The 1920s was characterised by enormous speculative bubbles; the real estate bubble bursting first, prior to the collapse of the stock market in 1929. The so-called 1920s “Florida bubble” actually encapsulated the frenetic activity in real estate markets across the world.
Therefore, we had the incredible 1920s speculation bursting into the 1930s depression.
We’re doing much the same things now, so why should the outcome be any different? Why won’t we experience this 2020s financial bubble bursting into the 2030s depression? Governments are clearly avoiding addressing the issue.
The situation is ‘locked in’ once we understand these points: –
- That real estate cycles peak every 18 years, and another is due in 2025/26.
- High real estate (land) prices have become sacrosanct; corrupted misgovernment acts to finance the final surge in speculation at these moments, and unfortunately not the creation of real wealth. Tax regimes encourage the process.
So, if the 18-year cycle holds, we should be seeing real estate markets achieve their final pre-depressionary peak in October 2025.
Let’s see how we go on a monthly countdown?
