Mark Keenan - "It's 1929 all over again"

This article was in the Home section of yesterday’s Sunday Times. Fire at will.

Thats interesting. She’s saying the market started crashing in 2006. Whereas I thought most commentators will only publically admit to us hitting the rocks in 2007

:open_mouth:

So the fundamentals are sound!

Oh jesus, I’ve to to get on the ladder fast…

I’m so dizzy my head is spinning…

Ok, lets see 2.5 times + 1 with 20% down over 20 years.

A couple with over €70,000 in savings, main earner on €90,000, partner on €60,000 looking for a mortgage of €290,000. Banks says, ‘no’ ??

Tosh and bollocks. Utter bollocks.

After reading that I dont know if I should laugh or cry.

The penny hasn’t dropped, at all.

The author of this article seems to think that the credit crunch is impacting on property prices. It’s the other way around, doofus! High, unsustainable property prices led to the defaults that caused the credit crunch! Also, the notion that there is a cap on mortgages is nonsense. If you’re credit-worthy, you’ll get a mortgage no problem.

I suppose we should expect as much from the Irish Times pullout section.

That’s some pretty impressive nonsense… :slight_smile:

If you take issue with this article, you really should take the time to pen a quick mail to Mr Keenan (mark.keenan@sunday-times.ie). My wife and I both have over the course of the last year and have gotten pages and pages of vitriol in return where he informed us that he has always been at the cutting edge of the property-boom naysayers, resulting in massive loss of advertising revenue for his publication (such are his high morals). No doubt he will let you know that when he writes pieces like this (these are the ones which drive me and the missus apoplectic), he is being ‘balanced’ :angry:

God help us all…

FT this weekend had a note about how in the last 4 property crashes in the UK price drops were their largest in the year AFTER they came out of recession.
WE havent hit the bottom of the recession/depression yet, and history has shown that for some time after that house prices will drop further… dream on baby .

Sure there are people who would pay more than the asking price for a place if they could only get the finance. However, for every one of those people there are probably 25 people who can get the finance, but who refuse to pay a price that is almost certainly going to be lower 12months from now.

These commentators need to realise that the Irish public has woken up. Instead of blindly listening to the vested interests, as they had done for years, they can now see whats going on all around them. They have friends losing jobs, friends being foreclosed on etc etc

This is going to be a very long process, because on one hand we have a nation awakening to the fact that prices are going down another 30-40% and on the other hand a much smaller group of people trying to talk the market higher so that they can sell their bloated final inventory of homes that no-one wants.

At some point in situations like this, someone has to give-in…The nation has the ability to wait 5-10years to get comfortable…The developers do not have that luxury!

The Irish banking system is being cleaned up. The guys at the top will be eventually replaced by people who will want to move the system onward. That new blood, will move in to clean up their redecessors mistakes Day1. Developers hanging on by the skin of their teeth will be foreclosed upon and their inventory will hit the market at greatly reduced prices because by that time the banks will have written a large part of the loan off anyway.

During the course of the credit bubble, people like Mark or Liz O’Kane got notions above themselves. They are property experts. A property expert is competent to assess the relative loveliness of houses. They are not financial/economic experts. Seems like a large proportion of the population need to remind themselves of this.

Yeah, I’m looking forward to some innovative programming from RTE over the next few seasons… (Not.)

Given that it’s 1929 now, where does that leave us for the next few years :nin

Let me connect the dots here guys… RTE are as likely to provide innovative programming now as they did in 1929! :slight_smile: