Posted on 09/21/2006 8:02:27 PM PDT by GodGunsGuts
The worldwide rise in house prices is the biggest bubble in history. Prepare for the economic pain when it pops
NEVER before have real house prices risen so fast, for so long, in so many countries. Property markets have been frothing from America, Britain and Australia to France, Spain and China. Rising property prices helped to prop up the world economy after the stockmarket bubble burst in 2000. What if the housing boom now turns to bust?
According to estimates by The Economist, the total value of residential property in developed economies rose by more than $30 trillion over the past five years, to over $70 trillion, an increase equivalent to 100% of those countries' combined GDPs. Not only does this dwarf any previous house-price boom, it is larger than the global stockmarket bubble in the late 1990s (an increase over five years of 80% of GDP) or America's stockmarket bubble in the late 1920s (55% of GDP). In other words, it looks like the biggest bubble in history.
(Excerpt) Read more at economist.com ...
Yep, even when you consider the recent correction, we're still flying high. Even at these lower altitudes, you still look awfully tiny down there!
Yes yes, you manage a massive gold-trading empire, making huge piles of money by always buying at the bottom and selling at the top.
Right.
Sorry pal. I haven't been on FR for four years. Nice try.
It's not "old," it's just "well-seasoned."
LOL
I never said there was a "nationwide bubble." I said there were vast sums dumped into select markets that could/probably will impact the rest of the economy. How large an impact remains to be seen.
He said "you guys." Plural.
You and the rest of the doom lobby.
Are you expecting 9% unemployment in California? From the third quarter of 1990 to the third quarter of 1996, average prices of existing homes in California fell 13 percent because the unemployment rate in California jumped from 5.1 percent in January 1990 to 8.3 percent in 1991 and to 9.9 percent in 1992.
California's unemployment rate was above the national average and did not dip below 9 percent until March 1994. The unemployment rate there today is what, 5.1%? Florida's unemployment rate is under 4%. Mortgage rates are low by historical standards and are declining. If unemployment, debt and mortgage rates aren't going to kill the market, what is?
I'm off to work. It's been pleasant. Thanks...and take care.
Hypocrite. Who are you in that one...the glue or the rubber?
Nor did I claim you said so. But your compatriots-in-gloom say or imply it all the time.
The irony is, you're doing it right now. Right there.
You're projecting badly now.
I have no compatriots. I am fond of ex-Texan because his links are usually at least interesting and he has always acted in a cordial manner (I'm big on civility). But I do speak only for myself and nobody speaks for me.
A distinction without a difference.
Amen to that. I'm starting to think all these blowhards are a bunch of real estate pimps.
Too funny.
Blogpimpery gets a pass through spell check now. We need to work on fearmongering and gloomwhoring. I'm sure they will resurrect more of these "well seasoned" articles between now and the election.
Thanks. I knew you would you would see it my way sooner or later. Given your brainhousing group, I assume it will ALWAYS be later.
The names may change but the doom and pimping doesn't. You're all cut from the same cloth. You get up each day hoping something bad will happen in the world so the economy tanks and your shiny metal increases in value. That, IMHO, is a miserable way to go through life.
Not me. I use interest-free cash-advance credit card offers to manage a gold-trading empire that makes heaps of cash by always buying at the bottom and selling at the top.
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