Friday, August 27, 2010

Whatever happened to Caveat Emptor?

As the saying goes "hindsight is always 20/20".

In October 2008 global markets collapsed and took property markets with them.

In the USA the housing market is still reeling with a simply appalling number of bank foreclosures and devastatingly sad stories abound.

In the UK "buy to let" had been all the rage and banks had been offering 100%+ self certification mortgages to anyone who could write with a pen rather than crayons. 

Since the crash they have gone full circle and getting money from them ranges between pretty damn difficult and nigh on impossible. Many of these buy to let investors are only remaining solvent thanks to the artificially low interest rates.

Catastrophic for lots of people....including those of us who earn our living from the property industry.

But it makes my blood boil to read this article in The Independent.

A group of Irish investors have decided that rather than accept the fact that they have been caught out by the market they would rather blame the property press and are seeking legal recourse.

"Places like Bulgaria have fared very badly, and people are feeling angry with the journalists who promoted it.". 

Get a grip.  Even experienced investors who employ full time sector analysts were caught out. Stop looking for a scapegoat.

I'm not saying that journalists don't have a responsibility to their readers.  Of course they do and if you read the article you'll see that Graham Norwood expresses this eloquently.

But I couldn't agree more with the Dublin lawyer quoted who says "these people are desperate for someone to blame" and are "barking mad".

1 comment:

Chris said...

Unfortunately it's the culture of the world. If you trip over something at work it isn't your fault, it is the company for having it there. Really makes me angry too, can't think they will get too far though.