charles hugh smith-Where There Is Ruin III: Housing Dominoes Fall: "As housing rolls over, the dominoes are beginning to fall. The last domino? Global recession.
Surprise of surprises, the business cycle cannot be revoked. (Didn't we learn that in the dot-com era? I guess not.) Rising investor demand (greed) causes prices to rise, stimulating more supply to capitalize on that demand (more greed) which leads to massive oversupply and a calamitous collapse in price. This works for wheat, routers, houses, you name it (and from time to time, even in oil/energy). "
No comments:
Post a Comment