KeenThinkingAboutHousePrices.flv

What REALLY causes house prices to rise? After debunking the standard "population growth" argument, I show that the real motive force for rising house prices is accelerating mortgage debt: for house prices to rise, mortgage debt must not merely increase, but increase more rapidly over time. That requires ever rising mortgage debt compared to income, which of course is impossible. That's why house price bubbles always burst, and the Australian bubble is finally bursting now.

Category:

News & Politics

Tags:

• House Price Bubble
• Australian housing market
• property
• speculation
• economics
• Great Recession
• Global Financial Crisis
• Australian economy
• US housing crash
• Debt
• Mortgage debt
• Australia

[halfasheep]

Great presentation. Very interesting. Thanks for uploading.

[cityslickeroz]

The great Australian property scam is coming to an end

[webaroos]

You need to factor in confidence in the economy and Oz population is confident in the strength of our economy.

[jpr12345678]

Delfin was offering 20k off land brought b4 30 June 2011 and has now extended that until end of July that just over 10% decline on the blocks in my area. The decline is gaining momentum

[DavidAKZ]

@kennethsim7 how about lower prices ?

[kennethsim7]

Higher wages as you said is the only solution to the credit crisis. Let's hope unemployment rate in AUS doesnt fall

[fungulotualatuarazza]

the bigger the bubble , the louder the pop

[darekkhort]

@damoz89 Really? After all of that and that was the only thing you got out of the presentation?

[BearConsumingBull]

@DavidAKZ

Seen Money as Debt. Also suggest you watch some stuff as 'The Dollar Bubble' if you into that first one. As I said I am on the same side as Steve. Just think there is more factors to play out than just what he has mentioned is in his video.... the world is swimming in debt and continues going on... so why is debt going to break our housing market NOW if it doesn't break the world - it will happen i am sure but to say housing crashes now is a big ball (one Steve has said before)

[DavidAKZ]

@BearConsumingBull Banks are well capitalised in a fractional reserve lending system ? Do you have any data ? Suggest you google 'Money as Debt' video - 47 mins and 'Modern Money Mechanics' I'm told by a commercial real estate lawyer who acts for one of the big four the extent of the banks capitaisation is in their loan book and branding.

[BearConsumingBull]

who is to say the bubble will not go further...? 1, 2, 3, 4, 5 years.. Debt is a major issue throughout the world but society does not seem bothered as of yet. I have been following you Steven for a while and love your work but still believe no-one can predict the time frame yet at the same time do agree that the end game of this credit expansion will result it chaos. Australian banks remained well capitalised and the beast of China still exists, these factors for mine are significant.

[damoz89]

Who the hell uses comic sans MS