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BIS Shrapnel

BIS Shrapnel

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Housing shortage? No, it's a debt-fuelled bubble

Adam SchwabJul 28, 20102 Comments

The property bubble denialists continue to ignore reality.

Get set for another surplus: this time in housing

Get set for another surplus: this time in housing

Adam SchwabMay 18, 20103 Comments

Combined with increasing interest rates (as the cost of money returns to a more reasonable level), it appears that the market will be belatedly doing its job, proving the adage, the solution to high prices is … high prices.

Why the property boom? Simple. We're borrowing more

Adam SchwabJan 12, 20101 Comment

Assets prices inflated by excessive leverage are not sustainable, leading to a gross misallocation of scarce resources. It is a lesson that Australian property buyers appear slow to learn.

Big lie theory explains how the bubble inflates

Adam SchwabDec 21, 20095 Comments

Why are seemingly rational people paying so much more for property than they did even as recently at 10 years ago? They fall for the "property lie": the myth that property "never falls in value" and will be "more expensive next year".

Housing prices: the bubble just gets bigger

Housing prices: the bubble just gets bigger

Adam SchwabDec 15, 20095 Comments

The housing bubble continues to inflate in earnest, as the last major weekend of the auction season delivered a spate of booming prices. Can it continue?

Housing shortage: two parts myth, zero parts reality

Adam SchwabDec 2, 200910 Comments

In some parts of Australia and contrary to what property "experts" might suggest, we have an almighty bubble. But it's not increased immigration that's fuelling the dire housing shortage. So what is?

RBA chief: we have our house(s) in order

Adam SchwabNov 30, 20095 Comments

Australia has a new high-profile property spruiker ... the deputy governor of the Reserve Bank, Ric Battellino, writes >Adam Schwab.

BIS Shrapnel's property confidence is ... BS

Adam SchwabJun 16, 20091 Comment

When the First Home Owner's Grant falls away and if interest rates return to 7-8%, it is a more logical response that house prices will fall in the coming years, rather than rise.