Some interesting comments from economist Saul Eslake regarding the Australian housing bubble:
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“Rising house prices are not of themselves a reason for the market to drop.
Sixteen years ago, I had this idea. I had a house in Tempe I didn’t like that much in a neighborhood popular with college students. I had lived there less than a year. 318 more words
For the good folks who hope fervently that the Fed doesn’t have reasons to raise rates or unwind QE because there isn’t enough inflation, here is an update on one aspect of inflation – asset price inflation, and particularly house price inflation – where the value of your hard-earned dollars has collapsed over a given number of years to where it takes a whole lot more dollars to pay for the same house. 682 more words
In 2008, the housing crisis in the United States left many people in a state of panic. The housing market collapsed and prices dropped. It took 5 years for the market to recover (for example, a unit in… 268 more words