I (almost) feel sorry for the banks. Making sense of the credit crunch

If we are to look at where the subprime crisis came from and where it seems to be going (which is bulls-eye straight into a recession) you can see that one of the biggest casualties are the banks. Banks never get sympathy, but they should – at least a little maybe.Why? Well, if you have a pension it’s likely that indirectly you own part of a bank, if you have a bank account then you are using the service they provide, a service which helps to protect your money and gives you conveniences like ATM card withdrawals etc. In fact, unless you were miss-sold a mortgage at an exorbitant price and you are about to have your home re-possessed then there is no reason to ‘hate banks’ really, but if you ask people on the street – and to my detriment I actually did this – not many of them (in my test pool of 10 people on Pearse St. Dublin 2 it was 100% true) really care much for the bank, including …

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One prediction you don't want to hear for 2008

I want to make a quick prediction for 2008. It will be (contrary to what everybody else in this industry says) that the property market is going to fall further and the mortgage mess is far from over. My whole living revolves around property so I don’t say this lightly, but it kills me when estate agents and the like keep saying that it will be o.k. when that is clearly not the case, this is a time where you need to be tuned and ideally experienced in order to gain from it.

Remember: when markets almost as much money can be made, in the same way you can buy then sell a share you can also sell and then buy, things moving downwards doesn’t spell disaster or the end of the world as we know it, it just requires looking at the market and being honest with your view, and it means that you may have to work a little harder for the same gain or move away from certain things altogether.

I spoke to a friend of mine …

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One prediction you don’t want to hear for 2008

I want to make a quick prediction for 2008. It will be (contrary to what everybody else in this industry says) that the property market is going to fall further and the mortgage mess is far from over. My whole living revolves around property so I don’t say this lightly, but it kills me when estate agents and the like keep saying that it will be o.k. when that is clearly not the case, this is a time where you need to be tuned and ideally experienced in order to gain from it.

Remember: when markets almost as much money can be made, in the same way you can buy then sell a share you can also sell and then buy, things moving downwards doesn’t spell disaster or the end of the world as we know it, it just requires looking at the market and being honest with your view, and it means that you may have to work a little harder for the same gain or move away from certain things altogether.

I spoke to a friend of mine …

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