House Price Crash Discussion Thread

John_Pierpoint

Did I hear right that UBS has managed to get rescue funds from Singapore at 9%, while Citibank had to go to the Arabs and pay 11%.
Anybody know the details of what Alliance & Leicester is paying?
Presumably these loans are denominated in that toilet paper currency called USD that has been printed and pushed out onto world markets. Even the Chinese are worrying about the double digit inflation it has stoked up. You don't need defaults, when the whole currency goes sub-prime.
Why has it taken so long for the market to realise that the Bush family emperors clothes are threadbare?
GBP money supply increasing at 12%, sounds like Ted Heath is back in charge, dealing with the consequences of the Vietnam war?

WTF?_2

John_Pierpoint wrote: »

Did I hear right that UBS has managed to get rescue funds from Singapore at 9%, while Citibank had to go to the Arabs and pay 11%.
Anybody know the details of what Alliance & Leicester is paying?
Presumably these loans are denominated in that toilet paper currency called USD that has been printed and pushed out onto world markets. Even the Chinese are worrying about the double digit inflation it has stoked up. You don't need defaults, when the whole currency goes sub-prime.
Why has it taken so long for the market to realise that the Bush family emperors clothes are threadbare?
GBP money supply increasing at 12%, sounds like Ted Heath is back in charge, dealing with the consequences of the Vietnam war?

UBS had sell off about 12% of equity in their company to raise funds:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3027428.ece

Zurich-based UBS, fresh from its first quarterly loss for nine years, said this morning that it had cancelled the cash dividend and turned to two strategic investors in the Middle East and Asia-Pacific for a SFr13 billion (£5.7 billion) capital injection.

The Government of Singapore's investment arm is putting in SFr 11 billion, while an undisclosed strategic investor in the Middle East will take SFr2 billion worth of shares.
Together the two will hold a stake of up to 12 per cent in UBS, which becomes the latest bank to sell a stake to a strategic holder. Late last month, Citigroup collected a $7.5 billion investment from Abu Dhabi.

Now, is anyone still doubting that things are going to get very bad indeed in the coming months? I notice that the usual 'head in the sand' bunch on this group have been very quiet of late.

ivegotabig1

ivegotabig1 wrote: »

As Usual people believe what they WANT to believe .... Would the Buillding Societies or Banks. or indeed any other party with a vested interest in property ever talk the market down ??? ofcourse not !! But With the U.S Sub prime problems still causing mayhem, Oil at near record levels & likely to stay there..The UK & US economies set to slow markedly nxt yr..What does that suggest to you ...??? Honestly ?? Trying to Bullsxxt People into thinking everything is Rosey (i.e Darling this aftrnoon) will only go so far in keeping a positive outlook... For some but by no means all..there are rough times ahead..as the longest Boom in nearly half a century begins to wind down !!..Time to tighten your belts guys & gals !

A very Balanced & realisitc article her....suggest you all have a brouse !!

http://business.timesonline.co.uk/tol/business/columnists/article3026279.ece

Pobby

It`s pretty clear to me that the BOE are between a rock and a hard place.It really does need to raise rates as,whatever dvd player or Morrisons bogoffs are used to measure inflation,if,like me,you have noticed how much petrol and food has risen recently,``real inflation`` is well over what we are led to believe.

However what would happen if the rates went up.Peoples one time affordability would be stretched even further.I can`t see a way out of this mess.Can you?

merlinthehappypig

Homeowners are paying out the largest proportion of earnings on mortgage interest for 16 years - with lenders warning things will get even tougher for borrowers.

http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=427452&in_page_id=8

This was headlines on the BBC news earlier today as well.

Gorgeous_George

This_is_money wrote:

Meanwhile, first-time buyers paid out 20.6% of their monthly pay packet on mortgage interest.

My 1st mortgage was £24K at 16.5%. I got MIRAS but even then it represented about 37% of my take home pay.

GG

Zammo

Gorgeous_George wrote: »

My 1st mortgage was £24K at 16.5%. I got MIRAS but even then it represented about 37% of my take home pay.

GG

16%? I bet inflation took care of that debt pretty quickly. Pity the same can't be said about the horrendous sums people are borrowing nowadays at relatively low IR's.

ivegotabig1

Pobby wrote: »

It`s pretty clear to me that the BOE are between a rock and a hard place.It really does need to raise rates as,whatever dvd player or Morrisons bogoffs are used to measure inflation,if,like me,you have noticed how much petrol and food has risen recently,``real inflation`` is well over what we are led to believe.

However what would happen if the rates went up.Peoples one time affordability would be stretched even further.I can`t see a way out of this mess.Can you?

There is only one sollution..But thats one The BOE simply cannot take...& that is allow the economy to deflate to a more sustainable level & keep rates at a reasonable level ... The BOE cause this overheated economy in the first place !! With its crazy low rates policy.. But hey..their mate Gordon has An election to win in 2009

LisbonLaura

John_Pierpoint wrote: »

Why has it taken so long for the market to realise that the Bush family emperors clothes are threadbare?

Maybe:-

Trough, too busy feeding at? Commissions from selling on dodgy loans to brokers who sold them to heads of institutions as top notch investments.(Let's play "how is your pension?"). By the time it surfaces, it's far too late.
It's all fraud of course & on a massive scale.

I guess the smart (& corrupt) got out months ago, but that hardly registers on the graphs.

I'd like to see some of the Northern Rock swines locked up first.Then a few hundred to follow; & all at their own, asset stripped, expense. It wont happen of course, Britain isn't Singapore, unfortunately.

What a great, & utterly juvenille, way to run the world.

WTF?_2

LisbonLaura wrote: »

I'd like to see some of the Northern Rock swines locked up first.Then a few hundred to follow; & all at their own, asset stripped, expense. It wont happen of course, Britain isn't Singapore, unfortunately.

What a great, & utterly juvenille, way to run the world.

It gets better - a coordinated central bank effort has now been launched to get illiquid banks and financial institutions off the hook:

http://news.bbc.co.uk/1/hi/business/7140771.stm

It's basically a global NR-style bailout by central banks around the world.

The economy is screwed, for sure.