Jump to content
House Price Crash Forum
RickyD

Housing Bubble - The Marginal Buyer Holds The Pin That Pops Every Asset Bubble

Recommended Posts

It really does look like we are stuck with money printing to infinity or bust.

Money printing to infinity is also a bust, so it's a bust whichever way...

Share this post


Link to post
Share on other sites

Money printing to infinity is also a bust, so it's a bust whichever way...

Even if the marginal buyer owns money printing machine? What can go wrong?

Edited by Paul77

Share this post


Link to post
Share on other sites

Even if the marginal buyer owns money printing machine? What can go wrong?

Commodities are priced in $. There's only one marginal buyer who can print $.

Share this post


Link to post
Share on other sites

I didn't see this posted anywhere else. Not much mention of the UK, but Quite an interesting read.

http://www.marketoracle.co.uk/Article56275.html

Can'thelp but agree with a lot of it.

'the upper limit that the marginal buyer is willing to pay, and how intensely the competition from other buyers pushes him towards that limit.

In a related vein, observe how the historic stick-save the S&P experienced from March of this year onwards corresponds to a sudden and massive ramp-up in net liquidity by the central banks.

We now live with a market dependent on a single marginal buyer: the central banking cartel. This raises some very concerning questions. What happens when it can no longer print at the same rate? (Prices will collapse). Or even worse: What happens if it keeps printing at this rate? (At some point: hyperinflation, as the purchasing power of the world's major currencies gets destroyed)'

'Housing is similarly at risk.

This recklessly swift return to bubble heights is being indirectly driven by the same central bank money printing we see in stocks.

So tons of overseas money is flowing in. In popular housing markets like San Francisco, Seattle, Manhattan and Vancouver, the marginal buyer over the past half-decade has largely been foreign, looking to get his cash away from the market and confiscation risk of his native country'

Share this post


Link to post
Share on other sites

Even if the marginal buyer owns money printing machine? What can go wrong?

Absolutely nothing - nothing has ever gone wrong with any Ponzi scheme (credit can be expanded to infinity, right?).

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   91 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.