Great Britian’s housing bubble is just like California’s

Apr 28th, 2011  
by IrvineRenter  in Library News

Astute Observations

Astute Observation by winstongator
2011-04-28 04:39 AM

When you talk about these issues, some wonder why you dwell on it and point out the mistakes of others.  You should have made it clear already, but again point to how ongoing legislation (what is a qualified residential mortgage?) is shaped by popular opinion and legislative attitudes.  If you think that lax bank regulations had nothing to do with the bubble, then you don’t care, but few (apart from those whose livelihood depends on transaction volume and rising prices) believe that we need to bring standards back down to the 00’s levels.

There is a lot of international money that will flow to London property.  Mid-East, South Asian, East Asian economies are booming, and the richest of the rich in those areas are drawn to London.  I know the example of FCB’s holding the bag is the Japanese buying up NYC, but I think the dynamics of the developing economies and OPEC are different.  What would it take to get oil back to $50/brl?  The Dow back at 7k, which might not even do it because of demand from developing economies.

The Irish were not FCBs.  They were FBs, but they were using German Euros flowing through Irish banks.

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Astute Observation by so_scared
2011-04-28 08:52 AM

the Japanese were equally FB to the Irish as well using domestic loans against the greatest real bubble ever to buy stuff in NYC and CA.

They could have simply held on to their “peak of market” late 80’s purchases and walked away like bandits anytime this century probably.

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Astute Observation by Chris
2011-04-28 06:24 AM

Moonstone should be in 92602 and not 92606 zip.

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Astute Observation by Planet Reality
2011-04-28 06:40 AM

I can’t wait for the prime areas of London to crash 60% as the substitution effect moves the high paid bankers to the post industrial slum towns surrounding.

Let us all know when you substitue either riverside or Vegas for Irvine.

Keep us informed of the similar crashes to come in Paris, New York, SF, and even the prime areas of Munich.

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Astute Observation by AZDavidPhx
2011-04-28 08:18 AM

Hey PR -

Comments on the 2003 asking price rollback?

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Astute Observation by tlc8386
2011-04-28 09:44 AM

London is not going to crash the situation in London is and always has been it’s size. Very short supply in a very high demand area. It may fluctuate in price but like most of the cities in Europe any time some family decides to sell it’s a rarity. These properties are passed down to family members and held onto for generations. Demand is what drives their prices.

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Astute Observation by tlc8386
2011-04-28 09:49 AM

http://www.totallymoney.com/news/index.php/2010/03/uk-housing-market-among-most-improved-in-europe/

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Astute Observation by Ki
2011-04-28 11:34 AM

LMAO - I can picture the billing now:

Paris - New York - London - Irvine.

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA.

I know that Irivne will always be a desirable place to live and command somewhat a premium in comparison to other cities in southern california, but really?  Really?  Read city listing above again and try not to LOL.

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Astute Observation by DarthFerret
2011-04-28 08:55 PM

“Paris - New York - London - Irvine.
...
Really?  Read city listing above again and try not to LOL.”

This blog could really use a mechanism for Recommending good posts, such as that on The Motley Fool (http://boards.fool.com). I would definitely have Rec’d the post above.

Irvine is a well-manicured suburb of a gritty, poorly-developed, sprawling, second-tier city (Los Angeles). Irvine is UN-remarkable in every way. It’s a nice, quiet place to live, but that’s it. I happen to like it that way, but I agree that claiming it has some sort of Manhattan-esque premium is LOL-fodder for sure.

-Darth

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Astute Observation by newbie2008
2011-04-28 09:01 AM

With non-recourse loans, a drop of 60% in house would boost the economy in the long run.  Money spent on the house would be reallocated to other areas such as consumer spending, investment, education, vacations, etc.  To prevent this from happening, the Fed, banks and govt. will punish the subjects through inflation and high unemployment until the top banksters are made more than whole via that bailout, retention packages, bonus, QE of almost free money at taxpayers expense.

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Astute Observation by Kevdiego
2011-04-28 09:22 AM

What’s the story with the German housing market? According to your graph, it looks really expensive!

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Astute Observation by IrvineRenter
2011-04-28 11:43 AM

I found the graph on Tim Iacono’s site:

http://timiacono.com/index.php/2010/08/04/the-german-housing-bubble-that-wasnt/

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Astute Observation by Anonymous
2011-04-28 05:41 PM

Foreclosure bill voted down in California, fight not over

http://www.housingwire.com/2011/04/28/foreclosure-bill-voted-down-in-california-fight-not-over

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