Entire World is a Bubble Theory

General Real Estate Investing
1

I’ve been reading this in a few spots that I check from time to time. www.itulip.com is one.

Very interesting theory. Here’s my piece of it.

American Muscle cars. Hemi Cuda’s selling for $1 million, 1998 price $50,000.

Vintage Guitars. 1959 Gibson Les Paul Sunbursts $500K, 1998 price $40,000

Dow 13000+ Never been that high.

Private equity just bought CHRYSLER!!!

Home prices …still insane in my area. nothing cash flows, not even close. 1998 sfh=$80,000… 2006 sfh (same house) =$250,000

China stock market . never been that high

On and on and on!!! SCARY!

2

Agreed. However with foreign markets developing their may be more investment money in the markets. I don’t know. Hard to say.

What is a safe investment?

3 
 Itulip, while having an admirable degree of research, interprets this research in very dangerous and predictable ways.
"Today's average [house] price is around $8,000-out of reach for two-thirds of all buyers." Science Digest, April 1948
"The goal of owning a home seems to be getting beyond the reach of more and more Americans.  The typical new house today costs $28,000." Business Week 1969
"In California....for example, it is not unusual to find families fo average means buying $100,000 houses....I'm confident prices have passed their peak." The Coming Real Estate Crash 1980
 "Financial planners agree that houses will continue to be a poor investment." Kiplinger's 1993
 I went to Itulip and read a forecast that predicted a global economic bust, particularly in real estate, and attributed it primarily to Condoleezza Rice making statements which upset Vladimir Putin, Hugo Chavez and Mahmoud Ahmadinejad.  Right.  Those folk don't have a political ax to grind.
 The climate of today's global economy warrants more optomism than ever.  China, India, Brazil, Russia, even Mexico have embraced capitalism and started practicing free enterprise in my humble opinion, we are at the beginning of a long period of global prosperity.
4

I just wonder how they cook those inflation numbers. They claim inflation is very low at 2% a year or so. That’s complete BS.

Oh, I know. They exclude volatile food and energy prices. Last time I checked, those are things that we buy.