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 ...
I claim no expertise or even a strong opinion on this subject but you previously said that demand would make gold/silver continue to rise due to limited supply.
Should that not be true as well for premium properties close to major metropolitan hubs?
:-)
We're on the same page.
Not only the hedge fund, but Goldman Sachs and a couple of other of the "big guys".
You need to read more world history and financial history. If you're REALLY interested, I can give you a wee book list, to get you started.
Though we've had two slightly down DOW days, it almost broke through its record high and will probably regain the two slight down days ( Thursday and Friday ) and then go back up and crash through the record high.
The Fed just announced the BIGGEST amount of quarterly paid taxes, to date and the debt has also fallen.
Okie dokie...there goes that theory. LOL
Exactly so.
FYI
You are operating under the false paradigm that when history repeats itself, it always does it the exact same way. Yes, things are missing. Things are also there that weren't there before.
I have been studying world history with a specific interest in the two world wars and their impact on our world culture since 1968.
Although investors need to avoid properties that are currently overpriced, I think generally real estate in good locations will continue to increase in value in metropolitan areas that have reasonably strong population growth in the years ahead. As you mentioned, this is because of growing demand combined with a very limited supply of properties in good locations.
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