Real Estate Bubble

Why believing that real estate prices will never fall is a stupid idea

The 'limited land' argument to justify high real estate prices is as old as land being bought and sold. Nevertheless, in most cases there is enough land going around. This is reflected in the American context in the fact that real estate prices have barely risen over the last 100 years, once they are adjusted for inflation.

Global real estate bubble is back with a bang

In the United States, the 20 City S&P/ Case- Shiller Home Price Index, the leading measure of US home prices, rose by 13.6% in October 2013, in comparison to a year earlier. This means that real estate prices in October 2013 had risen by 13.6% in comparison to the same period last year.<br /><br />

How money printing has made the rich richer

The irony is that the American politicians helped by the Federal Reserve created a real estate bubble to address income inequality. Once that bubble blew up, they started printing money. And that in turn has led to more inequality. The solution has aggravated the problem.

The theory that caused the financial crisis, gets a Nobel prize

The trouble is that the dazzle of efficient market hypothesis has blinded economists so much that they cannot spot bubbles anymore. Hence, it is important that economists junk the efficient market hypothesis, and start looking at a world where bubbles are possible and keep popping up all the time. Else, we will have more trouble ahead.<br /><br />

Five years after Lehman Brothers went bust, same mistakes are being made

What experience and history teach is this - that nations and governments have never learned anything from history, or acted on principles deduced from it". And why should this time be any different?

Realty inventories near record high: Buyers should drive hard bargains

There is simply too much inventory available for property builders to not offer discounts. It's time for buyers to drive hard bargains.

Once more! Fed is blowing bubbles to cover up growing inequality

The Western central banks primarily the Federal Reserve of United States and the Bank of England, have been printing money (or quantitative easing as they like to call it) at a very rapid rate since the start of the financial crisis in late 2008. The idea is to print and pump money into the financial system and thus ensure that there is a lot of money going around, leading to low interest rates.

Japan to India: Busting the biggest myth of investing in real estate

The interesting thing is that large population-shortage of land is a story that real estate investors need to tell themselves. Even speculators need a story to justify why they are buying what they are buying.<br /><br />

Real estate is a no-no in the current slowdown scenario

Property prices have held up better in this slowdown that other asset classes. This means property has nowhere to go but down in this climate

Relax, things are not as bad as doomsdayers claim

India's poor run will stop sooner than later and it will be despite the government. Take, for example, the IT sector. Infosys and Cognizant have guided for slower growth this year, but the fact is that their hiring plans are still robust with each of them planning to up the workforce by over 20 percent.