New worries are never new, just recycled - 1 - emailed to subscribers
Wed, 13 Sep 2006

Some scans to show you that the market goes round in circles in what it worries about. These articles I found in the stored papers of Roy Wenzlick, a great real estate researcher, whom you will hear much more about in due course.

What I discovered writing my US real estate history is that all of these fears and worries that newspapers continually refer to become important only when people feel they can't afford them, and this happened each time after land price had turned down, even more so if the populace gets to the view that things are unlikely to recover at all. At which point was the time to buy.

In other words, such issues have always been there, it is only when the general populace feels they will be poorer tomorrow than yesterday that they worry about it. This happens if it becomes obvious that their house will be cheaper next year than it is now. Presently this is not the case.

Click here to see the file...

Home mortgages still the number one debt issue, and it's a lot higher now, as is the land price. (The name of the chief economist brought a wry smile.)

Markets rarely fall if they are worried. So worry about the market only when there's nothing to worry about.

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