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Home Equity Is Not Savings

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Article by Peter Schiff on Kitco. Well worth a read.

http://www.kitco.com/ind/Schiff/aug252005.html

Extract:

Going from the sublime to the ridiculous, yesterday on Bloomberg Television, an “expert” proclaimed that there was no housing bubble, and chastised the press for irresponsibly scaring potential home buyers out of big profits. His conclusion regarding the absence of a bubble was based on his defining a bubble as “too much supply with wide-spread job losses.” Since in his opinion none of these criteria were met, there was no bubble. How can he detect that which he can not even define? The proper definition of a bubble is “Speculative buying of appreciating assets, without regard to underlying investment returns (in the case of real estate that would be rents), solely on the anticipation of future price appreciation.” This definition describes today’s real estate market precisely. What this expert actually defined were two potential pins which might ultimately ***** the real estate bubble, not the bubble itself!

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  • 339 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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