Yes. Currency reset -> devaluation of USD -> Lower US consumption/demand + US govt increase interest to stop devaluation-> interest reset for Alt-A and Option ARM. And finally followed by a Peak Oil hit...

Coming back to the topic, aren't properties easy to regulate given that there are countries which are doing very well at controlling to learn from?
- limit foreign ownerships [according to segments]
- Tighter lending requirements
- govt to build more decent low-cost and mid-cost properties with facilities
- impose build-then-sell policy
- Limit the max Margin of Finance [ I prefer a max of maybe 50% starting from 2nd house in the same state, what's the excuse of wanting 2 houses in the same state for ppl who can't afford to pay at least 50%?]
- Ban of developers selling pre-launch [friends or relatives or business clients or employees just have to queue up too]
- Clear sales literature and fair pricing structure (no more sell 1 block-and-increase-price-sell 1 block-and-increase-price)
- Capital gain tax [ a declining tax of starting at maybe 90% for the first 2-3 years. why are ppl so afraid of high capital gain tax in properties? I'm in the opinion that properties are the single largest transaction for most ppl in their lives. So I really think ppl who profit from flipping properties in the short term = robbing livelihood from others.]

Pretty much a bookwork question. The question is, does 'the Gahment' really want to curb the bubble or just want to talk?


Bubble burst or gradual correction. They both need trigger(s), the difference lies only in the intensities of the shock(s)/changes in economic parameters, which all simply boils down to employment and paychecks. In the coming years, keeping your jobs is probably the best thing you can do for yourselves.

Good luck guys.

This post has been edited by Warn3r: Sep 30 2010, 03:47 PM