comments from suckers who are loaded with debt, page-2

That is a funny read :-).

Yeah, I think property prices are going to keep on climbing forever. Forget historical norms, this time it is different as it is a new paradigm and the fundamentals have changed (I wonder where I heard that one before - oh, thats right, I seem to recall hearing it every time a major bubble was about to implode).

It amazes me how people still think the whole real estate boom was a "supply and demand" boom. The only supply side issue was the supply of money. And that has evaporated. Nothing will move property upwards over the coming years without the supply of money increasing - the era of cheap money is over and will not be back for some time.

The best time to buy property will be when people wish they had never heard the words "investment" and "property" in the same sentence. That is when you will know the real bottom is in.

Seriously, some people need to read up on history and finance and put two and two together. Huge sums of money financed by wall street + 110% low doc loans + low interest rates and low risk premiums = huge speculative bubble driving up house prices. Huge sums of monetary supply contraction + no new Mortgage Backed Securities being issued by the shadow banking system + inflating commodities + anticipation of falling property prices = one giant leak in the bubble. This is going to be a rerun of Japan in the 1990's.

There is a reason why banks are lifting interest rates independently of the reserve bank. They can't get their hands on a supply of cheap money because no one is supporting the shadow banking system anymore. Thus, they are forced to raise interest rates to depositors (and therefore need to increase their lending rates) or to pay very high yields for money elsewhere. Those hoping that the reserve bank will come to the rescue cannot possibly fathom the true reality behind what is going on and why interests will not come down for a long time. People have suddenly woken up to the fact that there are real risks with over inflated asset prices. As much as some central bankers would like to see long term interest rates drop, the markets have spoken and they will not let it happen.