REal Estate Boom ....turning to bust?
TIME TO BE WARY Real Estate assets have risen to 140% of GDP!!! same as the bubble stocks did in 2000 !
Mere coincidence? My ass! Greenspan and cohorts supplanted ONE bubble with another, as they play their deadly game of talking down inflation in their Goldilocks economic scenario that couldn't be farther from the truth!
Let me add a stat I have mentioned before. More than 30% of all homes bought last year were for 2nd homes or speculation!
HOME IS THE HEART OF THE MATTER CONTRARIAN INVESTOR APRIL 2004
2000 BUBBLE consisted of very LIQUID stocks, but now consists of very ILLIQUID HOMES.
SKYROCKETING homes sales are NOT an effect of growth in wages and incomes which have been stagnant, but merely historic low interest rates and liquidity.
Is it good that last year about ONE out of every THREE homes were not for a primary living space?
We are in uncharted territory my friends, but as history has shown us, we ALWAYS REVERT BACK TO THE MEAN .
That would mean much pain for the many unprepared.
STock prices can jump around, and there is little fear, bu it doesn't mean something isn't lurking out there, something totally out of control.
Duratek
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