"We’ve got our work cut out. The conditions are arguably the worst they’ve been in 60 years. And I think it’s going to be more profound and long-lasting than people thought.”
- Alistair Darling, UK Chancellor of the Exchequer, August 28, 2008
August 30, 2008
And then the British, having caused a historic European-wide speculative housing orgy, finally realized that the chickens are coming home to roost
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13 comments:
Oh thank God! Now the NY housing market can crash because we won't have the Brits artificially propping up our home prices anymore. And if our retail stores are doing well it's only because the Europeans are doing all the shopping since everything's 1/2 price to them. Not that it's good for the economy but overall - there are clearly some bad times ahead but the current state of affairs needs to be cleaned up in a big way.
Rules of investing:
Rule 1: Don't Panic.
Rule 2: If you do panic, be the first to panic.
Current account (=trade) deficit since 1984 and still going strong! Way to go Brits! Maybe selling crappy and leaky houses to each other and manufacturing next to nothing is not a recipe for success.
This will be much much worse for the Brits and Yanks since Great Depression and probably even worse that!
All of Europe will come crashing down..
The Brits are not unique.
Germany, France, Spain, and Poland will also be leaders in the coming massive European economic meltdown.
It is soo obvious..
Prices need to come down 60%+ all over Europe
They should hire Alan Greenspan as special advisor.
Look what he did to/for America...
Fun Question: Why don't banks have to pay Association Fees when they own condos? When a condo is foreclosed the Association eats the fee input loss. Instead they jack up the rates for the remaining condodebtors.
Do associations eat the loss to try to keep the price up? Can't even think of letting the price fall. Oh, the humanity!
You heard it first here on HP.
There is a flawed (big lie) argument that Europe is different then the US because…
“ ‘Europeans are savers’ unlike Americans that leverage credit and are spenders”
I spent time in Europe to understand this.
Here is the truth..
Europeans spend less cause they earn less.
Just like here, there is a percentage of the EU population that borrows money to bye toys they cannot afford.
Aside from this, Europe is far less productive then Americans.
My advice = park your money in the US until the dust settles.
(With our war economy,budget deficit and trade deficit, we still have major fundamentals on our side; vast amounts of natural resources and anyone in the US that is willing to jump thru the hoops will be successful; Europe is toast..)
Europeans spend less cause they earn less. – I know I know the analyst say otherwise, then again they say there is no inflation and they said Housing will never go down and the Tech bubble was different etc. etc.
It's different there.They are running out of land and natural resources.The time to buy is now.Realtors will pay your closing costs.Step up to the plate and be a man.
On a lighter note, the best three seconds of your life.
youtube.com/watch?v=qCyTB7KyR3Q
Yes, were screwed but a farting cat can at least put a smile on your face.
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Where's Fred Scuttle when we need him?
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"tiny seed grows big tree said...
Here is the truth..
Europeans spend less cause they earn less."
Yes, that must be so. According to the CIA, the GDP of the European Union is $16,620,000M while the GDP of the US is $13,840,000M.
http://tinyurl.com/y2pn7u
Ahh yes, Fred Scuttle, Real Estate genius. Now there's a face that just MAKES you want to buy, buy, buy that house. Love him!
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