Euro zone Q2 growth strongest in six years - 14/08/06

“since the heady days of the dot com boom”!!!

If this was an episode of Lost In Space, we’d have that crazy robot storming Dail Eireann crying: “Danger, Will Robinson!”… Or in this case, Bertie Ahern, if he gave a rat’s ass!

As we all know, rents are widely believed to represent a pseudo price earnings ratio for property and given that we know that rental values have not grown and are in fact falling in the Irish context at least, this report is as definite a harbinger of doom as we are likely to see.

This is the thunder of hooves, the rising dust cloud of the four horsemen of the property apocalypse…

The lame lament in the months foreshadowing the dot com annihilation was that the link between share prices and profits no longer mattered.

The good times were here to stay.

The classic definition of a bubble is people buying on false expectation about future prices, and buying with a hope of selling in the future.

In Ireland, the old conventional wisdom, that it is always better to buy than rent has just been chucked in the bin.