All these bearish articles are getting a tad boring, there are so many of them….and I suspect ignored…or derided.
However, for your amusement, here are a couple more from The Economist magazine.
http://www.economist.com/opinion/displayStory.cfm?story_id=4079458
“The whole world economy is at risk. The IMF has warned that, just as the upswing in house prices has been a global phenomenon, so any downturn is likely to be synchronised, and thus the effects of it will be shared widely. The housing boom was fun while it lasted, but the biggest increase in wealth in history was largely an illusion.”
http://www.economist.com/finance/displaystory.cfm?story_id=4079027
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?
Enjoy
First Greedscam, then Volkers, now the third Federal Reserve Governor, Donald Kohn, has come out with warnings…
“The risk of rapid adjustments and unusual configurations of asset price movements is higher than normal,” he said in remarks to be delivered in New York. A copy of the speech was made available in Washington.
Kohn’s comments echo stepped-up warnings from Fed officials, including Chairman Alan Greenspan in recent weeks, that a swift rise in U.S. real estate values may not last and may have led to speculative behavior and risky lending practices….
Cheers
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