Neil Jenman, who operates from Australia, where a property crash has already started, writes this.
Quote:
It’s what’s often referred to as ‘The Strawberry Box Principle’, in which a box of strawberries keeps being re-sold at ever increasing prices until one of the buyers looks in the box and says, “Hey, these strawberries are rotten.” The answer from the seller is: “Oh, these are not for eating, they are for selling.”
And:
Why is it that we are so quick to believe that all property prices can double in value but refuse to even consider that some properties could halve in value?
Your link just goes to a login screen. I think this is the article you were referencing.
ReplyDeletehttp://www.jenman.com.au/NewsArticles1.php?id=194
Thank you very much.
ReplyDeleteI would have thought they'd demand login of everybody, since they did it of their subscribers.
How'd you find that version?
Eolake,
ReplyDeleteFor those who believe this concept to be inconceivable, I offer up my recent experience in Indianapolis, IN USA. I looked at two houses of the craftsman style (arts and crafts movement here in the states) with the eye of moving in. These two homes where in two different cities, One being Indianapolis, seperated by 30 minutes driving time (The city of Indianapolis itself is a 60 minute drive across). One was $160K (US) the other $560K (US). The only explainable difference was the emotion surrounding the location of each. So, if two items, in two similar locations, sell for RADICALLY different prices, isn't it safe to assume that the price of either could change to meet the other?
On the Login screen there is a Home Page link. On the Home Page is links to just bout everything on the site. Haven't run into the login screen anywhere.
ReplyDeleteVery interesting article. The home prices that are quoted as exorbitant are seemingly low compare to values in Seattle WA USA. And yes, everyone thinks there is still room to appreciate...
Danzlake,
ReplyDeleteWhoever would be dumb enough to believe a concept can be unconceivable? Why not a silent racket, while they're at it? Or a tiny giant? Or perfumed crap?
Actually, I witnessed perfumed crap once. On the Damascus Road, there's a picnic area smelling of the surrounding jasmine, and the "civic" people there just go and relieve themselves in the bushes. Believe me, flower-scented poop is the worst kind! You think at first the flowery scent predominates, then realize it's the other way round.
Not very far from this property bubble topic, come to think of it...