Injin Posted October 10, 2009 Share Posted October 10, 2009 http://www.propertywire.com/news/middle-east/real-estate-rules-saudi-arabia-200903112768.html "The ban is part of a series of measures aimed at curbing rampant speculation in the real estate sector and the start of putting in place measures to protect buyers from being exploited." Yes, the home of petrodollars and the backing for the worlds largest FRB system ever has a property bubble. Who would have thought? Quote Link to comment Share on other sites More sharing options...
Stars Posted October 10, 2009 Share Posted October 10, 2009 Yes, the home of petrodollars and the backing for the worlds largest FRB system ever has a property bubble. Who would have thought? You must mean the parts of the middle east that have barely functioning economies..that's not much of an advert Quote Link to comment Share on other sites More sharing options...
Injin Posted October 10, 2009 Share Posted October 10, 2009 You must mean the parts of the middle east that have barely functioning economies..that's not much of an advert Thanks for the concession. Quote Link to comment Share on other sites More sharing options...
Stars Posted October 10, 2009 Share Posted October 10, 2009 (edited) Thanks for the concession. I agree that if you don't have a functioning economy rentier activity is somewhat restricted Edit to add: Edited October 10, 2009 by Stars Quote Link to comment Share on other sites More sharing options...
oracle Posted October 10, 2009 Share Posted October 10, 2009 The Tories and Labour are like a double act, good cop and bad cop. The rich benefited the most from the boom and under the Tories will make sure they keep hold of the wealth they accumulated. Its win/win for the politicians and the rich and lose/lose for the majority of working people. You haven't seen bad cop yet. you are quite right about being lose/lose for the working population at large,but in order to keep their vast property empires an lavish living we can expect a dose of martial law in the not too distant future. Of course this is only in place to protect the "haves"...the rest of the proles can squabble it out over the scraps. Having a few homegrown muslim extremists provides a convenient scapegoat...but it's old-fashioned feudalism at heart. Same is likely across the pond. Very nice of Mr B ush to start a bloody great war,and then go and run away to paraguay befor SHTF. not the kind of behaviour you would expect from a so called "knight" is it?.....blair,branson and the rest of them will sod off to the cook islands leaving the rest of us stuck in the meat grinder. . Quote Link to comment Share on other sites More sharing options...
Injin Posted October 10, 2009 Share Posted October 10, 2009 I agree that if you don't have a functioning economy rentier activity is somewhat restricted Edit to add: Because rentier behaviour needs a FRB system. Any economies without FRB systems don't have the rentier problem. It's along the same lines as countries without central banks don't have wars. Quote Link to comment Share on other sites More sharing options...
Stars Posted October 10, 2009 Share Posted October 10, 2009 Because rentier behaviour needs a FRB system. No - Rentier activity is somewhat restricted when you have no economy, because rentier behaviour needs an economy. Show me a vibrant economy that doesn't use FRB and has no real estate inflation problem. Quote Link to comment Share on other sites More sharing options...
Injin Posted October 10, 2009 Share Posted October 10, 2009 No - Rentier activity is somewhat restricted when you have no economy, because rentier behaviour needs an economy. Show me a vibrant economy that doesn't use FRB and has no real estate inflation problem. That's where we came in. Quote Link to comment Share on other sites More sharing options...
Stars Posted October 10, 2009 Share Posted October 10, 2009 That's where we came in. Keep up the psychedelia..it's fun Quote Link to comment Share on other sites More sharing options...
Game_Over Posted October 10, 2009 Author Share Posted October 10, 2009 All very entertaining I'm sure But Are things different this time as Scepticus would like us to believe? Or is history going to repeat itself My view is that bubbles are driven by human greed so we will keep getting bubbles followed by crashes. Can anyone sensibly argue that this is NOT the case? Quote Link to comment Share on other sites More sharing options...
Injin Posted October 10, 2009 Share Posted October 10, 2009 Keep up the psychedelia..it's fun As already stated, areas where there is no FRB don't see the same rentier problem you attribute as the prime cause of all ills. The US before the fed etc. The reason is pretty simple - in order to take rentier payments you have to extract them. Actually going to someone and taking their stuff is as risky as hell and beyond a certain point lethal for the would be thief. Debasement and fraud however, are much easier to get away with. Quote Link to comment Share on other sites More sharing options...
Stars Posted October 10, 2009 Share Posted October 10, 2009 As already stated, areas where there is no FRB don't see the same rentier problem you attribute as the prime cause of all ills. Yes they do - if economic activity rises, this will feed land rents, which will then be competed over. If you think this isn't true (for some reason), provide some kind of rationale why this will not be the case without FRB. The areas you alluded to are economic basket cases. I am an honest enough debater not to pretend that they must be basket cases because they do not use FRB, but it still doesn't make your case at all. You could make your case by showing an economically healthy area that doesn't use FRB and does not suffer from real estate inflation. The reason is pretty simple - in order to take rentier payments you have to extract them. This is achieved by a property system backed by a government. Nothing to to do with FRB Actually going to someone and taking their stuff is as risky as hell and beyond a certain point lethal for the would be thief. Debasement and fraud however, are much easier to get away with. And the larger part of the history of Europe, shows you are talking utter cobblers Quote Link to comment Share on other sites More sharing options...
scappers Posted October 10, 2009 Share Posted October 10, 2009 One important distinction between nulabia's money printing and Zimbabwe's money printing - clever little white men are doing it over here, that's obviously far better than those silly backward tribal types who know nothing about economics - they don't know how to do it "just right" like Mr Brown does. So that's why it will work here. Anyway, no one can decide if increases in money in circulation or increases in prices are inflation. If no one knows what it is it can't exist. So print lots of money. Any historian knows that it's worked everytime nulabia have tried it. And this is the first time nulabia are trying it, therefore it's tautological that it will work. Just ask Mr Brown, he's reet smarty smart, he's got a degree and everything, just ask his mummy. Quote Link to comment Share on other sites More sharing options...
Injin Posted October 10, 2009 Share Posted October 10, 2009 (edited) Yes they do - if economic activity rises, this will feed land rents, which will then be competed over. Yes but they canno tbecome excessive without some enforcement process. Actually going to peoples houses and shaking them down for stuff has a large overhead and risk. FRB is needed to get it to extend any great distance. Rentier behaviour is enabled by FRb in the same way that war is impossible withotu a central bank - obvious injustice isn't tolerated for very long. Edited October 10, 2009 by Injin Quote Link to comment Share on other sites More sharing options...
Fudge Posted October 10, 2009 Share Posted October 10, 2009 The "rich" who accumulated their wealth during the property boom are of all social classes. It's not about class anymore, it's just about when you were born. The nice part of my area is full of 40s + working class people with nice houses. Younger professional types, including the middle class, are the ones living in the dog box flats. It's when you were born now, not what class you were born into. How many of those 40s + working class people are going to be able to keep hold of those nice houses with nice big mortgages to pay off? I know builders and plumbers who earnt a fortune over the last 10 years but they dont have any of it left and very little work which pays very poorly. It still is very much about class. A lot of people thought they had moved up to the middle class but it was only temporary and now they are sliding back into the working class. In fact people will be lucky to be working and not unemployed. Quote Link to comment Share on other sites More sharing options...
Stars Posted October 10, 2009 Share Posted October 10, 2009 Yes but they canno tbecome excessive without some enforcement process. Actually going to peoples houses and shaking them down for stuff has a large overhead and risk. FRB is needed to get it to extend any great distance. Yes, it needs and enforcement process - and this has nothing to do with FRB Quote Link to comment Share on other sites More sharing options...
Injin Posted October 10, 2009 Share Posted October 10, 2009 Yes, it needs and enforcement process - and this has nothing to do with FRB The enforcement process is naturally limited without FRB Quote Link to comment Share on other sites More sharing options...
Cozza Posted October 10, 2009 Share Posted October 10, 2009 How many of those 40s + working class people are going to be able to keep hold of those nice houses with nice big mortgages to pay off? I know builders and plumbers who earnt a fortune over the last 10 years but they dont have any of it left and very little work which pays very poorly. It still is very much about class. A lot of people thought they had moved up to the middle class but it was only temporary and now they are sliding back into the working class. In fact people will be lucky to be working and not unemployed. A lot of these 40 somethings bought in the 90's when housing was half the price it is now. They'll be okay unless they've used their homes as cash machines. Same for the middle class ones who bought at that time. For the ones of working/middle class backgrounds who wanted the same lifestyle but started off later, it won't end as well. Quote Link to comment Share on other sites More sharing options...
Fudge Posted October 10, 2009 Share Posted October 10, 2009 (edited) How to Make a Financial Souffle Edited October 10, 2009 by Fudge Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.