Wednesday, March 13, 2013

Dr. Housing Bubble — Global housing bubbles unite

Economic history is a fascinating subject. Yet in our modern day of instant news and second to second market analysis, it seems like the media is bent on skimming over on only what is going on at the moment. Even the deepest financial crisis since the Great Depression is now gone into the vortex of cultural amnesia. What is interesting however, is that many countries around the world being incredibly different culturally, went down into the rabbit hole of housing mania as well. If you ever think Southern California home prices are outrageous, you need only look at Northern California. If you live in the Bay Area, all you need to do is look at Canada. There has never been, from all the history I’ve reviewed, of a universal and unified housing bubble that touched nearly every continent at the same time at such a big magnitude. Let us take a trip around the world and see what other housing markets are doing.
Dr. Housing Bubble
Global housing bubbles unite: How easy debt has created the first ever worldwide housing boom and bust. The busted, the leveled, and the booming.

1 comment:

Ryan Harris said...

Central banks use housing and the construction industry as their buffer stock instead of targeting employment directly. As a result, we get bubbles. It should be viewed as further evidence that fiscal policy is a more direct, effective and less blunt tool than monetary policy and interest rates to effect economic growth.