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 ...
Bubbles burst for a lot of reasons, some of them having nothing to do with the quantifiable fundamentals. One day a bunch of people wake up and decide that the $600,000 two bedroom condo may be worth $550,000 in six months or banks decide not to over extend themselves. Bubbles have to do with individual and institutional perception of value.
Do not mock their shiny metal god!
Which only means that YOU are a johnny-come-lately to this topic and are battling the old hands at it, who have seen it all for FOUR years and watched as goldbug after goldbug has been banned. LOL
Hmmmm
I bought Los Angeles area condo in 1995 for 78K. It is now worth $410K.
My 5.0% (15 year with 10 years left[ mortgage payment is apx. $700 a month] ).
But who the heck knows?
Oh I get it. When we say real estate is in a bubble, it's goldpimpery, etc. But when you say talk of a real estate bubble is false, were supposed to take that as gospel. Hypocrite, hypocrite, hypocrite!
Did you stamp your foot, as you wrote that? *snicker*
It's got nothing to do with what I say...
Your ludicrous premises remain unproven. You seek to motivate by fear, not informed fact.
Total BS. Gold is the thing to be in right now. Someday down the road it will be something else. Get real.
You guythe are thilly and irrelevant! Theriethely!
That's twice. You're finally starting to get it. I'm shocked! Is someone telling you what to write?
LOL
The hard sell isn't working. Go back to the soft sell, it had at least a snowball's chance in hell of getting to close.
Can you identify the last real estate bubble that burst without any quantifiable fundamentals? Your suggestion may work in a local or small regional situation but cannot be applied to a broader market. Perceptions, rational or not are driven my something that can be identified.
How's that margin going for you? LOL
Oh I get it now. You don't like people buying and selling your idols.
Oh hush up, or I'll hit you with my purse! hehehehehehehehehehe
Sure. You are.
I take the posts in which you're blatantly MakingShitUp™ and turn it around for sarcastic comedic effect.
Have you noticed that you're the only one not laughing?
I give hithe potht Three Thnapth Up!
Not my idol, but definitely your shiny metal god.
Stop, oh stop it....I'm really laughing so hard, I just might "PIMP".
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