Tuesday, March 11, 2008

The Economist house price index

See Attached,

The 1st, 2nd, 3rd and 30th, largest economies Real Estate values are showing negative year over year returns, the 5th largest the UK, has over the past 4 months has registered negative returns, as its economies slows dramatically, add the stock market losses, and you have the recipe for financial accidents similar to the thirties. These countries account for almost half of the world GDP.

It seems with the systemic tightening by the markets, that within two years most if not all Real Estate markets could be witnessing similar negative year over year returns.

The supercycle of debt or the big unwind, is spreading very quickly.

Global Investment cycles


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These are my own views, please enjoy these insights