Boomed-Tastic: Banks to reveal £25bln profits

[DimPrawn]

He probably put his money into commodities after it - his profits come from your pockets every time you buy essential items that gone up in price.

I'll punch him if I see him in Waitrose.

[AtW]

He betted that the banks would recover if given free tax-payers money. What an insight!

He probably put his money into commodities after it - his profits come from your pockets every time you buy essential items that gone up in price.

[Jog On]

Doesn't the ROI from BTL come from the rental income and not the capital gains anyway?

Surely the appearance of 125% mortgages with low rates and poor/no credit history will be a sign of the next housing bubble? If that ever is allowed to happen again..

[MarillionFan]

A housing collapse is on the cards. Although I've been saying this since 2003 and missed out on one years rise by panicking slightly and selling my BTL portfolio in 2006. Turns out my instincts were partially right.

I am poised for a second BTL buying spree but my calculations indicate that prices would have to fall by 20% from 2007 peaks before they represented a fair value, taking into account future capital gains. This has not happened with prime London property.

I found this to be quite useful for searching for locations to look at

Map of UK property hotspots

[DimPrawn]

A housing collapse is on the cards. Although I've been saying this since 2003 and missed out on one years rise by panicking slightly and selling my BTL portfolio in 2006. Turns out my instincts were partially right.

I am poised for a second BTL buying spree but my calculations indicate that prices would have to fall by 20% from 2007 peaks before they represented a fair value, taking into account future capital gains. This has not happened with prime London property.

Only a big rise in interest rates is going to bring on a full-on property price crash. Without it, at best you'll see static prices for decade, eroded by inflation.

I can't see interest rates rising, the BoE only hope is to erode debt with massive inflation and low interest rates, effectively bleed savers dry of their capital.

Unemployment has no effect with the state paying people's interest and most people have an interest only mortgage in the last decade or so.

[sasguru]

If we have another crisis, be it a collapse in property prices, oil prices, equities, bonds, the simple answer is buy! buy! buy!

And if you already own these things, don't (panic) sell! sell! sell!

HTH.

A housing collapse is on the cards. Although I've been saying this since 2003 and missed out on one years rise by panicking slightly and selling my BTL portfolio in 2006. Turns out my instincts were partially right.

I am poised for a second BTL buying spree but my calculations indicate that prices would have to fall by 20% from 2007 peaks before they represented a fair value, taking into account future capital gains. This has not happened with prime London property.

[DimPrawn]

hmm

Lonely Analyst Warns of 2015 Bank Crisis Amid `Upbeat' Davos - Bloomberg

If we have another crisis, be it a collapse in property prices, oil prices, equities, bonds, the simple answer is buy! buy! buy!

And if you already own these things, don't (panic) sell! sell! sell!

HTH.

[BlasterBates]

hmm

Lonely Analyst Warns of 2015 Bank Crisis Amid `Upbeat' Davos - Bloomberg

[MarillionFan]

Sadly I didn't.

I believed the doomsayers that it was the end of the world.

But now I see every doom laden dip as a buying opportunity in everything, which will include property again at some stage.

WDPS

I actually bought a day before the bottom of the cycle when it near 3500. I ploughed £30k in. Next day I was 4k down sitting there pooping it.

The next day it recovered and then the next I sold my £20k in Barclays which I had bought at 45p. I sold for 54p. What a trader!

[DimPrawn]

A comment from the Torygraph sums it up nicely:

This is the myth of measuring business receipts for signs of growth. Banks don't produce anything. In a free market, they provide a service which allows productive businesses to increase production (by funding investment). But that is only realised as economic growth when the end-user business actually produces something, and a customer actually buys it.

The financial services sector as such shouldn't be measured in GDP figures; because it creates a false impression of production where there is none. These profits are being reaped from central bank credit expansion. They actually, at this point in time, represent a transfer of money out of production, and as such a decrease, not increase in the production that GDP is supposed to measure. They are a cost, not a benefit. Which is why bank profits rise as output is falling.

The only useful measure of economic output is sales of goods and services to consumers. That is going down, as we drop further into the recession. This is not a sign of a buoyant economy, but a sign of an economy in continued crisis.


WHS.

[DimPrawn]

So did I. It still rates as my most lucrative investment decision ever. My only regret is that I didn't have as much money as Mr. Hedgie to chuck in.

Sadly I didn't.

I believed the doomsayers that it was the end of the world.

But now I see every doom laden dip as a buying opportunity in everything, which will include property again at some stage.

[sasguru]

He betted that the banks would recover if given free tax-payers money. What an insight!

So did I. It still rates as my most lucrative investment decision ever. My only regret is that I didn't have as much money as Mr. Hedgie to chuck in.

[DimPrawn]

Pah,

This hedgie earned $5bn last year

John Paulson earned $5bn last year - Telegraph

Mr Paulson earned more than $5bn in 2010 after his funds, in which he has invested much of his own fortune, delivered strong returns with bets on gold, commodities and a recovery for US banks, the Wall Street Journal reported.


He betted that the banks would recover if given free tax-payers money. What an insight!

[milanbenes]

Boomed-Tastic...

More than £25bn profits for just FOUR British banks as earnings soar | Mail Online

'More than £25bn profits for just FOUR British banks as earnings soar


Read more: More than £25bn profits for just FOUR British banks as earnings soar | Mail Online'



nice work if you can get it

Milan.