Councils want power to offer competitive mortgages
When ideas like this are floated, we must be in deep trouble.
"Council chiefs have called for extra powers to allow them to offer competitive mortgages in an attempt to rescue the housing market. In a letter published in today's Times, they argue that the public sector should be able to help first-time buyers and those unable to secure a home loan. Critics believe that the move could lead to higher council tax if borrowers defaulted."
It is difficult to know where to start with this one. Perhaps, I should keep it simple and ask the rhetorical question "would the local council leaders in Manchester, Bristol and Lambeth make good bankers?"
City sceptical on retail sales figures
"The City reacted with wry disbelief when government figures out today showed that the volume of retail sales in the high street rose by 0.8% in July."
I had a look at the retail sale numbers this morning. They seemed way too weird. I didn't bother posting them.
UK homes for rent exceed demand
"Supply of rental accommodation rose at its quickest pace on record in the three months to July, outstripping the increase in demand from tenants, according to the latest data from the Royal Institution of Chartered Surveyors."
I've been saying this for a couple of months. Rents are not going up, and all those buy-to-let monkeys are in trouble.
The US downturn is getting closer
"The Conference Board reports today that the Composite Index of Leading Economic Indicators declined 0.7 percent in July, following no change in June and a 0.1 percent decline in May. "
Chart of the Day: LEI
Big picture, putting all the bad US news onto one chart.
The Risks of Real Estate
A Motley fool article that is about 5 years too late.
Just in case you haven't seen this "must read" piece from Merrill.
Subprime Mortgage Bonds Lead `Extinct' Credits
"Subprime mortgage-backed bonds lead credit products rendered ``extinct'' by the collapse of the U.S. housing market." At last, some progress....
Money & morals
Another great post from stumbling and mumbling.
Here is what caused the crisis
"Dear Mr. Berko: Can you explain to me in simple English how this banking crisis happened?"