Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

The Global Housing Boom: In come the waves (a cautionary tale)
The Economist ^ | 06/16/2005

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 ...


TOPICS: Australia/New Zealand; Business/Economy; Japan; United Kingdom
KEYWORDS: 2005article; bahog; comedyhour; depression; despair; doom; dustbowl; grapesofwrath; housing; housingbubble; lieabouttheagenda; whataretheyselling
Navigation: use the links below to view more comments.
first previous 1-20 ... 201-220221-240241-260261-272 last
To: durasell
I always do.
261 posted on 09/22/2006 5:32:11 PM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts.)
[ Post Reply | Private Reply | To 259 | View Replies]

To: defenderSD

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?


262 posted on 09/22/2006 5:44:21 PM PDT by volunbeer (Pelosi)
[ Post Reply | Private Reply | To 208 | View Replies]

To: defenderSD

:-)


263 posted on 09/22/2006 7:58:48 PM PDT by nopardons
[ Post Reply | Private Reply | To 208 | View Replies]

To: defenderSD

We're on the same page.


264 posted on 09/22/2006 8:00:35 PM PDT by nopardons
[ Post Reply | Private Reply | To 210 | View Replies]

To: defenderSD

Not only the hedge fund, but Goldman Sachs and a couple of other of the "big guys".


265 posted on 09/22/2006 8:02:18 PM PDT by nopardons
[ Post Reply | Private Reply | To 212 | View Replies]

To: RobRoy
Lots of things are missing, which would cause a world wide depression and there hasn't been a world wide depression ( which was actually kicked off by WW I/the TREATY OF VERSAILLES, BTW )since the 1930s.

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.

266 posted on 09/22/2006 8:06:47 PM PDT by nopardons
[ Post Reply | Private Reply | To 218 | View Replies]

To: GodGunsGuts
Interest rates are NOT rising.

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

267 posted on 09/22/2006 8:19:15 PM PDT by nopardons
[ Post Reply | Private Reply | To 233 | View Replies]

To: Mase

Exactly so.


268 posted on 09/22/2006 8:21:06 PM PDT by nopardons
[ Post Reply | Private Reply | To 236 | View Replies]

To: Toddsterpatriot
I don't owe anyone a penny. I have NO debts. Someone please remove me from that list of debtors! :-)
269 posted on 09/22/2006 8:24:51 PM PDT by nopardons
[ Post Reply | Private Reply | To 251 | View Replies]

To: churchillbuff

FYI


270 posted on 09/23/2006 7:55:12 AM PDT by GodGunsGuts
[ Post Reply | Private Reply | To 1 | View Replies]

To: nopardons

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.


271 posted on 09/24/2006 12:00:39 PM PDT by RobRoy (Islam is more dangerous to the world now that Naziism was in 1937.)
[ Post Reply | Private Reply | To 266 | View Replies]

To: volunbeer

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.


272 posted on 09/25/2006 1:47:54 PM PDT by defenderSD (Blogging while listening to that smooth jazz on 95.5 KYOT Phoenix, the Coyote.)
[ Post Reply | Private Reply | To 262 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 201-220221-240241-260261-272 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson