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Monday, 21 April 2014

Forbes -New Zealand Denies Super Housing #Bubble

It's Not A Bubble 

Does it mean tulips are overpriced?

Until It's Officially Denied, New Zealand Edition

Jesse Colombo Contributor
I'm an economic analyst who is warning of dangerous post-2009 bubbles

What an Easter weekend it’s been. On Thursday, I published a piece called “12 Reasons Why New Zealand’s Economic Bubble Will End In Disaster” in which I summarized my research on the Pacific island’s growing property and credit bubble. In just a few days, this article went viral and received over 85,000 views and nearly 8,000 shares on social media. This bubble warning created a media firestorm, making numerous news headlines, landed me a prime timeappearance on TVNZ, and made the cover story of The Herald on Sunday:
My bubble warning also led to something that I’ve become quite familiar with lately: an official denialfrom Economic Development Minister Steven Joyce. This makes the fourth official bubble denial I’ve experienced in the past several months, with the first three coming from officials in Malaysiathe Philippines, and Singapore.

Experieneced Banksters??
After having experienced official bubble denials before, I have stopped taking them seriously because I now realize that they are simply standard responses that add little intellectual substance to the discussion. While I bring facts and statistics to the table, the official bubble deniers typically attempt to attack my credibility and write me off as a “doom and gloomer.” In response to my warnings about credit and property prices doubling or tripling in just a decade, I receive pat answers such as “our banks have prudent lending standards” and “property prices are rising because of a shortage” (after all, it’s always a “shortage” – never a bubble). It doesn’t matter what country I’m warning about, the official bubble denials are essentially the same.

Any thoughts from George Soros and friends

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