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will the bubble burst ?, page-88

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Tangentland

5,763 Posts.

309

08/08/21

18:40

Post #: 55124057
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Originally posted by kingpins: ↑

If it has happened before and it has, then it can and probably will happen again

The only problem with years of experience is that the rules have changed

Prices were previously based on TRUE replacement cost with adjustment for supply and demand

The property prices are now almost totally controlled by government decisions and policy, supply and demand is manipulated by the government at will, money supply is also controlled by the government.
Therefore even though in reality there is no reason that home prices are the level they are NO ONE can predict what the government will do, certainly they know they will be in a world of hurt if property comes back down to where it should be

With a personal and family history of over 100 years in building. property development and real estate it truly has never been like this before -IMHO-- no rules -- no common sense Just fiddle the conditions to get the prices necessary for the political future required

Naturally with one of the highest debt levels in the world it would be a catastrophe for thousands if it dropped

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It is also a catastrophe for those that cannot or are unwilling to take on the level of debt required if prices do not drop.

A house is not owned until the debt is paid off.

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