Have just revisited a site which sets out the events of South Sea Bubble and Enron scandals. It explains the concepts of a "zero sum" market, and why" dumb money" chases losses so avidly. Apply one one of these criteria and one can see the housing market crash to come, that no one will acknowledge.
Of course the present government is aiding and abetting the present house price bubble, for its own ends, but with a change of government who knows? ' It wasn'a us, it was the other lot' , will inevitably become the mantra that oversees the looming price crash!
Pensions gone people are desperate to recoup losses, only to invest in the house price "boom", that must inevitably crash as it has done before.
2007-02-11 21:49:59 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I don't see the similarity myself, I don't think the housing market is anywhere near as extreme as the tulip bulb mania in Holland in the 17th century or the South Sea bubble, I don't think it's an extreme move caused by speculative money.
2007-02-11 21:53:02 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The current increases in the property market prices are caused by genuine demand for a limited supply.
Its a frightening situation given that it is only a couple of generations ago no-one would have thought of owning their own home; it was just generally accepted that you would rent from some anonymous "well-off" landlord.
There will be no crash. There will come a time, probably in the very near future, when the price of housing stabilises, and may indeed come back a bit, but that is all.
Sorry to burst your bubble.
2007-02-11 22:02:23 · answer #2 · answered by Billybean 7 · 1⤊ 0⤋
Check this site out!It helped me a lot while dealing with the same issues.
http://mortgage-loan.learnmagics.com
Hope it helps you too!
2007-02-11 22:08:39 · answer #3 · answered by rol3y2104 1 · 0⤊ 1⤋