Another Big housing Bubble getting read to POP......S&P 1000 and below coming in 2011....Stay Tuned!
I know you think it just can't happen....The Fed has our back – right, we have QE2, so I’m not worried.
Wait just a minute here - are you telling me that other Countries also have a housing Bubble?
Yeah - and it's much, much, bigger than ours was before that bubble popped....
Coming to you in 2011 - another housing bubble that may be getting ready to pop in several countries, but much bigger than the one in the US.
"Parents of [Chinese origin] lend to their children to buy their condo with the understanding it will be repaid or they will come to live in their old age under that roof.
Almost no one has the 20% to 30% down to buy a place.
The down payment is typically borrowed at terrible interest or comes from a "marriage gift" which had its origin in borrowed funds, not from savings.
It's like fractional reserve lending on steroids.
Everyone works their ass off to pay the loan, pay the vig, and save their face so they can borrow more if needed.
A collapse of the bubble could cost lots of folks their life savings.
This makes the financial aspect of Chinese society much more fragile than it appears on the surface.
There is a lot of interconnected personal debt below radar."
--Bill Hopen, as quoted by Mike Shedlock, "Ponzi Shark Loans Fuel China's Housing Market Bubble That's Going Bust",
www.MarketOracle.co.uk, July 21, 2010.
http://www.marketoracle.co.uk/Article21266.html
http://www.theglobeandmail.com/repo...ouver-in-a-real-estate-bubble/article1808967/
http://money.cnn.com/video/news/2010/11/12/n_jim_chanos_china.fortune/
This is Funny, but Sad!
Don't worry about Europe and the EURO folks...
Robo
http://www.youtube.com/watch?v=ESpoeM3Rnp8
"Those who pave the way for the "easy" path of housing bubbles will pay for it many times over in the end."
- Steven Jon Kaplan