Feeds:
Posts
Comments

Archive for February 2nd, 2010

PriceWaterhouseCoopers today published a league table of returns from property across Europe which shows Ireland at the bottom with returns of minus 30% last year for returns from existing property and is 2nd from bottom in terms of returns from development prospects.

However, what is of note is the quotation from the report that “banks have been postponing judgement day”. Right now banks are the puppet masters and developers are the puppets. It is the banks that think the best solution to the losses they have suffered on property is offloading the toxic debt at a premium to the public – witness the major share spikes that have taken place after positive reports on NAMA (its establishment, shareholder agreement to sell toxic loans to NAMA).

If it is true that developers have decided to hoard vacant houses, then what role have the puppet masters had in that decision? Is it more than just postponing judgement day, and is it manipulation/obfuscation of facts and the market to AVOID judgement day?

Read Full Post »