Barnsley Lass sends greetings from the Limousin....

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06 September 2008

New Channel 4 Progrmme on housing

http://www.guardian.co.uk/society/2008/sep/05/housing.houseprices


Well worth a read......

Starts next Monday........

04 September 2008

Collapse of a lego house!

Watch what happens when the real house price crash occurs!!

Peter Schiff ~ Eye of the Storm

In The Eye of The Storm
Peter Schiff
Sep 4, 2008

As we enter the height of the hurricane season, it may be worthwhile to recall, when considering the economy at large, the particular deception that lurks in the "eye" of the storm. After a raging tempest, the sudden appearance of the calm 'eye' can all too easily encourage people to leave their shelter in order to assess and even repair damage, exposing themselves to the often more devastating second leg of the hurricane.

We have long warned our readers of a coming real estate crash which would then lead to a credit crunch, and eventually a major round of bank failures. We have argued that these developments would be the precursors to a major recession, and perhaps a depression.

As predicted, the collapsing values of bonds backed by subprime mortgages did indeed lead to a collapse of the entire mortgage market, a bank liquidity crisis, a credit crunch and a steep fall in consumer confidence. This was the first leg of the storm, but the full blown banking collapse and the deep recession are not yet manifest. The conventional wisdom holds that the bullet has been dodged.

The markets are buying this hypothesis. Tempted by the latest crop of economic data that seems to show expansion, U.S. stocks have moved sideways, and even climbed slowly. The U.S. dollar has risen from its lows, and the rate of bank failures appears to be under control. In short, with gold off almost twenty percent from its highs, it looks as if many investors have concluded that the worst of the storm has past, and have decided look for good deals amid the stock market wreckage. Proceed with caution.

At its core, our economy is simply showing the effects of a national depletion of wealth caused by decades of consuming more than we produce and spending more than we earn. The natural corrective mechanism to such a condition is a recession. But recession is very bad for politics, especially in an election year. So, the potential corrective recession has been postponed by a massive injection of billions of dollars into the economy. At a time when we needed serious physical therapy, the government instead offered four massive pain killers:

First, the debased U.S. dollar has boosted exports and helped the GDP to remain positive.

Second, by setting interest rates below the rate of inflation the Federal Reserve discouraged savings and encouraged borrowing and spending.

Third, massive government lending kept the financial service industry solvent and the mortgage lenders operating.

Fourth, stimulus checks have kept American's spending money that they have not earned.

Although these government palliatives have succeeded in calming the immediate crisis (by saddling American taxpayers with massive liabilities), they have not cured the disease. If anything the huge doses indicate that the patient is getting far worse, even if in silence!

Last week, the FDIC announced that bank losses have tripled to $26.4 billion, leading to a fall of 86.5 percent in bank earnings. The Case-Shiller home price index shows American housing to have fallen in value by some 20 percent and still sliding. These massive movements have yet to be felt along the entire economic spectrum... but it is inevitable that they will be.

Don't be lulled into a false sense of security and start buying U.S. equities at seemingly knockdown prices. We are in the eye of the hurricane. Beware of the second leg!

###

For a more in depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar denominated investments, read my book "Crash Proof: How to Profit from the Coming Economic Collapse." Click here to buy a copy today.

More importantly, don't wait for reality to set in. Protect your wealth and preserve your purchasing power before it's too late. Discover the best way to buy gold at www.goldyoucanfold.com, download my free research report on the powerful case for investing in foreign equities available at www.researchreportone.com, and subscribe to my free, on-line investment newsletter.

Sep 3, 2008
Peter Schiff
C.E.O. and Chief Global Strategist
Euro Pacific Capital, Inc.
1 800-727-7922
email: pschiff@europac.net
website: www.europac.net
Archives

Mr. Schiff is one of the few non-biased investment advisors (not committed solely to the short side of the market) to have correctly called the current bear market before it began and to have positioned his clients accordingly. As a result of his accurate forecasts on the U.S. stock market, commodities, gold and the dollar, he is becoming increasingly more renowned. He has been quoted in many of the nation's leading newspapers, including The Wall Street Journal, Barron's, Investor's Business Daily, The Financial Times, The New York Times, The Los Angeles Times, The Washington Post, The Chicago Tribune, The Dallas Morning News, The Miami Herald, The San Francisco Chronicle, The Atlanta Journal-Constitution, The Arizona Republic, The Philadelphia Inquirer, and the Christian Science Monitor, and has appeared on CNBC, CNNfn., and Bloomberg. In addition, his views are frequently quoted locally in the Orange County Register.

Mr. Schiff began his investment career as a financial consultant with Shearson Lehman Brothers, after having earned a degree in finance and accounting from U.C. Berkley in 1987. A financial professional for seventeen years he joined Euro Pacific in 1996 and has served as its President since January 2000. An expert on money, economic theory, and international investing, he is a highly recommended broker by many of the nation's financial newsletters and advisory services.

321gold Ltd

Gangs war on streets of London

Gang warfare on the streets of London as Asian and black youths battle outside Julie Christie's house

By Daily Mail Reporter
Last updated at 10:28 AM on 04th September 2008


Comments (23) Add to My Stories

Armed with metal poles, sticks, a screwdriver and even Wellington boots, two gangs of black and Asian youths fight it out in broad daylight on the streets of London.

The terrifying scenes were captured by a photographer who had been waiting in the street to take a photo of the actress Julie Christie, who lives nearby.

Instead he was faced with a brutal illustration of life in modern Britain as gang warfare erupted around him in broad daylight.

In one picture, a gang member threatens another with a screwdriver, while in another, even a Wellington boot is used as a makeshift weapon.

Enlarge A group of Asians take on a group of Black youths with screwdrivers, spades, metal poles and sticks outside Julie Christie's home


Enlarge
One gang member attacks another with a screwdriver as the two gangs confront one another

Some of the gang members wear masks as they charge down the street waving sticks and other assorted weapons.

The dramatic confrontation took place yesterday afternoon in streets near Columbia Road, in East London, home to the popular Sunday morning flower market.

The battle lasted around 20 minutes and involved at least 10 youths.

According to reports the fight appeared to have its origins in a dispute between a local Asian man and some youths who he had accused of vandalising his property.

Enlarge
Metal poles and sticks are used as weapons as the running battle continues

While the area lies in the heart of London's East End, its terraced houses sell for up to a million pounds each and it is surrounded by fashionable cafes and shops which have sprung up around the flower market.

Scotland Yard said it had received numerous calls about the battle and officers were investigating.

Bank Rate Held....September Meeting.....

Thursday, Sep 4, 2008
MPC holds UK interest rates at 5%
BBC: Bank keeps UK interest rate at 5%
The Bank of England has kept interest rates on hold at 5% for a fifth month as it struggles to deal with a slowing economy and soaring inflation. But with reports signalling the economy is heading for recession, expectations are rising that the cost of borrowing will be cut by the end of the year. Economic growth ground to a halt in the second quarter of this year, its worst performance since the early 1990s. However, inflation is more than double the Bank's target of 2%.

Property Price drop accelerates

Property price drop has accelerated
By PA News
September 02 2008
Government help for homebuyers follows 12 months which have seen prices tumble and loans restricted.

- The average UK property has lost 10.5% of its value during the past 12 months, the biggest drop since the final quarter of 1990, according to Nationwide Building Society.

- Property prices fell by 1.9% in August following drops of 1.5% and 0.9% in July and June respectively.

- The average property in the UK currently costs £164,654.

- London house prices dropped by 5.3% in the last month, a report by property agent Rightmove showed.

- The top five worst affected areas in London, when comparing July to August, were Wandsworth, Brent, Kingston upon Thames, Richmond upon Thames and Greenwich.

- Property firm Savills said profits in its estate agency slumped 88% during the first half of this year.

- Buyers are currently putting down average deposits of 20%, falling to around 10% among first-time buyers, according to the Council of Mortgage Lenders.

- Figures show that 144,400 first-time buyers got on the property ladder between August last year and the beginning of this year, and many of these could now find themselves in negative equity.

- Around 552,000 people bought a property with a 100% mortgage between the beginning of August last year and the end of March, meaning they have no equity cushion against house price falls.

- The Halifax estimate 300,000 first-time buyers entered the market in 2007, the lowest since 1980. This compares with an estimated 900,000 at the peak in 1988.

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