BANKING CRISIS AND PROPERTY CRASH
Banking crisis and property crash and why property prices will continue to tumble die to the inept banking directors governments are so keen to protect during this financial crisis
PROPERTY PRICES
Back then, I was saying that property prices would fall by 25% but this figure was based on 2006 property prices and my best guess is that property prices will now fall by as much as 30% based on these figures.
To me, the writing was on the wall and was as plain as the nose on your face. Property prices could not be allowed to continue to rise in this fashion and banks were acting totally irresponsibly by lending 100% mortgages secured on over inflated property prices. But why did governments, builders, property developers, estate agents and the banks not see the impending crisis? Let's dissect each group in turn to fully understand how and why they continued like lemmings, hell bent on the destruction of our world economy.
Governments: if you wanted to become a brain surgeon you would have to take exams to become qualified; you would not be allowed to practice without them. If, on the other hand you wanted to become a politician, all you would have to do is persuade more people to vote for you than the other candidates. Any idiot can stand for election and mute the right type of promises and when you have persuaded all the other idiots to vote for you, you then have the majority.
Most politicians are idiots, in fact they are so stupid they don't realise just how stupid they really are. The only qualifications they need are a large ego and an over inflated opinion of their own abilities and they all have those in abundance. They have all been sailing a ship with a leak but all the time it remained afloat they were oblivious to the fact that it was going to sink. And that is how they have been managing the world economies; patting themselves on the backs and congratulating themselves on steering such a straight course without bothering to look beneath the surface at the underlying problems.
BANKING CRISIS
Now that property prices are falling and banks are running around like chickens waiting and knowing they are likely to get their throats wrung and plucked ready for the supermarket shelves, politicians are blaming the banks for their greedy profiteering and inept management.
Whilst the banks are guilty of creating this financial crisis, politicians are guilty of allowing them to do it. The problem is that politicians are not qualified to manage the world economy and most of their government advisors have never been in business and are also neither qualified nor experienced to advise them. In short, we have put the lunatics in charge of the asylum and are still expecting these idiots to sort the problem out. (More on this later.)
PROPERTY CRASH
Builders: These people have had close to fifteen years of profiteering and pushing house prices up. It would appear that none of them lifted their heads above the parapet to see what the future held. All the time they were making hay they just kept on building and building, taking massive profits and dishing them out to greedy shareholders who were happy to take their dividends. Nothing wrong in that until you scrape the surface and realise that this has been happening at the expense and detriment of the real victims of this whole sorry mess - first time buyers and homeowners in general. These are the people who are now paying for this catastrophic situation and who will not benefit from any bail out package.
Read on about this banking crisis and the credit crunch.
Banking crisis and property crash and why property prices will continue to tumble die to the inept banking directors governments are so keen to protect during this financial crisis
