Stop. Just stop......please. I can't take any more. I cannot breathe....so please stop. I'm noting this down. I hope you don't mind. Absolutely wonderful for the soul. Best medicine ever. I literally have beads of perspiration on my brow from laughing. What a vivid portrait you paint with words. You have a gift. Even when you are giving out you are entirely enjoyable.
And then there was the young guard whom bought a home and watched it increase in value ,so he asked for another and then another .then the house prices began to fall so he rented out 2 properties ,but no more over time so he had to rent out his own home to cover mortgages .And then he watched in 2014 his equity came back in a new bubble, and he said thank god. So did he sale his over burden portfolio, did he flick.No he started to think how good times are coming again!
Then 2015,the banks decide to up interest rates and he can't afford his repayments,.(so this is the future and its not writing yet but have a quess ,what interest rate raises will do to home price?)
Banks turnover will increase ,so banks wont loose but ,all those small speculators, will be shook by the angles ,till they don't have a penny or pot.
Don't get me wrong I like speculators but if you are in do do and you have a chance this year to step out of it please don't roll the property dice again! Thoughts please ,its widespread
His retaliation while expected is definitely going to affect irish exports. We export around €250 mil worth of goods to Russia, mostly agricultural related. That means a direct hit to indigenous companies and not the multinationals. The bigger problem will be the displacement effect. Other EU countries affected will need new markets for their goods now as well. this is going to result in a loss of a lot more than €250 mil of exports in the long run as companies fight for new markets. Chances are it will have a deflationary affect on europe as well.
Its unlikely there will be much negative impact on bkir. They will have exposure to some of the companies exporting to russia and Europe but its a strong sector so hopefully can weather the storm.
Yup Mr McC, I missed the jam and the Celtic Tiger.
Got distracted by an Italian cat.
The millionaire "stonemason" was a very willing "victim" in a system of complicity of economic self-delusion by society in general of biblical proportions.
In fact, it could be called the parable of the stonemason.
"And when a great crowd came together and people from town after town came to him, he said in a parable: 99 "A stonemason went out to build some walls and as he artfully placed the dry granite rocks one upon the other, a man approached and told him his work should be paid 120 euros per hour and materials at 90 euros per square meter. And as he sweated in the Clare sun, his thoughts strayed from his worthy labour and his mind was lured by mammon. The next day he borrowed money from the AIB and Ulster Bank merchants in the Temple and set forth to sell his wares to foolish men from the tribe of the jackeens, intent on building towers of babel with other borrowed money instead of preparing strong foundations. And the Lord smote the towers built on superficiality and moral void, and he banished the stonemasons from the Lands and brought about a great bursting of bubbles, whereupon money merchants found great holes in their balance sheets and the lucky few set forth for the great Ark or fled the lands to seek bankruptcy in more lenient jurisdictions.
And so it was that the stonemason repented his covetousness and greed and sought forgiveness from the Lord who sent a judge to the town of Ennis who took pity on the weak man and ordered the money merchants to restructure his mortgage so he could live in peace from 70 years and give thanks for the Lord's compassion."
"He who builds granite dry walls upon borrowed money and sells them at 90 euros per square meter shall repent his shallow endeavours and shall see his wall sink into the marshy depths of his superficiality"
The bad banks, or in Ireland NAMA, were created to remove these toxic assets from the balance sheets of the banks which held them, so they could attempt to become viable banks again. The bad banks, or NAMA, then had the responsibility, as far as I understand it, of acting something like administrators tasked with securing as much value as possible from them, which might be helped by any rise in property prices as this is usually the underlying asset. So the toxic assts are still there, but they should be on the books of the bad banks only and not the so called ‘good’ banks.
But securitisation has not gone away. I see from Bloomberg that private equity firm Blackstone bought up over 40,000 private and mostly foreclosed homes over the past few years, has become the largest landlord in the USA and is now about to, yes you’ve guessed it, roll these rents into rent backed bonds and sell them on to financial institutions. As Doughnuts said, it’s the innocents who suffer, never the big guys.
You might have missed the jam on this one doughnuts. In the good times anything from €75 to €90 per meter squared was the norm. Today €55 without much problem. Hardly the foundation of a property empire in 2014 but then was it ever.
When we get around to this bank inquiry I wounder will stories like this come up. Who do you blame for the stonemasons plight, because this is the story of our boom.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.