Banks in Poland selling fewer mortgages in 2011, down 49%

've said that, or something similar, ple

Bit of a misleading headline - it should say "new unsold" rather than just "unsold".

much less optimistic outlook of construction companies

presenting a much less optimistic outlook of construction companies on the future market situation after two years of relative stabilisation.

Companies, banks, hedge funds are sat on billions in cash

Poles buying cheaper apartments in Germany

24th November 2011

Polish citizens are purchasing increasing amounts of property in Eastern Germany, reported Dziennik Gazeta Prawna.

In certain locations, Poles account for as much as 50 percent of the local population. The main reason behind the rise is the cost of apartments, which are often priced up to 50 percent lower than in Poland.

A 60-65 sqm renovated apartment in Görlitz, on the German side of the Polish-German border, can cost zł.50-70,000, which is about half the price of a similar sized apartment on the Polish side of the border.

Explain that. Bubble?

Explain that. Bubble?

Banks in particular do not lend money they have, you give them a property and they manufacture it out of thin air using the property as proof that the money exists. Any cash the may have is lent out at 10-50 times multiple as a loan on an asset.

Yes this is one of the many proofs,that it is a bubble

So I get a mortgage from the Bank to buy a property. I pay a deposit of say 20% to the Vendor. Sign the paperwork and the bank pays the other 80%, bank has security on the property, vendor has his 100% price for the property, or do you think that the vendor accepted a "promisory note" from the bank? My promise to pay the bank X amount over the next 25 years is what the bank "leverages" on.

How do you think the vendor got paid for the property?. Mortgages had to exist to be "re-packaged' into "sub-prime".

Hard to believe, isn't it? Martin Wolf, one of the experts who sat on the independent commission on banking, put it bluntly, saying in the Financial Times that "the essence of the contemporary monetary system was the creation of money, out of nothing, by private banks' often foolish lending"

What is meaningful however is that Warsaw prices are now similar to Germany's three richest cities, Duesseldorf, Munich and Frankfurt yet wages are about 40% of the amount.

except for the fact that banks don't have 'cash' they have an ability to create money to lend

has put the Polish Zloty under pressure

i hope Poland doesn't take the Euro.

Germany, France examine radical push for eurozone integration

By Luke Baker and Julien Toyer

BRUSSELS | Sun Nov 27, 2011 10:59pm GMT

(Reuters) - Germany and France are exploring radical methods of securing deeper and more rapid fiscal integration among euro zone countries, aware that getting broad backing for the necessary treaty changes may not be possible, officials say.

Germany's original plan was to try to secure agreement among all 27 EU countries for a limited treaty change by the end of 2012, making it possible to impose much tighter budget controls over the 17 euro zone countries -- a way of shoring up the region's defences against the debt crisis.

But in meetings with EU leaders in recent weeks, it has become clear to both German Chancellor Angela Merkel and French President Nicolas Sarkozy that it may not be possible to get all 27 countries on board, EU sources say.

Even if that were possible, it could take a year or more to secure the changes while market attacks on Italy, Spain and now France suggest bold measures are needed within weeks.

Er you are forgetting interest rates

if we believe the foreigners and Polish working abroad have such a large influence - personally I think these factors don't have as much influence as some would want us to believe.