by HARM follow (0)
« First « Previous Comments 113 - 113 of 113 Search these comments
Information comes from the media. Those in the media (especially the higher income people) own property.
Close, but not quite on the nail... the media make huge revenues from real estate advertising -- huge revenues. they don't want to upset their cash cow source by running negative stories... altho some medial moguls have property interests as well, and don't want to see their own multi-million properties going down in value -- but they really make their income from advertising, that's the true life-blood of the mass media...
« First « Previous Comments 113 - 113 of 113 Search these comments
Given this is a very Bay Area and California-centric blog, we often tend to forget that the RE bubble is arguably international in scale. The Economist pointed this out in an excellent piece last year. One of the most perplexing mysteries to many of us fundamentals-driven contrarians, is why haven't the housing bubbles in other countries --which started before the U.S. bubble-- already collapsed?
The Australian, UK and Irish bubbles had a good 2-3 year head start on the U.S. by some measures, while the Netherlands hasn't had a significant price correction in some 15 years. By all accounts, they should have seen sizeable price corrections well before now, and yet we are only recently seeing reports that indicate these booms are finally past their peaks. Could it be that the U.S. housing bubble itself delayed or prevented these other bubbles from collapsing as quickly as they otherwise might have? Could it be that all the Fed/GSE generated USDs and specuvestor credit sloshing around the globe might have propped up the overseas housing bubbles for longer than they would have survived without us?
For that matter, does a rapidly deteriorating housing & credit market here portend doom for these overseas markets? If an SDCIA "investor" here sneezes, does the rest of the world catch a cold?
Discuss, enjoy...
HARM
#housing