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Evening folks.
Indulge me for a moment!
Have we learned anything for our recent economic experiences?
I mean,
did not lose grip of the whole worldwide financial system in 2008?
Did I dream the whole thing?
Didn't the the banking system require trillions in recapitalisation?
Didn't worldwide unemployment skyrocket?
Didn't major industries like housing come to a complete standstill, shedding millions of jobs worldwide?
Did not large established companies go to the wall because of the severe downturn?
I ask these questions because last night, I heard a story that made my JAW DROP!
My wife was reading a popular Irish news site,
And the headline read,
" End justifies the means for hardy house hunters camping out to pay a deposit "
The story goes,
" IT MAY SEEM like madness to some,
but queuing for four days and sleeping in your car
is worth it if it gets you your first family home. "
A new development of three and four bed houses was launched this week in Dublin,
People are queuing for up to FOUR DAYS to have the privilege of buying one of mortgages, I mean houses!
And on top of that,
These houses are not even cheap!
Lets take a look at the housing price index for Dublin.
Yes prices are generally lower than the highs in 2007.
BUT!
How about the growth rates,
Where do we stand in terms of the outlook for price growth from these highs.
WELL WOULD YOU LOOK AT THAT!
Not only are prices decelerating,
They are doing so at an alarming rate.
The growth rate topped out in 2013,
at about the same level as the highs in 2005.
We all know how that one ended.
I dont expect this time to be any different either.
You know what they say,
Times change, but people dont!
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UPCOMING RISK EVENTS:
USD: Unemployment Claims,
EUR: ECB Monetary Policy Meeting Accounts,
GBP: BOE Credit Conditions Survey, BOE Gov Carney Speaks
JPY: N/A.
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