The next bubble - what is it?
Discussion
Classic cars (amongst lots of other forms of "investment") go through ups and downs over time. In the big scheme of things, it is a fairly niche area and wouldn't have major national or international impacts.
I think the thread is about bubbles that will burst and have a massive effect on the economy. And when a really big bubble bursts, people who never invested in that sector will still be affected.
I think the thread is about bubbles that will burst and have a massive effect on the economy. And when a really big bubble bursts, people who never invested in that sector will still be affected.
Eric Mc said:
Mainly based on what other PHers have said previously. It does seem a bit unsustainable in WA and propped up by demnand for minerals from China. If China retracts, then WA will suffer.
A lot depends on how the WA govt is spending/saving the tax revenues and how leveraged the house buyers are.Many years ago, there was no real buy to let market there - as rents could never even cover a mortgage. Now rents are pretty mental.
Welshbeef said:
So clearly noone agrees with the classic car bubble I punted in. Maybe I should buy to invest?
Jaguar e-types and Porsche 356 - particularly the not so special but matching numbers ones punted at 100k plus. Punters putting in 75k restos that they will never see back.Things like the Triumph TR-6 have hardly kept pace with inflation - particularly as more and more for sale have been properly restored - 5/6 years ago quite a few were genuine nails.
Carbon credits too IMO. Going to be big money. With Goldman Sachs the beating heart of it all.
The Great American Bubble Machine
The Great American Bubble Machine
johnfm said:
Good shout on WA Eric.
I might need to do a bit of digging on my home town to see how much of the boom is leveraged. A lot of the hear in the market is from mining employment. People are getting very well paid to work either on site or fly in-fly out and are buying property with their excess spending power - but I need to explore what sort of credit liquidity is over there. If the massive price inflation is credit fuelled - they're in the mire. If it is earnings fuelled, they're slightly less in the mire if China stops consuming minerals.
The banks are still quite tight with the lending (I'm looking to buy in the next few months).I might need to do a bit of digging on my home town to see how much of the boom is leveraged. A lot of the hear in the market is from mining employment. People are getting very well paid to work either on site or fly in-fly out and are buying property with their excess spending power - but I need to explore what sort of credit liquidity is over there. If the massive price inflation is credit fuelled - they're in the mire. If it is earnings fuelled, they're slightly less in the mire if China stops consuming minerals.
No self cert and big insurance payments needed if you don't have a 20% deposit.
But I recon it's too late to jump in just for investment. I was looking about 7/8 years ago and just couldn't afford it from the UK. Now, it'd be silly as house prices have doubled. Before it was a bargain, now it's only comparable with the rest of Aus.
You are looking at $500k for anything near the CBD really, for FIFO people. Lots of apartments going up near the city, but the rent wouldn't cover the loan (and strata fees and rates - payable by the owner, not the renter make it very costly).
http://euobserver.com/19/117066
The European Commission on Wednesday (25 July) announced short-term plans to bolster the carbon Emissions Trading Scheme, its flagship environment project undermined by rock bottom carbon prices.
The scheme, which allows companies to buy and trade pollution allowances, has suffered from an over-allocation of allowances compounded by the economic downturn and drop in manufacturing output.
The European Commission on Wednesday (25 July) announced short-term plans to bolster the carbon Emissions Trading Scheme, its flagship environment project undermined by rock bottom carbon prices.
The scheme, which allows companies to buy and trade pollution allowances, has suffered from an over-allocation of allowances compounded by the economic downturn and drop in manufacturing output.
johnfm said:
Dusty Rhodes said:
It's starting to look like large tranches of North American shale gas...
Link?"BP shares fell sharply Tuesday after Europe's second-biggest oil company booked nearly $5bn in accounting charges linked to its US shale gas fields and suspended its Liberty offshore oil project in Alaska."
Or
"Documents: Industry Privately Skeptical of Shale Gas
Over the past six months, The New York Times reviewed thousands of pages of documents related to shale gas, including hundreds of industry e-mails, internal agency documents and reports by analysts. A selection of these documents is included here; names and identifying information have been redacted to protect the confidentiality of sources, many of whom were not authorized by their employers to communicate with The Times."
http://www.nytimes.com/interactive/us/natural-gas-...
Oakey said:
johnfm said:
Is the next bubble going to be carbon credits?
Like CDOs and commodities futures, it seems there will be a prolonged buying frenzy, with artificially high pricing via government regulation.
Green is already the next bubble, did you not watch the documentary Wall Street 2?Like CDOs and commodities futures, it seems there will be a prolonged buying frenzy, with artificially high pricing via government regulation.
Look at the price of most "cleantech" companies. Q-Cells of Germany would be a good example.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff