The Big Bailout of the Eurozone (Another crisis coming? - Seriously)

[bcarrier]

The punt now buys 106p sterling.

What are rental yields in North ...i have heard of 2-3% in places which implies huge over valuation of property. I can get nearly 6- 7% in London.

[passedit]

The punt now buys 106p sterling.

What are rental yields in North ...i have heard of 2-3% in places which implies huge over valuation of property. I can get nearly 6- 7% in London.

Indeed BC, although the penny appears to be dropping. You can't give away flats here now and even the estate agents are beginning to cop on. Prices (as in sold not advertised) are down around 50% from last year and have a fair ways to go yet.

London is starting to bomb as well though, check out some of the prices from this auction today.

http://www.auction.co.uk/residential/ResultsLive.asp?S=C&O=A

[Donagh]

Prices (as in sold not advertised) are down around 50% from last year and have a fair ways to go yet.

Really? Is there anyway of finding out what houses have been sold for? We've been loking at houses down around south Armagh and south Down (handy to A1) and they still seem wild expensive but we don't want to be going in with cheeky bids in case we're told to feck aff. Most of the properties we've been looking at have been on the market for near a year but still have the same asking prices.

[bcarrier]

SE postcodes passedit . Who would live there.

W and E1 Ok.

[passedit]

In any part of the UK apart from this dump you can simply click on http://www.houseprices.co.uk and  punch in the address.

Here you have to stroll on down to the Land Registry Office and pay your three quid.

Estate Agents are openly admitting 40 % drops ( see linkhttp://www.housepricecrash.co.uk/forum/index.php?showtopic=94846) while a bank valuer told a friend of my missus only this week that the house she bought for £500k last year was worth £250 (she had been hoping to extract some equity    ) and that what few mortgage approvals there were, were reflecting 50% off from last autumn.

We've been loking at houses down around south Armagh and south Down (handy to A1) and they still seem wild expensive but we don't want to be going in with cheeky bids in case we're told to feck aff. Most of the properties we've been looking at have been on the market for near a year but still have the same asking prices.

Why not? Substitute realistic for cheeky and you're nearly there. If you must buy now, why not ring a few estate agents, tell them what you want (location, bedrooms etc and that you're a willing buyer at or around rateable value.  http://vlistdcv.lpsni.gov.uk/search.asp?submit=form  and for them to give you a shout when they've got what you're looking for. You might not hear anything for a month or so but they'll be ringing you soon enough

[passedit]

SE postcodes passedit . Who would live there.

W and E1 Ok.

Oi!
Me for about six years.


What about this one then? http://www.auction.co.uk/residential/LotDetails.asp?A=582&MP=125&ID=582000109&S=L&O=A
last sale here http://www.houseprices.co.uk/e.php?q=113%2C+flat+4+SW10+9DU&n=10

there'll be plenty more where that came from

[bcarrier]

What yield would you buy at passedit ?

[the Deel Rover]

Prices (as in sold not advertised) are down around 50% from last year and have a fair ways to go yet.

Really? Is there anyway of finding out what houses have been sold for? We've been loking at houses down around south Armagh and south Down (handy to A1) and they still seem wild expensive but we don't want to be going in with cheeky bids in case we're told to feck aff. Most of the properties we've been looking at have been on the market for near a year but still have the same asking prices.

Donagh there is no harm going in with a cheeky bid what have you got to loose all the person can say is yes or no. At the moment its a buyers market. buyers with mortgage approval are like hens teeth and no one knows the circumstances of the seller they might be in a hurry to sell the house .

[Rois]

What about the Presbyterian Mutual fund news this morning?  Liquidity problems caused by panic withdrawls it seems.

It operates under the same model as credit unions, which poses a risk for a large number.  No government guarantees with these savings.

[passedit]

What about the Presbyterian Mutual fund news this morning?  Liquidity problems caused by panic withdrawls it seems.

It operates under the same model as credit unions, which poses a risk for a large number.  No government guarantees with these savings.

Substitute the word sensible here. Apparently deep in the hole to Taggart Holdings. I loved the bit where the Presbyterian church was offering pastoral care (but no bailouts obviously to fundholders    )

BC I wouldn't buy at any yield today. Keep your money in your pocket for six months and see how much more bang for your buck you get.

[FermGael]

Prices (as in sold not advertised) are down around 50% from last year and have a fair ways to go yet.

Really? Is there anyway of finding out what houses have been sold for? We've been loking at houses down around south Armagh and south Down (handy to A1) and they still seem wild expensive but we don't want to be going in with cheeky bids in case we're told to feck aff. Most of the properties we've been looking at have been on the market for near a year but still have the same asking prices.

Donagh try this site http://nipropertyauctions.googlepages.com/
Gives a list of auctions happening in the North in the last while, starting bids, selling price, etc.
At the last ReMax Super Auction, nothing sold. 
When you google some of the properties, you can see that the estate agents are still looking £80'000 over what the starting auctioneer's bid was and they still could not sell it.
Cheeky bid's are the way to go

[Donagh]

Thanks lads. That's given me a bit more confidence to go for it.

[orangeman]

US car chiefs call for €20bn bailout
Wednesday, 19 November 2008 07:33
The heads of the three big US car manufacturers appeared before a US Senate committee last night in a bid to get €20bn in a stop gap loan.

The largest of the three, General Motors, is experiencing severe financial difficulties and faces the prospect of bankruptcy.

The US auto industry maintains that some 3m jobs are on the line because of the crisis.

AdvertisementThe CEOs of Ford, GM, Chrysler as well as the head of the United Autoworkers Union were on Capitol Hill last night in an all-out effort to secure the loan.

Sales at GM in particular are down 45% compared to last year. The company is spending its cash reserves at the rate of €1.5bn a month.

Last night, its CEO Rick Wagoner said the US economy would suffer a catastrophic collapse if his firm went under.

But bailout fatigue is setting in on Capitol Hill, where lawmakers have already authorised hundreds of billions of dollars to support the financial sector.

[passedit]

http://www.independent.ie/business/irish/lenihan-to-sanction-huge-bank-rescue-plan-1544122.html

Lenihan to sanction huge bank rescue plan

   
Search Query: Independent.ie Web Search

By Fionnan Sheahan and Joe Brennan

Wednesday November 19 2008

The Government is on the brink of launching a multi-billion euro rescue plan for the country's banks as the share price of a second major institution fell below €1 yesterday.

Officials are going through an expert report forensically examining the loans given out by the banks to work out their levels of bad debt.

Finance Minister Brian Lenihan held crisis talks last night with Central Bank governor John Hurley and Financial Regulator Patrick Neary.

It is understood the Government has now accepted that it will have to put public money into the banks.

The Opposition is piling pressure on for action to end the "credit famine" and ensure banks are able to give loans to businesses.

Taoiseach Brian Cowen told the Dail the Government was seeking a solution to the liquidity crisis and was looking at a range of possible measures.

Mr Lenihan has a number of different options to recapitalise the banks. These include buying ordinary shares, preference shares, or co-investing with private money.

Market sources believe the State would prefer to buy preference shares, as this would allow it to take an annual dividend even as banks scrap a payout to ordinary shareholders over the lifetime of the two-year guarantee scheme.

It is understood that the National Treasury Management Agency (NTMA) has been actively reviewing ways the €18.7bn National Pension Reserve Fund (NPRF) could be tapped as part of a recapitalisation plan.

The fund has about €1.5bn of cash, but the review is focused on finding ways to borrow off the back of some of its assets.

Analysts estimate banks will need to raise between €5bn and €14bn between them to boost their capital reserves.

It is likely the amount individual banks could access will reflect their current capital levels, expected loan writeoffs over the coming years and commitments they can give the State on lending to the broader economy.

The bank guarantee scheme means all covered banks are drawing up business plans, due for completion tomorrow.

The banks also had to grant access to PriceWaterhouse-Coopers to audit their books.

The Taoiseach says the Government will make further decisions when it has the banks' plans. If the banks don't plan to open up credit lines to businesses, Mr Cowen said the business plans will be rejected.

"I want to make it clear that the Government stands ready to make decisions that are in the interests of the economy and business and to consider all options, not just a specific option," he said.

Meanwhile, it emerged last night that the Government is paying Merrill Lynch a fee of €2m for its advice on the possible reorganisation of the banks.

Labour's Joan Burton obtained the figure from a question she posed to Mr Lenihan.

Closed

Fine Gael leader Enda Kenny demanded recapitalisation of the banks because 10,000 jobs are being lost every month.

"There is no point... in providing capital flows through the banking system after businesses have closed," he said.

Labour Party leader Eamon Gilmore said Mr Cowen and his Government were beginning to sound like "helpless bystanders".

"There is a credit famine in this country. Businesses are being starved of credit," he said.

Irish banking shares were under pressure again yesterday amid rising speculation on the Government's plan.

AIB's shares plunged 17.7pc to €2.18, while Anglo became the second bank in as many days to fall below the psychologically important €1 level. The stock closed down 25.1pc to 83c -- its lowest level in over a decade.

Bank of Ireland, meanwhile, managed to regain some ground, adding 12.2pc to 93c.

"The banks will continue to come under pressure until the Government takes action. It's death by a thousand cuts," said one market commentator.

- Fionnan Sheahan and Joe Brennan

[muppet]

As Graham Norton might say, My kingdom for a bottom.

The mixed messages coming from Lenihan's office are not helping. One newspaper says he will nationalise a bank or banks while the next says he is seeking private investors instead. That increases speculation in an already highly volatile market which results dangerous swings in the share prices. If he continues to dither like this we might wake up one morning to no ISEQ never mind the banks.

We are getting to a situation where we may need to consider a national government, at least temporarily. We could leave Cowan where he is but Kenny would replace Coughlan while Bruton would have to displace Lenihan. Any suggestions for Harney's desperately necessary successor? Dempsey and Hanafin should get their marching orders also. I don't like O'Keefe but at least he realises that this time its serious.

Around the world there here are reports of buy one car and get one free, house sells for $1 and even more bizarre Irish health unions seeks cuts from Minister to introduce vaccine (the unions seeking of cuts being the unusual bit). The US car industry is facing, in its own words, catastrophic collapse.

But its not all bad news. Tom Parsons isn't going to Australia!