Property Developers have YOUR money!!

gurramok · 12-01-2009 8:17am

Wonder where Infinity and Beyond has gone, beyond infinity like the banks debts

the butcher · 12-01-2009 9:45am

After seeing the date of this thread and reading it fully, it shows how right BlindJustice was and how VERY WRONG others were.

I think the average joe needs to look at both sides for themselves. What does a UCD lectuer have to gain by talking down a property market? Nothing really, what does a analyst for a bank have to gain by dismissing the UCD lecturer and saying that the banks are grand? His/her job lol

Hindsight is a great thing but people really need to open their eyes for themselves

nice1franko · 12-01-2009 10:29am

good work mister blind justice.

nice1franko · 12-01-2009 10:32am

You say you've your money "safe"... Do you mean you have it a guaranteed savings account?

12-01-2009 12:37pm

nice1franko wrote: »

You say you've your money "safe"... Do you mean you have it a guaranteed savings account?

I am skeptical of any government guarantee of deposits.
Some people are putting their money abroad, some into things like gold. Some will argue that gold, silver etc are overvalued etc. Some people are holding money in safes - I kid you not, Ive heard it been said on radio that the sale of safes dramatically increased.

There are a load of options available. Im not saying do a run on Irish banks but I am saying that you should not put all your eggs in the one basket. This will sound condescending to experienced investors but the average joe probably has all his money in one bank.

nice1franko · 12-01-2009 1:46pm

No condescending heard here bosco. I'm an average Joe alright and thanks to the advice of the likes of yourself and other boffins over @ askaboutmoney I don't have all my eggs in one basket (...I've about half an egg in 4 different ones

).

What I'd be concerned about is the actual value of the cash decreasing (what with Obama 'just' printing hojillions more notes - don't know how/if it'll affect us but I remember from history class that it didn't work out too well for Zee Jermans, post WWII).

Precious metals is, apparently,the way to go if that's what you're concerned about but, at this stage, I reckon you'll be paying a premium for that 'security'.

12-01-2009 2:22pm

nice1franko wrote: »

No condescending heard here bosco. I'm an average Joe alright and thanks to the advice of the likes of yourself and other boffins over @ askaboutmoney I don't have all my eggs in one basket (...I've about half an egg in 4 different ones ).

What I'd be concerned about is the actual value of the cash decreasing (what with Obama 'just' printing hojillions more notes - don't know how/if it'll affect us but I remember from history class that it didn't work out too well for Zee Jermans, post WWII).

Precious metals is, apparently,the way to go if that's what you're concerned about but, at this stage, I reckon you'll be paying a premium for that 'security'.

I had some dollars that I turned into Euros last year when the exchange rate was more favourable. I really dont have the right answer just that the best thing to do is to spread yourself. I considered putting money into a variety of currencies but Im still undecided on that. God knows what this year will bring, there is talk of the ECB reducing rates further.

dan_d · 12-01-2009 2:35pm

I'm an average joe, and not for one second would I put all my money in one bank.Had a row with a guy from a certain large bank who tried to tell me that I had to get their credit card and savings account, aswell as the current account I wanted to open, because their rates were so good.Em...no.
The point that really hit home for me in that article was the one about abolishing stamp duty for first time buyers.We were FTBs at the time and to be honest, the minute that happened, we stopped looking at new houses, and went straight for 2nd hand.For a number of reasons.Probably was the beginning of the end.I've no problem with the property thing, it was always going to happen (and I work in the construction industry).My problem is the likelihood that I'll have to pay more tax to bail the gov out, and get nothing in return.Crap public transport, a disastrous health service that I wouldn't touch with a ten foot pole etc etc......and I've had nothing to do with anything, and didn't benefit at all from the so-called boom.
I see an article on Sky today about smelting companies(is that right?!)in Austria not being able to keep up with the demand for gold ingots. Seems to be the way to go.

maninasia · 24-11-2010 5:37am

stepbar wrote: »

A lot of people clearly don't understand the nature of banking and the varient nature of risk aversion amongst the retail banks. The author of the UCD article hasn't quoted one source for his finding. For a professor, it's a fairly shocking paper. Not saying what is said is true or false but the fact he has nothing to back it up with is equally shocking.

Eh he explained clearly the similarities between Japan and Ireland and the massive amount of risk involved...abnormal. Just people in Ireland thought Ireland was somehow abnormally 'gifted' and 'special' at the time, guess they were wrong.

D3PO · 24-11-2010 11:21am

maninasia wrote: »

Eh he explained clearly the similarities between Japan and Ireland and the massive amount of risk involved...abnormal. Just people in Ireland thought Ireland was somehow abnormally 'gifted' and 'special' at the time, guess they were wrong.

well done you managed to drag up a 2 year old thread.

Bravo :rolleyes::rolleyes:

11-02-2011 9:10pm

Have a look at the dates in this thread - very telling

Pensions is the next big thing - try look after your future retirements, i foresee alot of problems

kippy · 12-02-2011 10:28am

Deleted User wrote: »

Have a look at the dates in this thread - very telling

Pensions is the next big thing - try look after your future retirements, i foresee alot of problems

Hindsight is 20/20
Still, not one Irish depositor has lost one cent as a result of a bank failing...........
Tax payers on the other hand.........well.........

TwoShedsJackson · 12-02-2011 10:54am

infinity&beyond wrote: »

Just to be clear, I'm not saying that house prices aren't falling or that developers won't get into trouble (some of them already are). But Irish banks have a sizable exposure to mortgages (VERY safe....again in the UK early 90s situation, mortgage loans written off were less than 0.2% of total). And lending to developers is not a total dead duck - the bank has the land as collateral, and the developer will have to put some money up front himself. So if the bank sells the land for say (I'm guessing) 80% of its appraised value, they'll probably get most of their cash back.

Finally, just in case we all jump off a cliff in a state of depression, the Irish consumer is extremely robust right now. At least for now the residential construction problems look fairly contained, and slack is being taken up by infrastructure construction. Irish unemployment remains low, wage growth is strong and interest rates are low by historic standards. Yes, their will be casualties, but life will go on for the banks. That's their business model -- they write loans knowing that some of them will go bad.

The Irish banks appear to be prudently funded, with a much better duration match between their funding and their customer loans. In fact they don't need to look for funding for the rest of the year.

Hope this helps / clears up a few things. But I expect I'll be attacked by the end of the world-ers for my comments.

'Appear' really is the operative word in that second last paragraph.

I hope Infinity & Beyond comes back to revisit this analysis in the light of what's happened since.

Treehouse72 · 12-02-2011 12:23pm

Deleted User wrote: »

Have a look at the dates in this thread - very telling

Absolutely....where the hell was Morgan Kelly before October 2007?

Property Developers have YOUR money!!

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