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  1. #541
    Senior Member
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    Quote Originally Posted by FTG View Post
    Sort of akin to an alcoholic who would rather remain in a drunken state so they don't have to experience the painful hangover.

    Panda; don't lose sight of the painful reality that ALL artificial "highs" will eventually be followed by artificial lows.
    Yes, itís like saying the answer to drug abuse is more drug abuse - in ever greater quantities - simply because people donít want to deal with the consequences.

    The problem is that the Ďdrug abusersí have control of the government. Both major parties rely on their support and are now effectively held hostage by them - so this large group can continue to loot the government finances and banking system with impunity. It wonít end well - but for the moment, this selfish greedfest continues.

  2. #542
    Quiet Observer
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    Quote Originally Posted by Balance View Post
    Not with property.
    Even with property I'm afraid. :-(

    The Japanese asset (read property) bubble of the mid-late 80's is a classic case in point.

    Of course, as we know but sometimes forget, any market can remain irrational for far longer than the anticipated. But just like the law of gravity the universal law of artificial highs eventually being followed by an artificial low ALWAYS prevails.
    Success is a journey AND a destination!

  3. #543
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    Feb 2010
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    A property crash, as with most things (financial crises, pandemics, major wars) is simply not conceivable to most human minds. They canít believe it will happen, until it happens. They delight in pointing out just how long those who make the warnings have been Ďwrongí for. But history tells us that property markets can - and do - crash. Most notably it happened in Japan, it happened in the US, it happened in Ireland. All major and advanced economies.

  4. #544
    Membaa
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    Nov 2004
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    Paradise
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    3,447

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    Quote Originally Posted by Logen Ninefingers View Post
    Yes, itís like saying the answer to drug abuse is more drug abuse - in ever greater quantities - simply because people donít want to deal with the consequences.

    The problem is that the Ďdrug abusersí have control of the government. Both major parties rely on their support and are now effectively held hostage by them - so this large group can continue to loot the government finances and banking system with impunity. It wonít end well - but for the moment, this selfish greedfest continues.
    It's far from ideal, and I admire the implication of your idealogical position being (excuse my interpretation) what's best for all of society, however if you have seen that it is going to continue for a while but at some point it all turns to custard, regardless of how that happens, at some stage one needs imo to take a selfish viewpoint and decide what they, personally, are going to do. The instincts of self accumulation and preservation of wealth is deeply rooted in those who have it. They also presumably in toto have the smarts to ride the dysfunction while it lasts and be gone when the **** hits the fan.

  5. #545
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    Feb 2010
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    Quote Originally Posted by Baa_Baa View Post
    It's far from ideal, and I admire the implication of your idealogical position being (excuse my interpretation) what's best for all of society, however if you have seen that it is going to continue for a while but at some point it all turns to custard, regardless of how that happens, at some stage one needs imo to take a selfish viewpoint and decide what they, personally, are going to do. The instincts of self accumulation and preservation of wealth is deeply rooted in those who have it. They also presumably in toto have the smarts to ride the dysfunction while it lasts and be gone when the **** hits the fan.
    I guess whatís best for society is one aspect, but when inflation shows up its the purchasing power of all our money that goes down the tubes, so there is certainly self interest there as well. When will general price inflation kick in? Again, some say that because it hasnít happened yet it wonít happen. If it does we will have big problems, with house prices having far outstripped wages and salaries.

    The idea that there are a whole bunch of savy people out there that can time the housing market and will be able to get out has already proven to be a fallacy I would say. Take this COVID crisis for example: all those people that overpaid needed saving. Huge fears the property market would crash, kitchen sink thrown into saving it, market responds by taking all that stimulus and rocketing higher. So itís an attempted bail-out thatís gone pear-shaped.

    In a bad market, houses are highly illiquid. I can list shares and sell them in a minute. Thatís a liquid investment. You canít do that with a house. So a nice quick escape during a crash wouldnít be possible Iím afraid.

  6. #546
    Legend
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    Apr 2008
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    Sth Island. New Zealand.
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    5,275

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    Quote Originally Posted by Logen Ninefingers View Post
    I guess what’s best for society is one aspect, but when inflation shows up its the purchasing power of all our money that goes down the tubes, so there is certainly self interest there as well. When will general price inflation kick in? Again, some say that because it hasn’t happened yet it won’t happen. If it does we will have big problems, with house prices having far outstripped wages and salaries.

    The idea that there are a whole bunch of savy people out there that can time the housing market and will be able to get out has already proven to be a fallacy I would say. Take this COVID crisis for example: all those people that overpaid needed saving. Huge fears the property market would crash, kitchen sink thrown into saving it, market responds by taking all that stimulus and rocketing higher. So it’s an attempted bail-out that’s gone pear-shaped.

    In a bad market, houses are highly illiquid. I can list shares and sell them in a minute. That’s a liquid investment. You can’t do that with a house. So a nice quick escape during a crash wouldn’t be possible I’m afraid.
    You can do that with a house; albeit at a punishing price - just like shares at the wrong time.

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