How fair is that?
There were recent comments about the new Basel IV regulations that intend to reduce exposure of banks to real-estate risks, and they go all-in and buy properties.
by post_crooks
How fair is that?
There were recent comments about the new Basel IV regulations that intend to reduce exposure of banks to real-estate risks, and they go all-in and buy properties.
by post_crooks
8 comments
Could this be to avoid any possible talk of windfall tax on exceptional profits they had, among other things like making more profits.
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So when are we kicking off the revolution against the 1%?
Developers in Luxembourg are in trouble and the banks see an opportunity to make some money by buying properties from the failing developers on the cheap. Just good old business. Nothing is wrong with that.
Yet another measure to put a floor under housing prices and avoid a natural (and overdue) correction in prices. As much as most people like to blame economic liberalism for everything that’s wrong in today’s societies, it is the interventionist welfare state that eternalizes inequalities by providing protections to capital owners, be it through plans like this, state aid in building Arcelor’s HQ or bail outs of for-profit companies more generally.
Will it really make a difference?
I doubt it’ll make a dent in supply or prices.
It is an attempt to prop up the prices. The banks have the most to lose from this bubble deflating. People often say the state is conspiring to keep it up too but I am not at all convinced, the recent measures sound to me more like an attempt to deflate it than reinflate it. People focus on the peanuts that help buyers, but the government also announced a capital gains tax reduction for sales, to stimulate people sitting on inherited property to sell it now. They are clearly trying to increase supply but when you increase supply in a slow market, what do you think happens to the prices, most definitely they don’t go up.
So I guess the banks are now trying to keep it going with their own devices. I think they will need more money than 250 million though.
The title of the article makes it sound like banks are joining forces to do something good for the housing market but I have the feeling it’s going to make things worse for everyone. I just don’t believe banks would act in the interest of the common folk.