The Housing Bubble

What’s your housing bubble prediction for 2018? From ten years ago. “I predict that 2008 is when the housing bubble outside the US starts to deflate. This includes Canada, Mexico, UK, Spain, and others. The rest of the world is still in ‘it’s different here’ denial, but in the end, economic principals suggest that while everywhere is ‘different,’ nowhere is really that different when it comes to over-valued and over-build housing markets. This will cause the world-wide credit crunch to be more severe, as borrowers in other parts of the world start defaulting like their US cousins.”

From five years ago. “Due to the detrimental economic impact of an omnipresent and increasing shortage of cash, the Fed will feel compelled to alleviate the problem through invoking QE3. The stock market will rally as a consequence.”

From one year ago. “Predictions for 2017:

1-Someone comes along and finally recognizes that successful Communist/Marxists are Capitalists.
2- We raise interest rates three times and the Market cracks.
3- Nike starts a line of rubber boots that become a fashion item in coastal areas.
4- Real estate muddles along until the fourth quarter of 2017.
5- Miami announces another wave of condo construction funded by the laundering of money which is now acceptable in municipal Miami political circles.
6- I am appointed in Trump’s administration to the newly formed cabinet post, Secretary of Asphalt, fulfilling a personal life-long dream.
7- Oklahoma appoints a legislative team to study how they can market earthquakes.
8- Water rights become a jurisdiction issue for fifty States.
9- Goldman Sachs announces that it knew nothing about anything that people claimed Goldman Sachs knew about.
10- “Over-capacity” comes back into the lexicon of speech.
11- Bed, Bath and Beyond announce store closings arising from AMZ encroachments.
12- Greece announces that it’s still here and it requests to be put back into the weekly news on Wednesdays.
13 - A spelling team at the Federal reserve publishes a paper explaining why the “n” in Wednesday comes after the letter “d”.
14- Janet Yellin explains “backwardation” and “contango” at a Senate hearing and three distinguished Senators fall asleep during her testimony.
15- CALPERS announce that their projected ROI for their pensions will no longer be published until new studies are completed in the fourth quarter of 2020.
16- The rent for coastal apartments rise 7-10%.

A healthy New Year to one and All !!!”