| From Theage.com.au:A recession is the biggest threat to Australia's real estate market. Are house prices going to crash in Australia as has occurred in the US? Based on West Sydney University economics professor Steve Keen's regular Debtwatch newsletter, the answer is probably yes.
The doubling in real terms in house prices in the past decade is a bubble waiting to burst. According to Keen, the bubble is based on speculation financed by debt. Keen claims it is effectively a "Ponzi scheme" where dividends are paid out of new rounds of capital injected into the scheme instead of the non-existent profits. The scheme collapses when there are no new investors to pay the dividends..... Full Article: Source
|