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IDS World Markets Wed 21st October 09


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Hong Kong May End Mortgage Insurance for Investment

 

Oct. 21 (Bloomberg) -- The Hong Kong Monetary Authority may scrap a program that offers mortgage insurance for investment properties as the city’s central bank tries to prevent a real estate bubble. Mortgage insurance allows home buyers to borrow beyond 70 percent of the property’s purchase price. The insurance program covering investment properties may be scrapped “to tackle the speculative trend of the surging market,” HKMA spokeswoman Alice Lo said in an interview today.

 

Hong Kong home prices have risen 30 percent this year to the highest since March 2008, according to the Centa-City Leading Index compiled by Centaline Property Agency Ltd. and the City University of Hong Kong. Since most home buyers pay in cash, tightening lending requirements or raising mortgage rates would be of little help in cooling down the luxury market, the English- language newspaper [standard] said, citing an unidentified banking source.

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Hong Kong May End Mortgage Insurance for Investment

 

Oct. 21 (Bloomberg) -- The Hong Kong Monetary Authority may scrap a program that offers mortgage insurance for investment properties as the city’s central bank tries to prevent a real estate bubble. Mortgage insurance allows home buyers to borrow beyond 70 percent of the property’s purchase price. The insurance program covering investment properties may be scrapped “to tackle the speculative trend of the surging market,” HKMA spokeswoman Alice Lo said in an interview today.

 

Hong Kong home prices have risen 30 percent this year to the highest since March 2008, according to the Centa-City Leading Index compiled by Centaline Property Agency Ltd. and the City University of Hong Kong. Since most home buyers pay in cash, tightening lending requirements or raising mortgage rates would be of little help in cooling down the luxury market, the English- language newspaper [standard] said, citing an unidentified banking source.

If you lend it, they will come.

 

If someone else guarantees it, they will queue around the block.

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King Suggests Splitting Up Largest Banks to Stem Risk

Oct. 21 (Bloomberg) -- Bank of England Governor Mervyn King stepped up his call for governments to tackle the dangers posed by banks that are “too important to fail,” saying new capital rules won’t shield taxpayers from funding any future bailouts.

 

“The massive support extended to the banking sector around the world, while necessary to avert economic disaster, has created possibly the biggest moral hazard in history,” he said in a speech in Edinburgh late yesterday. He indicated that one solution could be to split up banks and separate riskier activities from more stable businesses such as taking deposits.

http://www.bloomberg.com/apps/news?pid=206...id=aAdP3tUMTdVE

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I am a fan of FRONTLINE, and think they do a good job on the shows they produce.

 

Last night's "The Warning" was no exception

 

Great show, worth watching, but make sure to have your blood pressure medication, barf bags or Tums at the ready....by the end of the show I was so pissed off I would have ******* Greenspan had he been within reach

 

The Warning <----- Here

 

post-6859-1256124519_thumb.jpg

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