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 will, if you promise to stop posting to FR when gold hits $800.
Brilliant post and great charts; as always.
And don't call me Nelly.
Too clever by half, liar.
Oh, and so you don't try to apply the "I'm rubber and you're glue" treatment to yet another post, let me clarify:
Your juvenile comment was too clever by half, and you are a liar.
A gold bug? Say it ain't so!
By the way, did you know they prefer to be called Golden Eagles?
LOLOL
If only......
Won't happen though because they need to sell someone else their gold before we see $50 a barrel oil, a strengthening dollar and fed rate cuts.
England, Australia and New Zealand all had soft landings in their real estate markets and as money left real estate it flowed into equities. Same thing is happening here. If a recession were on the way would stocks be rallying?
Right, there are places where you can still buy a house for under $100,000. And there are no bubbles in these markets. However, the amount of money and jobs linked to places like Southern California, Florida and NYC is substantial and could impact the rest of the economy.
To the best of my knowledge, the President is not slipping into a century 21 blazer and sneaking out of the White House in disguise to sell homes in the latest McMansion development or saying things like, "They ain't making any more land..." in speeches.
They're bugs and they are going to have to live with that appellation; whether they like it or not.
Trouble is, you guys were selling this same story four years ago and since that time the value of my home has more than doubled. I think you need a new crystal ball.
Silly and irrelevant.
Gloomwhoring is intended to suppress consumer confidence AND voter confidence.
I like this even better............and very appropriate for this OLD gloomwhoring article.
Yes................
HELL YES....................
And no, the markets/stocks NEVER rise, as they are, in a recession; NEVER!
Gee, that hurts. A liar, has called me a liar.
You talking to yourself?
Free market. You pays your money and takes your chances. However, it's very, very -- extraordinarily -- dangerous to link financial decisions to political loyalty, even if that loyalty is based on long held and carefully considered political opinions.
I've actually met people who think selling a stock short is unpatriotic. They're morons.
Talk about all talk no action!
Describing yourself..........finally?
You're not getting it. The nationwide globe-stopping bubble is not just politically motivated, it's also false.
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