanent growth. These now threaten to demolish the whole political and social framework.

Posted by paul amery @ 12:56 PM 0 Comments

Crunch time comes....

Deficit Hysteria Antidote

Guardian: Osborne will escape public wrath if Labour lets him win the blame game

Argues that the deficit is being massively hyped to usher in spending cuts, gives figures that back this up, and that we are falling for it. This goes some way to explaining the muted reactions over here to austerity measures compared to those of our cousins across the channel.

Posted by nickb @ 11:41 AM 17 Comments

And it just gets worse each month

Yahoo / telegraph: UK public borrowing hits record high

Britains public borrowing hit a record high in September, piling pressure on George Osborne to cut the debt as he prepares to announce the Comprehensive Spending Review. Public sector net borrowing came in at £15.6bn last month, up from £14.8bn a year earlier, the Office for National Statistics (ONS) said.

Posted by mark @ 10:59 AM 1 Comments

Scotland reacting differently to the rest of the UK

RICS: Outlook for property market remains positive in Scotland, unlike rest of UK

New buyer enquiries rose at a steep rate in Scotland at +23, up from -12 in August. With new instructions also rising, albeit at a slower rate from -10 to +9, the demand-supply gap has widened and could explain the rise in price expectations, which went from +3 in August to +11 in September.

Posted by monica chambers @ 10:50 AM 0 Comments

The delightful Ms Flanders explains that there aren't really any spending cuts

Stephanie Flanders' BBC Blog: Spending cuts: Molehill and mountain

What the Lib-Cons are planning is to return government spending to its long run average rate of growth since 1955.

Posted by mark wadsworth @ 10:35 AM 1 Comments

Mortgage lending down 1% from August

BBC: Mortgage lending in fresh decline, lenders say

"UK mortgage lending remained subdued last month, figures from the Council of Mortgage Lenders (CML) suggest. Total lending was £12bn in September, the lowest September total since 2000. The CML's figures, which cover borrowing for house purchases as well as remortgaging, were down 1% from August and 7% lower than in September last year."

Posted by phdinbubbles @ 10:17 AM 19 Comments

George Osborne gets his chopper out and thrashes it around in public

Telegraph: Spending Review 2010: Live

'George Osborne, the Chancellor, will unveil billions of pounds of Government spending cuts in the Comprehensive Spending Review 2010 today, ushering in a new age of austerity in Britain. '

Posted by hpwatcher @ 09:45 AM 7 Comments

Cry me a river

Citywire: Countdown to the Spending Review: is mortgage interest benefit a cut too far?

"Mortgage interest is paid for 227,000 low income households on benefits. Surprisingly, more than half of those eligible for SMI are pensioners eligible for pension credit, according to the Department for Work and Pensions and about a third are lone parents or disabled people on income support". Where does one start?

Posted by sibley's b'stard child @ 09:34 AM 6 Comments

Copying what everyone else said last week and week before

Yahoo: Bank of England chief warns of 'currency war'

Bank of England governor Mervyn King has warned that tensions between countries over their respective exchange rates could degenerate into trade protectionism amid talk of a potential 'currency war'.

Posted by mark @ 09:11 AM 1 Comments

One for General C - courtesy of Joe Granville

EWI: U.S. Dollar Gains Big: A Trend Change, Or a Temporary Event?

http://www.housepricecrash.co.uk/newsblog/2010/10/blog-a-bank-with-sense-what-about-gold-30781.php 'nuff said? Love Private Techie

Posted by techieman @ 08:14 AM 34 Comments

Mervyn King: An absolute hypocrite

Telegraph: UK facing 'Sober' decade, warns Bank of England Governor Mervyn King

From the comments: 'Why this man still has a job is beyond me, He sat by while the public gorged on the cheap credit "125% loans". One reason maybe that he was also riding the wave of Browns great public sector hand outs and didn't want to spoil the party. Don't forget of all the public sector workers Mr King has gained the most with the largest pension pot by far of £5m. He may well say Britain faces a "sober decade" of saving more and spending less . . ." but he won't need to include himself as he is sitting pretty.'

Posted by hpwatcher @ 08:05 AM 16 Comments

The express still think that there is a long way to the bottom

Express: HOME IN ON A BARGAIN HOUSE

AS MORE homes go on sale but house-hunters remain cautious away, buyers have the whip hand in the property market. Falling demand from first-time buyers and tough new bank lending rules will push house prices into a double dip and they could take five years to recover, says Peter Spencer, who is chief economic adviser with financial forecaster the Ernst

Posted by khards @ 07:59 AM 6 Comments

WTF are NIESR anyway?

Telegraph: Bank of England 'must wait and see' before QE, says NIESR

The Bank of England must hold off from pumping any more money into the economy until the waters are clear enough to make a safe decision, a leading economic think-tank has warned.

Posted by khards @ 07:56 AM 2 Comments

Call for consumers to save as government wields axe

Guardian: Mervyn King warns Britain must 'sober' up to work off economic hangover

Mervyn King warned the public last night that a decade of sobering up was in prospect as Britain worked off the economic hangover caused by the financial crisis and recession of the past three years.

Posted by khards @ 07:55 AM 0 Comments

Tuesday, October 19, 2010

The start of a new era

FT: Osborne cuts to usher in ‘sober decade’

George Osborne will on Wednesday usher in the “sober decade” when he announces an £83bn package of spending cuts that will transform the British state and force hundreds of thousands of public sector workers to seek new jobs in the private sector. Pay for most public sector workers will be frozen for two years, while their average pension contributions could rise by up to 3 percentage points – an effective pay cut – to save the taxpayer billions of pounds. The chancellor’s austerity package was praised in advance on Tuesday night by Mervyn King, Bank of England governor, who defined “S.O.B.E.R.” as meaning “a decade of savings, orderly budgets and equitable rebalancing”.

Posted by devo @ 10:24 PM 4 Comments

Now we got a new term - screwflation

Doug Kass RealMoney: Screwfation

Screwflation, like its first cousin stagflation, is an expression of a period of slow and uneven economic growth, but, its potential inflationary consequences have an outsized impact on a specific group.namely, the middle class.

Posted by easybetman @ 07:55 PM 2 Comments

Shroud waving by the CML

Council of Mortgage Lenders: Strengthening the safety net

A concerted effort by borrowers, lenders, the government and money advice agencies has helped to keep mortgage arrears and possessions in check during the current economic downturn. But the 'safety net' providing support for home-owners in difficulty is neither complete, comprehensive nor consistently available to all those requiring help.. we believe it is important to maintain support for borrowers in difficulty – and fill some of the existing holes in the safety net – to help contain mortgage arrears and possessions in the challenging times ahead. On the eve of the comprehensive spending review, we are therefore making a series of recommendations in conjunction with the housing charity Shelter to minimise the number of cases of possession.

Posted by mark wadsworth @ 04:09 PM 7 Comments

Could the US repossession scandal sink the banks again?

MoneyWeek: Could the US repossession scandal sink the banks again?

There's another scandal brewing in the US property markets, where banks are repossessing properties they may not technically own. John Stepek looks at what's going on, and how it could affect the banks and the broader economy.

Posted by damien @ 04:06 PM 2 Comments

Call for lower LTVs and tougher regulation

Independent: Why the Bank of England must protect us from ourselves

"The review of health and safety legislation we have just seen notwithstanding, people often do need protecting from themselves, particularly when it comes to the peculiarly British obsession with the property market".

Posted by sibley's b'stard child @ 04:02 PM 2 Comments

Well, duh!

BBC: Student debts squeeze mortgages

Growing student debts will reduce the mortgages available to first-time buyers or delay them getting on the property ladder, a broker has warned. Having looked at a range of different lenders, one bank would advance £28,560 less on a mortgage to somebody with this student debt than to somebody without it, Mr Strutt said. The person with the debt would be able to get a mortgage of £139,440, compared with £168,000 for the person without the debt.

Posted by mark wadsworth @ 03:02 PM 5 Comments

Beaker In A Flap

Daily Mail: 500,000 public sector jobs to go: Danny Alexander lets the cat out of the bag on spending cuts

The coalition expects 500,000 public sector jobs to be lost as a result of the drastic spending cuts, it was revealed today. Danny Alexander let slip the forecast when he was spotted driving into the Treasury with an open copy of the Comprehensive Spending Review on his lap. The Chief Secretary to the Treasury - who has been nicknamed Beaker after the Muppets character - was reading the document, which was caught on camera by waiting photographers.

Posted by cat and canary @ 01:34 PM 22 Comments

A bank with sense? what about gold?

Yahoo: Miners pull FTSE lower after China rate rise

China will raise its benchmark one-year lending and deposit rate by 25 basis points effective from October 20, the central bank said on Tuesday.

Posted by mark @ 01:11 PM 2 Comments

Endors Price Too High

Home.co.uk: Autumn Home Vendors Price Too High

"Prices of homes on the market jumped up 0.5% over the last month but this does not mean that the market has escaped the twin downward price pressures of mortgage rationing and over-supply. This month’s upward movement is largely due to a seasonal surge in properties for sale, placed on the market at overly optimistic prices. However, this is set against a backdrop of increased price-cutting both in frequency and value (a new 20-month record for September). Moreover agents’ sales stock levels are now 16% higher than a year ago and this will only fuel the growing ‘discount culture’ in the UK housing market."

Posted by doomwatch @ 10:57 AM 10 Comments

For whom the bell tolls

Telegraph: More than 90,000 live in 'inherited' council homes

Similiar to the BBC story albeit with some concrete figures and a 'bloody lay-abouts' slant to it.

Posted by sibley's b'stard child @ 10:29 AM 11 Comments

Latest Ernst & Young ITEM club quarterly forecast

FundStrategy: Rates to stay on hold till 2014, says Ernst & Young

The Bank of England base rate is set to stay at 0.5% until 2014, according to the latest Ernst & Young ITEM club quarterly forecast. The report says the risks of overheating and deflation in the British economy have both been exaggerated. As a result, while increases in commodity prices and value added tax (VAT) will keep CPI inflation above its target over the next year, the ITEM club forecasts CPI to move below the 2% target from January 2012 when the next VAT increase drops out of the calculation. “Despite the mounting tensions within the MPC, this prospect is likely to keep Bank base rate on hold next year and the forecast does not see it increasing until 2014,” says the report.

Posted by jack c @ 09:07 AM 43 Comments

Bank of America's announcement doesn't resolve the challenges it and other banks face from this mess

Washington Post: Bank of America resumes foreclosures in 23 states

Just 10 days after announcing a nationwide halt to foreclosure sales, Bank of America, the nation's largest bank, said Monday that it would begin resubmitting paperwork on Oct. 25 to restart foreclosures on borrowers who missed their payments in 23 states.

Posted by khards @ 08:54 AM 7 Comments

No more council houses for life

BBC: Social housing budget to be cut in half

The social housing budget in England is to be cut by more than 50% in the Spending Review. Council housing "for life" will be phased out, with the needs of new council tenants assessed over time to see if they still require help with housing from their local authority. At present, council tenants keep their property for life unless they breach their tenancy agreement, for example, by engaging in anti-social behaviour. They can also pass their homes onto their children. Lib Dem deputy leader Simon Hughes said his party was against the idea, which was not coalition policy.

Posted by little professor @ 06:22 AM 19 Comments

Monday, October 18, 2010

Chicken or egg

ALTER: Which first: LVT or Money Reform?

I would be fascinated to read other views from HPC'ers on this interesting debate

Posted by the number cruncher @ 10:28 PM 17 Comments

Spending cuts WILL lead to recession

The Guardian: David Blanchflower: spending cuts could lead to recession

• Chancellor's cuts 'misguided', says former MPC member • Coalition guilty of 'appalling cowardice' • Business leaders who support cuts making 'terrible mistake'

Posted by devo @ 10:07 PM 11 Comments

We are all in this together ... but some are more in it than others

Channel 4 Dispatches: How the rich beat the taxman

If you can stomach the dodgy dealings in the Caymans, Osborne's tax-free inheritance, and an hour in front of the screen - watch this.

Posted by letthemfall @ 08:59 PM 7 Comments

"you can’t have “affordable housing” unless you deal with rising house prices"

Telegraph: Boris is wrong, and Grant Shapps is right: we don't want ever-higher house prices

In today’s Telegraph, Boris Johnson argued that that we should build more “affordable” properties – those not sold on the open market – to help people who can’t afford to buy privately. But each affordable home costs an average of £45,000 using current mechanisms. So to build another 1 million ‘affordable homes’ (shared-ownership and social housing) would cost £45 billion. As the great man himself would say – Cripes!

Posted by jack c @ 08:40 PM 4 Comments

The next crash? foreclosures? effect on UK?

La times: Tenants rule commercial real estate arena

Commercial building vacancies climbed and rents went down — again — in the third quarter as Southern California's white-collar companies reduced the size of their offices. Overall vacancy was nearly 20%, up significantly from 17.5% in the third quarter a year earlier, according to statistics compiled by real estate brokerage Cushman & Wakefield. The average asking rent was $2.35 a square foot a month, 13 cents less than in the July-September quarter of 2009. "Vacancies are at their highest in 15 years,"

Posted by mark @ 07:46 PM 1 Comments

Heads they win and tales we loose

The Real News Network: Bubbles Make Rich Richer and Others Unemployed

James Heintz: Asset bubble creates a fictitious economy where the real economy stagnates and the false economy races to destruction

Posted by the number cruncher @ 07:43 PM 1 Comments

BJ - "If the housing market tanks, then the financial system tanks too"

London Evening Standard: Squash house prices at your peril, Boris Johnson tells the coalition

Boris Johnson today urged the coalition to leave London's rising house prices alone or risk worsening the housing crisis. He warned the Government that proposals to deliberately "flatten" the market could lead to a sharp spike in prices as the economy improved. The Mayor said that the move would be "risky" in the short term as it would damage the confidence needed for economic recovery. And he predicted that asking the middle classes to "wean" themselves off house-price inflation was "unachievable" in the longer term.

Posted by jack c @ 05:39 PM 15 Comments

The return of 'gazundering' is good for the property market

MoneyWeek: The return of 'gazundering' is good for the property market

If deluded sellers won't ask realistic prices for their houses, then buyers should force their hand, no matter how rude it may seem.

Posted by damien @ 04:34 PM 5 Comments

College offers £5,000 for failing exam

BBC News: College offers £5,000 for failing exam

Rewarding failure. Sounds familiar? Replace "College" with "Tax Payer", "Student" with "Banker" and "Exam" with "Loan".

Posted by thenewdoctorwho @ 03:41 PM 0 Comments

Tax, Tax, Tax and more Tax - typical Labour

Telegraph: Johnson: Labour would continue to tax and spend

In his first major speech after Ed Miliband made the surprise decision to give Mr Johnson the Treasury brief, he said Labour would raise more from taxes than planned by the Coalition. The Opposition is now advocating a percentage split between cuts and tax rises of 60-40, having previously committed to 70-30. George Osborne, the Chancellor, will go further when he announces this week that spending cuts will make up around 70 per cent of the savings needed to tackle the deficit.

Posted by hpwatcher @ 02:51 PM 60 Comments

Who do EAs blame for today's news of a rise in asking prices?

All in it together ??!!

Daily Mail: Channel 4 in explosive row with millionaire Tories over 'tax dodge' investigation Read more: http://www.dailymail.co.uk/news/article-1321217/Channel-4-explosive-row-millionaire-Tories-tax-dodge-investigation.html#ixzz12iHGz6WW

which club is that then ? "The report will claim that Mr Hammond acted last year to limit his exposure to the new 50p top rate of tax by moving shares in his family property business into the name of his wife, who pays tax at a lower rate. He did so after the 50p rate was announced but six months before it came into effect in April. The programme estimates that the move saves him more than £26,000 a year."

Posted by doomwatch @ 01:52 PM 10 Comments

How dependent is your area?

Yahoo / telegraph: Property prices in areas with high number of public sector workers will fall

Oxford, Hastings and West Dorset are among the towns most likely to be hit by price falls because public sector employment accounts for more than 40 per cent of the workforce, according to the report by property website Zoopla. Prices have already dropped by up to 9 per cent in these areas during the past three years. The study suggested a 3.6 per cent drop in average values in Oxford where 46 per cent of workers are employed in the public sector. Similarly, there has been a 5 per cent drop in Hastings and a 9 per cent drop in West Dorset.

Posted by mark @ 01:33 PM 1 Comments

Free copy for Paragon...

Independent: House price dip good news for buy-to-let

I didn't have the Indy down as a property ramper but, there you go. Particularly liked the 'case study' (which i'm sure is 100% factual) below the article. As soon as I saw the opening paragraph, I thought; we haven't bloody learned have we? "This time last year, Dean Warner knew nothing about buy-to-let. Today he owns seven properties all in Hull city centre."

Posted by sibley's b'stard child @ 01:07 PM 2 Comments

Comments, handbags at dawn etc..

Yahoo: RBS may sell $1.6 billion Spain property portfolio

The Spanish commercial property loans add to a 3 billion pound portfolio of British real estate loans also on the block. Private equity firms and specialised investors looking to pick up the assets at a discount would be the likely buyers. Part-nationalised RBS is attempting to shrink its "non-core" division and has said it may sell assets. There were 44 billion pounds of real estate assets in its non-core division at the end of June, down from 63 billion at the end of 2008. At the end of last year 42 percent of the non-core portfolio assets were in Britain, and a quarter were in Continental Europe.

Posted by mark @ 12:58 PM 0 Comments

It appears Banks operate like monkies pulling levers and throwing darts whilst blindfolded

Las vegas sun: M Resort’s debt purchase befuddles bidders

Bidders contacted by the Sun say they are unsure how to describe the process by which M’s lender, Lloyds Banking Group, solicited bids for its portion of the debt. Potential buyers submitted bids and then resubmitted them — in some cases, multiple times — without knowing what others were offering. For some bidders, the process felt like they were fumbling in the dark,

Posted by mark @ 10:33 AM 4 Comments

Don't play by the rules please

Yahoo: EU cold feet over fines

"Now is the moment of truth," he said. - Truth is they can't afford the fines so we will not levy them....

Posted by chrisch @ 10:27 AM 1 Comments

Even more over-pricing in EAs desperate bid to win business

Rightmove: October asking prices increase by 3.1%

.. and mark-up ahead of the big fall. With transactions and sales at an all time low, EAs are marking up beyond our wildest dreams in order to "manage" the impending fall and to win business. Trouble is, in 3 months when they've not sold, they have the difficulty task of telling the vendor to drop the price. As REAL TRANSACTION figure paint a different story on price, Miles Shipside referred to this on BBC Radio 5 Live this morning as a "growing reality gap", pretty much saying that sellers would have to blink first in this silly stand-off created by greedy EAs.

Posted by doomwatch @ 09:56 AM 35 Comments

Rightmove reports bullish sentiment

Stock Market Wire: Rightmove House Price Index up 3.1% m/m

Yes, I know it's ony asking prices but there seem to be a lot of optmistic sellers out there. "new October sellers asked £7,082 more for their homes than last month’s sellers. Even Rightmove say that "disappointment is the likely outcome for many sellers as evidence shows high launch price damages chances of securing a later sale."

Posted by quiet guy @ 08:51 AM 5 Comments

Conscience

Telegraph: The Coalition must tackle the shortage of new homes

Boris Johnson argues for a bout of moral conscience and socio-economic common sense. Build more.

Posted by dill @ 08:48 AM 1 Comments

Astonishment as asking prices for houses bounce

Introducer today: Astonishment as asking prices for houses bounce

What are we gonna do now???...what are we gonna do now??? ...what are we gonna do now???...

Posted by bluebeach @ 08:42 AM 0 Comments

I would have said 10 years with no recovery...

Mail: House prices face a 'double dip with no recovery for five years'

'The housing market is heading for a double dip and will take five years to recover, a leading economist has claimed. Peter Spencer, chief economic adviser with leading financial forecasters Ernst & Young Item Club, said property values would fall by 5 per cent over the next 12 months. The predictions are based on the Treasury’s own forecasting models.'

Posted by hpwatcher @ 07:01 AM 6 Comments

US subprime repossession fraud threat to markets

ArabianMoney: US bank foreclosure fraud threatens global financial markets

Global financial markets face fresh turmoil this week as the US subprime crisis returns. Bank foreclosures across the United States have been stopped due to alleged widespread fraud in the foreclosure process. Essentially subprime mortgages were sold in a hurry and the paperwork not completed properly. Compounding the issue banks have been acting heavy handedly victimizing home loan owners and repossessing their homes fraudulently. Some evicted mortgagees are fighting back and actually repossessing their homes after repossession.

Posted by david smith @ 04:49 AM 0 Comments

Buy-To-Let gets more of our money than the Army and Navy

Telegraph: Lord Freud: Housing benefit landlords are ripping off the system

"Private landlords will pocket almost £8.5bn from the taxpayer this year through housing benefit - more than a third of the total £21.5bn bill, according to figures from the Department for Work & Pensions (DWP) ... The housing benefit bill has exploded in the past decade, rising at 50pc above the rate of inflation to £21.5bn as both claimants and rents have increased, and is now larger than the bill for the Army and Royal Navy combined. Each working adult is contributing £689 a year."

Posted by quiet guy @ 01:18 AM 7 Comments

Sunday, October 17, 2010

US Foreclosure Problems

John Mauldin via Pragmatic Capitalist: THE SUBPRIME DEBACLE: ACT 2

The problem: Homeowners can only be foreclosed and evicted from their homes by the institution who actually has the loan paper. Before mortgage-backed securities, most mortgage loans were issued by the local bank. So the note usually didn’t go anywhere. But once mortgage loan securitization happened, things got sloppy, paperwork got lost etc. Some banks tried to rescue paperwork by hiring "foreclosure mills", law firms that specialized in foreclosures. In some cases documentation was forged in these foreclosure mills. So some people have had their homes illegally foreclosed. This is why Ally Financial (formerly GMAC), JP Morgan Chase, and now Bank of America have suspended foreclosures. The threat is that if people suspect their mortgage loan paper is lost they will stop paying.

Posted by mountain goat @ 10:19 PM 3 Comments

More please!

Bloomberg: Bank of England to Expand Its Stimulus Program by $160 Billion, CEBR Says

The Bank of England will increase its emergency bond-purchase plan by 100 billion pounds ($160 billion) to aid the economy as the government cuts spending, the Centre for Economics and Business Research said.

Posted by tyrellcorporation @ 08:59 PM 7 Comments

Krusty says offer up to 50% less!

Telegraph: Kirstie Allsopp: My battleplan for house buyers and sellers

Kirstie Allsopp has a strategy to sell in today's climate. If you want to offer 10 or 20 per cent less than the asking price, that’s OK. You can even offer 50 per cent less, if you think you can get away with it. There's hope for FTB's yet if everyone tries to get a discount.

Posted by miken @ 08:44 PM 8 Comments

Bernanke's war on deflation

Bbc: Bernanke's war

Stephanie Flanders on the fed acting to fight deflation in the USA

Posted by mountainpark @ 03:55 PM 4 Comments

Why banks are not lending? - the more entertaining version

Marketplace: Uncle Ben goes shopping

Paddy explains it .... in a way that even i can understand..

Posted by techieman @ 01:32 PM 44 Comments

I read this is disbelief

Ukpublicspending: Public spending by sector

I am totally gobsmacked at where government money is spent....forget austerity,it seems clear to me where we are over and under spending. When you peruse the charts over 20 years its astounding.What on earth were new labor thinking of?

Posted by taffee @ 11:35 AM 9 Comments

From the paper of good news only

Scotland on Sunday: Scottish housebuilding 'may never recover from crisis'

THE Scottish housebuilding industry is at risk of never recovering from its current state of crisis, the chairman of trade body Homes For Scotland has warned.

Posted by sosoon @ 09:15 AM 5 Comments

Why banks are not lending?

Greg Pytel: Liquidity v money supply/demand

Really good, succinct explanation why banks are not lending.

Posted by ant @ 09:06 AM 5 Comments

Saturday, October 16, 2010

The banks will be sued by investors who bought mortgage backed securities

CNN: Foreclosure Fiasco: How Big Is the Problem?

Who owns the property has the right to call in the loan i.e. foreclose property when payments are not made. Due to the robo signing and missing paper work they do not know who the owner is? This causes the issue with investors who can sue the banks, mortgage brokers, investment banks etc from whom they bought these mortgage back securities as they have taken losses on investments they never owned.... The guy in the home is out at all cost. The banker not doing the paper work may be out of his job soon. Future of the bank. NATIONALISED/NATIONALIZED

Posted by deepak @ 10:55 PM 7 Comments

At last there's something worth reading on his blog

Guido Fawkes: Is the ECB Forcing Ireland to Protect German Investments? Anglo-Irish Bondholders Should Take the Losses.

October 15th, 2010 Why is Dublin’s political establishment so keen to protect foreign investors at the expense of future generations? Guido has obtained the list of foreign Anglo-Irish bondholders as at the close of business tonight...

Posted by devo @ 10:46 PM 0 Comments

Battle lines being drawn for the masses

The Guardian: Labour's plan: cut less, but make bankers pay more

Radical plans to make banks pay the lion's share towards a £7bn "push for growth", to be unveiled by Labour on Monday, will be at the heart of Ed Miliband's alternative to £83bn of proposed government cuts. "Without growth, attempts to cut the deficit will be self-defeating. A rising dole queue means a bigger dole bill. And less tax coming in. The Tory plan, for all its Liberal Democrat cheerleaders, is a huge gamble with growth and jobs."

Posted by devo @ 09:44 PM 16 Comments

Robo signing explained

PBS News Hour: Faulty Paperwork Prompts Deepening Foreclosure Problem

Robo signing What is it all about? I think it is just a technical issue to fight banks against deliquent home owners. This is just respite till the time it is decided. Even the bankers didn't read the small print.

Posted by deepak @ 07:57 PM 2 Comments

European discontent over belt-tightening measures spreads

CBC News: French retirement strike continues

The content of the article reveals more than it's title as the Italians protest against higher education cuts and the Portuguese contemplate abrupt tax-hikes and deep spending cuts. All the sorts of things scheduled for the UK that have not as yet resulted in any significant protests or strike action as the money and easy credit run out all over Europe.

Posted by enuii @ 01:39 PM 3 Comments

Non tax paying foreigner probably cause the high london house prices

FT Comment: Politicians beware, the squeezed middle is here to stay

Talks basically about the squeeze middle class while the upper class got off relatively scott free. Plus superrich responsible for London high house prices while a middle class on £60k can hardly buy anything decent at 3x.

Posted by easybetman @ 01:09 PM 4 Comments

It's Grim Ooop North (London)

Guardian: The abuse you'll get for an income of £45,000 a year

"Our writer dared suggest that an income just above the higher rate threshold could still leave you hard-up. Cue a vicious torrent of abuse from the sad and spiteful people who too often elbow aside reasonable debate on our comment boards." -- Did someone post this to HPC?

Posted by davidg @ 11:29 AM 0 Comments

Debts to be written off

Bloomberg: Iceland Pension Funds to Block $2 Billion Debt Relief Proposal

Iceland’s pension funds, which hold the bonds behind most of the country’s mortgage debt, will try to block proposals to forgive as much as $2 billion in bad loans that the government says it is considering. A group that represents households demanding debt relief says lenders should write off up to 220 billion kronur ($1.99 billion) in mortgage loans to help the 39 percent of homeowners who are technically insolvent. The government this week said it may back the proposal.

Posted by devo @ 11:01 AM 3 Comments

Extent of US Foreclosure fraud and Mortgage bond fraud

DYLAN RATIGAN SHOW: FORECLOSURE FRAUD & $45 TRILLION DOLLARS

8.40 minutes in… ”I am not overstating the case, this is not only residential, this is commercial, I say with a high degree of confidence, that nobody in this country knows for sure who owns any real estate, residential or commercial…” “…any piece of property that was bought, sold or refinanced from the early 1980’s when securitisation started until now, nobody knows who owns that property… the total amount of money involved is forty five and half trillion dollars...”

Posted by cassandra kernow @ 10:33 AM 0 Comments

Redefining negative equity

BBC News: US town offers house for free

Must be worth it for the firewood?

Posted by chrisch @ 10:08 AM 1 Comments

Friday, October 15, 2010

The biggest bubble and its subsequent collapse

ZeroHedge: John Williams Warns Of "Severe And Violent Sell-Off In Stocks"

John Williams utters his most ruthless words of condemnation not only toward the Fed, but to everyone who is stupid enough to be chasing returns in the face of what is a hyperinflationary collapse.

Posted by devo @ 09:51 PM 20 Comments

Euphemists of the world unite!

The Telegraph: Fed chief Ben Bernanke signals more easing to counter high unemployment, low inflation

"He was running out of bullets and his back was against the wall," said Joseph Greco, managing director of Meridian Equity Partners in New York. "I suspect everyone will start tightening their belts." The economy is growing at a pace "less vigorous than we would like," Mr Bernanke said.

Posted by devo @ 09:06 PM 8 Comments

$1 trillion budget deficit

BusinessWeek: U.S. Posts Second-Largest Annual Budget Deficit

“We still have a long way to go to repair the damage to the economy and address the long-term deficits caused by the crisis,” Treasury Secretary Timothy F. Geithner said in a statement.

Posted by devo @ 08:47 PM 1 Comments

Lets hear it for the bankers, hip hip ..........

Fortune: It's time to stop blaming the lenders

Before we take the entire banking industry to task on the foreclosure mess, it bears reminding that the source of the problem is people who bought homes they couldn't afford. Let's blame them, too.

Posted by mark @ 03:52 PM 7 Comments

Gravity

Telegraph: Gazundering returns as house prices fall

Whether you believe the Halifax claim that house prices fell by a record amount last month or the Royal Institution of Chartered Surveyors’ report of more modest declines this week, there is one sure sign that homebuyers are regaining the upper hand in a weakening property market; gazundering is back.

Posted by dill @ 03:44 PM 12 Comments

Why has no-one been prosecuted for this?

Guardian: HBOS in $11.5 BILLION gamble

walks away with a massive pension...imo this is at best reckless lending..I wouldn't possibly say anything more for fear of prosecution.I hoipe for peoples sake the ants don't finally get that the banks,government etc have been fraudulently extracting money whilst presecuting single mums for not telling their boyfriends have moved in. Social unrest is on its way

Posted by taffee @ 03:33 PM 8 Comments

Every little helps

Guardian: BBC to announce senior management wage bill has been slashed

You lucky things; just when you thought Friday couldn't get any better.

Posted by sibley's b'stard child @ 02:51 PM 17 Comments

House builders are crapping themselves

Building: Credit crunch returns as lenders turn away buyers

Confidential Home Builders Federation figs showed new home sales 'flatlining' a few weeks ago. It's all got very much worse in the last few weeks. Here's Redrow's Steve Morgan today: We’re turning people away - normal people with nothing wrong with them - and we don’t know why. The industry is falling into a nosedive, and if we don’t watch out everything in the papers about house price falls will become a self-fulfilling prophecy.

Posted by ghoulatthetrainwreck @ 02:26 PM 0 Comments

The most stupid criminals ever, take the gold you fools not the fuel

Telegraph: African Barrick shares sink as criminals infiltrate gold mine

Its share price sank by 59½, or 10pc, to 564p, after the miner admitted that its employees had been trying to steal FUEL in Tanzania. The number of suspended workers is about 40pc of its total workforce at the key African mine.

Posted by mark @ 12:50 PM 4 Comments

Potential scenarios for a correction

Market watch: Gold, silver may buckle under pressure

Not everyone is overly bullish on the precious metals sector and with investor demand becoming an increasingly important and uncertain factor, confidence in the ability for gold and silver to sustain their rallies is starting to buckle under the pressure. “We remain skeptical concerning precious metals’ ability to rise indefinitely, and we expect a turning point to be reached sooner than the consensus in the market,” Nic Brown wrote in the Natixis Commodity Markets’ Fourth-Quarter Metals Review report.

Posted by mark @ 12:09 PM 13 Comments

Might put an end to ramping up prices

Come on guys get with the game and save some money

Manchester evening news: £30m facelift for town hall that’s got to save £60m

Trafford Council is spending nearly £30m rebuilding its town hall – while facing £60m in cuts. The council is to revamp the modern extension on its Stretford headquarters and repair the 1930s part of the building in a £28.9m overhaul. Bosses say it will save millions in the long term by halting a spiralling repair bill. But opposition councillors slammed the move. The council, which expects to slash £60m under next week’s spending review, will fund the project mainly through borrowing. It will take out a £26m loan, finding the rest from its reserves.

Posted by mark @ 11:26 AM 1 Comments

In a supposed advanced society, why do we have poverty?

Reuters: Clegg to unveil fund to help educate poor

In a supposed advanced society, why do we have poverty? Let me make a forecast. Whilst the objective is noble and the theory is fine, this will be a waste of money due to poor management and supervision. Additionally, could it be the education system that needs root and branch overhaul rather than just throwing money at the problem? Relationship with HPC? Part of the government spending review. Going forward, the market’s reaction to said reduction, impact on IR’s and the economy and therefore the amount of money people have to spend and ultimately the housing market. QED Discuss

Posted by mr g @ 11:21 AM 25 Comments

Is this stage 2 or 3 of the depression?

Bloomberg: Stock Selloff Adds to Pressure on Banks to Fix Foreclosure Mess

“The nation has been in denial about the scope of the problem, and it’s now just being revealed,” said Janet Tavakoli, founder of Chicago-based Tavakoli Structured Finance Inc., a financial consulting firm, in a phone interview. “This is a huge crisis for our country.”

Posted by mark @ 10:39 AM 1 Comments

I bet Tescos won't be in that list, after all tescos is killing the high street

Yahoo / telegraph: UK high street faces more than 26,500 shop closures by 2015

As the UK's economy slowly crawls back to health, more than 26,500 retailers will be forced to close by 2015, according to research by BDO. The figure includes 15,400 fashion shops, 6,300 bars and restaurants, and 1,500 furniture retailers. The expected rate of business failures is significantly higher than in the post-recession period that followed the downturn in the early 1990s. Then, 0.6pc of all retailers went bust. This time, 0.9pc are expected to fail, according to the research by BDO, the accountants. Next year will see the highest rate of high-street failures over the five-year period - at 5,017.

Posted by mark @ 10:20 AM 0 Comments

Now the Church is being asked to dig us out of this mess

Christiantoday website: Charities ask churches to address affordable housing shortage

After all, charity begins at a MEW'd up investment

Posted by rantnrave @ 08:10 AM 2 Comments

Thursday, October 14, 2010

A very strange finance story

Zero Hedge: Gonzalo Lira On The Second Leg Down Of America's Death Spiral

I'd better start with an apology: this is an American story (and there are some swear words in it.). As far as I can determine, it has no particular relevance to the way the UK mortgage system works. Lira gives a pretty good explanation of the trouble the big American mortgage lenders have gotten themselves into and opines that "This is a major, major crisis. This makes Lehman’s bankruptcy look like a spring rain, compared to this hurricane. And if this isn’t handled right—and handled right quick, in the next couple of weeks on the outside—this crisis could also spell the end of the mortgage business altogether. Of banking altogether. Hell, of civil society. What do you think happens in a country when the citizens realize they don’t need to pay their debts?"

Posted by quiet guy @ 10:48 PM 19 Comments

Move along - just a slip of the tongue you know

SKY: Clarke: 'Grave Danger Of Financial Collapse'

The global economy is in "grave danger of financial collapse" and the crisis is the "worst in living memory," Kenneth Clarke has said. A spokesman for the department then said Mr Clarke did not mean Britain's economy was in grave danger. "He was referring to the weaknesses in the global economy, and the importance of reducing the UK deficit so that this country is less exposed to the dangers of global economic shocks,"

Posted by enuii @ 07:13 PM 9 Comments

The government giveth, and the government taketh away

Independent: Promised rise in ISA limit is set to be £470

There you go you plebians; hope you like cake.

Posted by sibley's b'stard child @ 04:12 PM 6 Comments

The Home-Owner-Ist Manifesto

Daily Mail: I resent this foolish housing minister for saying that my bricks and mortar aren't an investment

A classic bit of completely jumbled and self-contraditory thinking from the Dark Blue Wing of the Home-Owner-Ist Movement. As ever, he fails to see that bricks and mortar tend to depreciate over time, or hold their value at best, so in that sense he is correct. Bricks'n'mortar are NOT an investment. You can only make speculative gains on the LAND value.

Posted by mark wadsworth @ 01:16 PM 9 Comments

Marshmallows on sticks, lovely...

The Guardian: Government scraps 192 quangos

What's not to like about the article. It's come to something when the champagne socialists even reach the same consensus (see comments).

Posted by sibley's b'stard child @ 12:53 PM 18 Comments

Savers to get shafted again.....

The Market Oracle: Bank of England Prepares to Print Money Despite High Inflation at CPI 3.1%

'UK Inflation for September 2010 was unchanged at CPI 3.1%, remaining stubbornly above the Bank of England's upper limit of 3% and target of 2%, despite virtually 10 months of worthless mantra from the BoE Governor that high inflation was ALWAYS just temporary and imminently expected to fall back to below the 2% target'

Posted by hpwatcher @ 12:51 PM 24 Comments

Wage inflation woes could hit house prices

Investment and Business News: Wages rise, but still lag way behind inflation

Wages inflation lags way behind consumer inflation. Bizarrely, thanks to lower interest rates and the surprising small falls in unemployment, average households were no worse off during the recession than in the year before the recession, this may have propped house prices up. The recession just ended may have been the worst since the 1930s, but for your typical household there was a disconnect between what the media were saying in terms of how bad things were, and how it actually felt. There is, alas, a chance that the pain households avoided in 2008 and 2009 well set in next year. This may or may not spark off another recession, but for households, and indeed the housing market, it will feel like it.

Posted by mike @ 11:30 AM 0 Comments

More than 1.1million people - another record - say they are only working part-time

Daily mail: 50,000 stay-at-home mothers are forced back to work in the past 12 months

The statistics highlight the financial nightmare facing women who are being crippled by a toxic combination of super-size mortgages and rising household bills.

Posted by mark @ 11:26 AM 3 Comments

WSJ on Ireland

Irish Mortgage Brokerse: Wall Street on Ireland

This is video the Wall Street Journal talk to various commentators in the Property market

Posted by karl deeter @ 11:07 AM 1 Comments

Start buying bank shares, QE2,3,4,5 docking very soon

Bloomberg: Dollar Falls to 15-Year Low Versus Yen on Fed Policy Outlook

The dollar depreciated below 81 yen, a 15-year low, and reached its weakest since January against the euro before reports likely to fuel speculation the Federal Reserve will ease monetary policy further.

Posted by mark @ 11:01 AM 6 Comments

Necessary

Channel 4 News: Is housing market headed for profound change?

The Conservative party is quietly redefining home ownership, writes Gaby Hinsliff, in a way which could help first time buyers but hit those relying on rising house prices to fund their lifestyles.

Posted by dill @ 10:57 AM 8 Comments

Bargain for first time buyers

Blackpool gazette: Gunman's home up for auction

Similar houses in the village are on sale at around £70,000, but Bird's household is advertised at a guide price of between £35,000 and £45,000. Described in the auction catalogue as being in a "sought after location", there is no mention of its infamous previous owner.

Posted by mark @ 10:51 AM 2 Comments

Grant Shapps' property profits

Daily Mail: Your home is a place to live, not a pension: Tory minister vows to end era of house price booms

STR (I think) asked about Shappsy's property portfolio recently. The DM has this to say: "Mr Shapps... has already pocketed an estimated £250,000 from a previous house sale, and could make a similar amount if he sold his five-bedroom detached house in Hertfordshire, which is currently worth more than £1million." So by MP standards, he's a choirboy (he's made no more money that I have, albeit he's a couple of years younger than I am).

Posted by mark wadsworth @ 10:39 AM 17 Comments

The x factor rejects would do a better job than these idiots

Bloomberg: Sentance Says U.K. House-Price Drop a Sign of Volatility

Sentance’s view is also at odds with that of Deputy Governor Paul Tucker, who said in an interview with the Daily Mail that he is “more balanced” about inflation and the need to remove stimulus than he expected to be since the economy showed some signs of weakening. Until recently, Tucker regarded inflation as being “uncomfortably high,” the newspaper said. He also said it isn’t “terribly surprising” that house price have “softened a bit. A few months ago it was surprising that they hadn’t fallen more than they did.”

Posted by mark @ 09:03 AM 2 Comments

Another resilient number but 2.85 million forecast.

BBC NEWS: UK unemployment falls to 2.45 million

"Meanwhile, Howard Archer, chief UK and European economist at IHS Global Insight, forecast that unemployment would peak at 2.85 million in the first half of 2012". 2.85 million unemployed is thankfully less than in some recent recessions but it is just enough to tip the housing market into freefall (circa minus 20% to minus 40% from peak, in inflation adjusted terms). If more ‘traditional’ interest rates coincide with this unemployment number (quite likely), then we can reasonably add approximately 10% to the expected house price falls.

Posted by flashman @ 08:48 AM 2 Comments

How high will interest rates go if QE fails?

ArabianMoney: How high will interest rates go as QE fails and bonds tumble?

Maybe it is best to look at this from the point of view of how far the bond market would fall in a crash. Are talking 30, 50 or 70-80 per cent? That would send interest rates up by a half or double or treble them. Marc Faber put the cat among the pigeons this week with his forecast that the bond market was nearing an ‘important inflection point’ and that interest rates would be heading higher ‘within three months’. If he is right, and he frequently is, then that is a reversal of the current global financial market up trend. However, it is very difficult to read where interest rates would go in this process, except to say that they will go up.

Posted by david smith @ 06:42 AM 0 Comments

We need more people power

Halifax Courier: Public want councillors' wages slashed by 20pc

OK, so the sum involved is a drop in the ocean but it's a start at getting some of the snouts out of the trough regardless of which political party they belong to.

Posted by mr g @ 12:24 AM 9 Comments

Wednesday, October 13, 2010

USA leading the way! So that's where the QE goes.

Guardian: US bankers set for record pay and bonuses for second year

US bankers are set for record compensation for a second consecutive year, shattering both the illusion of pay-reform and the expectation that bank bonuses would be tempered while the US economy remains weak.

Posted by markj69 str05 @ 10:54 PM 2 Comments

This guy is more in touch than Merv or Charlie

Reuters: Bank's Sentance says interest rates need to rise

Interest rates need to start rising gradually to counter the risk of above-target inflation becoming entrenched in the economy, Bank of England Monetary Policy Committee member Andrew Sentance said on Wednesday.

Posted by mr g @ 08:42 PM 15 Comments

Where would we be without the experts?

YouTube: The Economic Crisis, Two Years Later: A Panel of Harvard Experts

A panel of experts suggests that if the sh!t hits the fan, you end up with sh!t everywhere, shock.... at 39 minutes: John Campbell - Professor of Economics "A long standing goal of public policy in this country is to promote home ownership... and there are good arguments for that up to a point - people who own their own home have more a of a stake in there community and so forth - I think we went too far frankly in pushing that social goal. I think for people with lower and less stable incomes a home can become a ball and chain, and simply you are less flexible if you own a home than if you rent and this can become a problem."

Posted by powerofnow @ 08:25 PM 1 Comments

Very cool illustration of the bubble

Economist: Global House prices : Unsafe as houses

Is housing the most dangerous asset in the world? Any explanation of the recent financial crisis would have the property boom in America as Exhibit A: according to Robert Shiller, an economist and bubble-spotter, house prices were virtually unchanged in real terms between 1890 and the later 1990s, before almost doubling in the ten years between 1997 and 2006. Because buying a house usually involves taking on lots of debt, the bursting of this kind of bubble hits banks disproportionately hard. Research into financial crises in developed and emerging markets shows a consistent link between house-price cycles and banking busts.

Posted by steve @ 02:49 PM 0 Comments

Unbelievable opinion on the EAT site!!

Estate Agent Today website: First-time buyers hit by 90% collapse in high LTV mortgages

According to the 4th paragraph, there has never been a better time to get on the property ladder!

Posted by rantnrave @ 02:30 PM 13 Comments

Solving "Hyperinflation"?

Martins Money Tips: National Counties

Wel i doubt this is allowed, but since i got this through my email box from Martin as an "inflation busting 6.9%" i thought i would share with the class. Not read it myself, but i realise alot of folks are worried about inflation eroding their hard earned..

Posted by techieman @ 02:23 PM 11 Comments

Comments

Yaho0: Lloyds bank cuts 4,500 jobs

Britain's Lloyds Banking Group (LSE: LLOY.L - news) said Wednesday that it will axe another 4,500 jobs, including 1,750 posts outside the UK, as the crisis-hit lender continues its painful restructuring.

Posted by mark @ 12:55 PM 2 Comments

A shaky house of (credit) cards

Telegraph: Remortgaging drops to decade low record

The housing market will never again see the record lending and borrowing that led to the credit crisis, lenders said, as figures show remortgaging dropped to its lowest proportion of total lending in more than a decade. Remortgaging accounted for only a quarter of home loans in August, the lowest proportion in more than a decade, according to the figures published by the Council of Mortgage Lenders. Just 25,000 loans were approved for house purchase in August, down 13 per cent on the previous month and 19 per cent lower than a year earlier. Banks have tightened their lending criteria in recent months amid fears that higher unemployment will result in home owners defaulting on their loans.

Posted by quiet guy @ 12:44 PM 1 Comments

The jobless recovery

Bloomberg: U.K. Jobless Benefit Claims Rise by the Most in Eight Months

U.K. unemployment claims climbed for a second month in September with the biggest increase in eight months, a sign the economy is losing momentum. Jobless benefit claims rose by 5,300 from the previous month to 1.473 million, the Office for National Statistics said today in London. That exceeded the median forecast of 23 economists for an increase of 4,500. Overall unemployment in the quarter through August fell by 20,000 to 2.45 million, led by 16 to 17 year-old people.

Posted by debtfree @ 11:47 AM 3 Comments

No doubt this is the next inflation blip due by BOE

Yaho0: Strikes to shut half of France's oil refineries

This will no doubt effect the price of food from europe and road haulage costs, thus will be used as an excuse for next months inflation blip

Posted by mark @ 10:37 AM 0 Comments

BBC shows its political bias once again...

BBC: Spending cuts 'risk 1m UK jobs'

Doomed, you're all doomed! See, this would never have happened if you'd kept that nice man Brown in charge.

Posted by sibley's b'stard child @ 09:47 AM 34 Comments

In praise of QE

The Guardian: Why printing money makes sense

To better understand this demand problem, suppose that we had a super-effective counterfeiter: someone who could make near perfect copies of $50 or $100 bills. Suppose this person printed up $2tn of counterfeit money and began to spend it on all sorts of items. Our counterfeiter buys up houses and cars. They pay for incredibly lavish parties and trips. They hire all sorts of servants, groundskeepers and investment advisers. What would be the effect of this counterfeiting scam on the economy? In the current situation, it would provide an enormous boost to GDP and create millions of jobs.

Posted by devo @ 06:56 AM 46 Comments

Home owners face higher interest rates within three months says guru Marc Faber

ArabianMoney: Marc Faber sees interest rates going up within three months

One of the wisest and most trusted investment advisors in the world, Dr Marc Faber says that interest rates will be going up within three months after the bond market passes ‘an important inflection point’. This is exactly the opposite of what the US Federal Reserve is promising, and is bound to turn global financial markets upside down. House prices will fall sharply and bank balance sheets will be once again seriously impaired.

Posted by david smith @ 06:03 AM 1 Comments

Nationwide confirm that the country has no confidence.

BBC: UK consumer confidence 'in sharp fall'

No Sh1t Sherlock!

Posted by markj69 str05 @ 12:11 AM 3 Comments

Tuesday, October 12, 2010

The big banks are getting tangled up in their own web

Where's the Note?: Demand to see your mortgage note

The Wall Street banks’ foreclosure system is a mess. Their total disregard for mortgage laws and standards is what created the foreclosure epidemic in the first place. Now, their total mismanagement is catching up to them. As of today, some of the largest mortgage lenders – JPMorgan Chase, Bank of America, and GMAC (now called Ally) – have been forced to halt foreclosures in 23 states and growing. We can’t rely on Wall Street banks to follow basic rules. We have to hold them accountable Whether you are facing foreclosure, have an underwater mortgage, or are just a concerned homeowner, it’s important that you contact your bank and demand to see the original note on your mortgage.

Posted by devo @ 10:20 PM 5 Comments

Hose Who Forget History Are Doomed to Repeat It

Martinarmstrong.org: The Athenian Real Estate Panic & Banking Crisis

A brief history of previous real estate collapses and banking failures... not more than once either. HISTORY REPEATS BECAUSE THE PASSIONS OF MAN NEVER CHANGE.

Posted by debtfree @ 10:03 PM 2 Comments

Beastly bankers aren't lending 125% mortgages, boo hoo

Guardian: Large mortgage deposits are creating a lost generation of homebuyers

Britain is in danger of creating a whole generation of people who will never be able to buy their own homes. This is the conclusion of Professor Steve Wilcox, chair of the Centre for Housing Policy at the University of York, in collaboration with insurance company Genworth Financial. The number of mortgages worth 90% of a property's value has fallen from 245,000 in 2006 to 28,000 in 2009 - a decrease of 89%. Wilcox suggests several solutions, including the return of mortgage indemnity guarantees, paid for by the buyer, which protects the lender should the buyer default. But a major lender recently told me it was not confident insurers had sufficient financial strength, post credit crunch, to pay out claims on MIG if many people are made redundant and default on their mortgages.

Posted by drewster @ 09:56 PM 4 Comments

Have the retail chains run out of sweat shops

Telegraph: Clothing prices rise for first time since 1990s

The price of clothing and footwear have risen for first time since early 1990s, according to official figures, raising the fear that the era of cheap imports from the Far East is over.

Posted by enuii @ 05:45 PM 17 Comments

Tea Party activists are set to take the UK by storm

LVT campaign: (POVER) TEA PARTY to form in the UK

Rebel MPs from the three major political parties have announced they intend to form a new alliance called the (Pover) Tea Party ahead of the next general election. The idea is based on the runaway success of Sarah Palin’s Tea Party in America

Posted by the number cruncher @ 03:37 PM 6 Comments

Benefit scroungers seek free handouts

The Land Value Tax Camping: Chancellor clarifies benefits statement

I think these benefit scroungers need to be forced from sucking on the teat of government handouts. Its disgraceful!

Posted by the number cruncher @ 02:55 PM 3 Comments

Cautious, but on side..

24Dash: Grant Shapps' full speech to the HMI conference

Quite an interesting read - clearly shows the direction of govt policy..

Posted by uncle tom @ 01:17 PM 17 Comments

Unavoidable?

Telegraph: Double-dip recession avoidable despite slowing growth, says BCC

'Every key indicator for the service sector, such as employment expectations and investment, weakened in the last three months, according to the BCC's latest quarterly economic survey. Manufacturing fared better, pointing to some rebalancing of the service-reliant economy, but overall the survey of 5,300 businesses proved "disappointing", the BCC said.'

Posted by hpwatcher @ 01:16 PM 0 Comments

Is the Express Finally Coming On Board?

The Express: GENERATION LOCKED OUT OF HOMEBUYING

Nothing new in this piece, but amazing to see it featured on The Express website. Is the last bastion of 'ever-rising house prices are a good thing' finally beginning to see the light? Of course, the article doesn't actually go on to suggest the bleedingly obvious point that prices need to come down, just stabilise...

Posted by rantnrave @ 11:59 AM 7 Comments

Soon the levels will be less than a 1000 loans a month

Yahoo: Remortgaging drops to decade low record

Just 25,000 loans were approved for house purchase in August, down 13 per cent on the previous month and 19 per cent lower than a year earlier.

Posted by mark @ 11:34 AM 5 Comments

Anyone for a prefab? are they mortgageable?

Manchester evening news: Pretek 'house factory' to create 400 jobs

Wigan-based Pretek Precision Homes makes energy-efficient, sustainable houses and is looking to win contracts with housing associations and private developers. It is already in negotiations to supply homes for at least two developments in Greater Manchester. Pretek's factory in Blackburn will have the capacity to build more than 3,000 new homes a year. The basic structure of the homes, predominantly made of wood, are put together in the factory before being delivered to construction sites where they are assembled and clad with bricks. It hopes to capitalise on new European building regulations aimed at making all new homes sustainable and zero carbon by 2016.

Posted by mark @ 11:16 AM 13 Comments

Welcome to Britain

The sun: Dole Town

A staggering 84 per cent of working age residents in the Central and Falinge area are on benefits. A jobless rate of 120 per cent is probably explained by a combination of benefit fiddling and outdated statistics. The only hint of work is at the handful of kebab shops, a Polish delicatessen, the butchers and three council workers cutting the grass. Three of the area's five pubs are boarded up. Dealers sell wraps of heroin for just £5.

Posted by mark @ 10:32 AM 9 Comments

What a waste of 80million do these leaders have money management skills?

The sun: Virtual realty Council fakes shops

But council leader George Dunning said the virtual shops and homes, part of an £80million regeneration plan

Posted by mark @ 10:30 AM 3 Comments

Falling off a cliff you mean

Yahoo: Britain's property market on 'knife edge' as estate agents warn of house price falls

Britains property market is on a knife edge as estate agents warn house prices to fall further amid a sharp increase in property for sale. A total of 41 per cent more estate agents expect values to fall, compared to 38 per cent the previous month and the lowest level since March last year. Prices are expected to drop following a sharp increase in the numbers of properties being put on the market for sale amid insufficient demand from buyers.

Posted by mark @ 10:19 AM 0 Comments

Just when we thought it was all going our way!

Yahoo Reuters: House prices rise 8.3 percent in August - government

LONDON (Reuters) - House prices rose 8.3 percent on the year in August, down slightly from an annual 8.4 percent gain in July, government data showed on Tuesday. Should we all run away now?

Posted by crash n burn @ 10:14 AM 1 Comments

CPI above the BOE''s 2% target for 10 months in a row

BBC News: UK inflation rate stays at 3.1%

UK Consumer Prices Index (CPI) inflation remained unchanged in September at 3.1%, according to the Office for National Statistics (ONS). It means the rate has been above the Bank of England's 2% target for 10 months in a row. Inflation as measured by the Retail Prices Index (RPI) fell back from 4.7% in August to 4.6% in September. RPI - which factors in a greater chunk of the cost of housing - is important for wage negotiations.

Posted by jack c @ 09:53 AM 10 Comments

"the U.K. needs to move on from its addiction to rising house prices"

Bloomberg: Home Prices Are Love Affair Heading for Rocks: Matthew Lynn

Financial analysts who have been making a living predicting the direction of the U.K. property market haven’t been short of data in recent days. House prices are in freefall, so hop on a train to Heathrow Airport and catch the last plane to Shanghai before the whole country collapses. No, wait a moment, they are rising again. Pile into the FTSE-100 index while you still can..............In reality, Britain needs to turn all its attitudes toward property upside down. Each month, as the data gets published, any rise in house prices should be met with disappointment. And a drop should be welcomed.

Posted by jack c @ 09:47 AM 1 Comments

"homeowners testing the water"

Guardian: Property prices falling as retail sales stagnate, surveys show

Retailers struggled to increase sales in the summer and house prices fell last month as the downturn in the economy discouraged shoppers and homebuyers, surveys revealed today. The British Retail Consortium said the value of sales increased by 0.5% in the year to September, dashing hopes of an upturn in consumer sentiment since the depths of the recession last year. Analysts said the situation was even worse when shops took into account that much of the rise in sales values was accounted for by inflation. The grim picture on the high street is matched today by another study indicating that property prices fell in September.

Posted by jack c @ 09:34 AM 2 Comments

The EAs know they are in trouble

Rics: Sept Housing Market Survey

From the comments section Neil Hunt FRICS, Wilkins Vardy Residential Limited, Chesterfield, Derbyshire "There has been some improvement since August but the triple whammy of government cutbacks, mortgage restrictions and lingering economic recession continue to blight the market."

Posted by wdbeast @ 09:34 AM 2 Comments

“The impending spending review has ‘spooked’ the autumn market.”

Telegraph: Britain's property market on 'knife edge' as estate agents warn of house price falls

Britain’s property market is on a “knife edge” as estate agents warn house prices to fall further amid a sharp increase in property for sale. A total of 41 per cent more estate agents expect values to fall, compared to 38 per cent the previous month and the lowest level since March last year. Prices are expected to drop following a sharp increase in the numbers of properties being put on the market for sale amid insufficient demand from buyers.

Posted by jack c @ 09:27 AM 2 Comments

Land shortage propaganda....

BBC News: House prices heading for a fall, surveyors warn

Land shortage: The availability of land is a key factor in changes to house prices, separate work by researchers at the London School of Economics has found. "The research illustrates how constraints on the supply of land can have major implications for household welfare through their effect on house prices and individual home ownership," said Dr Alex Michaelides, who led the research. The report suggested that relaxing borrowing restraints added to ownership levels, but had little impact on house prices. Meanwhile 60 million people were distracted by sparkly, shiny things on the TV

Posted by powerofnow @ 07:58 AM 7 Comments

Britian will try to keep propping up prices

Telegraph: Britain 'can not afford another housing boom'

'Britain can not afford to allow another housing boom, the housing minister said last night. Grant Shapps said the country was in need of long-term stability in the housing market, and warned that another sharp rise in prices would result in "a lost generation of home buyers". He also attacked the previous Labour government for overseeing a ten-year surge in the cost of homes.' The government have inherited a mess. They have to let the bubble burst to return to a healthy market but fear the electoral consequences.

Posted by quiet guy @ 07:43 AM 5 Comments

It's not a bailout, it's life -support

FT: Blow to bank crisis plans

Regulators are struggling to create a global mechanism that could wind down a big financial institution without the disruption caused by Lehman Brothers’ collapse in 2008. Paul Tucker, deputy governor of the Bank of England, said it was a “mistake” by the US to equate keeping a seized bank open with a bail-out.

Posted by devo @ 07:39 AM 0 Comments

Monday, October 11, 2010

Hewlet Packyourbags

Pcpro.co.uk: Union leaders hit out over HP job cuts

"Trade union Unite has lashed out at HP over the company's plan to lay off a further 1,300 staff in the UK, branding the cuts as “butchery” According to Unite, the latest cuts follow 900 job losses announced in June this year and bring the total number of UK positions axed in the last two years to 4,000."

Posted by doomwatch @ 09:00 PM 1 Comments

You pay taxes? GOOD! Then you help price yourself out of property thanks to BANK BAIL OUTS!

Channel 4 News: Buy to let is back... But there is a backlash against it!

David Steven, a policy analyst, said there were problems in the market. "I think the taxpayer, the government, has a responsibility to look at whether the market is actually functioning in the long-term interests of the country," he said. "It certainly pushed house prices higher in the latter stages of the boom when speculators piled into the market. In the aftermath of the boom it seems to be pushing rental prices up when we need them to be lower." The Housing Minister, Grant Shapps, told Channel 4 News that there was a role for buy-to-let, but the Government recognised the aspirations of young people to buy their own homes. He said the housing benefit changes could have an effect on the buy-to-let market.

Posted by mick rupert @ 08:31 PM 10 Comments

Wishful thinking

Daily Mail: Entire generation of first-time homebuyers could miss first foot on property ladder

Wishful thinking from the Daily Mail who seem to think that market forces wont cause a crash in house prices. The high house prices and lack of mortgages making it impossible for an entire generation to get on the housing ladder. Let me tell you now you 'older generation', your wealth is not locked up in your house any more!

Posted by miken @ 08:25 PM 10 Comments

RICS Ian Perry - "Many areas are reporting a correction rather than dramatic fall"

Citywire: House prices fall further, surveyors say

House prices have continued to fall, weighed down by an increasing supply of homes on the market, a survey of surveyors shows. The proportion of surveyors reporting falling house prices grew for the third month in a row, with 44% reporting a fall in September. Just 6% reported a rise and the remainder said that prices had been static......... Overall, the survey appears to tally with results from the Halifax which last week reported a record 3.6% drop in house prices for September.

Posted by jack c @ 06:37 PM 19 Comments

Same old story

Reuters: Top Shop boss says government wasting money

It doesn't matter what political hue a government is, they're all bl**dy useless when it comes to efficiency as most of them have never lived, let alone worked, in the real world where costs have to be controlled.

Posted by mr g @ 06:11 PM 5 Comments

Thought this inflation was only a temporary blip

Yahoo: Record rubber level pushes Continental to raise tyre prices

German auto parts maker Continental said Monday it would raise the price of tyres by an average of five percent next year owing to a record high in rubber prices. The measure will be applied to replacement summer tyres sold under several brand names by Continental, the biggest European tyre distributor, a statement said.

Posted by mark @ 11:00 AM 50 Comments

Ah diddums!

This Is Money: Gazundering back as house prices tumble

Up to 25% of purchasers are attempting to renegotiate the price downwards at the last minute... Andrew Montlake, of mortgage broker Coreco, said gazundering was rife because of the current market conditions. 'We work very closely with agents and a number of them have reported a rise in the number of cases of gazundering in recent months,' he said. 'Buyers know that they hold all the cards at the moment so the conditions for gazundering are ideal. For sellers, of course, this type of activity causes considerable difficulties and distress.'

Posted by mark wadsworth @ 10:44 AM 10 Comments

Nice euphemism at the end there

Housefund.co.uk: Central London house prices fall for the first time in 18 months.

Andrew Stanford, Head of Cluttons’ Residential professional division comments “Whilst potential applicants continued to register during the third quarter, in reality demand was low, exacerbated by the summer holiday season. Only properties in prime locations or those with a unique selling angle were receiving real interest from potential purchasers. Demand has focused on mid-range property up to the £2.5 million mark. There has been little activity or interest in property above £3 million or for secondary stock which, as a consequence, is likely to remain on agents’ books until a price adjustment is made”.

Posted by mark wadsworth @ 10:38 AM 3 Comments

Why not - the benefit money is better than anywhere else?

Mail: Britain is the jobless capital of Europe - with ONE in EIGHT adults living in house where no one works

''Britain was last night exposed as the jobless capital of Europe, with one in eight adults living in a house where no one is in work. As the Government prepares a clampdown on benefits scroungers, a league table revealed that a greater proportion of people in the UK are in jobless households than in any other European country.'' The days of irresponsible [Labour] government spending are over.

Posted by hpwatcher @ 08:41 AM 23 Comments

Not a penny more...

Mail: They've even taken the #?x!@x lawn! Now house sellers really are stripping their homes bare before handing over the keys

Around one in every five homebuyers arrives at their new place to discover fittings they expected to keep have been ripped out That is exactly what happened when estate agent Paul Finnegan was hired to sell a Victorian-style mansion near Windsor, set in 35 acres of countryside. He had no shortage of would-be buyers. The piece de resistance, in the outskirts of the grounds, was a smart putting green complete with bunkers.

Posted by hpwatcher @ 08:18 AM 17 Comments

Sunday, October 10, 2010

Very different from the Halifax

Acadametrics: Market Activity See September Pick-up

Academetrics reckon that average house prices rose 0.2% in September and a 1% in the last six months. The graph on page 5 headed "Annual Change in Price by Region" is worth a look. It suggests that even in the boom years, the long term annual % gain trend was actually downwards (from a high starting point) since 2003 except for the spike caused by 0.5% IRs. Even this relatively bullish index seems to be suggesting that annual house price inflation will be less than zero some time in 2011.

Posted by quiet guy @ 03:47 PM 6 Comments

Can't sell, must rent out

Yahoo: Rise of the reluctant landlord

"It's a very worrying time for a lot of people," said Trevor Kent, a former president of the Estate Agents' Association. "I believe repossessions are likely to go up quite dramatically in the next six months.

Posted by chrisch @ 03:46 PM 7 Comments

Keen Talks about the monetary reform required

Economic Stability .org: Steve Keen on Monetary Reform and Economic Stability

A bit of Background. Last weekend Steve Keen spoke at the American Monetary Institute (AMI) http://www.monetary.org. The American monetary institute consists of a number of individuals / economists who have been concerned about the banks ability to create money from base, and what it means for society. Michael Hudson speaks but the "main man" is Stephen Zarlenga, who wrote the "The Lost Science of Money". Zarlenga spoke at the House of Lords in 2004 on this issue http://www.monetary.org/houseoflordstalk.pdf. The AMI lobby for the creation of money to rest solely with the state and have drafted a law for this. In this video Keeno explains his disagreement with the general premise, but describes 2 ways to stop bubbles. Some of the talks are on Steve keen's blog

Posted by techieman @ 01:29 PM 22 Comments

Exactly

The Telegraph: Spending cuts: UK plc waits for the axe to fall

Although the cuts are to public spending, the indirect impact on the private sector is likely to be even more polarising than first thought. Cutting jobs and putting less money into the economy as a whole will harm consumer spending, one of the key drivers of the British economy. What will replace it?

Posted by devo @ 12:27 PM 35 Comments

Uk outcome surely similar

Irelands biggest property site: Ireland land values fall 75%

the astonishing tulips from amsterdam uk housing market is almost certain to experience a pop of unimaginagle magnitude. Personally this could have a terrible effect on uk banks.I feel this pop will result in really nasty social unrest. Everything seems so wrong from bailed out banks paying huge bonuses,no prosecutions for the bankers and seemingly no regulation...all this whilst prosecuting the 'ants' for just about everything.If they hadn't bailed out the economy goodness know what would have happened..trouble is-it was just putting off the inevitable.

Posted by taffee @ 11:28 AM 4 Comments

US suspends foreclosures as realty titles turn toxic

ArabianMoney: Toxic real estate titles threaten second US banking crisis

The US subprime mortgage crisis resulted from a great many loans being granted to people who could not ultimately pay them back. But it also apparently created a rush to handle documentation that is leaving banks without the title of the property against these loans.If banks cannot repossess property, because their rights to title are not solid, then they will have to write off the full value of this loan. The potential losses are incalcuable, and more than enough to create a second US banking crisis.

Posted by arabianmoney @ 06:43 AM 0 Comments

Which seems more likely?

Guardian: This can't go on: house prices must drop or wages must rise.

Jeremy Grantham, veteran fund manager, warns that he has only ever seen two bubbles that have failed to deflate. How much longer can the UK property market remain one of them?

Posted by little professor @ 12:53 AM 16 Comments

Saturday, October 9, 2010

A useful cut-out-and-keep guide to Vested Interests

The Telegraph: What next for house prices?

Just when many families were digesting the news that they were to lose child benefit, have to work longer and pay more into their pensions, they were delivered the bombshell that house prices fell by a record amount. So what next? Is this the start of a sustained fall in house prices? Here's what the housing experts have to say.

Posted by devo @ 10:55 PM 3 Comments

Survey says! (Read the comments below article)

MSN: House prices 'to fall by 10%'

One in three Brits expects house prices to fall by as much as 10% in the next year, knocking £16,000 off the price of the average UK home.

Posted by estrader @ 10:07 PM 7 Comments

Clear explanation of where we're up to

The Telegraph: The gloves are off, QE is now seen as an aggressive depreciation tool

The White House is now fully aware it's in trouble. So more "quantitative easing", or QE, is now a done deal. In other words, equities are set to receive yet another state-sponsored "sugar rush". That's the main reason stock markets just rallied. Traders are anticipating an upcoming QE-boost for equities, as an increasingly desperate Obama takes steps to rescue his own depressed political share price. The Chancellor, George Osborne, has just given the green light to more UK money-printing as well. The Bank of England has already pumped £200bn of QE "funny money" into the economy.

Posted by devo @ 09:58 PM 4 Comments

Osborne to support BoE on further QE

FT: Chancellor backs Bank of England action

George Osborne has given the green light to the Bank of England to pump more money into the economy ... Ministers hope the first line of defence against a second recession will be higher private investment and exports ... If this does not work, however, the chancellor wants to open the way for the central bank to maintain demand with more quantitative easing. Asked whether he would back a second round of quantitative easing, known as QE2, he said he would want to follow the practice of Alistair Darling, the former chancellor who always gave a green light for the MPC to act. “If the MPC ask – I have said I regard the MPC as independent – if it makes a judgment, I would want to follow that judgment and continue with the procedures of my predecessor in dealing with those requests.”

Posted by wanderinman @ 04:56 PM 17 Comments

Puppet

The Telegraph: George Osborne warns banks of new taxes

Politicians are wary of looming public anger over bonuses, with pay-outs in the City expected to reach £7bn this year, according to the Centre for Economics and Business Research, at the same time as workers face pay freezes and benefits are axed. In addition, small businesses are still struggling to secure loans from the banks – a situation that threatens the recovery. Mr Osborne added in threatening tones: "Banks would do well to pay close attention to what I said [at the Tory conference]. We are very clear that they have to get credit flowing to small and mid-sized businesses." Should the Bank of England decide to restart its £200bn quantitative easing programme to offset any slowdown in growth, he indicated he would be supportive.

Posted by devo @ 01:01 PM 8 Comments

Soros and Rogers down on real estate outlook

ArabianMoney: George Soros and Jim Rogers warn on financial markets

Two old hedge fund partners who have long since gone their separate ways as billionaire investors, the legendary George Soros and Jim Rogers are buying commodities because they reckon stocks, bonds and real estate are not the place to be invested in current markets.

Posted by dubaijournalist @ 12:50 PM 0 Comments

A honest Mortgage broker spills the beans

The Real News Network: The Broker Who Warned of the Crisis and Was Ignored

Interview exposing what went on in the American mortgage market from a real honest broker

Posted by the number cruncher @ 12:10 PM 3 Comments

This can't be healthy

Bloomberg: Treasuries rally for a fourth week on prospects for debt purchases by Fed

Looks like the markets are becoming addicted to QE. Does this bode well for the future?? More M&A (funded by the cheap central bank cash) = more job cuts = more QE = More M&A (funded by the cheap central bank cash) = more job cuts = more QE etc. etc. etc. Expect this to be copied around the world, as all countries truly do race for the bottom. Anyone see a way out of this death spiral? The central banks are shafted, they have fallen victim of the largest scam in financial history and are now forced to keep bailing out their masters in Wall Street/ the City/ Frankfurt/ Hong Kong etc. etc. Those 'TOO BIG TO FAIL' monsters that have just got bigger. I notice the talk of 'MORAL HAZARD' has disappeared.

Posted by bystander @ 11:24 AM 2 Comments

Could this be the next thing in the UK?

CNN: Foreclosure freeze batters market

The home-owner (mortgage borrower if you prefer - I do) vote is critical to both the major parties. The government is making itself rather unpopular now and this might be a way to help hard working families who owe tax payer owned banks rather more than their house is actually worth.

Posted by chrisch @ 09:47 AM 4 Comments

Bleak House

Daily Mail: Grainger sounds alarm on housing market as economy looks bleak

The outlook for the housing market and UK economy looks bleak, according to Britain’s largest stockmarket-listed landlord. ‘We remain realistic in our view that the near term outlook for the UK housing market and the wider economy will continue to be challenging,’ said Grainger, the owner of tens of thousands of homes. The stark warning rounded off a grim weak for the ailing property market.

Posted by dill @ 08:56 AM 6 Comments

Too funny!

The Telegraph: US job losses drive markets higher

The 95,000 jobs shed in September were almost 20 times Wall Street's expectations of just 5,000 losses.

Posted by devo @ 12:40 AM 6 Comments

Friday, October 8, 2010

Cut our credit rating if you dare!

The Telegraph: Spending cuts could be scaled back, minister Chris Huhne says

Public sector cuts could be scaled back if the economy starts to decline, a senior Cabinet minister has said.

Posted by devo @ 11:57 PM 12 Comments

No more repossessions

The New York Times: Bank of America Halts All Foreclosure Sales

Bank of America, the country’s largest bank, said on Friday that it was halting all foreclosure proceedings and sales of foreclosed homes indefinitely.

Posted by devo @ 09:46 PM 35 Comments

The banking system is collapsing

The Guardian: European bonus rules 'will prompt exodus of banks'

Under the proposals, bankers would only receive 20% of their bonuses in cash with the remainder paid in shares or some other financial instrument and deferred for between three and five years. Jon Terry, reward partner at PricewaterhouseCoopers, said the CEBS proposals would give Europe "among the most stringent" pay rules in the world and would force banks to quit the City and other financial centres.

Posted by devo @ 09:42 PM 9 Comments

North East property price plunge

Newcastle upon Tyne Journal: Darras Hall affected by property price plunge

The impact of the economic downturn on North East property prices is revealed today, with homes in some of the regions most desirable postcodes plunging by up to 45%, while those elsewhere have held their value. An investigation by The Journal has revealed how some householders have been forced to reduce their asking prices to more realistic levels. One of the most affected areas identified by estate agents is the exclusive Darras Hall estate in Ponteland, Northumberland, where many have seen hundreds of thousands of pounds taken off the value they put on their homes.

Posted by jack c @ 02:07 PM 12 Comments

Inflation what inflation

Pragmatic Capitalist: Inflation what inflation

The Fed hasn't managed to create inflation only some higher level of expected inflation. "But we’ve seen this movie before. Inflation expectations will rise briefly before the economic reality hits the market in the face and expectations come back to earth. "

Posted by bellwether @ 12:59 PM 7 Comments

Rightmove -3.4% last 3 months

Ramping the bear market

Blog: Advice On How To Sell Your House

With all the house prices becoming more affordable stories, I thought it was time to turn the tables on the VIs

Posted by neil @ 11:21 AM 0 Comments

Ever wondered where our bailout money vanished to or financed?

Bloomberg: Leonard Green, M Resort Founders Said to Join in Las Vegas Property Bid

The resort is set to be sold for a fraction of its cost, said one of the people. It was designed and built by CEO Anthony Marnell III and his father, construction magnate Tony Marnell II, for $1 billion, and opened amid 2009’s record gambling slump in Las Vegas. The M owes about $700 million to HBOS Plc, formerly the Bank of Scotland, now part of London-based Lloyds.

Posted by mark @ 10:53 AM 2 Comments

High house prices & unaffordable debt are a good thing yes?

Las vegas sun: Schools serving large numbers of homeless youth

The number of homeless Clark County School District students rose to 3,206 in September, up more than 15 percent from the same month a year ago, according to the latest figures. That’s 426 more homeless children, or equal to 14 classrooms of students.

Posted by mark @ 10:44 AM 5 Comments

Fair summary

Daily Mash: THING YOU PAY THE BANK TO LET KEEP YOUR STUFF IN IS WORTH £6000 LESS

"THE thing you keep your stuff in that's owned by the bank and that no-one wants to buy anyway is worth £6000 less than it used to be, according to new research.The Halifax monthly thing price survey found that if there was even the slightest possibility of anyone wanting to buy the place where your stuff is you would just end up owing the Halifax even more money. A spokesman said: "This is the biggest thing price fall since there were records. So, that's maybe 1984? When did Brothers in Arms come out? Anyway, what it means for the likes of you is that for the time being you should probably just keep living there, giving us our FUCKING MONEY every month and making yourself feel better by putting up a new coat hook as part of your elaborate pretence at ownership."

Posted by mark wadsworth @ 10:35 AM 9 Comments

One for smuggy

Yahoo: A year on, the smug mood at the IMF turns sour

The atmosphere is in marked contrast to that of the same event a year ago, when finance ministers and central bank governors were in self-congratulatory mood. Decisive and concerted policy action appeared to have averted a depression. With the immediate crisis apparently over, all the talk was of when and how to end the extraordinary stimulus measures that had been put in place. A new golden age of global co-operation was declared: in adversity, nations had come together to solve their problems.

Posted by mark @ 10:33 AM 10 Comments

How the tabloids spin a 3.6% (£6,000) fall in house prices

Daily Express: HOMEOWNERS' MIXED JOY AS HOUSE SALES RISE 11%

HOMEOWNERS got a shot in the arm last night as new figures revealed house prices had climbed seven per cent in the past year. With the number of sales also up by more than 11% in the past 12 months, one leading estate agent called the news “welcome”. But as the Halifax recorded the biggest monthly price fall in September – 3.6% – in nearly 30 years, there were also warnings that the market had dramatically slowed in recent months and could start to fall again. The mixed picture began with figures from LSL, owner of the Your Move and Reeds Rains chains, reporting year-on-year price growth of 7%. The number of transactions in September also increased by 3.4% in the month, up 11.5% against last September. "There has been a welcome increase in activity this year.”

Posted by drewster @ 09:21 AM 42 Comments

Mock Georgian mockney

Guardian: BJ outlines new house plan for Olympics

At least some good comes of the games?

Posted by chrisch @ 09:17 AM 5 Comments

We'll be okay for a while then crash

City AM: Time to nip the next bubble in the bud

A really interesting take on things from Allister. Another property bubble in the wings and a doomsday scenario in the longer term. Well worth a read.

Posted by chrisch @ 09:08 AM 3 Comments

... and so it begins (again)

Guardian: * Business * Housing market Housing market crash feared after average house prices take record plunge

Still a lot of t*rd polishing going on in the article though.

Posted by voiceofreason @ 08:39 AM 2 Comments

UK House Prices Crash

The Market Oracle: UK House Prices Crash, Record 3.6% Monthly Drop

UK house prices crashed in September, falling by a record -3.6% to an average of £162,096 (SA) according to the Halifax, which annualises to an eye watering -43%. The slump beats the preceding record monthly drop of -2.8% in December 2008 when house prices were in free fall, therefore fears are prevalent of a similar downtrend now unfolding as the Labour election bounce has fast evaporated following the May 2010 General Election.

Posted by nadeem walayat @ 07:42 AM 0 Comments

Depression call goes mainstream

The Telegraph: IMF chief Dominique Strauss-Kahn warns global economic co-operation is falling apart

Currency wars, trade barriers and other protectionist policies are rising to the top of domestic political agendas as governments across the world struggle to resurrect economic growth. His concerns were echoed by Robert Zoellick, President of the World Bank, who warned that failure to co-operate would risk plunging the world economy into depression. He said: "If one let's this slide into protectionism, we run the risk of the mistakes of the 1930s."

Posted by devo @ 12:09 AM 3 Comments

Thursday, October 7, 2010

New research shows tentative recovery in vulnerable sectors

Insolvency News: Public sector cuts could trigger insolvencies

Public sector cuts could have “severe knock-on effects” on the level of UK corporate insolvencies, according to research by PricewaterhouseCoopers (PwC).

Posted by novice pete @ 08:57 PM 27 Comments

John Laing in administration

Insolvency News: Construction industry feels pain

John Laing Partnership has confirmed it and a number of other companies within the John Laing Group have gone into administration.

Posted by novice pete @ 08:54 PM 1 Comments

Coastal towns face new wave of personal insolvencies

Insolvency News: Seaside towns stricken by bankruptcies

Britain’s coastal towns have the highest level of personal bankruptcies, new figures have revealed. A decline in fishing, shipbuilding and seaside tourism in the UK have taken their toll, creating a whole new wave of residents in seaside towns being declared bankrupt in 2009. Hull tops the table, with 51 new cases per 10,000 adults – more than twice that of London’s 20 per 10,000, according to the research by accountancy group Wilkins Kennedy.

Posted by novice pete @ 08:52 PM 4 Comments

Forced sales to start very very soon - the crash is on big time

Independent: Spot checks on IO loans

I am reminded of the film "Jaws" when the boat captain starts singing "goodbye to you fair Spanish ladies" on the site of the shark cage......

Posted by chrisch @ 05:27 PM 15 Comments

House prices fall off a cliff

Thisismoney.co.uk: Finally, a wake up call - shock 3.6% house price fall

"Despite the crash of 2008, house prices remain overvalued. In fact, they became more overvalued last year." "I have argued on this website - as have some others - that house prices remain dangerously overvalued, even after the crash of 2008. Last year was good for property because low rates held up the market by making mortgages more affordable. I thought that trend (with repayments at levels of affordability last seen in 2003) would roll into 2010 and keep the market temporarily suspended. I was wrong. September's shock fall of 3.6% suggests the factors we have been talking about are sinking in already: Not only are house prices overvalued against wages but the prospects for wage rises look bleak given the UK's woeful economic prospects."

Posted by doomwatch @ 04:07 PM 20 Comments

....by a record 3.6pc

HMG Torygraph: UK house prices fall

Mainstream review....worth reading for the hand wringing comments. More is needed for a real trend, i'd say.

Posted by braindeed @ 03:23 PM 3 Comments

Gold up good. Property up bad.

Big Picture: Gold at $1350 now what

Decent piece on valuing gold. Going back a century gold is selling close to peak even in inflation adjusted terms, although that discounts the very brief peak and crash in the late 70's. If this happens again getting out before the crash will be difficult. Impossible if you are holding the oft touted physical.

Posted by bellwether @ 02:53 PM 27 Comments

Are we near a major market top?

Index Universe: Ringing The Bell

An old Wall Street proverb says that “no one rings a bell at the top”... or at the bottom, for that matter. But if calling turning points is impossible, that doesn’t mean one should ignore possible warning signs that a trend change may be near. Mexico's launch of a 100-year bond this week maybe the ultimate sell signal.

Posted by paul amery @ 02:51 PM 0 Comments

Read the full article

Reuters: Factory rises at fastest annual pace since 1994

"Output in the publishing, textiles and machinery sectors fell." The comment about the textile sector is definately correct. From personal experience, it is always one of the first sectors to go into recession and one of the first sectors to come out of recession. Double dip anyone?

Posted by mr g @ 02:13 PM 8 Comments

Ah yes, it's the "summer lull" that's depressing house prices!

City AM: Central London homes hit as summer lull takes a toll

OK, this article is from yesterday, but "summer lull" is a new one on me. PS, as I said elsewhere, if you look at Halifax all houses non-seasonally adjuted figure, the September 2010 average house price is exactly where it was in September 2004, i.e. six years ago. Sweet.

Posted by mark wadsworth @ 01:41 PM 0 Comments

UK house prices drop 3.6% as the big slump starts

ArabianMoney: UK house prices slump 3.6% the fastest rate since 1983

The 3.6 per cent monthly fall in UK house prices last month is the biggest fall since records began in 1983 and is worse than anything seen in the past housing crash of the early 1990s. The prospect now is for multi-year declines until the market returns to long-term average income multiples and some confidence comes back.

Posted by arabianmoney @ 01:14 PM 2 Comments

Canary in a coal mine

Washington Post: Loan chaos may pose wider peril

For big banks, "there's a possible nightmare scenario here that no foreclosure is valid," said Nancy Bush, a banking analyst from NAB Research. If millions of foreclosures past and present were invalidated because of the way the hurried securitization process muddied the chain of ownership, banks could face lawsuits from homeowners and from investors who bought stakes in the mortgage securities - an expensive and potentially crippling proposition.

Posted by debtfree @ 12:26 PM 3 Comments

Wake me up when IRs rise...

BBC: UK interest rates on hold at record low of 0.5%

Wholly unexpected. Thank you IMF for the profound impact your incisive reports have.

Posted by sibley's b'stard child @ 12:26 PM 3 Comments

It's a Monster!

Channel 4 News: 'Monster' one-month fall in house prices

In case anyone on this site missed it, house prices went down last month.

Posted by cyril @ 12:14 PM 4 Comments

One for Gen. Congreve et al

The Telegraph: Super-rich buy gold by the ton

"Billionaire financier George Soros, echoing comments from investment guru Warren Buffett, last month described gold as the "ultimate bubble" because it is costly to dig up and has no real value except its market price". This article is of no consequence to me as i'm cash-poor and asset-poor but thought it might spark a little 'frisson' amongst the goldbugs here.

Posted by sibley's b'stard child @ 11:24 AM 42 Comments

Great comments

This is mony: House prices crash 3.6% in record month

'Rather than crash, we expect house prices to trend down relatively gradually over the final months of 2010 and in 2011 to lose around 10% in value.' Yeh yeh take off the rose tinted glasses

Posted by mark @ 11:03 AM 4 Comments

Wow news is spreading fast

Word is getting around now

Word is spreading

Guardian: House prices fall record 3.6%

check out some of the comments

Posted by mark @ 10:25 AM 3 Comments

House prices down £6,000 for September

Telegraph: UK house prices fall by record 3.6pc

The group said an increase in the number of properties on the market, combined with a drop in demand fuelled by uncertainty over the economy, forced prices down 3.6pc - the biggest monthly fall since figures were first compiled in 1983.

Posted by hpwatcher @ 09:01 AM 76 Comments

Biggest fall in house prices since records began

BBC News: UK house prices fell 3.6% in September, Halifax says

The 3.6% drop was the biggest fall in month-on-month prices since the figures were first compiled in 1983.

Posted by doomwatch @ 08:57 AM 9 Comments

You urn if you want - I wasn't being honest - Dave

FT: Move to delay spending cuts

"The Treasury is working on plans to “reprofile” spending cuts next April, spreading the pain of deficit reduction more evenly over the next few years, senior Whitehall officials have told the Financial Times. Confronted with the difficulties of quickly cutting spending – including financial penalties for breaking contracts and redundancy costs – ministers have been forced to consider delaying some of the big savings until later in this parliament." All those job losses will force house prices down and the economy will go with it. We must delay the next bank collapse until the banks can afford it, says me.

Posted by chrisch @ 08:23 AM 5 Comments

We need more confidence

Bloomberg: BOE May Step Away From Stimulus Exit as U.K. Economy Stumbles

Bank of England Governor Mervyn King is getting pushed back toward the printing presses as central banks in the U.S. and Japan turn their focus on more bond purchases to defend the global recovery.

Posted by estrader @ 08:22 AM 1 Comments

-3.6% MoM +2.6% MoM

Halifax: Halifax September Index

errrr. House Price Crash!

Posted by phdinbubbles @ 08:12 AM 48 Comments

From GREED to FEAR, More guff from a con-man.

Ft.com: Fear undermines America’s recovery

The instinctive reaction of businessmen and householders to uncertainty is to disengage from those activities that require confident predictions of how the future will unfold.

Posted by estrader @ 07:52 AM 1 Comments

Buyers need a mortgage just to get a deposit

Telegraph: Home buyers need 40pc higher deposit

The struggle to get a mortgage became even harder last month as figures showed buyers needing a 40pc higher deposit than four years ago. The average deposit reached 43pc in September, up from 30pc in December 2006. It is a fresh blow to first-time buyers as it equates to £70,000, based on average house prices. This is almost three times the average salary and £20,000 more than the deposit required four years ago.

Posted by drewster @ 12:36 AM 3 Comments

Wednesday, October 6, 2010

2011 world growth forecast slashed from 4.3% to ...wait for it.....4.2%

BBC NEWS: GDP growth in 2011 to be slower than thought, says IMF

2011 Developing world growth forecast PLUS 6.4% 2011 Developed world growth forecast PLUS 2.2%

Posted by flashman @ 02:30 PM 16 Comments

Oh dear...

Guardian: IMF predicts HPC

Its official. Not only is the crash on but the IMF agree with us.

Posted by chrisch @ 02:13 PM 7 Comments

Mervyns next excuse and one off event for high inflation

Bbc: 'One year' to clean toxic spill in Hungary

No doubt this will be used as an excuse for high food prices

Posted by mark @ 01:46 PM 3 Comments

Supply and demand

This Is Somerset: Housing crisis looming as plans for thousands of affordable homes scrapped

Thousands of affordable homes planned for the West will not now be built, sparking a housing crisis across the region. That was the warning from housing associations last night, frustrated that the scrapping of Government targets for new homes has hit the building of affordable housing for the poorest in society the hardest. It comes as new figures reveal 1,300 planned new homes have been axed every day since the general election in May.

Posted by debtfree @ 12:51 PM 12 Comments

Why some housing bubbles remain

FT fm: Why some housing bubbles remain

Basically, UK hp have remained high because mortgagees have caked it due to the lowering of interest rates. In the US, mortgages are normally fixed rate, and after Lehman there was a big tightening in lending standards, no one could re-mortgage and so prices collapsed. In Australia, prices are now higher due to government incentives, and in Spain, despite massive overbuilding, prices have not collapsed, but volumes have. This article is on the back of the FT fm supplement in this Monday's FT.

Posted by peter rocker @ 11:31 AM 0 Comments

There's never been a better time to invest in bricks 'n' mortar

The Telegraph: Buy-to-let: 10 tips from the experts

This is where the smart money is. Mark my words, this time next year we'll be (insert pun here)...

Posted by sibley's b'stard child @ 10:55 AM 10 Comments

Warning against governments using exchange rates as a weapon

Guardian: Currency war a risk to recovery, warns IMF chief

Dominique Strass-Kahn said governments are risking a currency war if they use exchange rates to solve their own problems. He told the Financial Times: "There is clearly the idea beginning to circulate that currencies can be used as a policy weapon." He added: "Translated into action, such an idea would represent a very serious risk to the global recovery ... Any such approach would have a negative and very damaging longer-run impact."

Posted by mark @ 10:49 AM 1 Comments

Could This Be the "Debt -o-nator" (pardon the pun)

Bloomberg: Anglo Irish Default Swaps May Be Triggered on `Burden Sharing'

If this happens what will happen to the banking system, and more so how will it affect the housing market.........Ideas anyone?

Posted by mr cobblepot @ 09:54 AM 0 Comments

What the!?, Mervyn King says

Struggling for competitive advantage?

Independent: G7 ministers set to meet over 'international currency war'

"Finance ministers from the G7 will hold an informal meeting in Washington this week to discuss growing concerns that the world is in the grip of an "international currency war" as government's manipulate their currencies to bolster exports"

Posted by alan @ 08:07 AM 0 Comments

JD at his best

Jonathandaviswm.com: Will house prices continue to fall ?

Northern Ireland EA given a lashing of facts.

Posted by doomwatch @ 12:07 AM 20 Comments

Tuesday, October 5, 2010

At a time when Mr Osborne is trying to slash £11bn from the welfare budget.

Morning Star: Storm brews as fat cats bag £7bn

Shameless bankers have provoked fury by lining their pockets with £7 billion bonuses this year despite the dismal economic outlook. Latest figures from think tank the Centre for Economics and Business Research (CEBR) confirmed on Tuesday that the recession is over for the bankers responsible for causing it.

Posted by devo @ 10:30 PM 7 Comments

Give up now and accept defeat....

BBC News: Japan cuts IR below current 0.1%

Yes after 20 years of QE Japan continues to suffer deflation. Gideon take note - we are headed down big time. Telegraph readers are advised to ask for their quid back on the chip wrapper they think is a newspaper.....

Posted by chrisch @ 10:19 PM 4 Comments

Warren a bankster- basher ? He's up to something

The Telegraph: Warren Buffett says in future Wall Street chiefs should go broke - and their wives

Chief executives of banks who need government assistance should "go broke", said Mr Buffett. Their wives "should go broke, too", he added. The prospect of another round of bank bonuses is likely to inflame public opinion in the US, where the broader economic recovery is flagging.

Posted by devo @ 10:04 PM 6 Comments

4m homeowners would have been refused mortgages if FSA rules had been in place

The Daily Telegraph: FSA reforms would have meant 4m fewer mortgages, lenders claim

And as the comments uniformly point out, if the FSA had had these rules in place house prices would be lower and the housing market wouldn't be in the mess it is in now.

Posted by monty032 @ 08:26 PM 3 Comments

Room for Optimisim

Independent: No room for optimism after tiny house price increase

Usual pish. Dunno why I bother with the independent

Posted by laurag @ 05:31 PM 0 Comments

Oh Dear

Telegraph: Banks' $4 trillion debts are 'Achilles’ heel of the economic recovery', warns IMF

Lenders across Europe and the US are facing a $4 trillion refinancing hurdle in the coming 24 months and many still need to recapitalise, the Washington-based organisation said in its Global Financial Stability Report. Governments will have to inject fresh equity into banks – particularly in Spain, Germany and the US – as well as prop up their funding structures by extending emergency support. Although banks have recognised all but $550bn of the $2.2 trillion of bad debts the IMF estimates needed to be written off between 2007 and 2010, they are still facing a looming funding shock that will need state support

Posted by cat and canary @ 04:59 PM 11 Comments

From the horse's mouth?

Mortgage Solutions: Wholesale markets “will need a decade to recover”

The wholesale markets will not fully recover for up to ten years after the recession, Lloyds Banking Group’s (LBG) chief economist has warned. Trevor Williams, chief economist of wholesale markets for LBG, told delegates today at CCR-i in London, the consumer and commercial credit industry conference, that it will take three years for the economy to recover from what has been a harsh recession. He said that the effects of the recession will continue to be felt for some time with its slow and protracted recovery owing to its association with financial shocks and added: "The appetite for debt will be nothing like it has been for the next ten years or so.

Posted by overnightwill @ 04:56 PM 0 Comments

It's not my bag baby

Fierce Finance: Citigroup sued for faulty foreclosures, MERS a big issue

The latest news is that a group of homeowners in Kentucky have sued Citigroup, charging that under the umbrella of its relationship with MERS, it is foreclosing on homes even though it does not hold the title to those homes. Oh dear, so the securitized debt on mortgages aren't backed by anything ? Whoops !

Posted by debtfree @ 04:31 PM 1 Comments

Other bubbles

Telegraph: Death of coporate bonds?

Bill Mott, of PSigma Income said: "If fears of deflation prove unfounded or lead to an inappropriate policy response from central banks, then we could currently be in a 'bond bubble' and the flows into bonds and bond funds since 2009 could be a repeat of the money that poured into technology, media and telecoms stocks at the height of the 'dotcom bubble' in 2000."

Posted by hpwatcher @ 02:06 PM 17 Comments

Property rally will be with us by 2012

Citywire: Property rally will be with us by 2012

‘The longer term outlook implies a more upbeat economic picture. This adds further substance to our prediction of significant house price growth by 2012, with pricing gravitating towards the long-term average rate of growth,’ property consultancy Jones Lang LaSalle said in its latest report.

Posted by khards @ 02:03 PM 40 Comments

Recession? What recession?

Citywire: Buxton, Lyttleton and Frost reject double dip fears

As per Jack's suggestion, here's a decidedly bullish piece.

Posted by sibley's b'stard child @ 12:54 PM 3 Comments

Somebody anecdote and conversation with estate agent

Yahoo Answer: House prices falling, rents falling

a/ Estate Agent A: a year ago house prices were falling but vendors were unwilling to offer houses at lower prices. b/ estate agent B: there is a problem at the moment. Estate agents are going out of business because there are so few buyers or sales, those agencies with rentals businesses are surviving by cutting costs. T

Posted by easybetman @ 11:48 AM 4 Comments

"Confidence amongst homeowners about the outlook for the property market has fallen sharply"

FTAdviser.com: Confidence in housing market falls

Zoopla's annual housing market sentiment survey shows that only 63 per cent of homeowners now expect property prices to rise over the next six months, compared to 78 per cent of homeowners three months ago. According to the survey of 6,149 homeowners, the average growth predicted for house prices in the next six months has also dropped to only three per cent from 5.5 per cent three months ago. The number of respondents who expect property prices to fall over the coming six months is also up sharply to one in four from one in 10 three months ago. The Zoopla.co.uk survey results also reaffirmed that homeowners in the UK view their home as their castle.

Posted by jack c @ 10:45 AM 15 Comments

French Rogue Trader gets 5 years

Reuters: French court sentences Kerviel to 5 years in prison

Former SocGen "rogue" trader Jerome Kerviel has been given a 5 year sentence and ordered to reimburse the French bank 4.9 billion euros for "unauthorised" trades which brought Socgen to the brink of collapse in 2008. Would that be cash or would a cheque do?

Posted by davidg @ 10:40 AM 0 Comments

Sarah Beeny distances herself from property ramping

Metro: Sarah Beeny: I've been blamed for the current housing crisis

A bit of light comedic relief from the Metro this morning.

Posted by sibley's b'stard child @ 09:32 AM 4 Comments

Brick Walls

Guardian: Housebuilding recovery starts to crumble

The gloomy outlook for the construction industry was reinforced today by figures showing that housebuilding activity slumped for the first time in more than a year. Orders for building firms fell in September for the fourth straight month as the recovery in demand which has seen a brief recovery in the industry's fortunes went into reverse. Firms laid off staff and cut rates for subcontractors to cope with a lack of demand, according to the Markit/CIPS purchasing managers' index (PMI) survey.

Posted by dill @ 08:21 AM 3 Comments

By 2011 banks will have to borrow £25 billion ($39bn) a month

Huffington Post: The Broken Global Banking System

Let's be honest: the banking system is now fully dysfunctional. It has failed in its primary purpose: to act as a machine for lending into the real economy. Instead the banking system has been turned on its head, and become a borrowing machine.

Posted by devo @ 06:46 AM 33 Comments

I predict the banking system will collapse next year.

The Telegraph: No new bail-out for UK banks, says Chancellor George Osborne

In a report titled 'Where did our money go?', the NEF said Britain's major banks "may well be asking for another hand-out from the public purse in 2011"

Posted by devo @ 06:39 AM 3 Comments

CML Fail

Guardian: Mortgage reform would have squeezed out 4m borrowers, say lenders

"More than four million Britons would have been denied mortgages in the run-up to the financial crisis if the Financial Services Authority's proposals to toughen up the lending industry had been in place, mortgage lenders claim today. In a detailed assessment of the impact of the City regulator's plans to clamp down on interest-only mortgages and other potentially risky loans, the Council of Mortgage Lenders (CML) asserts that more than half of all the 8m home loans approved between the second quarter of 2005 and the first quarter of 2009 would have been rejected." Deliberately missing the point that easy credit fuelled a bubble that still has to be burst.

Posted by quiet guy @ 06:22 AM 11 Comments

Meet the new boss, same as the old boss, won't get fooled again

Telegraph: 'Red Ed' Miliband lives in £1.6m house after shrewd property moves

Ed Miliband has made a series of shrewd moves in the housing market, which have made him more than £100,000 in profit and taken him to a £1.6million house in a leafy area of north London. As he is not married to his girlfriend, he is also eligible for a lucrative tax perk if he chooses to sell a house in the future. Mr Miliband, 40, got his first foot on the property ladder when he was given a stake in his childhood home in Primrose Hill, north London.

Posted by drewster @ 01:16 AM 20 Comments

Hopes for housing market dashed as cheaper mortgages at least 12 months away

Telegraph: Tesco mortgage lending delayed as regulator toughens up approval

Government efforts to improve competition in banking are being hampered by a tougher approach from the regulator, with Tesco facing delays to its attempt to launch a home loan business. Tesco is unlikely to meet its target of opening a mortgage lending business this year with the supermarket still awaiting Financial Services Authority approval. Gaining approval could take a further 12 months, according to a report yesterday, in a delay that would be a blow to the Government which is trying to encourage new entrants into the banking market. "The FSA is just being careful. It is a new process and it is very difficult," said a spokesman for Tesco.

Posted by drewster @ 01:00 AM 0 Comments

Monday, October 4, 2010

How Roubini sees the US/World economy

Youtube: Nouriel Roubini - US Zeitgeist 2010

With loads of facts the most interesting being: Minimum requirements for US Army 1) No criminal history 2) A decent degree 3) Not obese 4) No criminal record 75% of American teenagers do not qualify for army. What chance they have for any other high level job.

Posted by deepak @ 09:35 PM 3 Comments

A break from all the deflation propaganda

The Market Oracle: Deflation Reality or Urban Myth?

'....we are left wondering how anybody can get hoodwinked by the deflation hype!? Perhaps, the deflationists know something the rest of us do not, but at this point, hard data does not support the deflation thesis.'

Posted by hpwatcher @ 07:16 PM 39 Comments

Interesting chart

Big Picture: S and P and recessions 1870 - 2010

It is interesting to see the past decade in the context of the past 100 + years, takes some of the drama out of living through it.

Posted by bellwether @ 05:22 PM 3 Comments

Gdp

Zero Hedge: Rosie Myth Debunking

Some highlight comments on recent GDP results in the US. It has been interesting to see the v shaped recovery (6%+ GDP in 2010) that was touted by many 12 months ago evaporating. What is worrying is that the stimulus and zirp are having little real effect ie even with these the recovery is subnormal, and one could validly ask whether the US is even out of recession - certainly no sign in the job market. I suppose we have no entitlement to v shape recoveries or ever improving standards of health and wealth. I'll post an interesting (to me) multi decade chart showing recessions and growth in SP 1870 - 2010

Posted by bellwether @ 05:20 PM 1 Comments

Child benefit not mentioned

Www.conservatives.com: He Conservative Manifesto 2010

For the information of those that voted Tory at the last election: a quick search for "child benefit" in this pdf reveals 0 hits. Do you feel like fools now a benefit introduced in 1947 will be pulled to prop up foreign banks/lenders bad debt in UK housing. A total disgrace.

Posted by doomwatch @ 04:25 PM 9 Comments

George is a moron

Moneysupermarket.com: Child Benefit: Your questions answered

So, we'll see a hefty rise in divorce and so more need for social housing. I think GO assumes the public are honest. 1st big mistake George, especially with £2.5k to lose if you have 3 children. How about something truly progressive like a clamp down on off shore loopholes or introducing Land Value Tax.

Posted by doomwatch @ 04:16 PM 2 Comments

House prices and IRs down under

Bloomberg: Australia to Weigh Rate Rise Timing as Housing Cools

"Australia’s central bank will decide tomorrow whether higher interest rates are needed to avert faster inflation amid signs that past increases are cooling the nation’s property market".

Posted by alan @ 04:15 PM 0 Comments

Hmm is this a bad sign?

Cnn: Gold ATMs coming to America

Starting next month, Vegas gamblers and Florida beach bums will be the first to get their hands on the machines in the United States

Posted by mark @ 01:53 PM 3 Comments

Free money runs out shocker

Daily Wail: Osborne axes child-benefit for the middle classes: 40% rate taxpayers will lose payments from 2013

As a lot of posters on the blog and forum predicted, Osborne & Cameron et al have been at great pains to point out the inadequacies (nay failings) of the previous Government in order to push through such reforms. In some ways, it could be argued that Labour have gifted the Tories with a carte blanche in this regard.

Posted by sibley's b'stard child @ 01:53 PM 21 Comments

Only the greens have the answer

BBC News: Land value tax costs unveiled by Scottish Greens

Sanity from north of the boarder

Posted by the number cruncher @ 01:25 PM 4 Comments

Outbreak of commonsense North of The Border

Scottish Green Party: A Land Value Tax for Scotland

The bonus being that Yours Truly is mentioned on page 5 under "Political and academic interest in Land Value Tax".

Posted by mark wadsworth @ 12:53 PM 19 Comments

Not all the Boomers' bank accounts are overflowing

BBC News: Over 60s lose out in mortgage cut

People over 60 will be the biggest losers in changes to the way low income households are helped with mortgage costs, the BBC has established.

Posted by rantnrave @ 12:49 PM 3 Comments

The video is heavy duty stuff

Keeno's debtwatch: Jubilee Shares and the American Monetary Act

"If we instead based the level of debt on the income-generating capacity of the property being purchased, rather than on the income of the buyer, then we would forge a link between asset prices and incomes that is currently easily punctured by rising debt. It would still be possible–indeed necessary–to buy a property for more than ten times its annual rental. But then the excess of the price over the loan would be genuinely the savings of the buyer, and an increase in the price of a house would mean a fall in leverage, rather than an increase in leverage as now. There would be a negative feedback loop between house prices and leverage. That hopefully would stop house price bubbles developing in the first place..."

Posted by techieman @ 11:51 AM 1 Comments

Dubai vacancy rates falls

OPM: Dubai vacancy rates falls

After prices and rental were allowed to fall and the market are allowed to work things out

Posted by easybetman @ 11:37 AM 1 Comments

Remind me why did we go to war?

Yahoo: Iraq oil reserves overtake Iran

Iraq reported on Monday a sharp rise in its proven oil reserves to 143.1 billion barrels, a major boost to a war-battered country heavily dependent on crude and seeking to rebuild its economy. The new figure represents a 24-percent increase over the old level of 115 billion barrels and means Iraq leapfrogs Iran into third place in terms of known reserves, according to data from the OPEC oil cartel.

Posted by mark @ 10:43 AM 1 Comments

Banks are being propped up by the taxpayer

The Guardian: Banks may ask for more cash to plug £750bn funding gap, says thinktank

Britain's banks may soon demand a further bailout from the public purse despite £1.2tn already being put at risk to prop up the system.

Posted by devo @ 06:40 AM 21 Comments

Sunday, October 3, 2010

Death Spiral

The Telegraph: IMF admits that the West is stuck in near depression

We are seeing a pattern – first in Ireland, now in Greece and Portugal – where cuts are failing to close the deficit as fast as hoped. Austerity itself is eroding tax revenues. Countries are chasing their own tail.

Posted by devo @ 09:47 PM 10 Comments

Hpme buyers’ mortgage nightmare

Daily express: HOME BUYERS’ MORTGAGE NIGHTMARE

STINGY lenders are wrecking the dreams of would-be home buyers by demanding strict financial checks that are impossible to meet. It is claimed some banks and building societies are refusing loans after giving home valuations well below the agreed asking price.

Posted by waitingtobuy @ 07:46 PM 8 Comments

Caught the end of this "live" so though i should post

BBC Politics Show: Housing Benefit - plans interview

Starts at 31:20 ; Although this is the London version, i thought since Grant's (MWs fav) is on.

Posted by techieman @ 05:51 PM 7 Comments

Not HPC article - but worth a read...

The Economist: Ed Miliband, Labour’s new leader, might not be the ‘Red Ed’ of caricature. But he might not be electable, either..

HISTORIANS are often mocked for seeing an inevitability in events that felt like messy happenstance when they actually occurred. The opposite intellectual error is to describe as surprising an outcome that was actually fairly predictable. Ed Miliband’s rise to the leadership of the Labour Party—which he claimed on September 25th, defeating his elder brother David not so much narrowly as barely—was nothing like as unexpected as folklore is threatening to record.

Posted by rental john @ 02:06 PM 0 Comments

Ireland counts the rising cost of rescuing its banks

The Economist: The bottomless bail-out

Excellent article on Irish banking bail-out.....

Posted by rental john @ 02:01 PM 0 Comments

Mortage fraud up 37% in first half of 2010

Citywire: The real culprits behind the rise in mortgage fraud

Recent figures by Experian show mortgage fraud up 37% in the first half of 2010, compared with the previous six months. Now, 35 out of every 10,000 mortgage applications are considered fraudulent. The FSA itself (in its own impact modeling) admits that implementation of the Mortgage Market Review would result in house price falls. It is thought if the FSA succeeds in stopping lenders from lending to people who can’t repay their debts, house prices will collapse (remember, 43% of all home loans granted in the first three months of 2010 were non-verified loans).

Posted by miken @ 01:54 PM 7 Comments

Real life versus fictional rural living

News of the World: Own a home here? Ooh arr they kidding?

HALF of the characters in rural soaps are living way beyond their means in homes they couldn't hope to afford in real life. Soaring property costs in the countryside mean that many favourite shows are becoming very detached from the stories of everyday folk, according to new research.

Posted by quiet guy @ 12:58 PM 3 Comments

The cat will have its fat

Observer: In banking we trust? No chance

"Bankers and City figures may be keen on repairing damaged reputations but aren't prepared to make the changes necessary to achieve it"

Posted by letthemfall @ 10:54 AM 0 Comments

Saturday, October 2, 2010

Minor sports celebrity age 49 and her financial strategy

Telegraph: My first sponsorship deal was £30 a month from a chicken farmer

Bought 5 bed house in 2006 for £1.85m, spent nearly £1m improving it over two years, mortgage now stands at about £1.2m and thinks they have a fair amount of equity, so when the time comes to remortgage we can still get a fairly good deal. Has no pension and thinks classic cars are a good investment, uses her credit card for more or less everything because shhe can only use her debit card when she has some money in her current account.

Posted by enuii @ 10:53 PM 12 Comments

Red Ken puts his foot in it and tells the truth

Guardian: Clarke says double dip might happen

Oh deary me whatever next? Another Marxist lunatic in the government - the bankers will be angry.

Posted by chrisch @ 10:31 PM 5 Comments

Where's the growth?

The Guardian: Manufacturing output slipping back towards recession in UK and US

Factory output in Britain, the US and a number of recession-hit eurozone countries fell back sharply last month as evidence mounted that the recovery in the west over the past 18 months is stalling. Snapshots of manufacturing published today showed industry in Britain and America heading back towards recession, with Spain and Ireland joining Greece in witnessing a contraction in output.

Posted by devo @ 08:51 PM 32 Comments

Very revealing letter published in the Guardian that may equally apply here!

Guardian: The Irish aren't smiling as the eye their corrupt elite

Many thanks for calling it like it is in your editorial (1 October) on the Irish economic collapse. The Irish government has got it wrong again, but the clue to why is not in the "dozy government" line. It is hidden in your quote that "the elite directing the Irish economy is more tightly closed than an oyster shell". Ireland operates like a one-party state and the government is just the political wing of that elite comprising developers, bankers and newspaper owners, with a whole network of vested interests descending into almost every corner of the Irish state and economic life.

Posted by enuii @ 08:49 PM 8 Comments

FTBers pay an extra £2000 a year to get on the ladder

Telegraph: First-time buyers forced to pay higher premium for mortgages

'"Three years ago it made little difference in terms of the interest rate charged whether you were borrowing at a 60pc, 75pc or 90pc loan-to-value," he said. "Now, however, there is a significant premium of as much as an additional 2 percentage points charged for those borrowing at 90pc LTV."' Because three years ago, the banks didn't think about the possibility of property prices falling.

Posted by quiet guy @ 10:48 AM 9 Comments

Sellers still want more

FT: Property demand muted

"He says he has recently valued properties for potential clients, not been instructed, and has then seen the property launched on to the market some weeks later at a 40 per cent or even 50 per cent premium to his valuation. "

Posted by letthemfall @ 10:25 AM 5 Comments

Americans are buying houses to live in!

CNN MONEY: Manhattan real estate prices up 14%

"We're in a good, healthy place," said Liebman. "Buyers are acting like they did in the past, buying to fulfil their needs, not running with the herd." This might be an indication that the American property market has finally stabilised. A multi-year HPC has left them with much better affordability ratios and the above quote suggests that American buyers no longer regard property as an investment. How long will it be before we can substitute ‘British’ for ‘American’ in the above paragraph?

Posted by flashman @ 10:05 AM 11 Comments

Outright deflation (for now)

The Telegraph: America's recovery 'wholly unsatisfactory', says top Federal Reserve official William Dudley

The Federal Reserve has said it is prepared to add to its unprecedented blitz of money printing, and the markets will be watching the bank's meeting early next month.

Posted by devo @ 08:34 AM 15 Comments

£50,000 To Get Home Back From Squatters

Daily Express: £50,000 TO GET HOME BACK FROM SQUATTERS

Not sure why the squatter was then given a nice council house rather than being put into the prison for criminal damages as well.

Posted by easybetman @ 01:15 AM 3 Comments

Friday, October 1, 2010

More bonuses at Goldmans

Daily Telegraph: Goldman Sachs bankers given millions of pounds in shares

nice to know they're doing their bit in these difficult times

Posted by cyril @ 10:03 PM 3 Comments

We want compo, we want compo...

Yahoo: Icelanders protest foreclosure

I can't afford it and it must be someone else's fault.

Posted by chrisch @ 09:38 PM 4 Comments

Video on Austerity Policy Launches New Media Initiative

Video on Austerity Policy Launches New Media Initiative: Watson Institute

An nice clean explanation about why he thinks austerity is bad. He has a few good points though as with the neo Keynesians, he forgot some pieces. (a) He says gov should spent when private sector is deleveraging, but the problem was of course the government WAS leveraging when everyone else was also leveraging and now is in a fiscal tight corner. (b) He talks about social equity and those who benefit from the debt boom won't be paying while those who did not (the poor) will be paying (not sure whether luxury holidays paid by MEWing count as benefiting) but we certainly have the problem where those who caused the crisis are not paying the price. Bankers are still parting with the cheap money and now savers are paying through inflation.

Posted by easybetman @ 09:11 PM 1 Comments

Another step towards a Citizen's Income?

Inside Housing: Single payment set to replace housing benefit

Work and pensions secretary Iain Duncan Smith has won his battle with the Treasury to create a new simplified benefits system, according to reports today. The plans for a single ‘universal credit’ system, outlined in Mr Duncan Smith’s 21st Century Welfare paper, could see payments for housing costs, currently covered by housing benefit, paid direct to tenants. Mr Duncan Smith had been fighting the Treasury over his plan, which he believes will save around £9 billion annually by encouraging claimants to return to work. It would scrap all benefits and replace them with a single payment calculated according to a claimants needs.

Posted by drewster @ 07:14 PM 6 Comments

Red Ed draws up housing plans

Inside Housing: Ed Miliband: ‘make social housing desirable for all’

New Labour leader Ed Miliband is considering how to make social housing a tenure of choice as part of his vision for Labour policy. Mr Miliband also said the Labour Party had become ‘stuck with a dogma that councils should not be allowed to build houses’ and pledged to give them greater freedom to borrow, in a statement on housing written for the Labour Housing Group during his campaign. The document also puts a clear divide between Mr Miliband and the current government on planning. While the coalition has scrapped regional spatial strategies and central targets, Mr Miliband states he wants to look at ‘more aggressive targets for social housing in property development’. It adds that this represents ‘a complete surrender to the vested interests which prevent new builds’.

Posted by drewster @ 07:09 PM 12 Comments

Reduction in mortgage interest paid through income support

Telegraph: State safety net for homebuyers is cut by 40 per cent

The safety net for homebuyers who lose their jobs is being lowered by 40 per cent with effect from today despite mortgage lenders claims that further reductions could cause arrears and repossessions to rise. Income support for mortgage interest (ISMI) was paid on homeloans of up to £200,000 at an interest rate of 6.08 per cent until today when it was reduced to 3.63 per cent. Homebuyers who become unemployed and have mortgages with higher interest rates will have to hope they can persuade lenders to defer part of the payments due – or risk becoming forced sellers, just as the Bank of England is restricting mortgage supply and house prices are falling.

Posted by flamepoint @ 04:16 PM 0 Comments

'Long Labour Market Recession'

Guardian: Global unemployment to trigger further social unrest, UN agency forecasts

International Labour Organisation (ILO) notes that social unrest has already been reported in at least 25 countries. It fears global employment will not now recover until 2015. The United Nations work agency today warned of a long "labour market recession." ILO director general Juan Somavia says "People can understand and accept difficult choices, if they perceive that all share in the burden of pain. Governments should not have to choose between the demands of financial markets and the needs of their citizens. Financial and social stability must come together. Otherwise, not only the global economy but also social cohesion will be at risk." The ILO report said. "In the 35 countries for which data exists, nearly 40% of jobseekers have been without work for more than one year

Posted by cat and canary @ 02:41 PM 1 Comments

Comments, can we beat 100 of them?

Yahoo / reuters: Lloyds survey uncovers gloom in UK property market

In its latest Commercial Property Confidence Monitor, the part-nationalised lender said 46 percent of respondents from medium-to-large businesses expected no change in market performance, while more than a quarter from small and major companies were bracing for new declines.

Posted by mark @ 02:40 PM 0 Comments

"Home owners use savings to pay off mortgages"

Telegraph: Home owners reduce mortgages by largest amount in a year

Home owners have reduced their mortgages by the largest amount in more than a year as lenders make it more difficult to obtain a home loan. They reduced their home loans by £6.2 billion in the three months between April and June this year, the biggest injection of cash since the first quarter last year, according to the Bank of England. Borrowers are unable to increase the amount of equity that they take out of their homes because banks are tightening their lending criteria amid fears of rising unemployment and home owners defaulting on their loans. UK homeowners pay back a record £8.1bn of mortgage debtHouseholds are also concerned about job cuts and are reining in their spending, and focusing on paying off their debts instead.

Posted by jack c @ 02:13 PM 11 Comments

In anticipation of the American Monetary institute conference this weekend

Coffee with Joe 9-29-10: Debt Deflation and Monetary Reform

Is this statler and wardorf? they are reffering to a technical paper on this, and questioning the solution, which they will discuss this weekend in Chicagee. They refer to a couple of points in Steve's work: http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/ "In fact, thanks to Milton Friedman and neoclassical economics in general, the Fed ignored the run up of debt that has caused this crisis, and every rescue engineered by the Fed simply increased the height of the precipice from which the eventual fall into Depression would occur. Having failed to understand the mechanism of money creation in a credit money world, and failed to understand how that mechanism goes into reverse during a financial crisis....."

Posted by techieman @ 01:30 PM 9 Comments

Will the Baby Boomers fall out of love with property?

Investment and Business News: Is the housing market set to flip?

A report out from self-styled retirement specialist LV says that approximately 1.2 million future retirees may cash in their property to help fund retirement. LV refers to these people as HIPpies (‘Home is Pension’) The report is not actually saying they will sell their homes rather top up on their mortgages. But surely as the baby boomers retire, and realise their pensions are short of what they need this is likely to result in a house price crash

Posted by jac nixon @ 01:01 PM 1 Comments

“People are doing the exact opposite of what Charlie Bean and the BOE would have them do"

Mortgagestrategy: Housing equity withdrawal drops £6.2bn in Q2

Housing equity withdrawal fell £6.2bn in Q2 2010, lower than the Q1 drop of £5.3bn, data from the Bank of England reveals. The Q1 drop has been revised downwards from the published £3.2bn. As a percentage of post-tax income housing equity withdrawal was 2.5% compared to 2.1% in Q1 2010. David Smith, senior partner at Carter Jonas, says: “Just as we are seeing a net repayment of unsecured debt, so we are seeing secured debt also being whittled down and at a faster pace than before.

Posted by jack c @ 12:55 PM 0 Comments

Summary of the market in August

Housing Expert: The Month in Numbers - August

Summary of the main market numbers for last month with helpful reminder of the peak figures from housing expert Henry Pryor who was making sense on BBC Breakfast tv yesterday.

Posted by charles lister @ 09:06 AM 4 Comments

The Bank of England has warned that obtaining a mortgage is about to become even more difficult

The Daily Telegraph: Bank of England warns of tougher curbs on mortgage lending

A very hopeful article on reality finally biting in the mortgage market. It's surprising people are still talking about the 'property ladder'. Although it's not yet a property snake, house prices are on average the same as they were in 2005.

Posted by monty032 @ 08:46 AM 30 Comments

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