Sunday, June 29, 2008

Comical Austin

Saturday, June 28, 2008

Sunday, June 22, 2008

European Housing Bubble Makes U.S.'s Look Tame

"Figure 5 shows total RMBS issues expressed as a percentage of GDP for nine countries. The U.K. still leads, but Ireland, the Netherlands and Spain also embraced the securities at the heart of the collapsing debt structure. Although Deutsche Bank and Société Générale bought into the mania, Germany and France seem to have generally avoided direct participation. The surprise is the United States, which, when compared to Europe, looks like the epitome of fiscal conservatism. For this puny ratio the firm of Bear Stearns no longer exists? Either the 'subprime' debacle in the U.S. was much ado about nothing, or the havoc wreaked on the U.S. financial system and economy by a relatively low ratio of RMBS to GDP bodes far greater ill for much of Europe when their own bubbles burst."


Friday, June 20, 2008

Thursday, June 19, 2008

Wednesday, June 18, 2008

The Greed Game

Sunday, June 15, 2008

Debt Slavery Emancipation

A wise and successful man made a comment to me once that has stuck out in my mind ever since. He told me there is one major difference between the wealthy and the destitute. "Rich people earn interest," he said with a smirk. "Poor people pay it."

Throughout my early schooling I had learned about the old English Fuedal system. Back then you were either born into the upper class or you weren't, and if not there was no chance of escaping your class. English Nobility owned land by birthright and the rest of the population had to work in servitude for the right to stay on the land. As the Brits began to expand and colonize the world, they brought with them their sense of ownership and superiority. One of their first stomping grounds was Ireland where they systematically stripped the Irish farmers of their land and turned them into tenants. If the farmers could afford the rents then the English Nobility would raise the price. The U.S. suffered similar English oppression for quite some time but finally managed to shake the monkey off their back on July 4th 1776.

Saturday, June 14, 2008

Wednesday, June 11, 2008

Tuesday, June 10, 2008

Friday, June 6, 2008

Citigroup cuts rating on BoI and Anglo Irish

International investment bank Citi (formerly Citigroup) has published a negative report on Irish banks, cutting its recommendation on both Anglo Irish Bank and Bank of Ireland from hold to sell.

Citi says deteriorating credit quality is its biggest concern for the Irish banking sector arising from their exposure to the Irish and UK property. Citi says slowing loan growth is already factored into expectations.

The bank's equity research division says the greatest downside risk to earnings and to tangible book values relates to Anglo Irish Bank. It says 80% of the bank's loans are secured against Irish and UK commercial property.

Bank of Ireland also attracts significant concern because 71% its loans relate to Irish and UK properties while it is also active in the UK buy-to-let market. Citi says there is evidence of rising arrears in this sector.

It has lowered its price target for Anglo Irish Bank to €6.70 euro and to €6.60 for Bank of Ireland.

Citi says AIB Group is more resilient to downside risk and therefore it maintains its hold recommendation for the share, although with a reduced target price of €11.60.


Wednesday, June 4, 2008

Tuesday, June 3, 2008

UTV Insight - Bursting the Bubble

The Alligator

PORT CHARLOTTE — Jeffrey J. Lauro put almost all the pieces together to build as many as 1,400 condominiums and single-family homes in Charlotte and Sarasota counties during the real estate boom, say people who did business with the 37-year-old entrepreneur.

Lauro also had plans to build an assisted-living center and a Longhorn Steakhouse restaurant, and to refurbish an 18-hole golf course on the border of Charlotte and DeSoto counties.

"His plans made sense," said John Kingston, a Lake Suzy mortgage broker who helped assemble building lots for Lauro. "If he had gone through with them, he would be worth tens of millions of dollars today."

Instead, Lauro is facing criminal charges in Charlotte County for allegedly stealing $198,000 through a construction loan scheme. Two of his companies are in bankruptcy with debts that could amount to more than $20 million.

In one of the bankruptcy cases," 177 investors from England, Scotland and Ireland
are claiming that Lauro took their deposits totaling more than $6 million and never brought the homes and condos he promised out of the ground.

"It doesn't make sense why he didn't follow through," Kingston said. "He had the sales. The Europeans loved his ideas. He just took their money."

Lauro could not be reached for comment. When his criminal attorney, Jason Goldman, was asked whether Lauro would talk about his various real estate deals, Goldman said "absolutely not.

Herald Tribune

Sunday, June 1, 2008

Irish Property Bubble. June 2003

Irish Property Bubble. Feb 2000

The Black Swan

boom and doom
When this man said the world’s economy was heading for disaster, he was scorned. Now traders, economists, even Nasa, are clamouring to hear him speak

Sunday Times