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 ...
It's already been defined above. I've plowed that field twice.
Get someone on the ward to read it to you again.
I don't look at buying real estate as anything other than as having someplace to live. My "investments" have been in other areas.
And as for gobbledegook, that's what all of your threads and posts have been, since you joined FR.
That means a lot coming from a man without chest. One of these days you should give some serious consideration to stating your own position (that is, if you have one). Constantly nitpicking other peoples ideas, while never stating your own, is a sure sign of moral bankruptcy.
Thtomping you foot again, goldbug?
Tell us more about bankruptcy, mister gold-trading tycoon.
I don't worship gold. No doubt you would have been bowing before it a few days out of Egypt.
Not credible.
Nitpicking? LOL
Your article is FIFTEEN MONTHS OLD. We're not supposed to notice, or care, that the doom predicted hasn't happened for fifteen months, even as you try to pass it off as a fresh omen of disaster?
They do this crap all the time. They are a pack of hyenas that follow certain FReepers around and nip at their ankles for daring to opinion that disagrees with their group-think. We never go looking for them, but somehow they always find us. If they went away and were never heard from again, it wouldn't be a moment too soon.
Boy, you must have a special hatred for Adam Smith. He wrote hundreds of years ago!
I only have met two of them, and both were born here. If you are trying to suggest that only out of town ignoramuses are buying NYC real estate, I would have to disagree. The Dow Jones is near an all-time high, brokerage profits are at new records and the city is flush with cash.
Oh brother is that ever rich! LOL
I don't have a "posse". I don't have a "pack". And I suggest that you look up the word gadfly and learn how to use it.
"fiat mongering"? HUNH? Are you really claiming that I am somehow trying to "sell" or "push" dollars?
Keep right on posting, you've dug that hole so deep, there isn't any way that you will ever be able to get out of it; much like the VERY strange way you are buying gold on margin, on credit.
Exactly so!
Barring unforeseen circumstances, I don't plan on selling my home regardless of whether the price is inflated or deflated, so the "bubble" doesn't matter to me.
The only effect I saw caused by all the "sky is falling/the bubble is bursting" articles over the last few months is that the municipalities hurried to reassess everyone's property when the prices were skyrocketing so they could raise taxes. When the bubble bursts, I can't imagine any reassessing to lower taxes.
Great, wonderful, an article from an INDIAN newspaper. hehehe
That's my choice. I am always careful to tell people not to do the same thing unless they are willing to accept the potentially catastrophic consequences. Gold and gold stocks are going to the moon. But I am the first to admit that trading on margin can put you in the poor house, even when trading in a bull market such as gold.
Gold "is going to the moon."? Are we, America, planning another moonshot, with gold plated something aboard? LOL
Have to consider the source too - For example, I really like the Guardian's technology writers, but I tend to waiver on their politics.
I probably have a different angle on the US RE market than most of you. Not standing on the rooftops screaming "crash", but I don't wear rose-colored glasses either. Pessimistic on the current state of US consumer debt, hoping for the best for the sake of our Republic.
Let's keep it friendly - I've slogged thru some of the nastiest WBTS threads on FR, only the CRevo threads top that for ugliness.
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