Danger of a new housing bubble?

While the economy is still in recovery, housing supply has been quickly picking up in the past few years. With government construction plans such as the 2013 Forfas Strategy, Capital Investment Plan, and Action Plan for Housing and the Homeless, the housing boom will likely continue if not further accelerate in the years to come.

There are voices of warning: the Fiscal Advisory Council warns that the trends in output and employment in the construction industry may overheat the overall economy, leading to rapidly raising prices and wages. There are also those who believe that output in the construction industry is recovering slowly and still well below what it should be. DKM Economic Consultants recently published a report lamenting a lack of skilled personnel in construction and advocating for greater government funding and availability of apprenticeships.

Acknowledging that the housing supply response is driven by pent up demand, The Fiscal Advisory Council warns that the speed and scale of the response is the real issue. A dramatic increase …

Read More

Instant Recovery

It took a while to get inspired today, then I saw a book on the shelf I had read years ago called ‘Bill the Galactic Hero‘ which is an epic satire following Bill – a guy who gets his arms blown off and then the surgeons re-attach to left-arms. Anyway, he works on this ship/planet and it has a serious waste issue so he decides to ‘post’ people all around the galaxy (postage intergalactic-ally is virtually free) parcels of waste, thus eradicating the issue.

That is all it took to come up with ‘Property Recovery 2.0’, my plan will entail taking all of our waste and using it to create a landfill out into the sea for 500m off the coast in every desirable location, giving a new half kilometer of land. Then we cart in sand and in effect create new ‘Beach-front Property’, erecting a three metre wall around the old ‘coastline’ – to give the place an air of exclusivity of course!

This effectively separates the ‘old’ great …

Read More

The Great Depression of 1920? Yep, you never heard of it….

This video is a fascinating take on monetary and fiscal policy which is contrary to the increasingly popular Keynesian solutions being put forward today. It advances the virtues of Austrian Economics, which is viewed by many as being a fringe economical school which lacks practical application. Admittedly many of the Austrian ideals would be totally unpalatable to general society, but it is important for the sake of balance to consider the views of the counter movement and not to discount it without due regard or rigour.

Thomas E. Woods has presented us with the idea that doing nothing in a financial crisis is what is required to allow an economy to heal itself, a view shared by many modern day commentators such as Jim Rogers. There is a middle ground somewhere between the hypothesis of Krugman and Mises but for now the debate rages on.

Read More