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Township Here Now Pushing This Concept
As tax revenues have fallen with homes foreclosed, the leaders of the community have begun pushing investors to snap them up and rent them out. You know....houses have never been cheaper, great time to buy, rent demand will soar in the future etc etc
Too many people over here
Too many people over here invested too much of their debt in property.
The People's President
Ron Paul R[̲̅ə̲̅٨̲̅٥̲̅٦̲̅]ution 2012
Minor typo.
Its "Bradford & Bingley" not "Bradford & Bringley".
"As for me and my home. We will read Peter Schiff."
To put it into perspective,
this company's business concept of 'buy and let' was prone to bust with the housing bubble.
Freedom brings People together
Ron Paul was right
Buy-to-let is HUGE in Britain.
It wasn't seen as an off-the-wall concept. It wasn't just maverick lenders who pushed it. All the major banks in Britain promoted it to their customers.
It was presented as a safer bet than an under-performing stock market! The result of the buy-to-let boom was that property prices and rental prices went through the roof.
Aspiring landlords would start by remortgaging their own home. Buy a property with that. Rent out the new property for the full cost of the mortgage repayment. Use that property for collateral on the next one. Lather, rinse, repeat. Many property empires were built this way!
I grew up in an affluent city in the south of England. When I saw a small, one-bedroom, former local authority apartment advertised to let for £600 (around $1000 US) per calendar month, I migrated a few hundred miles north where the property bubble was still in its early stages.
I became an "economic migrant" in my own country. Not for better employment, but for cheap rentals!
All the newspapers are saying how awful this property crash is. I think its great. I can't wipe the smile off my face :-)
"As for me and my home. We will read Peter Schiff."
Victims of their greed
Any feelings of 'Schadenfreude' ?
Freedom brings People together
Ron Paul was right
Its a great German word :-)
I'm often reminded of the "chickens coming home to roost" remark of Malcolm X. He was talking about the Kennedy assassination, but his words apply very well to boom/bust economic cycles.
My view of the business cycle has changed drastically. From the views of Karl Marx to those of Ludwig Von Mises.
For example, vast numbers of "luxury apartments" have sprouted up all over Liverpool with nowhere near enough well-heeled yuppies to occupy them all. These "investment properties" will lie empty for years.
An orthodox Marxist would interpret that as a "crisis of overproduction" where ever more concentrated capital chases ever decreasing avenues of profitable investment and masses of unsold goods pile up because no-one can afford them.
An Austrian economist on the other hand sees the malinvestment caused by government intervention in capital markets and raises the spectre of an inflated money supply. Something that Marx never even touched on!
"Being an old farm boy myself, chickens coming home to roost never did make me sad; they've always made me glad." - Malcolm X.
Here's a 'fake' German
Here's a 'fake' German saying which would seem apropos. "Heilige Scheiße."
..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore
I think that is what Marx and Von Mises would say right now.
Given the size of the bailout.
"need a girk chatta me kort" - m72mc
http://mine.icanhascheezburger
Interesting notion
I never understood why Marx thought 'the capital' to be so stupid to stumble into the crisis he predicted. Real history has shown that big business and industry were soon smart enough to be aware it needs a large number of consumers to buy the products.
Though Marx would deny it, his predictions of the inevitable breakdown of the capitalist system are more similar to religious eschatology than to scientific analysis.
There the circle closes http://en.wikipedia.org/wiki/Immanentize_the_eschaton
Freedom brings People together
Ron Paul was right
The "crisis of overproduction" is just Marxist terminology...
...for the "credit crunch". That's it!
So the question is, what causes the "credit crunch"? Well, you already know what Von Mises would say to that. But for the benefit anyone who isn't familiar with his work:
http://en.wikipedia.org/wiki/Austrian_Business_Cycle_Theory
Eschatology eh? I'll look into that...
"As for me and my home. We will read Peter Schiff."
"Being an old farm boy myself, chickens coming home to roost never did make me sad; they've always made me glad." - Malcolm X.
It seems that nationalized banks
participate in usury, infecting the currency to the point of extinction
Care to elaborate?
"As for me and my home. We will read Peter Schiff."
"Being an old farm boy myself, chickens coming home to roost never did make me sad; they've always made me glad." - Malcolm X.
Boo Hoo To The Anglo-American Empire!!
I used to have an account with B&B in the 1990's. I think I might still have £2.00 or so in an account there.
Hmm, shall I fly to England and join in the run on the bank? :-)