Comments on: The Scam of Ever-Rising House Prices

By: Charles Norville

Charles Norville — Tue, 11 Nov 2008 14:12:06 +0000

The stock market reminds me of a day at the races where people win and loose just for the thrill of winning a fortune - housing as an example should be out of the bull market thing and be fully industrialised ie factories making prefab houses and exporting the surplus. Aus has no excuse neither do most countries because materials for prefab can be fashioned to suit the availability of material types in any country. Actually commercial pefab is the only way to go residential is easier. It is pathetic to pander to the cost of brick and mortar as being functionally economical.

By: John

John — Mon, 22 Sep 2008 19:04:04 +0000

Andy,

That's a very unlikely scenario. When companies file bankruptcy, they are required to liquidate their assets and pay off their creditors, and then the remainder goes to the shareholders. The outstanding loans that they have with their debots are an asset on their books, so they are legally required to take these assets and sell them or auction them. This will, in turn, simply transfer the liability that people have with the institution that is going bankrupt to another institution that purchases the assets (probably at a discount, but it doesn't change how much the people owe). Hope that clears it up!

By: Andy

Andy — Sun, 21 Sep 2008 13:40:57 +0000

I may be a little dumb, but-

Is there a chance that these failed institutions will forget who the debtors on thier books are? I mean, if all the employees go, and the furniture is sold up, and the CEO makes off with the rest of it, who is there to make sure the data files dont just leave the building or accidentally get wiped out?

By: Nick

Nick — Sun, 21 Sep 2008 04:07:24 +0000

The scam of accelerating real estate profits is still alive and well in Dubai and Abu Dhabi. The big question is for how much longer? Real Estate investors in the UAE believe they are insulated from the chaos in global financial markets because of strong capital inflows into the real estate sector, especially from wealthy Middle Eastern and Russian investors. As a consequence, the capital gains are still very strong even though the vast majority of these investments involve property that has not been built yet. In fact, construction of many of the properties has not even started and yet they have been flipped many times already, each time at a significant profit.

By: Mireille

Mireille — Fri, 19 Sep 2008 13:12:52 +0000

Here here!