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August 29, 2016 | Housing Bubble 2.0

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

Not different this time–same players and behaviors, different cycle.

In 2003-07 it was reckless lending, securitization and derivatives that drove realty prices off the leverage cliff. In 2010-2016 the buyers are foreigners and financial intermediaries (who were bailed out by governments and central bank liquidity injections after the 2008 implosion) who have been buying up houses with record levels of borrowed ‘funny money’ and driving up prices to unsustainable (un-affordable) levels all around the world.  Won’t end well again.

Here is a direct video link.

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August 29th, 2016

Posted In: Juggling Dynamite

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