Tag Archives: real estate bubble

Keynesian Central Bank Craziness Causing Insane Asset Bubbles In Real Estate

If you’ve got a 50 million dollar house in London, New York, or Monaco things are looking pretty good for you. Of course they were already probably looking pretty good.  Funny how that works. It’s nice to have access to the Fed window.

Of course many of us in the real estate sub-tiers continue to see little or no growth in the price of our homes, Indeed, adjusted for inflation many people continue to lose money year over year.

Until people come to widely understand that it isn’t capitalism driving this disparity, this disconnect, we will continue to see more economic separation. It is the central planners driving things. It is the central banks, their client banks, and governments, which have created this economic gulf. Not capitalism.

Of course for some people to see this it will involve a complete reworking of their value system. And we know how much humans like to do that.

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At This Moment: Chinese Banks Are Being Hammered, Real Estate in the Ultimate Crony Capitalist State is Ugly

We have for a long time writen about the property bubble in China. The Chinese real estate system is driven by decrees from Beijing which then tumble down to the local level. Prices are often tossed aside for political reasons. China wants “growth,” or did, at all cost, even if it required a huge misallocation of resources. Because the market has not been allowed to work in China, especially in the real estate sector, it makes sense to expect prices to eventually burst the dam.

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