What Genuinely triggers home prices to rise? Following debunking the common “population progress” argument, I present that the real motive power for rising residence charges is accelerating home loan debt: for residence charges to rise, house loan debt should not just increase, but improve much more swiftly about time. That demands ever rising mortgage debt in contrast to revenue, which of course is impossible. Which is why home price bubbles usually burst, and the Australian bubble is ultimately bursting now.
Video Score: four / five
Delfin was offering 20k off land brought b4 30 June 2011 and has now extended that until end of July that just over? 10% decline on the blocks in my area. The decline is gaining momentum
@kennethsim7 how about lower prices ??
Higher wages as you said is the only? solution to the credit crisis. Let’s hope unemployment rate in AUS doesnt fall
the bigger the bubble ,? the louder the pop
@damoz89 Really? After all of that and that was the only thing? you got out of the presentation?
@DavidAKZ
Seen Money as Debt. Also suggest you watch some stuff as ‘The Dollar Bubble’ if you into that first one. As I said I am on the same side as Steve. Just think there is more factors to play out than just what he has mentioned is in his video…. the world is swimming in debt and continues going? on… so why is debt going to break our housing market NOW if it doesn’t break the world – it will happen i am sure but to say housing crashes now is a big ball (one Steve has said before)
@BearConsumingBull Banks are well capitalised in a fractional reserve lending system ? Do you have any? data ? Suggest you google ‘Money as Debt’ video – 47 mins and ‘Modern Money Mechanics’ I’m told by a commercial real estate lawyer who acts for one of the big four the extent of the banks capitaisation is in their loan book and branding.
who is to say the bubble will not go further…? 1, 2, 3, 4, 5 years.. Debt is a major issue throughout the world but society does not seem bothered as of yet. I have been following you Steven for a while and love your work but still believe no-one can predict the time frame yet at the same time do agree that the end game of this credit expansion will result it chaos. Australian banks remained well capitalised and the beast? of China still exists, these factors for mine are significant.
Who the hell uses comic? sans MS