Ahhh so that's what happened in the USA "the Americans suddenly realize it was all phoooy"
WOW that is so detailed, such incisive economic commentary, Kerrisdale have you thought about turning pro? With your in depth understanding you could become the governor of the reserve bank.
See, I'm not as smart as you. I look at really stupid things like facts and figures but I could never hope to compete with an Einstein like yourself.
Some of the stupid stuff I look at is vacany rates, ie how many houses are vacant.
In the USA the first quarter 2008 US vacancy rates were in the range of 7% to over 12%. Source is this website from the US Census bureau:
If we use the Australian Bureau of Statistics figures.
"Rental vacancy rates in the 12 months to March 2008, Sydney had the lowest average vacancy rate of 1.2%, while the vacancy rate in Adelaide was 1.4%. Vacancies were also low in Melbourne (1.5%), Brisbane (1.8%), and Perth (1.9%)."
Source : http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/4102.0Chapter9002008 Near the bottom of the page.
So the fact that the USA has gone through a huge over-building boom and has (proportionally) something like six times as many vacant properties as Australiua can't actually be the reason for their dropping land and house values.
Nahhh, it's like you said "the Americans suddenly realize it was all phoooy".
