Up, down, sideways or the sameBy
A fascinating week in the news with The Economist warning us of a 25% drop in house prices, every real estate principal saying the opposite and the statistics able to favour any position depending on which particular part of the country you examine.
I think that New Zealand, like the USA, really doesn’t know what to do and how to assess the information coming out so in true DIY fashion, we all guess.
The fact is the world is in a mess economically. The nations most at risk are those who tried to avoid a hard landing in the early stages of the recession, propping up their economies in the hope that the recovery would come in time for them to avoid any real pain.
The problem is the recession isn’t going anywhere soon and the countries taking the big hits, who appear so incompetent now, like most of Europe, are probably no worse off than the USA and other more “civilized nations”.
Housing is an indicator of a countries wealth, their residents incomes and their general outlook on life. It isn’t something you can manipulate or control to improve an economy.
So in many caes the real hard issues aren’t yet being addressed or fixed. And until they are we will continue to have this seesaw posturing. But you can be sure of one thing in my opinion:
Every nation in the world is affected by what happens in China, followed closely by the USA. And they BOTH have an ocean of pain to go through yet, which must wash over us all.
So hang on, we’re still in for a bumpy ride .
Stay Inspired and Hold Fast ~ Dean Letfus