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Dave Fones

Japanese Real Estate Bubble Recoverry? - 0 views

www.doctorhousingbubble.com/g-its-way-to-the-united-states

real estate real estate bubble Japan

shared by Dave Fones on 17 Jul 12 - No Cached
  • look at economic trends
  • it is becoming more apparent that we may be entering a time when low wage jobs dominate and home prices remain sluggish for a decade moving forward.
  • looking at the Federal Reserve’s quantitative easing program, growth of lower paying jobs, baby boomers retiring, and the massive amount of excess housing inventory we start to see why Japan’s post-bubble real estate market is very likely to occur in the United States.
  • ...9 more annotations...
  • both economies had extraordinarily large real estate bubbles.
  • Massive real estate bubble (check) -Central bank bailing out banks (check) -Bailed out banks keep bad real estate loans on their books at inflated values (check) -Government taking on higher and higher levels of debt relative to GDP (check) -Employment situation stabilizes with less secure labor force (check) -Home prices remain stagnant (check)
  • the United States had never witnessed a year over year drop in nationwide home prices since the Great Depression.
  • home prices are now back to levels last seen 8 years ago.  The lost decade is now nipping at our heels but what about two lost decades like Japan?
  • the U.S. has such a large number of part-time workers and many of the new jobs being added are coming in lower paying sectors signifies that our economy is not supportive of the reasons that gave us solid home prices for many decades. 
  • young Japanese workers, some in their late 20s or early 30s, already resigned that they would never buy a home.
  • The notion that housing is always a great investment runs counter to what they saw in their lives.  Will they even want to buy as many baby boomers put their larger homes on the market
  • many of our young households here are now coming out with massive amounts of student loan debt.
  • Lower incomes, more debt, and less job security.  What this translated to in Japan was stagnant home prices for 20 full years.  We are nearing our 10 year bear market anniversary in real estate so another 10 is not impossible.  What can change this?  Higher median household incomes across the nation but at a time when gas costs $4 a gallon, grocery prices are increasing, college tuition is in a bubble, and the financial system operates with no reform and exploits the bubble of the day, it is hard to see why Americans would be pushing home prices higher.
  • Dave Fones on 17 Jul 12
     
    Explains how Japan has responded to the breaking of their real estate market bubble and the effect it has had on Japan's economy
Don Doehla

The Shanghai Secret - NYTimes.com - 26 views

www.nytimes.com/...edman-the-shanghai-secret.html

nytimes article education shanghai

shared by Don Doehla on 01 Nov 13 - No Cached
  • Don Doehla on 01 Nov 13
     
    HANGHAI - Whenever I visit China, I am struck by the sharply divergent predictions of its future one hears. Lately, a number of global investors have been "shorting" China, betting that someday soon its powerful economic engine will sputter, as the real estate boom here turns to a bust. Frankly, if I were shorting China today, it would not be because of the real estate bubble, but because of the pollution bubble that is increasingly enveloping some of its biggest cities. Optimists take another view: that, buckle in, China is just getting started, and that what we're now about to see is the payoff from China's 30 years of investment in infrastructure and education. I'm not a gambler, so I'll just watch this from the sidelines. But if you're looking for evidence as to why the optimistic bet isn't totally crazy, you might want to visit a Shanghai elementary school.
  • Don Doehla on 01 Nov 13
     
    HANGHAI - Whenever I visit China, I am struck by the sharply divergent predictions of its future one hears. Lately, a number of global investors have been "shorting" China, betting that someday soon its powerful economic engine will sputter, as the real estate boom here turns to a bust. Frankly, if I were shorting China today, it would not be because of the real estate bubble, but because of the pollution bubble that is increasingly enveloping some of its biggest cities. Optimists take another view: that, buckle in, China is just getting started, and that what we're now about to see is the payoff from China's 30 years of investment in infrastructure and education. I'm not a gambler, so I'll just watch this from the sidelines. But if you're looking for evidence as to why the optimistic bet isn't totally crazy, you might want to visit a Shanghai elementary school.
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