housing prices howards shame, page-43

re: housing prices and inflation I must say I get very bored trying to work my way through peoples analysis of what the future might hold based on their experience of the last three years (and their desperate hope that things wont change come what may.).

In the last three years iron ore did not go up by 71.5% in one hit for the coming years supply contracts.

During the last three years the Australian Reserve Bank did not raise interest rates.

During most of the last three years buyers were scratching each others eyes out at auctions to buy houses.

The circumstances are changing - the demand that drove the iron ore price (and oil) was completely foreseable.

Given that more than just one or two things in our material world are made of steel then the wave of inflation thats about to hit is forseeable also.

Cheers,