November 15, 2006

BBC report on 125% and five-times-income loans

Plus you can all laugh at the funny British accents...


icyfishies said...

Dear incisive HPrs and real estate agents alike. I am here to blatantly put the basic truth out there, weather or not you like it, dislike it, or otherwise. I frankly don’t care, but the fact of the matter is...There is no housing bubble, there is no impending doom on the American economy. All that’s going to happen in the future is the government it going to strip away slowly our rights until houses are assigned to families based on name race and gender rather than bought. "Why don’t you run home to your mommy?" I can almost hear you responding to my post with that drab over used response. And here I sit; getting entangled in the eternal time waster of old farts past your prime such as yourselves. I already feel as though the few miniscule minuets I am wasting to type this are inevitably doomed to be the most ill spent minuets of my day, but I truly cannot reiterate enough how insignificant your lives must be for your social life to revolve upon virtually arguing with stupid teenagers pretending to be 'terrorists/millionaires'. So in short, I hate HP and what its done to my mother 'sportsarena' 'flying monkey' 'V for vendetta'. She has become a droning HPer with nothing better to do than make sure the computer is comfterbly out of my grasp, and opened to this horrid, revolting blog from virtual hell.

Anonymous said...

I'm sure Kweef will delete this as he does most of my posts, but I just wanted to say fuck you, Kweef, and fuck your turdy little blog designed to make you a tidy sum (Oh, it's only enough money for a latte - BULLSHIT).

You little twat.

LauraVella said...

Icy fish said: "I already feel as though the few miniscule minuets I am wasting to type this are inevitably doomed to be the most ill spent minuets of my day".

Very good then, bye bye.

Anonymous said...

icyfishies - you present no credible evidence of there being no housing bubble, and your vitriol is indeed wasted.

foxwoodlief said...

As always we'll find the truth somewhere in between two extremes.

As with all propaganda you have to read between the lines and observe what is happening around you.

History always repeats itself and those who don't learn or refuse to learn will repeat the same mistakes.

Bubbles do occur. There are many markets that have no realtionship to supply and demand, cost to produce, and value let alone affordability based on earnings.

You'll always have those who will take more than they give and others who will give more than they take.

Let the buyer beware. You never buy what you can't afford thinking you'll make a killing selling it as it feeds into the greater fool theory.

You buy to fulfill the basic needs of humans, food and shelter. Everything else is fluff. The rich need us to buy, they need to extend credit to us to keep us in debt so we are subservient to their needs and to keep them in power. A man in debt is never free. A man dependant on the system (money) to survive can never cease working. The rich are parasites (I'm speaking of those who produce nothing but live off the earnings of others) who use usery to earn a living instead of producing a service, a product, or something of value.

We are all becoming indentured servants and the fuedal lords are rising again. The day is coming where the upper 2% will own everything, the means of production, the land, the houses, everything will (and is) lent to the masses through debt/credit/monthly payments. The housing bubble isn't the problem but just another symptom of it.

Anonymous said...

'm sure Kweef will delete this as he does most of my posts, but I just wanted to say fuck you, Kweef, and fuck your turdy little blog designed to make you a tidy sum (Oh, it's only enough money for a latte - BULLSHIT).

You little twat.


Cheers! I noticed also unless it falls within his agenda he deletes screw this blog!

Anonymous said...

Nothing like logging into a blog and seeing a bunch of nutz whose only apparant skill is to link words together to only appear as they have meaning.

The blog is great and if you have an issue with someone making money from it then don't visit the blog. You complain he is making money on the blog yet you are here. You must be one of those that paid too much for a house and then state it is the "bad guys" that made you buy it.

striker said...

Well said foxwoodlief!

Anonymous said...

"...unless you've been living in a bubble...", man, that was fantastic unintentional comedy.

The Stinker said...

The Internet is for trolls.

keith said...

As I said, HP'ers, as the collapse speeds up, we'll get more and more trolls, more and more hate, and more and more attacks on me.

Here's what I ask:

1) don't threadjack
3) don't hate
4) don't swear
5) have a good chat

Anarchy (and democracy) ain't pretty. But it's the best we got

I'll leave the troll posts up for reference, even though it's disturbing to see the angry hateful profanity. This thread only.

Anonymous said...


there is no such thing as a 'british accent', if you are from the UK, you either have an english accent, welsh accent, scottish accent or irish accent. In this case you are incorrectly referring to an english accent or more specifically an oxbridge accent.

honica jewinski said...

Hell, I thought we were gonna talk about 125's and five times income loans. Wanna know something about them? Maybe some of there inner workings/requirements? Jews, cough cough, jews! Just Kidding. Anyway, I really have originated about every kind of mortgage loan you can think of. If you have any questions, feel free to ask your friendly anti-semitic former mortgage loan officer.

Anonymous said...

Funny accents indeed - but not half as funny as the ridiculous spelling americans use.
e.g. (not ex.) Drive-thru!

Anonymous said...


Don't sugar coat it!!!

Anonymous said...

Dumb, toothless Brits.

Anonymous said...

"Does this loan make me sexy baybee?"

wik wakka waka wik wakka wakka

charlatan said...

even glaswegians have better teeth than portland's meth fiends. earlier commenter was spot on re:accents btw.

FlyingMonkeyWarrior said...

He can use the computer any time he wants and icyfishies is a a closet HPer that likes to give me a hard time. He is just a Flamer.

Anonymous said...

He is smart for a kid though.

Anonymous said...

The UK is toast. Here's a reiteration of prior posts...

The entire UK's economy is the London financial services industry.
From a fundamentals pov, England hasn't produced anything since the fall of the Empire cerca 1965-1972.

So in a way, London's like NYC but without a country like the USA adjoining it. And if American corporations don't get their acts together soon, then the US will also go the way of England but at least there's some twenty years left of productive value in the States.

So, when there are other chic/happening cities like Amsterdam, Paris, or Milan for rich, globe trotting bankers/oil men/movie stars, why would they buy up 90-100% of the UK's properties just to help out the average Briton with an ARM? I think those posh places in Chelsea are already accounted for and the country's RE has only one way to go... down.


"I hear the russians are especially interested in converting their wealth into UK assets so that when the government tries to steal the money back, it'll be overseas."

The only UK assets are RE, Pound Sterling, and Hedge fund shares/equity. So there's a limit to the diversification going on over there unless the foreigners are going to buy all of the UK.


"Russians and saudis are buying UK PROPERTY - houses. don't forget that asset class"

Well, condos in NYC are also a million dollars per unit so it's one of those chic cities where rich people buy places, however, unlike NY, London is the only economy for the whole of the UK. If anything, RE in England is the South Sea bubble all over again except that this time, there's no USA to emigrate to for the average Briton like three centuries ago, whereas the US, still has a military-industrial research complex, raw materials (esp coal), biopharma, foodstuffs, etc so the collapse of America's service sector wouldn't destroy the country, it'll spawn a painful one or two decade bear market (ala depression) whereas England's toast if their hedge funds go belly up or the rich ex-Soviets start to look at Amsterdam or Copenhagen for places to buy. And to be frank with you, if I were rich, I'd much rather hang out in those places over England.


"When the global economy melts down or world war breaks out, the question is where will you want to be? In London or Jerusalem? In Seattle or Damascus?"

When did banana republics vs real nations become the highlight of the issue?

If anything, Ottawa Canada is the safest place in the world and its real estate is the most affordable for a modern, developed, beautiful city by a river. The difference between Ottawa and London is that London serves a dual nature of being a hedge fund center (a.k.a. UK's NYC) and in a developed first world nation away from places like Russia or Syria.

So when a place is oversold, real estate in New York City, Vancouver, or London, it becomes another phenomena of overvalued parcels of land and units where the expectation is that the rich are going to soak up everything, keeping the average middle class person asset wealthy via the creation of a localized wealth effect. That's a bubble zone. A rich oil man can buy one or two units in London to meet with his broker, a mansion (or two) in Ottawa a/o Oslo for his multi-acre landed estate, and a basket of currencies including the pound, loonie, usd, euro, corona, and a pile of gold/silver all over the US, Canada, Australia, Germany, and England and the chances are that he'll retain his wealth even if there's an overthrow of his govt in Bahrain. Simultaneously, he's hedged his bet because not all major cities are going to implode 1990s Tokyo-style so his private RE holdings are nicely diversified to hold up during market downturns. I mean a lot of multi-millionaires got roasted because they'd bought hotels in Toyko in the 1980s thinking that they'd retain their RE equity, not to find themselves in an illiquid position costing them ten years later.


::They say the wealth of the top .01% has increased 600% in 20 years. Has your paycheck? At that increase I guess 20% appreciation a year say in London sounds like a bargain buy.

Yes, I agree with the localization of the wealth effect and for that exact reason, Manhattan apartments average 1 million dollars per unit. But now think about this... the rich can only make money if they have an asset class that's of value to a certain number of people. So, when people find that living in NYC is too expensive for the *average* blue chip professional, earning $400K/yr, then that crowd, the upwardly mobile but not too rich gang loses interest in a region and moves into cheaper locales in New Jersey, Putnam, Rockland, and Nassau counties in NY state and then even offices, which handle the transactions for the wealthier clients, move there as well, once the body count reaches critical mass. And this is pretty much what happened to Tokyo, during the 80s, as all kinds of rich people started buying downtown properties at prices equivalent to owning entire city centers in places like Boston, Houston, and Philly. Well, at that point in time, the well off manager salarymen (~$400K/yr) at Japan Inc moved 2 hrs away and the entire city of Tokyo became one speculative region for land/units via rich RE players (including organized crime bosses). The rest is history. And the problem is that that's the issue, there are only so many Malibus, Hamptons, etc out there for the top 0.001%. The other top 0.5% also need places to live in and it's this crowd which keeps RE alive in happening regions.


Someone else concurs:

"And the problem is that that's the issue, there are only so many Malibus, Hamptons, etc out there for the top 0.001%. The other top 0.5% also need places to live in and it's this crowd which keeps RE alive in happening regions."

Yep, high end enclaves are pretty much scoped out in much of the world. There are practically no "perfect" private beach castles in Tahiti, available for the average Japanese, European, or North American nowadays. Those places have already been bought out by millionaires or resort conglomerates which is why French Polynesia is one of the most expensive Pacific Island regions in the world.

In order for real estate to maintain an upward holding pattern in London, Sydney, NYC, or Los Angeles, the upwardly mobile professionals need to feel like they can afford to be a part of the action to generate the volume needed to create a real estate market or otherwise, we get a Tahiti situation where there are billionaire recluses and tourists hotels but no professional class buying places to live in.

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