Comment: Bubble bursts on housing pessimism … qqqx=1.asp

I respectfully disagree with Jim. On two points:

  • he implies everyone who has bought a house up to this point has been proven to have made the right decision. That’s not yet proven for people who have bought in the past year.

  • he says growth will be “no more than 5%” Strictly speaking that could be true, but he should have said what it would be “no less than” too. i.e. “no more than 5% and no less than -20%”

With the Sindo claiming prices have already fallen 5% this year, no growth for the past 6 months and a possible 5 more interest rises on the horizon, where does this 5% growth come from? Why would anyone part with more cash to buy a house this year than they had to last year?

How can dear old Jimbo make a comment like this and still belive that there is no bubble? Who is he trying to convince?

Jim has always been a pessimism bear. How many times has he wrongly called the top of the pessismism cycle? There is no pessimism bubble, just look at the fundamentals. He should know that historically the Irish are pessimists, its to do with the English and the famine. Its different this time.