Its easy to call someone an idiot. The facts are he has been calling this for a long time.
Not just the last few months when the media decided to check him out.
One thing that you have failed to mention, or that i have not read. Who are going to buy or rent these investment properties if unemployment rises, which IMO is the key?
If you don't have a job then reductions in interest rates are irrelevent. From my perspective many small businesses have been hurting for a long time. Our economy is made up of a large percentage of small businesses. Manufacturing and service industries are usually the first to feel the pinch. Just ask any truckie in the distribution industry how they are travelling. Its an early sign that things are not rosy.
Maybe i am naive.
However, I never realised that property should be used as an investment tool. I always thought it was the sharemarket that created wealth provided you were selective and your home was your castle.
However, all the Mums & Dads had other ideas by using equity in their home to finance investment property. Then their children thought it was pretty cool and decided to do it as well seeing as everyone was making money provided they could service the loan. Eventually, everyone got into the act including the Wall Street . Bankers . Brokers . Derivatives market.
Easy money.
Now, we are faced with the blamegame.
It wasn't Wall Street or the Banks or the US for that matter. Lets face it, they provided a way for easy money to be generated by packaging up all those low doc loans with other useless junk so callled AAA rating debt.
So who is to blame?
Standard & Poors for a starter.
They are the ones who provided trhe ratings for Junk.
This whole thing is because of Greed.
Nothing more.
So you don't think house prices will come down by alot?
Think again.
This is not your ordinary cyclical downturn.
For years the PPT have been holding up the useless fiat currency. Their printing machines will run out of ink.
Every country will suffer.
We are not immune including house prices.
I am not saying Steve Keen is right or wrong.
However, he was at least prepared to go out on a limb well before people even knew who he was or where we are heading.
People have lost confidence and it will take many years to regain their confidence. Alot of people are going to suffer. I am glad you are not one of them.
