Bear Stearns feels the bear, when in doubt ‘bailout’

Bear Stearns is toast. They have gotten money from the Fed (via) also JP Morgan Chase (who took them over), sorry, I meant ‘bailed them out‘ Bear Stearns became the financial equivalent of a drunken brother who was a hit and run driver, they fled the scene of their mortgage write downs and now JP is going to have to save their neck. Lehman Brothers is potentially facing the same issue.

If Lehman brothers are not in trouble then why do they need the 2bn dollar credit line? There is a credit crisis, but I think some of the firms out there are now facing a credibility crisis. The Lehman stock fell 40% in the last year. The underlying issue is property and leverage, there is a worldwide fall off in …

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Bear Stearns feels the bear, when in doubt 'bailout'

Bear Stearns is toast. They have gotten money from the Fed (via) also JP Morgan Chase (who took them over), sorry, I meant ‘bailed them out‘ Bear Stearns became the financial equivalent of a drunken brother who was a hit and run driver, they fled the scene of their mortgage write downs and now JP is going to have to save their neck. Lehman Brothers is potentially facing the same issue.

If Lehman brothers are not in trouble then why do they need the 2bn dollar credit line? There is a credit crisis, but I think some of the firms out there are now facing a credibility crisis. The Lehman stock fell 40% in the last year. The underlying issue is property and leverage, there is a worldwide fall off in …

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Is London losing its head?

There was quite a fuss about the British budget budget yesterday especially because non-domiciled (non-doms) are going to face a 30k sterling levy, there is a fear (it is not certain whether it is real or supposed) that this will ultimately cause a ‘brain drain’ on the country and cause much of the foreign talent to flee to other places rather than pay a hefty fee.

This levy was only brought in because there are so many highly paid talents are living in the UK virtually tax free, and the likelihood is that they are not paying tax where ever they are domiciled. For the highly paid exec’s they can threaten to leave but they won’t. leave and go where? London is to finance what Rome once was to the empire, if you leave you’ll be paid 30k less to do more work in the new place. The outcry is purely from those whose vested interests may be hurt. Irish tax dodgers tend to be simple in their approach, you don’t pay and then when you are audited you get …

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US fed will inject $200 billion in cash in an effort to end the credit crunch

The United States Federal Reserve have announced that they will give a $200 billion dollar cash injection to ease the tensions in the credit market that are threatening to stall the wider US economy. They will buy mortgage backed security in return for cash and that will hopefully free up the credit markets and lending. Does that mean the Fed is taking on the risk the banks created? In a nutshell, yes, it does mean that, they are going to accept mortgage backed bonds from banks that were finding it hard to raise cash through the normal channels. So these institutions are not good enough for the market but they’ll do for the Fed.

The banks and financial institutions have taken a beating due to the credit crunch but it seems now that the fed is willing to stand up and be hit on behalf of the banks, so its like a guy who steps in to break up a fight and he turns out to be …

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Michael Lynn’s house to go on sale today.

The home of Michael Lynn the ‘disgraced’ Solicitor is to go on sale today. The interesting thing is that if you rip off the banks you are ‘disgraced’ if you rip off the Public you are a ‘Taoiseach’ or something along those lines. Any auctions coming soon in Drumcondra? I think not.

In a post several months back I did a piece that said ‘You can’t catch me, I’m the Lynngerbread Man’ and thus far it has proven true, sightings of Michael Lynn are becoming almost as popular as sightings of Elvis and the Lough Ness Monster, Michael if you are reading this drop me an email, I’d love to chew the cud with you for an hour or two. Anyways, his house is going to be sold today, I almost want to place a bid on the place just to say I put a bid on the house once owned by our countries greatest ever con-man, rephrase: our countries greatest ever non-governmental con-man.

An article on breakingnews.ie states …

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Michael Lynn's house to go on sale today.

The home of Michael Lynn the ‘disgraced’ Solicitor is to go on sale today. The interesting thing is that if you rip off the banks you are ‘disgraced’ if you rip off the Public you are a ‘Taoiseach’ or something along those lines. Any auctions coming soon in Drumcondra? I think not.

In a post several months back I did a piece that said ‘You can’t catch me, I’m the Lynngerbread Man’ and thus far it has proven true, sightings of Michael Lynn are becoming almost as popular as sightings of Elvis and the Lough Ness Monster, Michael if you are reading this drop me an email, I’d love to chew the cud with you for an hour or two. Anyways, his house is going to be sold today, I almost want to place a bid on the place just to say I put a bid on the house once owned by our countries greatest ever con-man, rephrase: our countries greatest ever non-governmental con-man.

An article on breakingnews.ie states …

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Missed mortgage payment? bad debt? How a bad debt caused a crisis

That’s whats behind the worldwide sub-prime crisis, millions of people missing payments, albeit on loans that may have been mis-advised or even extortionate but it doesn’t gloss over the fact that one guy in Ohio who decides he’s not going to pay his mortgage any more is not an isolated event when its correlated with all the other homes in the state who also decided to do the same. When you put all of these loans together (this is a simplified view just to make the point) then the Bank of ‘Wherever’ will suffer because of it.

Eventually the securitization process will start to feel the pressure, securitisation is where banks take all of their loans and then they put them into a ‘book’ of loans. So (I’m going to do this blog in layman-speak) basically all of the pages that are mortgages are put together into a folder, this is called a ‘mortgage book’ and then a thing called ‘gap maturity’ is worked out by risk analysts and this will tell you how much cash flow you can expect …

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Oil Hostages & European oil dependence

Oil prices are at record highs, not record highs for the last year or decade, but ever. And what we are starting to see now is a realisation by countriees with oil that they hold the cards that in the past they never had, they were at the table and holding a royal flush but didn’t know how to play the game. Up until recently the flow of oil was largely influenced by the USA and the EU but that seems to be diminishing quickly as Arab Nations and Russia grow into the big oil boots they have had for so long but failed to notice.

Here’s a question: Is Russia’s Gazprom, a state sponsored strong arm? They have been holding the Ukraine to ransom lately by denying them oil. Don’t forget: the Japanese went to war with the USA for the same reason 60 years ago, natural resources are unfortunately geographically bound in a very global world. Cutting a nations gas supply during the winter – …

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Oil Hostages & European oil dependence

Oil prices are at record highs, not record highs for the last year or decade, but ever. And what we are starting to see now is a realisation by countriees with oil that they hold the cards that in the past they never had, they were at the table and holding a royal flush but didn’t know how to play the game. Up until recently the flow of oil was largely influenced by the USA and the EU but that seems to be diminishing quickly as Arab Nations and Russia grow into the big oil boots they have had for so long but failed to notice.

Here’s a question: Is Russia’s Gazprom, a state sponsored strong arm? They have been holding the Ukraine to ransom lately by denying them oil. Don’t forget: the Japanese went to war with the USA for the same reason 60 years ago, natural resources are unfortunately geographically bound in a very global world. Cutting a nations gas supply during the winter – …

Read More →

To buy or not to buy, that is the question.

I have a problem, and its kind of a big deal to me. You see, I have a vested interest in the property market in the respect that I am a mortgage broker, so if clients ask me ‘should I buy now’ and I tell them ‘no’ – which is what I have been doing in some cases for quite a while – then in turn it affects my livelihood.

estate agents are pulling a perpetual aceThe bigger issue is that other folks with a vested interest don’t seem to be doing the same, at every turn they interpret events as a ‘buying opportunity’, so the market is going up? Go buy, there is capital appreciation to be had. Its falling? Go buy, there is value out there. It seems every card dealt to the market is an Ace.

When is not a time to buy? Well… that’s the purpose of today’s post, I will do my best to spell it out for a two segments of the Irish property market namely: investors, first time buyers. Investors: I will start …

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