A bubble is typically an illusion of economic strength which draws buyers in, whilst masking underlying fragilities - and in some areas of Australia, the recent investor lead rally in property prices from an already inflated base is concerning.
That about sums it up I would say.
Quote:
However, unlike other economic bubbles, housing markets have plenty of complexities which can delay a severe correction – not least the stimulus of easy monetary policy, incentives, and speculation buoyed on by tax policies that encourage heated investor activity in the established housing terrain around our most desirable capital city locations.
Which explains why we haven't reached bottom yet.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
Huh? Cashmore has been consistently bearish for ages! And like the other bears, she has been completely wrong and totally mis-read the market.
"ages!" being just how long would you estimate Sydneyite?
Though what's truly incredible isn't so much the fact that she (a buyer's agent who makes her living from property sales as I recall?) has 'turned' but her suggestions as to what "should" be done, including amongst other things:
"our politicians should be moving to restrict policies that encourage disproportionate speculation, such as the tax treatment of negative gearing (which should be phased out) and capital gains, or implementing a transition toward a broad based land tax system which is long over due"
"ages!" being just how long would you estimate Sydneyite?
Though what's truly incredible isn't so much the fact that she (a buyer's agent who makes her living from property sales as I recall?) has 'turned' but her suggestions as to what "should" be done, including amongst other things:
"our politicians should be moving to restrict policies that encourage disproportionate speculation, such as the tax treatment of negative gearing (which should be phased out) and capital gains, or implementing a transition toward a broad based land tax system which is long over due"
She turned bearish a couple of years ago during the regular cyclical correction.
She got sucked in by the nonsense peddled on Macrobusiness, and mistook the cyclical correction for the beginning of a big crash/melt.
She has painted herself into a corner now, having posted so frequently about her belief in 'The Bubble' that there is no going back.
Now she must churn out a new hand-wringing article every week complaining about how 'The Bubble' is getting bigger and postulating all sorts of pie-in-the-sky 'solutions'.
It has been pointed out to her many times that house prices have simply tracked incomes for the past decade, but she is in too deep now to admit she was wrong.
She turned bearish a couple of years ago during the regular cyclical correction.
She got sucked in by the nonsense peddled on Macrobusiness, and mistook the cyclical correction for the beginning of a big crash/melt.
She has painted herself into a corner now, having posted so frequently about her belief in 'The Bubble' that there is no going back.
Now she must churn out a new hand-wringing article every week complaining about how 'The Bubble' is getting bigger and postulating all sorts of pie-in-the-sky 'solutions'.
It has been pointed out to her many times that house prices have simply tracked incomes for the past decade, but she is in too deep now to admit she was wrong.
Catweasel say mouzealot counter anti-narrative of property expert on its 1-dimensional.
And a counter is a narrative in it the self.
Mouse house price track a income.
And it a easy one to explain to mouse.
In a 1 dimension.
Can be the trot out in press release and RBA speech and head nod in agree.
Why not expert take it further?
And give mouzealots another trinket?
Of the course, every property the orgy can be associate with increase the income.
And it a coincide with big the mine explosion.
So,
why the not,
pointy head do the driver analysis,
and quantify how much the income impact a house price?
She turned bearish a couple of years ago during the regular cyclical correction.
She got sucked in by the nonsense peddled on Macrobusiness, and mistook the cyclical correction for the beginning of a big crash/melt.
She has painted herself into a corner now, having posted so frequently about her belief in 'The Bubble' that there is no going back.
Now she must churn out a new hand-wringing article every week complaining about how 'The Bubble' is getting bigger and postulating all sorts of pie-in-the-sky 'solutions'.
It has been pointed out to her many times that house prices have simply tracked incomes for the past decade, but she is in too deep now to admit she was wrong.
Most Australian property doom and gloomers travel down this path.
They start off by honestly believing there is a bubble - either their own miscalculations or from being suckered by other doom and gloomers After a few years of non-eventuating bubble popping predictions, they start to see they may have made a mistake but by that stage, their pride and reputation is at stake so they refuse to acknowledge their mistake and continue to churn out rubbish which even they don't believe themselves.
Steve Keen himself traveled down that path, though to his credit, he came clean at the end. But if you look at his later articles just before he admitted his mistakes, he kept trying to twist the graphs to make Australia's graph fit Japan's/USA's. And when he realised it no longer fit, he just abandoned the updates he promised while finding time to churn out different graphs which fits his new spruik ... this is the surest sign he knew he was on the wrong path just before he 'fessed up.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
Most Australian property doom and gloomers travel down this path.
They start off by honestly believing there is a bubble - either their own miscalculations or from being suckered by other doom and gloomers After a few years of non-eventuating bubble popping predictions, they start to see they may have made a mistake but by that stage, their pride and reputation is at stake so they refuse to acknowledge their mistake and continue to churn out rubbish which even they don't believe themselves.
Steve Keen himself traveled down that path, though to his credit, he came clean at the end. But if you look at his later articles just before he admitted his mistakes, he kept trying to twist the graphs to make Australia's graph fit Japan's/USA's. And when he realised it no longer fit, he just abandoned the updates he promised while finding time to churn out different graphs which fits his new spruik ... this is the surest sign he knew he was on the wrong path just before he 'fessed up.
So mouse say that anti-gurus is fighting against nature?
Perhaps the true.
But who the know?
Can mouse point to guru who reveal?
And what is the anti-science?
Must all a guru and anti-guru conform to the flock's hopes, dreams and expectations?
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