Hello Elmat;
How's life in Iran these days?
Re:Low interest rates were a luxury developed countries had with all that capital piled up there.
In spite of all the noise one can still borrow @ a little over 6% FIXED for 30 years, in the USA and if you have a decent credit record get 100% financing on a home.
Don't know much about Swiss cows or subsides except that it is Governments meddling in the markets and it usually causes trouble sooner or later. For that reason I am weary of the PPT and the distortions caused by it and agree with Bill Cara.
So, this situation is a banker thing, and not being in the room when these market interventions are being decided, I cannot say with any conviction that prices are likely to go down or recover at this point.
billcara.com.
Of course, it isn't just a US PPT, China and Japan have their own versions. All this causes great distortions in many of the markets, stocks, bonds, commodities, Real Estate, etc.
Dale Baker, after visiting Southwest UK writes: But with prices comparable to US bubble areas, it makes no sense to own there when you can rent for a fraction of the real costs of ownership. If I wanted to settle there anywhere, I would definitely rent and wait for the market to soften. If it never does, renting a place for $2K a month is still preferable to paying $700-800K plus running costs.
I drew the same conclusion about 15 years ago and I have been waiting "for the market to soften" since. But it just goes up, it is a rigged market, or shall we say "assisted" market.
So what is the answer? I don't have access to the data to figure that out and I doubt anyone else on SI does either. So as Cara suggests I just watch the trends and try to get a little profit here or there.
regards,
Ray |
