There are two issues here, the theory and the reality. The reality is that these highly speculative "mega" developments are highly geared, in other words they need a high volume of investment to fund them and the marketing and Agency costs. The fact is whether one part of the consortium is bust or not, the confidence to invest is totally bust....this will affect the cash flow and ability for the scheme to be financed. Word gets around and nobody in their right mind will put a penny more into this scheme..new or old..s how they going to fund it..answer they are not..it is a sinking ship now as nobody investing can afford to beleive what anybody says true or false...and if they are sensible they will steer well clear...this will cause the failure of the scheme whatever the reality. Just the same as banks getting cold feet and getting nervous to lend creating the credit crunch...it's about confidence not whether one Agent or lawyer says it is fine or not. Your best loss if there can be one is the one that is minimised and you get out quick not throwing good money after bad on a lost cause..take your medicine and move on.
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