Real Estate Bubble Bursts

Posted on 16. Mar, 2011 by in Home

The 2011 Earth Quake in Japan may mark the beginning of the greatest wealth transfer in history. Already Russia’s real estate bubble is deflating as Mike Maloney shows in this video. Japan the 3rd largest economy in the world will need to cash in its debtors to rebuild and one of its biggest debtors is the United States. Eventually no amount of quantitative easing can hold back the tide if the Japanese cash in their U.S treasury bonds. The world economy only works if all the major players continue to play the game. More money will need to be printed to rebuild Japanese assets which have been continuing to decline in value. Growth of real estate in Asia will be seriously arrested. In Malaysia recently I saw many half completed buildings and the scenario for Hong Kong and Singapore no better. Real Estate investment is becoming toxic not only in the U.S. but throughout the world.Real property price continues to fall. When the prices bottom out the wealth transfer will take place to those who able to take advantage.

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2 Responses to “Real Estate Bubble Bursts”

  1. Geoff

    16. Mar, 2011

    The 1930s depression saw a similar decline in property prices. I’m speculating that the Japan’s economy will get quite a boost as Northern Japan rebuilds.

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    • admin

      18. Mar, 2011

      The G7 are meeting to decide if and when they will take measures to shore up the Japanese economy. The fear is that Japan will sell off Billions of Dollars of U.S. treasury notes. They need to get the money from somewhere else or invent a new money game .The rebuilding will stimulate the Japanese economy along with an influx of foreign workers producing huge social changes and more debt being created. .

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