Thursday, June 21, 2007
Spend the equity until it is all gone
Irrational Housing: Insiders Out Early and the Duesenberry Effect
Good article about why the US consumers will keep spending despite falling incomes and falling home values
Having been in Ireland last week and seen friends spending 30K EUR on landscape gardening and 150K EUR on a kitchen extension, I can well believe the US consumers will spend until all their equity is all gone.
Posted by sold 2 rent 1 @ 01:43 PM (521 views)
3 thoughts on “Spend the equity until it is all gone”
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Deckyup says:
im over in ireland and i thought house prices where mad in london. at least in london theres a big market with a lot off high earners ect. in ireland its a massive case of the emperors new clothes they all believe in the celtic tiger hype . its a case of cheap erm money financing the building boom which in turn is letting the whole country believe their rich, when rates go up another point or two the whole house of cards that is the celtic tiger will colapse, but corrupt berti and his banker buddies will have feathered their nests leaving the gullable 1st timers to carry the can.
Bearsrus says:
ireland will have a house price colapse once interest rates rise another point, the days of cheap erm money which has sustained the bubble ( so called celtic tiger) are gone , the whole celtic tiger myth was sustained by the construction boom which was eec grants and borrowed money of the germans-eec its a case off the emperors new cothes here they all know house prices are crazy but they keep buying for fear of missing out. corrupt berti and his corrupt mates will be fine though as theve done rather nicly on their back handers and pensions
sold 2 rent 1 says:
Ireland is no longer and celtic tiger economy but a bob-the-builder economy selling houses to each other.