April 14, 2008

This lady in Dublin believed the realtors, believed the media, and believed in the "housing ladder". And she's lost $100,000 already, and counting


So many lied in order to earn a commission.

So many believed, for so many reasons.

The commissions - they got pocketed, with the realtors and mortgage brokers making out like bandits.

The buyers? Well, quite frankly, they got f*cked.


Should have listened to HP.

Housing Woes in U.S. Spread Around Globe

DUBLIN — The collapse of the housing bubble in the United States is mutating into a global phenomenon, with real estate prices swooning from the Irish countryside and the Spanish coast to Baltic seaports and even parts of northern India.

In Ireland, Spain, Britain and elsewhere, housing markets that soared over the last decade are falling back to earth. Property analysts predict that some countries, like this one, will face an even more wrenching adjustment than that of the United States, including the possibility that the downturn could become a wholesale collapse.

64 comments:

Anonymous said...

Well, that's Irish.

DOPES said...

BUT, BUT, BUT...

WHERE DO YOU PUT THE STRIPPER POLE IN A ONE BEDROOM $575,000 FLAT???

DOPES!!!

guy n. cognito said...

.
.
.
housing shmousing, the real question is would you?




sorry, been reading too much of nik's dirty blog.

born to lose said...

I don't think she lost any money.

The bank will lose several hundred thousand dollars after she walks away after not paying her mortgage for six months.

The banks should lose money after loaning a 30 year old 600 grand for a "COZY ONE BEDROOM APARTMENT".

Anonymous said...

I haven't been to the UK or Ireland recently, but I had heard of Eire's huge, massive growth spurt that put its per capita income above that of the USA in a matter of 15 years. Seems part of that was a huge property bubble.

USA, UK, Ireland, Spain, Greece and a few other locales will get hammered.

Anonymous said...

I bet some knucklehead in Ireland had 21 Reasons too

Stuck in So Pa said...

I love the perceived notion that the U.S."exported its housing inflation" to the world.

More like the world just copied American greed and stupidity.

I guess people really are the same everywhere!

michael said...

that's one stupid lady.

titty said...

saw 20 acres with house and pond for half that dublin loss last week.....but for need of health care and gasoline......................

Russ DoGG said...

Another 575,000 reasons not to let the young women make important financial decisions.

seriously 575K for a one bedroom apartment? that she bought with a man she isn't even yet married to?

Europe smells said...

So much for European manners..

Tables are for eating, chairs are for sitting..

Must we Americans teach them everything?

pretty in pink said...

Stuck in So Pa said...
'I guess people really are the same everywhere!'

Not so..

Europeans in particular are exceptionally dumb.

All throughout history Europeans have been self destructive.

Less then 100 years ago, Europeans murdered, burned and robed the brightest most innovative and hard working Jews amongst them, they thought it would be a ‘get rich quick’ scheme, by killing their neighbors, stealing the Jewish peoples land and belongings.

What they lost was the people and energy that raised Europe out of the dark ages.

We are watching Europe slide back into the dark ages right in front of our very own eyes.

Got Rice puffs?

Anonymous said...

You know, 100,000, while quite a lot for the most part, is just passé anymore. Hell everyone has lost 100k, lets set the bar just a bit higher maybe 500k or even a Mil.

But I suppose it will get like professional wrestling you can only watch so many body slams before you get completely bored with the whole thing...

roadkill

royz said...

she is a college admin - about as useless as realtors. Colleges need to use some of the information technology they claim to teach, slash staff by 50%, and drive down the ridiculous amounts they charge for tuition.

Fortunately, some of this will be forced by the collapse of the student loan market. This babe will loose her equity and her job.

Frank@Scottsdale-Sucks.com said...

Why are we supposed to feel sorry for f*cked buyers? If they were dumb enough to believe a realtor on commission instead of thinking for themselves, it's their fault.

Frank@Scottsdale-Sucks.com said...

"Colleges need to use some of the information technology they claim to teach, slash staff by 50%, and drive down the ridiculous amounts they charge for tuition."

As long as the gubmint keeps raising funding for pell grants, loans and all that crap, colleges will continue to raise tuition to meet the new spending. It's a scam and a never-ending cycle.

Cut off the free money and tuition will drop.

The free money f*cks all middle-class students because they're too "rich" to qualify for student aid, but can't afford to pay the tuition.

Anonymous said...

“We know we’re already in negative equity,” said Emma Linnane, a 31-year-old university administrator.

We've gotten another genius here running education. I suspected that Ireland's success story of growth and skyrocketing per capita salaries were suspicious. Sure enough. Now let's get back to a reality without bubbles to fake your prosperity, eh?

shtove said...

Some of the comments on here are way off.

She borrowed a jaw dropping sum for that purchase, but there's no hint of her trying to take advantage - just seeking a place to call her own. Sad.

Mark said...

Dear Editor:

"The problems in the U.S. are being transmitted to Europe," said Michael Ball, professor of urban and property economics at the University of Reading in England, who studies housing prices. "What's happening now is an awful lot more grief than we expected."

Of course! Everybody in Europe was just sitting around, minding their own business, not speculating, not flipping, not getting into debt up to their eyeballs, not trying to become the next Donald Trump and only bought housing they could afford from sensible lenders. Then along comes the mean old U.S.A. and ruins it for everybody.

Nice try.

Best Regards,

Mark

mairca izda debol said...


What they lost was the people and energy that raised Europe out of the dark ages.

We are watching Europe slide back into the dark ages right in front of our very own eyes.


They kicked out the intelligent civilized people and are importing millions of murderous angry Muslims hordes who are breeding like cockroaches

Oz said...

when I bought my place, I looked over housing prices from all over the city, for eighteen months prior to my purchase. I looked over news reports for future developments nearby, as well as foreclosures, bankruptcies - anything that might indicate my deal wouldn't be a good one.

I talked to neighbors. I got a 'be brutal' home inspection. And when I finally hit the gas on the sale, I locked in at a good interest rate.

I made 50% on my money in three years... mostly because I'm not thick-headed and did my homework.

This woman? Thick. Thick as two short planks - which is what her mortgage provider will be using to walk off the roof pretty soon.

Anonymous said...

"So much for European manners..."

The Irish have never been accused of such a thing as European manners.

Andrew said...

i live and work in dublin and have been telling my coworkers about HP for the last 2 years. NO one has listened and i was branded a "conspiracy theorist". apparently having a basic understanding of economics makes one an outcast these days.

No country will suffer like Ireland will in the housing crash. they have absolutely nothing going for them. at least in Las Vegas and San Diego you have good weather.

Buzz Saw said...

Kiss the Blarney Stone and tell us how it isn't her fault and that she is the victim here. Thanks for playing, grab a consolation prize on the way out.

Nick from Dirty Scottsdale said...

Least I digress, but, Keith, re: Emma Linnane, would you?

Anonymous said...

$575K is a two bedroom in Boston, outside of the posh Beacon Hill/Back Bay neighborhoods, back in '06. Tom Brady, however, lives in those million dollar neighborhoods, not the average Joe.

And really, those Beantown fellows with decent city condos are in financial services, law, or medicine, not school administration, unless they're olde Harvard money, and have little to do with their free time except to pontificate over twenty somethings.

Jack Sprat said...

It's funny how everyone here wants to hang the realtor. Any salesman of any product or service is doing one thing only,,,,,helping you do what YOU want to do. Nothing else. If you bought Lucent at $80 and it flies down to 50 cents,,,do you blame the broker? If you buy a $60K car - and it breaks down, or you can't make the payments, do you blame the salesman?? It seems that the folks who made their own stupid decisions are blaming anyone except themselves. "I'm not at fault,,they are!"
I've bought 5 properties in my life - sold 4. I used a realtor every time. I will use them again. Some are pushy/slimy but I simply stay away from them. I don't deal with scumbags, and they are very easy to spot.
No, I'm not a realtor.

Anonymous said...

So, there is no Pot O' Gold at the end of the Rainbow?

anyone still buying Euros?

Afterthought said...

The striking resemblance between the lady in the picture and my mom had me worried for as moment...

I return to the point I've maid about the highly regulated margin purchases of stocks, and the government backed moral hazard of home-debting, which is at a multiple much higher than margins by the way!

Anonymous said...

But I thought Europe had a superior social system -- a managed socialist economy, where technocrats and compassionate government officials manage the economy to protect people and avoid these sorts of situations!

It's vastly superior to the American system of cowboy capitalism! Barack Obama said so!

foxwoodlief said...

Stuck in PA said,
I love the perceived notion that the U.S."exported its housing inflation" to the world.

More like the world just copied American greed and stupidity.

I guess people really are the same everywhere!

Well, there always have been pockets of greed and stupidity and housing inflation exported somewhere, most notably here in the USA until most recently, Californians and a few of the overpriced burbs on the east coast. The rest of the country only experience upticks from those areas exporting their inflated profits to our markets. Then, of course, that bubble mentality began to spread like wildfire, mostly by those original exporters of greed.

As far as to the rest of the world? Wake up, they had it long before us and their prices are even more out of line...but then, it can't happen here, right?

Australia, Spain, England (their Californians in Europe), France, Ireland...their bubbles have been going on longer and of course you all say, put your dollars into Euros...hmmmm what happens when European's default? What happens then? You think the Euro will stay strong?

Greed is universal. Bubbles too! And everything is cyclical. What goes up, goes down, what goes down, goes up.

It just amazes me that everyone always bashes the good old USA for the worlds troubles. Just wait until the Bubble breaks outside the USA...then what?

Budvar said...

pretty in pink said...

"Europeans in particular are exceptionally dumb."

We at least know how to spell the word "Robbed". Unless that is you actually meant "Robed" as in wrapping them in a toga or somesuch, in which case you're even more stupid than I first thought.

Anonymous said...

If you bought Lucent at $80 and it flies down to 50 cents,,,do you blame the broker?

Flawed argument. I give you yet another example. Brokers were selling and pushing auction-rate securities as being as secure as money market or CDs. Guess what? That market has collapsed and investors can't withdraw any money from it. Here, read for yourself:

http://tinyurl.com/65rmfl

We don't need useless middlemen making transactions riskier and more expensive. Get rid of useless Realtors, mortgage brokers, and car salesmen to make the market much more efficient. No more asymmetric information trickery.

lee said...

I'll be in Dublin the first week of May.
Does this mean I can haggle with the Bed and Breakfast owners?

Anonymous said...

Some of the comments on here are way off.

She borrowed a jaw dropping sum for that purchase, but there's no hint of her trying to take advantage - just seeking a place to call her own. Sad.
--------------------------

perhaps, perhaps not.

how do you think her mortgage and taxes compare to renting an equivalent one bedroom apartment? I bet it would be much cheaper to rent. so how did she justify buying? pride of ownership? Perhaps she thought "I will always be able to sell it in the future for a profit"? she gambled and lost. thanks for playing!

Anonymous said...

Some of the comments on here are way off.

She borrowed a jaw dropping sum for that purchase, but there's no hint of her trying to take advantage - just seeking a place to call her own. Sad.


OC Renter from The Housing Bubble Blog has busted over and over again these so called "victims" who portray themselves on the media as "innocent buyers". For instance, the LA Times had a bunch of those cases. The fact that lazy journalists don't do their work properly also helps to disguise irresponsible speculators as victims.

Never underestimate human greed.

Frank@Scottsdale-Sucks.com said...

Of course! Everybody in Europe was just sitting around, minding their own business, not speculating, not flipping, not getting into debt up to their eyeballs, not trying to become the next Donald Trump and only bought housing they could afford from sensible lenders. Then along comes the mean old U.S.A. and ruins it for everybody.

Nice try.


Europeans are a joke. For 200+ years they've been sitting around overeating, getting fat, binge drinking, looking for any excuse to avoid work, depending on the government for free healthcare, mandatory paid vacations, etc. All the while the USA surpassed them in every way possible. On top of that they must depend on the USA to protect them from threats since they're too weak to defend themselves, stripping away any last bit of dignity they had.

No wonder they resent us so much and seemingly spend all of their spare time badmouthing the USA.

Anonymous said...

So are you telling me that all those waiters in Europe, who take breaks to smoke hash and philosophy about Immanuel Kant, while bashing Americans, don't earn enough in their socialist cesspool to buy a $500k, 150 sq ft studio, built in the 1,800's, and with shared bathroom outside?

Oh my oh my, I thought those Europeans were so smart and special!

Hey European snobs, don't try to immigrate to "ugly" America when the sh!t really hits the fan at your Muslim socialism heaven.

We already have to put up with all the Russian crooks and whores who have been flocking to FL and CA in the last 10 years. Even the French a$$holes are now trying to live here, after they got tired of getting up at 3 AM to bake and sell croissants/baguettes all day to subsidize Africans and Muslims.

Hey, but you have the Eiffel Tower and used book stores everywhere. That's what it matters. You're all très chic and so intellectual, remember? Meanwhile, we, ugly Americans, will be here inventing the next revolutionary products for you to get a ride off our backs, like you did with the Internet, cell phones, microchips, WiFi, broadband, laser, RFID, barcode, Dj Profession, Personal Trainer profession, electronic music (invented in Detroit), etc, etc. Just play intellectual over there that the ugly Americans carry the planet on the back, all right? That goes to you too, Chinese.

Anonymous said...

I don't think she lost any money.

The bank will lose several hundred thousand dollars after she walks away after not paying her mortgage for six months.


That's actually not the case here,
you cannot walk away from your
debt, She will be paying this off
for the rest of her life

tater said...

It is evident to me that this lady has lost her way in the world of finances. Poor little pretty, thing. I guess that I can help her. I'm going to Dublin, and i'm gonna' ask her to just move in with me. I figure that she needs an older man such as myself, to guide her in the richer things in life.

I'll pay for her flight, and then i'll have a limousine pick her up at the airport. I'll just need to clean up my mobile home a little.... maybe, take the blue tarp off the roof that's been leaking for years. Tear out the carpet full of beer stains. The particle board flooring is still good as new. OH YEAH, she's goin' to be impressed!!

thomas jefferson said...

Did she lose that in CASH?
Or did she lose that on PAPER as presumptive earnings?
Or did she lose it at all?
Did a BANK lose that money?
Did the mortgage get bailed up along with a bunch of other junk paper and fed to the pack of greedy really, really "smart" guys? Looks like she still lives somewhere and that's something.

Anonymous said...

Take a look at Iceland - Nordic Welfare State or Hedgefund?

Yoski said...

Too bad even most people on this blog don't have much of an understanding about fiscal policy. The housing bubble has nothing to do with the collapse of the Dollar, Euro or any other currency. The strength or weakness of a particular currency is linked to the fiscal policy. If the market gets flooded with money the value of the money declines. If the printing press (or its electronic equivalent) is used conservatively the money will retain it's value. Even during the depression in the 30s the dollar didn't collapse...granted they stole the gold out of people's safety deposit boxes.
In the end, when you're dead broke it's a policy descision. You can either default on all your debt (deflation) or you can print crisp new $1,000,000 dollar bills and pay off your debts (inflation). Both scenarios are very frigthening. It looks like the US has chosen the path of inflation. On the Euro I am not sure yet. The Germans control the money/Euro and they absolutely hate inflation (Weimar 1923). So they might chose the path of outright default when the time comes.

Anonymous said...

Andrew -

Here in the USA, I can get people to listen for a little while until they start getting nervous and then they just shut down.

I don't want to talk about it. It's too complicated. Nothing bad is going to happen.

People want to be happy and content and rich. If you rock the boat before the signs and portents show, they will drive you out because it threatens their perceived success.

Chris said...

Atleast she is gorgeous

Paid Off said...

Andrew said...

"...apparently having a basic understanding of economics makes one an outcast these days."

So true! That's why all you fellow tin hatters make me feel sane. My experience is:
1. You notice what is happening.
2. The media and everybody with a vested interest says it's not happening.
3. It gets bad enough that they cannot deny it anymore.
4. They report it like it's breaking news 6 mo. later completely contradicting what they said earlier.

Reality said...

". . . importing millions of murderous angry Muslims hordes who are breeding like cockroaches"

While I'm no fan of muslims, if you replace the word "Muslims" with "Jews," the whole sentence would fit right in place among racists in pre-1946 Europe. Even to this day, some idiots in Europe still believe that Jews murder Christian babies and drink their blood on pass-overs. Continental Europe is one f*cked up benighted place; that's why so many of Europeans emigrated to this country (USA).

Anonymous said...

.



Shurin begorah!


If the Irish were smart they would be Scotsman!




.

Anonymous said...

.

What do you get when you cross a Irishman with a Scotsman?


Someone who wants a drink but is too cheap to buy one!


.

Anonymous said...

.


What do you get when you cross an Irishman with anyone?

A soccer fight!



.

a.creampuff said...

Housing ladder. Literally.

Anonymous said...

pretty in pink said...

Not so..

Europeans in particular are exceptionally dumb.

All throughout history Europeans have been self destructive.


Bubble-head in Pink, hun, my dear...
You watch way too many movies.

Less then 100 years ago, Europeans murdered, burned and robed the brightest most innovative and hard working Jews amongst them, they thought it would be a ‘get rich quick’ scheme, by killing their neighbors, stealing the Jewish peoples land and belongings.

Killing ...
Murdering ...
Stealing land ... (?!?)

Hun, you're projecting.


What they lost was the people and energy that raised Europe out of the dark ages.

We are watching Europe slide back into the dark ages right in front of our very own eyes.


Not my case, your Honour.
I'm Spanish and we were busy fighting Enemy Combatants.

Got Rice puffs?

Choke on ur Matzo Balls, hun.

Keyser Soze said...

Can she Riverdance?

Andrew said...

@lee
you can always try but the irish will find some way to screw you over in the end. they'll lose your bags while they clean your room and charge you 5 euro to find them.
it's a nation of rip-off artists all ripping each other off.

the ripoffs got so bad before the Ryder Cup that the US amabassador told the Irish to chill out on the gouging or Americans will never come back to visit.

during the famine they gouged their starving countrymen rather than cut prices and save lives- of course they blame the english for it but leave out this small footnote.

Anonymous said...

what was she thinking?

Anonymous said...

add Canada and Australia

Anonymous said...

The strength or weakness of a particular currency is linked to the fiscal policy. If the market gets flooded with money the value of the money declines.

Perhaps you mean Monetary Policy, eh?

Anonymous said...

Anon said:
‘What they lost was the people and energy that raised Europe out of the dark ages.

We are watching Europe slide back into the dark ages right in front of our very own eyes.

Not my case, your Honour.
I'm Spanish and we were busy fighting Enemy Combatants.

Got Rice puffs?’

Mr. Spain, remember the “Spanish inquisition”?

Only one proud and strong people (Jews) retained their culture, unlike your whimpy grandparents who sold their soul to the Romans for comfort.

Anonymous said...

When I was going to college I had several students who came from Ireland. We kept in touch over the years. I went to visit them in Dublin in the summer of 2007. I read from the Economist that this housing bubble was a worldwide problem. During my three week stay in Dublin, I saw simple apartments for sale for 500K to 700K and single family houses for 1M (two to three bedrooms for God's sake) and if you wanted more room it would easily cost you 2M for a freakin house. Guys and gals, if you think our American real estate values were out of whack, you aint seen nothing when compared to Ireland.

Americano said...

Anon said:
‘Less then 100 years ago, Europeans murdered, burned and robed the brightest most innovative and hard working Jews amongst them, they thought it would be a ‘get rich quick’ scheme, by killing their neighbors, stealing the Jewish peoples land and belongings.'

'Killing ...
Murdering ...
Stealing land ... (?!?)’

Yes Yes and Yes.

Ha,

Another angry Spanish FBer.

Quit blaming others for your dumb decisions.

And do yourself a favor, circumcise your little guy, just get a magnifying glass, tweezers and a pair of snips.

Happy Passover.

Anonymous said...

My Wife and I saved ten years for our $100,000 down payment. We have already seen homes in our area sold for $50k less. We trusted our Realtor, and we got screwed. The only good thing that came out of this is that we have spent over a 1,000 hours reading about economics, social-political issues, and investing. Now we know better. Thank you for this web site.

Anonymous said...

I'd tap that

k.w. - southern ca. said...

Don't feel too bad, the ones who
are going to get really screwed are those still stuck with a mortgage worth considerably more than the house is actually worth.

What makes matters worse is that the current buyer pool that have
both enough cash reserves and an excellent credit history are still being denied by banks, simply because lending has tightened up.

A friend of mine stated that he thinks so many people are still living in fantasy land, and really believe that a green little smurf must sit on top of their roof to keep prices artifically inflated.

People need to understand that most houses sold across this country in the past few years were never worth what they are committed to paying for them.

At least you see what's really going now, while others are still in deep denial (fear).


Anonymous said...
My Wife and I saved ten years for our $100,000 down payment. We have already seen homes in our area sold for $50k less. We trusted our Realtor, and we got screwed. The only good thing that came out of this is that we have spent over a 1,000 hours reading about economics, social-political issues, and investing. Now we know better. Thank you for this web site.

jojo said...

I am disappointed that this website allows 'turds' to put forward their jealous, insulting remarks about decent people, and yet remain anonymous. What brave- hearts we have here!
The website should have some form of redress for those who are subject to the vitriol vituperating from these bumbling amoebas.
(for the stupid people to whom I refer - amoebas are microscopic life-forms which are not recognized as living organisms since they often resemble decaying organic remains)