Labor Day Weekend September 1, 2012
A reader of TMP asks about the rampant real estate speculation around the world.
Indeed it exists in Canada. This article was appeared in April and prices have started coming down since.
The Chinese Premier is similarly worried.
As usual, when governments get involved we get the opposite result of what was intended. In Malaysia a program geared to bring foreign investors to retire there My Malaysia Second Home MM2H has instead resulted in the same absent investor speculation we saw in Las Vegas and Florida in 2007.
Remember the cable tv show, Flip This House from 2007? Here is some internet chatter on the same idea in India.
People in such places have little experience with the swings of prices, not that anyone in the US seems to rememeber the same thing.
The cheap money policy of the FED has led to wealthy individuals borrowing US Dollars at low interest cost and speculating all over the world trying to further boost their wealth. The Distinctive Property section in the WSJ is growing again.
Crude Oil exploration activity is rampant just as it was in early 2008. Fracking technolgy has given a way for this market to return to its former 1981 glory.
All of these events are what we expect to see in a market headed for a top. The next two months should be spectacular as money drains from bonds and 'safe dividend paying stocks' into a final frenzy for commodity shares and luxury items. In the last few updates we have noted
both the most expensive Ferrari ever produced
vibrant colors and daring fashions
and triple digit wine prices at the upscale corner grocery. As Betty Davis remarked in All About Eve
Fasten your safety belt it's going to be a bumpy night.