Last week I said I would do a better job of tracking the Australian housing market as my prediction for 2012 is that it is a bubble which will pop. Here's what I wrote in January as Surprise #5 on my list of 2012 surprises:
Australia’s housing bubble will pop: I was just thinking about this in the context of Ireland. Ireland has seen prices in Dublin fall 65% peak to trough. That’s enormous, Japanese-style asset price deflation. No wonder Ireland is in a depression. In 2005, when the housing bubble was at peak, Irish house prices were up 192% in the previous 8 year period, second only to South Africa in developed economies surveyed by the Economist. By comparison, Australian house prices were up 114% putting them behind only South Africa, Ireland, Britain and Spain. I can’t speak to...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.