Since when does anyone with the slightest bit of "cop-on" pay any attention to what economists say? The "profession" has very little credibility anyway.....
But some independent ones are worth listening to - David McWilliams has been talking about the property bubble for quite some time and I'd say there are a lot of people who wish they'd paid a bit of attention.
David McWilliams has been talking about the property bubble for quite some time and I'd say there are a lot of people who wish they'd paid a bit of attention.
He has been talking about this bubble for probably 10 years now - as have the Economist magazine for even longer. There is an even greater number of people over those years who are glad that they paid no attention.
Its like anything in economics. If you keep saying something for long enough, you are likely to be right at some stage!
He might have had to wait for the tide to start to go out, but that doesn't mean he wasn't right all along! And as property is a long term investment, it's the long term forecast that's important.
Doubt he could be out by ten years when the boom was only starting then. The fact is that many young people are saddled with huge 35 mortgages on very poor quality housing as a result of sane voices being drowned out by the property/banking industry hype.
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But thats the point of the thread. Economists attached to the banks are part of the banking hype and shouldn't be listened to. Do you think you will ever hear Sherry Fitzgeralds economist come out and say we are facing a certain property crash and we are all doomed. Economists working in these places have conflict of interest and their research is biased
Still though if they do reduce their rates these "Economists" will infer that it's a great time to buy a house. Nothing will be said of the underlying economic pessimism that actually led to rate reductions.
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