Monday, July 11, 2011

Another one raising eyebrows

What do you think Dr Watson?

Well, who would have ever thought that Swedish Housing prices are overvalued?

A market where renting is more expensive than buying, and on a market where an average home cost over 9 times the normal annual salary, and on a market where prices have been going up during the worst recession in decades, on such a market there are no problems. None whatsoever.

Of course zero interest rates and lots of freshly (and FREE!!) printed money going to big banks have no influence on housing prices either.





Cornflake economists, the central bank and your run of the mill politician all ignore reality. Mostly in order to trick, dupe, lure and fool you into borrowing and in-debt yourself.

Don´t you need another car? Sure you do, in order to drive to the gym instead of walking the distance... Another TV? Check. Already a full wardrobe but need to empty a clothing store? Absolutely! Another game, another computer. That cell phone you have isn´t it almost 6 months old!? Wow, time to buy a new one. More stuff! Yey! What can possibly go wrong?

And remember, a electronic store can never go bankrupt.

And a house? Oh, we all know real-estate prices only can go up. That´s how they say it on TV.

And a house is great for consumption. A house you can borrow upon and in-debt yourself even further - which is great when that shiny new cappuccino machine is begging you to buy it.

So they say prices are overvalued? Pfff... Nah, just ignore it. It’s only a figment of your imagination.

Besides, wouldn´t anyone have said something long before if it was true?

apocalypse nowish 1                                            apocalypse nowish 2