House prices recovered faster - Summary of 2010

And yes, I am absolutely positively sure that ...you can't beat the system...Many have tried, but you just can't do it and that's that.

I don't really think that I am concerned very much about the situation 10,000 years from now and no we will never evolve from the monetary system, as there is nothing else to replace it with

I am absolutely positively sure that ...you can't beat the system...Many have tried, but you just can't do it and that's that.

Instead, we are using promissory notes of one type or another and they have no objective value.

With options and forwards you're only notionally trading the underlying 'asset' - much of what goes on here is bets on volatility of the asset price and other abstractions.

As Avalon pointed out in an earlier thread, the market has re-aligned itself. Developers are now focused on apartments/flats of 40-70 m2, as well as houses 120-180m2 on the outskirts of the city, to bring it more in line with what the rising middle class can afford.

And how do the 'agree' the value of property? Simple, the buyer sells it for more than he paid. The seller buys in the belief he will be able to sell it on latter for a higher price. This continues until a bigger fool cannot be found or a bank can/will no longer lend. A classic Ponzi scheme.

So your one reason why its not a Ponzi scheme, is actually evidence that it is.

Rubbish, the prices are still at a saturation point, they have yet to collapse and re-align with the reality of the Polish work force.

Exactly,it's a perfect example.

Would you mind telling us when that is going to be? You've been coming here for more than three years (using your various usernames) telling us that property prices are about to go through the floor but all we have seen in reality is a fairly minor correction. When is this crash coming?

As badly as our banking system operated in recent years, the housing bubble was not a Ponzi scheme. In some respects, however, it was even worse than a Ponzi scheme!

And, yes, substantial fraud was involved. For example, mortgage companies and banks used deceit to get people to take on mortgages when there was no possibility that the borrowers would be able to meet the payments. Not only was this fraud, but this fraud depended on government authorities ignoring their regulatory responsibilities.

So, no, a bubble and a Ponzi scheme are not the same. But they have elements in common. Usually, however, the losers in a Ponzi scheme are simply the direct investors, the schemer’s marks. A bubble like the housing bubble can wreak havoc on all of us.

So, just like Ponzi scheme

but worse.

Actually, Hal, let's do a bit of reverse psychology here.

Praise milky and pete to the high heavens - and then, and only then, do a property trade against H^H^H^H with them.

simply repeating the lie until it becomes true

a Ponzi is a Bubble you idiot.

Stop thinking you have a monopoly on rational thinking, everyone knows your(and the other lackeys) game.

BUY PROPERTY IN POLAND

the lackey criminals

DO NOT BUY PROPERTY IN POLAND UNTIL THE BUBBLE BURST.

If the truth be known the price of real estate in Poland has been the same in the last 2 years, sure some good properties in the central districts have gone up but not all.

That's not what we've seen in Warsaw over the last three years. Prices have been stable at the absolute best, with most places losing five to ten percent. Some of the more stupid projects have seen prices people will pay go down by even 15%.

As an alternative to your technique, borrowed from Goebells, of simply repeating the lie until it becomes true?

A Ponzi is a bubble you idiot

Pot, say hello to Kettle.

he Ponzi property bubble in Poland is on its last legs and the developers who sabotage these sites are trying to squeeze the last bit of paste out of the tube.
DO NOT BUY PROPERTY IN POLAND UNTIL THE BUBBLE BURST.

I have twice listed the definition of a Ponzi scheme and how each point fits a property market. You and Harry have given not single argument of why its not a ponzi. Nothing.

I have twice listed the definition of a Ponzi scheme and how each point fits a property market. You and Harry have given not single argument of why its not a ponzi. Nothing.

You and Harry have given not single argument of why its not a ponzi. Nothing.

when credit runs out it will crash.

Goodbye Mark's latest pen-name.

And twice you've been wrong. Harry has explained a Ponzi scheme to you repeatedly, as have I, and I provided a link for your education. I can't believe how obtuse you are on this point nor how ignorant you are about it. Are you really that afraid to admit that you're just flat out wrong?

gravity always wins.

You guys are designed to tell lies.

Which explains why house prices now are far lower than they were in my grandfather's day.

Rubbish, the prices are still at a saturation point, they have yet to collapse and re-align with the reality of the Polish work force.

Why do they have to realign with Polish salaries, you could have the same system in Poland as you have in Germany. Most people are renters. The same could happen in PL, the main problem is most people aspire to property ownership in PL, just like the UK and USA. Now you have regular middle management workers, holding down 2 or 3 mortgages, renting out a couple of properties. In Warsaw most people I come into contact with have at least 2 or three properties, there is a couple I know they have reasonable/salaries jobs. They have just moved back in with his mother, so they can rent out the property to cover the mortgage. These are the sacrifices Poles are willing to make. Raising interest rates will cause further problems.

They have just moved back in with his mother, so they can rent out the property to cover the mortgage. These are the sacrifices Poles are willing to make. Raising interest rates will cause further problems.