I was quite surprised about the amount of housing debts accumulated by the average sinkies these days. I've personally seen many sinkies earning 3-4k with 400k of housing debts. 10 years ago or maybe even the last peak during 1996, sinkies earning 3-4k do not even have housing debts of 400k. in 1998, 400k can get you a 4 rm private condo.
This housing bubble was supposed to correct in 2008 during the subprime but it was being delayed by fed reserve QE 1, 2, operation twist, 3 and the low rates. Masking what that was supposed to be un-affordable seems affordable by keeping the rates low. The bubble started in 2006 under marlboro tan and has been on going for nearly 10 years, when the time comes it will be quite scary.
Now we are starting to see capital outflow from asia.
http://qz.com/519253/china-just-upe...ned-the-global-economy-for-the-last-30-years/
This housing bubble was supposed to correct in 2008 during the subprime but it was being delayed by fed reserve QE 1, 2, operation twist, 3 and the low rates. Masking what that was supposed to be un-affordable seems affordable by keeping the rates low. The bubble started in 2006 under marlboro tan and has been on going for nearly 10 years, when the time comes it will be quite scary.
Now we are starting to see capital outflow from asia.
http://qz.com/519253/china-just-upe...ned-the-global-economy-for-the-last-30-years/