So your point is that with the sharemarket falling all that money will leave it and go into property?
Have you considered how much money has been lost from the recent falls in the market that has gone...it doesnt all go somewhere else it evaporates...it may take 1mill $ to make a small co fall in value by 10 mill...this money has gone.
When the markets go in reverse especially in this environment companies will lay off staff obviously...this means less money to go into property.
Because a lot of the big financials have borrowed too much money they have helped with credit crisis like cnp mfs afg etc etc the result is the cost of money has risen therefore making it harder for people to borrow money.
The stockmarket rise in 99/00 was miniscule compared to the recent rise...its a completely different market...this bull market was based on financials and commodity companies and made the market double in value...people that owned shares felt rich so bought property and those who owned property bought shares...a lot of this buying was done through debts such as lines of credit or margin loans...this has dropped significantly.
