Property crash and the credit crunch is unlikely to slow down or disappear as the banking crisis worsens despite attempts by governments to prop up failing banks and property prices continue to fall due to a lack of confidence in property and between banks

Many of these estate agents are going to disappear back into the woodwork from which they came and hopefully the banks that have supported them are going to get their fingers burned.

Start of article about the banking crisis.

Previous page about the credit crunch.

The Banks: Whilst some of the blame for the property crash and banking crisis rests squarely on the shoulders of all of the above, the main culprits remain the banks who have acted totally irresponsibly and without any regard for anything but the huge profits they have been taking. What has happened to these profits and why are they not in a position to sort their own problems out?

The profits have long been divided up and dispersed to the winds, never to be seen again and the reason that the banks are in so much trouble; like politicians, most bankers are nothing more than Pikeys in suits. The days when banking institutions were run by careful accountants have long gone and been replaced by high commission sales people interested only in making deals. Subsequently, all the time making money was a simple process, they were able to operate without any real control, now the shit has hit the fan, there is no one capable of managing the mess they find themselves in.

CREDIT CRUNCH

You have to understand that bankers are not business people. They have simply joined an established institution built up over hundreds of years in many cases. Most of these people have never taken a personal financial risk in their lives; they wouldn't have the balls and would not know how to run a business of their own. They have been playing roulette with someone else's money where all the numbers except one were black. This has allowed them to have a fifteen year run of good luck, it was nothing else. Suddenly, the ball has fallen on the one red number where they have accumulated all their wealth and kept piling up their winnings. Low and behold, they suddenly find themselves facing billions in losses with exposure to heaven knows how much more.

We now discover that they have been lying to each other and cheating eat other by selling on swathes of poor quality loans and no longer trust each other to continue lending more money. Why any of us should be surprised by this beats me. Banks are unscrupulous, unethical and immoral institutions who spend billions on marketing to persuade unsuspecting clients that they are there to look after their money. Nothing could be further from the truth.

BANKING CRISIS LIKELY TO GET WORSE

Banks are only interested in one thing and it is not your best interests. They are in business to squeeze every penny they can out of their clients by any means possible in order to maximise their profits and the Financial Services Authorities have continued to let them do this without lifting a finger to protect the general public. Governments have therefore been in collusion with the banks, taking the kudos as world economies appeared to spiral upwards and then pointing fingers when the whole thing collapsed like a deck of cards.

PROPERTY CRASH CONTINUES

If I and a few other property investors foresaw that this house of cards was going to collapse; why didn't the banks and governments not see that the inevitable was going to happen? When I first started writing about the potential property collapse, I received countless emails from people telling me that I was a fool, and that what happened in the late eighties and early nineties couldn't possibly happen again because interest rates were so low and there was a huge demand for property. Now we have a situation where interest rates are rising and few people want to invest in property. History repeating itself as it so often does. Property prices could not possible continue to spiral upwards without there being a market adjustment.

Banks have acted totally irresponsibly by continuing to pour money into a market that was unsustainable. They have grasped at building on short term profits without any thought of the future and it is the average person in the street who is going to have to pay. Directors of banks have been paid millions for creating this mess and now our governments are having to use the tax payers money to try and salvage the problem. This is not the solution and here is my next prediction. Ignore it at your peril.

Read on about the credit crunch and property crash.

Property crash and the credit crunch is unlikely to slow down or disappear as the banking crisis worsens despite attempts by governments to prop up failing banks and property prices continue to fall due to a lack of confidence in property and between banks