Hello everybody,
Having been sitting on the sidelines of property investing for a couple of years now, I'm starting to stretch my hamstrings, take a last drink of water, and put in my mouthguard before substituting onto the field of real-world property investing (yes, yes – I know that stretching is supposedly not good for cold muscles – I was just making a point).
I'm curious as to when a bubble really is a bubble. Standing atop a ladder can seem astronomically high, but once you get down to ground level it never looks quite so high – i found this out when I tried to clean my gutters last year – ended up having to replace them as they were all rusted through – that's good advice for new homeowners – check you gutters – yes, even those of you with the FHOG buying up 2 bedroom ramshackle shacklehouses in Endeavour Hills!
As I was saying, sometimes a bubble is a bubble and sometimes it isn't. Sometimes the squeaky wheel gets the grease, but you can always bet that a blind raccoon will find a walnut every now and then. So where is the justification for the doom and gloom people?
In the 1930s, it was not obvious to people living through debt deflation that their world was coming apart. The crisis came in pulses, each followed by months of apparent normality – like today.This whole situation has a good lag time to it. This is a slow moving beast that will nibble at the edges. What we are seeing now is all those billions of dollars being injected into the system plus the government legislation coming into effect over the next few months. Hopefully it will prop it up and life will go on.
The whole world is at a flash point, most people would have no idea.Go here to get some perspective
http://4.bp.blogspot.com/_H2DePAZe2gA/STAqqdE8CfI/AAAAAAAAGks/WrursaMDRIM/s1600-h/expend.png
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