Tuesday, 29 July 2008

Golden Corruption and Uncompetence




Many time in this blog I have been highliting the fact that municipalities have been one of the root cause of this housing bubble-by forcing real estate companies and individuals to become land speculators- The housing minister shouted out loud that land tax reforms will happen...so far nothing...but the problem is that this housing minister has only been shouting therfore nobody is paying attention since no action has been triggered on that area...

Today was reported that large sum (tax payer money) has been lost into gambling into the stock market beginning of the year. I'm not sure what kind of adviser they had, but they have been surely fooled as it was very clear that the stock market was about sink in the turn of the year and it did, eating millions of euro worth many paivakotis, better health care systems etc... this money maybe went to the money of the advisors, I'm really hoping that corruption was not involved as such large some always attract corrupt behaviour. What's done is done, now they need to replenish their coffers, are they going to raise property tax?

"Local government authorities have lost hundreds of millions of euros on investment markets this year.

Planning Manager Reijo Vuorento of the Association of Finnish Local and Regional Authorities told the newspaper Helsingin Sanomat the value of their investments has dropped by around 300 to 400 million euros since the beginning of this year.

Municipalities had investments totalling one-and-a-half million euros at the turn of the year. A fall in their value has led to a drop in revenue. Usually municipalities use investment dividends to pay off debts or to invest
. "

Corruption, let's talk about it...I have heard many times CEOs getting golden handshake while leaving a company sometime sinking and in the red...but a mayor, you know the guy that is elected by the honest hard working citizen to manage their tax money, yeah..a mayor to get a golden handshake...if i was sitting at the board, i would given him a golden kick ...Nevertheless i really do hope that justice will block that otherwise, the anticorrupt label that Finland has been flagging will be lost forever...

"The Jyväskylä city council decided Monday to lodge an appeal with Finland's supreme administrative court (KHO) in the case of former mayor Pekka's 200,000 euro golden handshake.

In June 2008 the Hämeenlinna administrative court overturned a decision made by the Jyväskylä city council in January 2007 not to demand the return of Mr Kettunen's severance money
."

3 comments:

Andrew said...

some results of a UK mortagee auction being held today by

http://www.barnardmarcusauctions.co.uk/

41 unsold 93.5
42 unsold 118
43 unsold 79
44 unsold 95
46 sold 250
47 unsold 75
48 sold 150
49 unsold 134.5
50 unsold 285
51 unsold 183
57 unsold 477
57a unsold 12.5
58 unsold 172.5
59 sold 140
60 unsold 102.5
62 unsold 116.5
63 unsold 195
64 unsold 155
65 unsold 125
67 sold 115.5
70 unsold 135
72 sold 61.5
79 unsold 197
80 unsold 71.5
80A unsold 122
82 unsold 54
83 unsold 95
85 unsold 144
86 sold 83
88 unsold 36.5
90 unsold 71
91 unsold 53
92 unsold 315
93 unsold 152
94 unsold 415
95 unsold 149
96 unsold 222
97 unsold 193
98 sold 13

Normally UK auctioneers will not accept properties unless the seller is seriously prepared to sell. The results speak for themselves.

This has been the pattern of the last month or so of UK auctions. Most of this stuff is not so desirable but even so. Presumably by the Autumn stuff will be priced to sell no matter what price is offered.

Britain has a massive crisis as does Spain. The dominos are falling one by one.

Andrew said...

I see the Finnish Finance minister has taken my advice on how to increase inflation!

"According to Mr Katainen tax cuts would not speed up inflation but would instead increase the wage earners' purchasing power by over 2 per cent."

17 months 2 weeks and counting:-)

HousingFinland said...

See next article for an answer...

I think they have room to manoeuver on the fiscal side, in that sense it will be equivalent of an interest rate cut...

Since they cannot influence the ECB interest rates, it's the only weapon they can use, but it can backslash if their model or forecast is erroneous...