A national charity which assists home owners in mortgage arrears has said that almost 50,000 family homes are facing repossession over the coming years, which could result in up to 120,000 people being made homeless.
The figures were published in the Phoenix Project’s annual report, which was launched on Tuesday in Dublin.
The charity provides advice and help to borrowers with mortgage arrears, and the charity says there have been an increasing number of callers availing of their service.
Since it was established in 2008, the charity has negotiated agreements on behalf of some 18,000 borrowers to stay in their homes.
Speaking at the report’s launch, Phoenix Project chairman John McGrath said current solutions being offered to the mortgage arrears crisis will be detrimental to homeowners:
“The solutions that the banks and financial institutions have offered many borrowers will result in the repossession of some 49,000 family homes. This is simply unacceptable and will make tens of thousands of families homeless,” Mr McGrath said.
The annual report has included a number of proposals for the government to consider, including the standardisation of guidelines and criteria for split mortgages across all lending institutions, the introduction of term extensions and long-term interest rate reductions and the establishment of independent body to act as the final avenue for appeal for distressed borrowers.
PART ONE OF A TRIPLE-HEADER ABOUT LOST CONFIDENCE IN MONETARIST SOLUTIONS
From the slog:
Not that many of you are interested, but the Yen is strengthening against the Dollar. This now lumbers Japan not just with the biggest debt in the world, but also one of the strongest – ie most expensive – currencies in that very same world.
This has happened because, from having previously been simply Nips, the Japanese central has been taken over by the Nirps….followers, that is, of a negative interest rate policy. To the best of my knowledge, only one commentator (an American journalist) saw the move coming; and since it was introduced, almost everyone underestimated the immediate effect it would have. This means that if you and I are confused by the varietal illogic involved in all this, it’s OK: so is everyone else.
Or perhaps, the confusion is far from OK.
When everything is connected, everything has unpredictable consequences. This fact alone should be enough to consign globalism to a footnote in history. Were it my decision, I’d insist on digging up Ted Levitt’s remains and scattering them across the oceans of the world. But in reality, Levitt was just another half-baked Ivory Tower Ivy League intellectual whose potty (and provably wrong) ideas about a Global Village were eagerly taken up by economic colonialists everywhere. He should’ve been universally discredited decades ago, but the reason his theory remains the planet’s default business model is that he was spouting exactly the kind of codswallop greedy multinationals and banks wanted to hear.
Globalism makes it easy to evade tax, move jobs offshore, pay slave wages in Asia, claim they didn’t know about stuff, move sovereign spies in under cover, bribe poor governments, amass illegal power, price-attack local competition until it goes to the wall, and cut production costs by insisting that one size fits all.
But unfortunately for everyone outside the 3%, it makes everything far too complex and interdependent to grasp, let alone control. Worse still, bamboozling business journalists and analysts becomes easier than falling off a log….and hiding the real financial condition of a business.
Overall, a globally connected econo-fiscal planet diffuses focus and catches even very smart people off guard.
The ‘idea’ of Nirp is to incentivise banks to lend to companies, so companies can invest more. It’s the same objective as QE – to get banks to do what they don’t want to do, or business doesn’t want in the first place: In Japan, a few banks are wary of lending, but mostly there is little or no demand for their loans. The main problem with most monetarist tosh is that it doesn’t ‘get’ the anthropology of business any more than communism does.
The theory goes that only an idiot would keep their money in a central bank where they have to pay for the dubious privilege: so better to lend it to business. That idea is flawed first because it’s trying to solve a problem that isn’t there, and second because of the lind spot about human emotions: Japan’s problem is complex and longstanding; but the two biggest factors are confidence among business/consumers and motives among banks.
full article at source:
It all started in mid/late 2014, when the first whispers of a Fed rate hike emerged, which in turn led to relentless increase in the value of the US dollar and the plunge in the price of oil and all commodities, unleashing the worst commodity bear market in history.
The immediate implication of these two concurrent events was missed by most, although we wrote about it and previewed the implications in November of that year in “How The Petrodollar Quietly Died, And Nobody Noticed.”
The conclusion was simple: Fed tightening and the resulting plunge in commodity prices, would lead (as it did) to the collapse of the great petrodollar cycle which had worked efficiently for 18 years and which led to petrodollar nations serving as a source of demand for $10 trillion in US assets, and when finished, would result in theQuantitative Tightening which has offset all central bank attempts to inject liquidity in the markets, a tightening which has since been unleashed by not only most emerging markets and petro-exporters but most notably China, and whose impact has been to not only pressure stocks lower but bring economic growth across the entire world to a grinding halt.
The second, and just as important development, was observed in early 2015: 11 months ago we wrote that “The Global Dollar Funding Shortage Is Back With A Vengeance And “This Time It’s Different” and followed up on it later in the year in “Global Dollar Funding Shortage Intensifies To Worst Level Since 2012” a problem which has manifested itself most notably in Africa where as we wrote recently, virtually every petroleum exporting nation has run out of actual physical dollars.
The point is, it all started with the rising dollar and the ensuing global dollar shortage, and thus, the Fed embarking on what may be the biggest central bank error of all time. To be sure, the consequences are wide ranging: from the collapse in crude, to the tremors and devaluations in China, to the tightening financial conditions, to the (manufacturing) recession in the U.S., and most recently, to whispers that Deutsche Bank, the bank with $60 trillion in notional derivatives, may be the next Lehman Brothers.
Which, incidentally, brings us to none other than one of Deutsche Bank’s most respected credit analysts, Dominic Konstam, who clearly has an appreciation of the existential risk he finds himself in, not only career-wise, but in terms of the entire financial structure. We know this, because after reading his email blast from this morning we realize just how vast the fear, if not sheer terror, is among those who truly realize just how broken the system currently is.
We have reposted his entire letter below, because it represents the most definitive blueprint of everything that is about to be unleashed – especially since it comes from the perspective of one of the people who is currently deep inside Deutsche Bank and realizes just how close to the edge the German bank is.
What Konstam makes clear, in no uncertain terms, is that the the problem is the one we laid out back in November 2014: “It is not oil, it is not in the banks, it is a run on central bank liquidity, especially dollar based and there needs to be much more ($) liquidity.”
He also makes it quite clear that investor fears about contagion are well-founded: here it is in the words of a Deutsche Banker: