London's awful estate agents are cratering, warning of a "prolonged downturn" in the housing market

#1

Originally published at: https://boingboing.net/2019/02/28/die-foxtons-die.html

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#2

It’s hard not to cheer bad things happening to Foxtons. Chesterton, too, for that matter. Both are crooks from whom I’d never rent again.

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#3

Please. Dear God, please.

A depressing studio flat in Streatham (Note to the yankee doodles: Not a nice area) is currently going for ~£200k. Whole city is a shit-show.

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#4
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#5

Leverage was one of the things that contributed to the 1929 stock market collapse. Stocks were going up so fast that brokers were offering 100% margin (leverage) on stocks, which made them go up fast… Same in real estate, if they accept little or no down payment, and have low interest rates, “values” are going to go up fast, people will be “rich” and will buy more real estate at higher prices.
Real estate “values” are highly sensitive to lending rules, such as credit scores (our 2009 collapse was due to lending to people without sufficient credit or income), income requirements, down payment requirements, and interest rates.

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#6

oh dear the capitalists are attacking themselves how awful I can’t bear to look can’t anyone stop them

if you have a moment that would be super no rush

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#7

Does this mean I can dust off my “Glengarry Glen Ross” gifs?

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#8

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#9

So the exact thing that happened in the 2008 collapse? Like literally exactly the same thing? Happening again?

We did a great job of dealing with that crisis, apparently.

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#10

So an estate agent is what we barbarians call a real estate agent. What a nightmare to have your whole business invested in a bubble that’s about to burst! I had a friend who was a mortgage broker in 2008, and he had sold a lot of subprime loans. I didn’t envy him.

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#11

*comedy trailer

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#12

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#13

I’ve long associated Realtors at about one rung up the ladder from child molesters.

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#14

We learned nothing.

This week’s class was on the Gilded age into the Great Depression and the rise of the liberal consensus… They had to read a Huey Long speech where he attacks FDR for not doing enough and then advocates for a set of policies to really fix the problems… The kids were very easily able to connection that period to today, and they easily saw parallels between what’s happening now and what was happening then.

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#15

Somehow, I don’t feel bad, or even surprised.

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#16

Hopefully it happens here soon, too.

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#17

AFAIK, not the same thing. What made the 2008 crash so bad was the way the CDOs and other weird derivatives had enmeshed the overall market and large parts of world economy with the housing bubble. This time, if there’s a crash, that should be much more contained and far less likely to pull everyone else down with the housing prices.

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#18

Well, I hope people haven’t made all the same mistakes with derivatives, insurance and re-insurance that led to the catastrophic spread from the housing collapse. But what makes me worry is that for the people who made those “mistakes” they weren’t mistakes. They got theirs, no one outside of Iceland was charged with fraud.

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#19

Foxtons blames the losses on a “prolonged downturn” in London’s housing market, exacerbated by Brexit.

These scumbags getting hit is the first and only silver lining of the Brexit debacle I’ve seen.

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#20

ok but which direction are they climbing?

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