Europe: Who let the PIGS Out?

Not a very festive blog but read on if you want to know what the heck is happening in Europe and who’s next… Who let the PIGS Out?

The Global economy is a mess right now, Governments want it one way, Banks another and the People… well you just watch the News right now – they have the final say! There’s a lot of strange energy around right now, I’m sure you’ve noticed it even if you don’t know what I mean – it appears negative but it’s change for the best.

American and World Government and their Leaders have no need to manufacture Bad News anymore… it’s really here! We won’t discuss The illegal Wars, WikiLeaks Julian Assange or anything else – lets keep it European today!

Watch this great little video showing the background to The Crises of Capital then read on…

http://www.youtube.com/watch?v=qOP2V_np2c0

Never mind ‘Who Let the Dogs Out’, you should be asking ‘Who Bailed the PIGS Out?’
They used to talk about investing in the BRIC countries (Brazil, Russia, India & China) now it’s all about the Bankrupt PIGS (Portugal, Italy, Greece and Spain) aka PIIGGS (to include Ireland and Great Britain). Luckily the EU are making plans to bail them all out… Who has the printing press for all these Dollars and Euros being flooded onto the market? Unfortunately the money is only making it as far as the Fat Cats in Governments and Banks!

Subscribe to this Blog, follow me on Twitter and Facebook and check the other posts if you want to know the truth about what is happening. Share the links and posts with your friends if you find them of value!

Banks, Governments and Corporations do NOT have a conscience or spirit – they require human beings to animate them.  When you ask their employees to tell the truth, be honest and do the RIGHT thing – they will not speak up and represent themselves but go to a Lawyer (pronounced liar) to re-represent them (all paid for by the corporation with your money). As when given the option to be honest, they choose not to!
After all who would bite the hand that feeds them? Even if it was slapping the rest of their family and telling them to as well, before it put leftovers in their mouth – having had the main meal itself!?

You can’t bury or hide the truth, as it always comes out.

The Real Pigs are in Government and Banking!
 
[My comments are in italic square brackets in the quotes below]


EU agrees on permanent eurozone rescue fund

“EU leaders have agreed to set up a permanent mechanism to bail out any member state whose debt problems threaten the 16-nation eurozone.

This year Greece and the Irish Republic have received emergency EU bail-outs.

The 27 leaders, meeting in Brussels on Thursday, agreed that in 2013 the permanent mechanism would succeed the eurozone’s 750bn-euro (£637bn; $1tn) temporary bail-out fund [how temporary and where does it come from? ONLY $1 TRILLION!], the European Financial Stability Facility (EFSF).

The summit comes amid continuing concern about stability in the eurozone, as national debts and deficits have soared above the EU’s targets.

Portugal and Spain have been under financial market scrutiny since the Irish Republic was forced to take an aid package of 85bn euros (£72bn; $113bn) last month. [Do you need to be forced to something if it was in your best interests? Short answer – NO!]

The European Central Bank (ECB) has been buying billions of euros of sovereign debt to ease the pressure on the countries seen as most vulnerable in the eurozone. It is to double the reserves it holds – to 10.8bn euros, from 5.8bn euros at present. [Yes, the ECB will own you too if your country accepts any money – oh, actually don’t worry, you should be more concerned about your country milking you before the ECB!]

Read more: http://www.bbc.co.uk/news/world-europe-12014385


PIIGGS
Portugal – Perception of corruption on the rise in Portugal: www.theportugalnews.com
Italy – Civil unrest & riots: Silvio Berlusconi vote win sparks Rome clashes http://www.bbc.co.uk/news/world-europe-11992034
Ireland – Ireland’s rating cut five levels by Moody’s www.independent.ie
Great Britain – UK Bank’s rate rise alert for variable mortgages: www.thisismoney.co.uk/mortgages-and-homes/
(honorary #PIIGGS) and Civil Unrest starting with the students!
Greece – Civil unrest in Greece after the Bail-out! http://www.bbc.co.uk
Spain – Spain bad loan ratio rises to near 15-year high www.reuters.com

They used to write about ‘Blood on the Streets’ in the Great Depression – well it’s back!


(UK) Bank’s variable mortgage rate rise alert

“Two-thirds of the country’s 12m outstanding mortgages – held by eight million borrowers – are now on floating deals.

This means they risk seeing their monthly repayments jump if there is any change in the Bank’s base rate – which is currently held at 0.5%.

Combined with next month’s VAT increase from 17.5% to 20%, deep cuts to public spending, rising unemployment, and the soaring cost of everyday goods, household finances are facing an unprecedented squeeze. [You thought it was bad already, prepare to be bent over a barrel!]

‘A relatively small increase in interest rates could have a fairly sizeable impact on the housing market at a time when the market is already pretty weak,’ said Jonathan Loynes, chief economist at Capital Economics.

The forecaster said house prices were 20% overvalued and could fall by that amount in the next two to three years.

Among the worst hit by a rate hike would be those who stretched themselves to get on the housing ladder in the past two years.

The average tracker mortgage charges interest of 3.51% while a typical two-year fix has a rate of 3.54%.

Although this is seven times the Bank’s base rate, banks do not borrow the money they lend on to customers quite this cheaply. Typically they pay between 0.75% and 1.5%.”
[That’s right, nearly 500% mark-up (on your Govt. loaned money) – but only for those of you that can afford the large 25%+ deposits required to get on the housing ladder]

Read more: http://www.thisismoney.co.uk/mortgages-and-homes/


Find out more about protecting your Wealth, Money, Gold and Financial intelligence at: www.richdadstrategies.com


Beware: The Second Real Estate/ Property Collapse is Coming

The US and UK Banks have been illegally foreclosing / repossessing property, by not even checking paperwork and worse still, by forging it – whilst being bailed out by the Government with your future as collateral. Is that right or fair?

How come the overpaid Bankers and their pretentious solicitors fail to provide any copies of certified contracts or documents when requested? Maybe it’s to hide fraud! And don’t expect your MP or elected representatives to help – as the Government is busy enough trying to get money out of you for it’s past mistakes and new ones as they work with the banks.

Watch this video for what’s happening in the US – and then read on.


http://www.youtube.com/watch?v=tOmjYYaudU8

First it was sub-prime, now it’s moving to the average/middle-class home owners! The Bankers will do whatever it takes to screw the money out of you.

They have gone to existing businesses in the UK and told them to make up the 75% Loan To Value difference, on demand, even if their properties are cash-flowing. Else they will be taken off them and sold at auction – most likely for a loss. How does that work or help anyone?
Only got a small mortgage? Did you know that if you lose your job, you won’t be able to re-finance the equity! Fail to meet your mortgage payments and they’ll still repossess you. Aren’t you glad you did business with that lovely mortgage broker!

It’s not all depressing. You can contact your mortgage company and ask for a payment holiday, they shouldn’t refuse. Or don’t pay them for a month or even two, then start your repayments and ask them to add the missed amount to your loan. Handy for Christmas hey 😉

It appears that common sense says if you can’t afford to pay your mortgage and are in huge negative equity then the real option seems obvious!

How much financial pain can people take before they say, “Screw It” and stop paying the crooked Bankers?


It appears that the Government might actually want the repossessions and foreclosures to carry on as it provides an ‘economical stimulus’ as detailed below:

  • Estate agents get paid (as they’re not selling any houses on the open market in this economy)
  • Estate Agent employees get paid
  • Buying broker gets paid
  • Selling Agent gets paid
  • Selling Broker gets paid
  • Brokers’ employees get paid
  • Old lender gets paid off
  • Old lender employees get paid
  • New lender gets new loan
  • New lender employees get paid
  • New lender sells to another new lender and is paid
  • Solicitors get paid
  • Solicitors office gets paid
  • Loans get sliced and diced into credit default swaps and mortgage backed securities
  • Slicer and dicers get paid
  • Salesmen now sell this sliced and diced mortgage all over the world
  • Government gets paid off taxes and get money on every ounce of profit that is made in this never ending chain
  • New homeowner buys stuff at home depot / B&Q
  • Home Depot / B&Q now have to hire more employees to deal with the homeowner demand
  • And on and on….

So it’s good for the economy if you look at it.  After all, someone has to pay the Estate Agents, Solicitors, Mortgage Brokers, Bankers and Government employees, else they’d have to go and do something productive for the world instead.

Modified from info found at: http://surviveandthrivetv.com

Lloyds (HBOS) Gambled and Lost – Next Centre Point London

Find out where the Banks gambled your money and what they’re doing to get some of it back at the cost to other businesses and people! Do you trust your countries Bankers to be HONEST?


11 October 2010: Trust me I’m a banker
By Mark Daly BBC Scotland Investigations Correspondent (Full story: http://www.bbc.co.uk)

Two years ago this week, Scotland’s once-proud banking history was ripped to shreds.

Facing total ruin, Royal Bank of Scotland was rescued by the government. Halifax Bank of Scotland had to be sold off to Lloyds, which in turn had to be bailed out by the taxpayer.

In 2009, RBS paid £1.3bn in bonuses, while Lloyds paid a reported £200m. Both were in the red at the time

We wanted to know more. Remember, RBS is 83% owned by the taxpayer, Lloyds 41% – so it could be argued that we’re entitled to know what they’re up to.

“Bankers are paid much more than executives in any other walk of business life. The idea that you have to pay these people stratospheric sums of money…underwritten by the taxpayer is offensive.” – Economist Will Hutton

“Just remember one thing, the City is full of greedy, ruthless, clever people and they will do what they can to line their pockets with no regard of the impact it has on society.” – Former trader and best selling author of “Cityboy” Geraint Anderson

Mr Tate, who was the highest earning Lloyds director last year with £1.8m, said: “There are a whole lot of people, myself included, who would love to get the kind of return on their investment that the taxpayer has made into this bank. They’ve made an investment that is making money. If you could come up with me, with an investment in the infrastructure which would have returned more for the taxpayers, I’m all ears.”

(What a Banker!)


    m resort las vegas hbos

Tuesday 12 October 2010: HBOS loses millions on Vegas casino
(Full Story: www.guardian.co.uk)

Value of state-owned Lloyds’ overseas portfolio questioned after Penn National Gaming paid $230m for $860m debt

Penn National Gaming paid $230.5m for around $860m owed to HBOS, which included $700m the bank loaned to M Resort Photograph: Alise O’Brien

Lloyds Banking Group, the partially state-owned lender, has lost more than $500m (£317m) on loans to M Resort Spa Casino in Las Vegas – the second massive financial hit the bank has taken in America in as many months.

News of the deal has started attracting attention to the value of Lloyds’s overseas portfolio, much of which it acquired during the unpopular takeover of HBOS is 2008. Market watchers had previously attributed most of the woe associated with that acquisition to lending within HBOS’s UK corporate division, headed by Peter Cummings.

Penn National Gaming, a US gambling group, paid $230.5m for about $860m owed to HBOS International, which included $700m the bank loaned to M Resort plus another $160m loan that HBOS had acquired from MGM Resorts at an undisclosed price.

The debt sale comes two months after it emerged that HBOS International was set to lose “tens of millions of pounds” from dealings with another US client, Sea Island, the exclusive Georgia holiday retreat that filed for bankruptcy in August. In that case, court documents said Sea Island was unable to pay back close to $600m in debts owed to a consortium of banks that included HBOS, which were taken out to fund an ambitious expansion plan. The company said it planned to sell its coastal resorts to investment funds Oaktree Capital Management and Avenue Capital Group in a $197.5m.

The mounting US losses at HBOS are thought to have been incurred in the division previously run by Colin Matthew, a former HBOS board member whose responsibilities included the bank’s international business. He retired from the newly formed group in January 2009 with a pension entitlement of £416,000 a year, having been paid £652,000 in 2008 and £905,000 in 2007.

Lloyds declined to comment on individual impairments, although the group is thought to have already written down the value of the M Resort loans. Following the sale of HBOS to Lloyds, the former HBOS international and UK corporate businesses have all been rolled into a single Lloyds division, making it difficult to analyse where the major losses have been incurred.

One analyst said: “There is an idea that much of the financial crisis was down to a few bad apples. That is a simplification. It has lots to do with the organisational structure of banks. People are not incentivised to sit back and call the cycle.”

Lloyds has been winding down or selling HBOS-owned assets ever since acquiring Britain’s largest mortgage lender. The acquisition, which was encouraged by the UK government, helped Lloyds book losses of £6.3bn last year and pushed the shares, which closed yesterday at 72.65p, down to 19p.


Towering problems: Centre Point in London13th October 2010: High Court reprieve for Centre Point owner in survival battle with Lloyds banking
(Full Story: www.dailymail.co.uk)

The owner of the Centre Point tower in London won a reprieve in its battle for survival with Lloyds Banking Group. London’s High Court granted Targetfollow two weeks to secure investment, despite efforts by Lloyds to force it into administration over £700million of debt. The property developer cannot meet repayments on the loan or repay it in full because the value of its estate tumbled in the financial crisis.

But the group claims it has come up with a number of viable ways to restructure the debt – only to see them rejected by Lloyds.

The part-nationalised bank, 41per cent owned by the taxpayer after a multi-billion pound bailout by the state, wants to seize and sell the properties to recoup some of its money.


It has raised fears within the commercial property industry of a fire-sale of assets and double-dip in prices as banks seeking to unwind toxic loans handed out during the boom years from undermining the recovery.

Lloyds and Royal Bank of Scotland, which is 84 per cent owned by the state, are sitting on more than a third of the £250billion of outstanding UK property debt.

Many of the rotten loans at Lloyds were approved by Peter Cummings, the former corporate chief of Bank of Scotland, which Lloyds acquired by it bought HBOS in 2008.

‘Every week that passes is detrimental to the value of the assets,’ he said. Lloyds values Targetfollow’s estate at just £450million. The company claims it is worth nearer £680million.

The judge adjourned the case until October 25 at the earliest.

Naghshineh, an Iranian businessman, last month said: ‘The whole UK property industry is watching the situation very closely.

‘Any indication that [Lloyds] is starting a process of offloading [assets] at fire-sale prices will hit the property market very hard indeed, just as the recovery is underway.’


Friday 22 October 2010: Lloyds to go ahead with administration of Centre Point owner Targetfollow
(Full Story – http://uk.finance.yahoo.com)

Lloyds Banking Group is preparing to push ahead with administration proceedings against the owner of London landmark Centre Point despite the company claiming it has secured a £150m rescue cash investment.

Targetfollow, led by founder Ardeshir Naghshineh, issued a statement yesterday saying it had agreed terms with a “high-quality institutional consortium” to invest £150m in the business.

However, according to sources close to talks, Lloyds, which is owed more than £700m by Targetfollow, does not support the proposals and still plans to go ahead with a High Court hearing next week about whether the property company is placed into administration.

Targetfollow is breaching covenants on its debts and Lloyds must approve any capital injection, however it is understood that the bank believes the consortium’s terms are “not feasible” and would require it to take writedowns. The offer is a “long way” from what the bank considers appropriate, sources said. Lloyds declined to comment.

Targetfollow is due in court next week after it was granted two weeks to find a rescue investor earlier this month.

The consortium’s proposed £150m aid package would be used to acquire a portion of the debt from Lloyds and to provide working capital to Targetfollow. Mr Naghshineh said: “I believe that this consortium addresses the issues that the bank has raised with the company in the past 12 months, and will pave the way for the bank and the company to move on from what has been a very difficult time.”

Lloyds is managing about £30bn of problem property debt. The downturn in the sector led to the bank making damaging writedowns during the financial crisis. Latest accounts from Uberior Ventures, HBOS’s property joint venture arm, show its investments fell in value by £590m to £345m last year.


Where did the economy go… double-dip here?

No bull! There’s a double dip coming unless the Banks lend the Governement a few trillion more!

My thoughts on the Economy, now that I have a moment to sit down and flow… here are my answers to some of the questions that people are asking.

Below is a bunch of things I wanted to share. If I’m not specific on anything feel free to ask and leave a comment.

1. Current economy
The Depression, yes that’s what it is economically regardless of the lies the politicians tell you and stats made up by economists, is affecting the majority of people right now.

People are losing their jobs, homes and there is no such thing as security. With big companies going bust (those not powerful enough for bailout money) there is no such thing as job security. Employee pensions being gambled away on the stock market and they will be lucky if they have much to live on – that’s probably why they’re pushing the retirement age back.

Almost every year the Government spends more than it raises in tax! It ‘borrows’ this money from the ‘Bank of England’ (so much for it being a Government owned body!)
Someone has to pay this back eventually and that means you! Find out about the UK National Debt.

2. Money is being devalued as more is printed, taxes will go up to cover the money being spent and given to the Banks.  Quantitative Easing: “Instead of lowering Bank Rate to increase the amount of money in the economy, the Bank supplies extra money directly. This does not involve printing more banknotes. Instead the Bank pays for these assets by creating money electronically”

You need to be smart in how and where you invest your money right now. Gold has always been a viable option and the demand will always be there for it if you need to sell. Currently Gold has been trading at around £860 / $1380 per ounce and you can always easily get 90% of it’s value from a jeweler or gold dealer.
Can you afford Not to invest in Gold?

3. It is also wise to keep some liquid cash on hand, for when you need it.

4. Commercial real estate!

I believe the worst is not yet over. This is the breathing space before the real storm. As people lost their jobs and homes, more mortgage resets are coming, increasing interest rates and fewer jobs. This has worked it’s way through the residential property markets at the moment and the next one to be hit is the Commercial property (real estate) markets.
Don’t think it will happen? Walk around your local town centre shops. How many ‘To Let’ signs do you see? More charity shops and pound shops than high street brands? Pubs and bars closing or changing hands more often?
Empty shops and cheap stores being the only ones in business are clear signs of the recession/depression.

Do you see more Cash Convertor stores and places offering to buy your gold in exchange for their cash? Do they know something you don’t…

Only another World War could get everyone working again and making money… hmmm… any invasions on the agenda at the moment Mr. Obama?

I hope I’m wrong… but what what if this is how it happens?

I discussed many of these things with my friend Gerry P. and unfortunately the winds and tornadoes started before I actually implemented and acted on any of the facts.

Make sure you’re not left behind by being forewarned. Get educated!

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Government and Banks

The Banks and Governments monitor traffic on the internet now to spy on people, I have know of them doing it with BMV property investors and checking their profiles before processing applications.
As TRUST is the Bankers’ issue, maybe they want to look in the mirror too!?

The world is waking up and the ‘Federal Reserve’ is now a household name, instead of a ‘perceived’ Government body – in reality it is a privately owned bank that masquerades as a Government body. People are against the War and attacks in foreign countries in the name of ‘Oil’.
Enough of living in a Police state with everything being filmed and silly little ‘civil laws’ being invented so they can legally steal your money.

Have America not convinced enough people to support them in attacking Iran yet, to prevent Nuclear arms development? Hmmm… remember the WMD-Weapons of Mass Destruction in Iraq? Neither do the dead US soldiers and citizens of the country or their families and relatives. But it made a lot of US dollars and gave them control.

The fiat currencies are going to go pop and they need wars to keep their pockets lined and economies going. Read up on Buckminster Fuller’s honest writings: Grunch of Giants and Critical Path.

The Amero (have you heard about it?) is as real as the European Union and I won’t even start on the One World Government with the US President (and his puppeteers) in charge.

Remember this is a game being played by Governments, Banks and Corporation liars (lawyers) – to support their hidden agendas. I’m not sharing anything new – just repeating it so that you may hear the truth THIS TIME!

And if you don’t want to believe it then that’s cool too… just remember the choices you made when you’re waiting for your pension to arrive.

Educate yourselves now! Learn the truth…

I don’t know all the answers but I do know the difference between RIGHT and wrong.
Interestingly HONEST is a Powerful (positive) pattern -v- Legal which is a weak (negative) pattern.
Where would you rather be vibrating? (Source: Power Vs. Force by David R Hawkins)

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Despite the doom and gloom – this is a great opportunity for change!

Take stock and learn from your mistakes.  Accept the feedback.
Let the stresses and challenges be your friend and make you stronger.
Make plans and do things better this time.

The information is already out there and you just need to want to look for it. It requires change from YOU and people to come together and say enough is enough to this slavery.
We are all free people but forgot along the way… Freedom is More Than Just a Seven Letter Word

Now is a time that people will remember what really is of value, taking them away from greed and materialism and forcing them to appreciate the other things in life.

Remember: don’t be a victim! You’re going to have to let go of the old attachments first.
Then get back in charge, take control and be responsible for the life you live!
When would NOW be a good time to do that?

I wish you a happy life filled with fun, friends, family and laughter 🙂

P.S. Double Dips are for caring and sharing together!


UK Banks causing a double dip?

The Banks were technically bankrupt a couple of years ago but got bailed out by us. Now they want as much cash in as possible, despite the cost to businesses and the economy.

Unfortunately the Banks are not run by people but systems and organic robots – they are only interested in their bottom line and do not care about the economy, taxpayers, you or me.

The dip is coming, not good news for people with equity to lose or poor cash flow – but an opportunity for investors to stock up on houses!

See Simon Zutshi’s article below and join his Mastermind Programme to stay ahead of the pack.

Bobby

———–

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Are the UK Banks causing a second dip?

by Simon Zutshi

“There is a lot of talk in the media at the moment of the possibility of a second dip in the UK housing market. There is a good chance that there could be a second dip particularly when the banks release all of the repossessed property that they are currently holding, into the market. When the supply increases then house prices could fall further, if the demand is not sufficient to soak up the extra supply.

However, I would argue that the demand is there. The two groups who stimulate the market are investors and first time buyers. Investors realise that properties stack up well at the moment, far better than they have for a few years. If you are investing for the long term it does not matter if prices fall in the short term, as long as you can afford to hold by ensuring you buy in an area with strong rental demand and positive cash flow each month after all the expenses. First time buyers are also keen to get on the ladder before prices go up although many of them are uncertain about what the future holds due to all the scare mongering in the press.

The main problem lies with the UK banks and their lending policy. Understandably they have learnt their lesson and I am sure will now lend more responsibly than in the past, which has got to be a good thing. However, for the UK market to recover the lending availability has to improve. The banks are already being cautious by restricting their lending on Buy to Lets to 75% Loan to Value so they have plenty of buffer in case prices fall.

They are also being careful of whom they lend to although I would question the logic behind some of their decisions. The Lloyds TSB banking group now owned by the government (or rather the tax payer) restrict the number of mortgage across its brands to a maximum of nine. Most experienced investors, with a reasonable sized portfolio, would exceed this limit and so would not be able to get further mortgages for any lender in the group including; Birmingham Midshires, Halifax, Lloyds and C&G. Ironically these banks seem to be happy to lend to a complete novice investor, with absolutely no experience and so someone far more likely to make mistakes than an experienced investor to whom they will not lend. It does not really make sense.

But the real problem is that the banks are instructing surveyors to down value properties in their surveys. Most surveyors would say that a property is worth what someone is prepared to pay for it. However, this wide spread policy of down valuing property ignores the fact that there are buyers prepared to pay the agreed price. When the property is down valued the mortgage offer is adjusted down and often not sufficient enough for the buyer to afford the property, so the sale falls through. The surveyors are under pressure from the banks and they don’t want to be sued for getting it wrong.

Willing buyers are not able to make the purchase they want and so the market stagnates as people get stuck in chains and the net effect is less sales. Less sales will lead to a fall in prices and a general down valuing of the market. Thus the second dip that the press seem determined to talk us into.

This is bad news for everyone, including the banks who will have even less security and equity on their existing lending. With many people potentially in negative equity unable to afford to move, the market will stagnate further and take even longer to recover. Again bad news for everyone.

If we are not careful we will get to the point where no one can sell or buy and the only solution will be to do every property transaction as an option. I am convinced purchase lease options will become far more common place over the next few years.

What we need is some positivity in the press to encourage first time buyers to stimulate the market and general easing of lending criteria so that more people can access the funds to buy the property they want to purchase. And ideally an end to this policy of Banks telling surveyors to down value property.

Come on UK Banks….sort it out. As owners of many of the banks, the new government should wake up, smell the coffee and realise what is going on. Unless something changes I predict that the UK Banks will cause a second dip in the UK house market.”

Simon Zutshi, – Founder of Property Investors Network