more good material from the dalek, and Joye extract from Joye..... Today I am going to try and burst the most subtle and insidious bubble of them all: the enormous growth in doomsday logorrhoea.
Frankly put, we face a bubble about bubbles. As I have noted before, it is a recipe for instant fame. Purport to identify a bubbleeven if you have to use false factsand you will be immediately thrust into lights. Afterwards, comparatively hum-drum folks like the RBA and yours truly are left to dismantle the voodoo.
Jeremy Grantham, who runs a leading investment firm, was recently in Australia and captured countless headlines by informing us that Australian house prices were 7.5 times family income and would have to deflate by 42 per cent to return to their long-term trend. The problem is that Grantham was spinning pure fiction. The best estimate of Australias dwelling price-to-income ratio suggests that the correct ratio is, in fact, 4.6 times. The Deputy Governor of the RBA demolished Granthams rhetoric when he commented, People feel that house prices in Australia are quite highBut, if you look across the whole country, the ratio of house prices to income is not that different from most other countries. http://christopherjoye.blogspot.com/search?q=gold+property+chart
