Well another day of interesting news on the world economy with now the USA government prepared to hold up the inflated cost of housing supporting property developers and banks at the taxpayers expense. At least we see the top Executives of Freddie Mac and Fanny Mae losing their jobs these six figure merchants have at least paid the price ( hopefully) of dreadful management and for ruining so many peoples lives by lending them more money than they could possibly pay back ! Irresponsible bankers should be sued for professional negligence and I hope some of them are !!
But not finished yet......many people think it is just the very poor that are getting their houses repossessed in fact they are ones that got the furniture paid for with the 125% mortgages they were sold. Hopefully they have been able to take the furniture away and use it in their new rented houses at lower cost. It will now be the big houses 5 , 10 million dollar places bought by the yuppies that earnt so much money trading the criminal financial instruments. Passing on the bad debts to the small investors and pension holders. I really hope this housing crisis grows world wide and people realize that saving and investment in real producing assets has value for them and their country. Holding a house should be just like a car. Nothing more and nothing less. Any local jurisdiction that deliberatley is limiting land availability to permit reasonable priced housing is criminal in my opinion.
And good luck yuppies that the gravy train comes to an end and people look for really productive work and not just mixing up the same debt basket and selling it on.... hopefully now we will see a major shift to those that save will earn the most.
In the meantime get ready banks for the next phase when people really accept to lose the money on housing and another 30 or 40 percent of the loans are supported by negative equity. Watch now that the individual mounts class action suits to not pay the debt if you start to make deals with some mortgage holders and not others.
I am so interested to see one day that a whole raft of mortgage holders ask for their debt to be reduced by half ! It can happen.
Showing posts with label house prices. Show all posts
Showing posts with label house prices. Show all posts
Tuesday, September 9, 2008
Sunday, September 7, 2008
More economic woes - inflation and strike action
Who is to blame for inflation???
Inflation is also an illness of debt and over spending and consumption. Can always blame the chinese for consuming now, can blame the arabs and russians for exploiting their resources but the real blame still lies with people who can not resist to consume above their means and demanding that their governments do the same. Any country with debts and a poor balance of payments will have inflation since the currency will devalue and it costs more and more for imported goods. Who is responsible for borrowing more and more and spending more than they can earn? Then expecting the government to help them out? The ignorant masses of people who spend like there was no tomorrow!!! Who pays the bill? The same people all the time....those that have saved and pay taxes and work their butt off only to see the socially needy and their government waste it. Then who goes on strike...the public service workers who are all paid by taxpayers !!! No wonder taxpayers just up and leave the country! Vicious circle and spiral downwards?? There is a lot to start thinking that one man one vote is an out of date system that just puts the power into the hands of ignorant people who can not understand what a budget is and who can not control consumption. Least of all those that think that the government is there just to give hand outs and not to plan an economical environment that makes and generates real wealth and expertise in a competitive world. 60% of the wealth in the UK is in totally non productive property inflated by politics of rarity and assumed by the ignorant to be a valuable asset. It is indispensible to have somewhere to live and thats what it is worth. No more no less. Better push some of the asset values back into making things and being competitive ! Where is real management of a country ..... ?? Surely it is the worst kind of conflict of interest when the voters (shareholders) put in a government that just pays out and collects taxes with no idea on what to do about making a country pay for what it wants!
Inflation is also an illness of debt and over spending and consumption. Can always blame the chinese for consuming now, can blame the arabs and russians for exploiting their resources but the real blame still lies with people who can not resist to consume above their means and demanding that their governments do the same. Any country with debts and a poor balance of payments will have inflation since the currency will devalue and it costs more and more for imported goods. Who is responsible for borrowing more and more and spending more than they can earn? Then expecting the government to help them out? The ignorant masses of people who spend like there was no tomorrow!!! Who pays the bill? The same people all the time....those that have saved and pay taxes and work their butt off only to see the socially needy and their government waste it. Then who goes on strike...the public service workers who are all paid by taxpayers !!! No wonder taxpayers just up and leave the country! Vicious circle and spiral downwards?? There is a lot to start thinking that one man one vote is an out of date system that just puts the power into the hands of ignorant people who can not understand what a budget is and who can not control consumption. Least of all those that think that the government is there just to give hand outs and not to plan an economical environment that makes and generates real wealth and expertise in a competitive world. 60% of the wealth in the UK is in totally non productive property inflated by politics of rarity and assumed by the ignorant to be a valuable asset. It is indispensible to have somewhere to live and thats what it is worth. No more no less. Better push some of the asset values back into making things and being competitive ! Where is real management of a country ..... ?? Surely it is the worst kind of conflict of interest when the voters (shareholders) put in a government that just pays out and collects taxes with no idea on what to do about making a country pay for what it wants!
Saturday, September 6, 2008
Economic Woes
Who is to blame for our economic downturn now? Who is to blame for the mortgage and credit crisis and who will pay the bill?
In short men are to blame for being too weak to say no to women who have no idea of the value of anything they want ! What is the amount people should pay for a home? It shouldn't be difficult to work out - building costs per sq ft plus the land? Who makes the land costs? Who is responsible for making a shortage or influencing the price? For so many other things we look around and find out what things really should cost and what is the value and we look carefully and before we buy anything we should know who and what is influencing the price we have to pay!
For sure if we don't buy at the stupid prices then the price will go down !
Clearly if man was man he should say NO when a price is too high ...but what do we do, we try to please our (moaning and bleating) woman who just says everyone is paying that price so we must pay it ! Furthermore because jo bloggs can afford it we can. Totally illogical.
Worst of all of course is the financial system that allows joe bloggs and everyone else to borrow money they can't afford earn incredible commissions then pass the whole thing on as a valuable investment to YOUR own pension fund. You pay friends for ignorance and not finding out the true real value and price for thngs before you buy! It is political will to make you feel rich from the value of your house - a piece of land and bricks should be cheap. Don't be fooled by politicians, property developers, banks and your wife. Your house should never cost you more than 25% of your disposable income. If it does .......live with your parents til the price comes down.
In short men are to blame for being too weak to say no to women who have no idea of the value of anything they want ! What is the amount people should pay for a home? It shouldn't be difficult to work out - building costs per sq ft plus the land? Who makes the land costs? Who is responsible for making a shortage or influencing the price? For so many other things we look around and find out what things really should cost and what is the value and we look carefully and before we buy anything we should know who and what is influencing the price we have to pay!
For sure if we don't buy at the stupid prices then the price will go down !
Clearly if man was man he should say NO when a price is too high ...but what do we do, we try to please our (moaning and bleating) woman who just says everyone is paying that price so we must pay it ! Furthermore because jo bloggs can afford it we can. Totally illogical.
Worst of all of course is the financial system that allows joe bloggs and everyone else to borrow money they can't afford earn incredible commissions then pass the whole thing on as a valuable investment to YOUR own pension fund. You pay friends for ignorance and not finding out the true real value and price for thngs before you buy! It is political will to make you feel rich from the value of your house - a piece of land and bricks should be cheap. Don't be fooled by politicians, property developers, banks and your wife. Your house should never cost you more than 25% of your disposable income. If it does .......live with your parents til the price comes down.
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