connaust Posted April 30, 2010 Share Posted April 30, 2010 Australia's housing bubble would defy worldwide trends and all historical evidence if it did not burst, a US investment fund has said. Jeremy Grantham, co-founder of Boston-based GMO, said Australian home prices continued to rise because the Reserve Bank's rapid interest rate cuts during the financial crisis “protected” the nation's housing bubble. “But if they (home prices in Australia and the UK) don't go back to ... the old trend line multiple of family income, which should drive house prices, it will be the first time in history that such a bubble is not broken,” Mr Grantham said in a recent interview with the Financial Times.“Now we have to see what happens when interest rates rise.” Of interest are the 200+ comments..... Link to comment Share on other sites More sharing options...
KIRK AND CO Posted May 1, 2010 Share Posted May 1, 2010 anyone want to borrow a pin Link to comment Share on other sites More sharing options...
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