[Video] Australia’s scariest economist Steve Keen says we’re in a housing bubble

Peter Switzer interviews Australia’s scariest economist Steve Keen joins  TV to talk about his views on housing bubble concerns, debt and much more.

Now I don’t have a  degree in economics so I’m not sure what right I have to disagree with Professor Keen, but while I can’t disagree with some of the facts he discusses,  I find it hard to agree with many of his conclusions. In fact most economist s don’t agree with him either.

Watch the video and leave your comments:

[post_ender]



Want more of this type of information?


About

Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's been once agin been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'[Video] Australia’s scariest economist Steve Keen says we’re in a housing bubble' have 9 comments

  1. November 23, 2013 @ 11:14 am nick

    What a waste of 10 minutes of my valuable time watching this video. I thought I was dumb at school when I could not understand economics, but now I realise I just had teachers like this guy ! Big difference between theory and reality.

    Reply

    • November 23, 2013 @ 11:23 am Michael Yardney

      Well said Nick. You’re right theory is very different to the real world

      Reply

  2. November 23, 2013 @ 12:30 pm Bob the builder

    Everything he says makes perfect sense and I don’t disagree with a lot of what he says.
    BUT – I think he may be wrong. Particularly if you refer to a recent article from Cameron Kusher titled “McMansions……..” which shows the sizes of houses being built and the sizes of blocks and the prices of the blocks for each state. Now when you look at the chart which shows the block prices divided by their sizes it becomes quite a valuable piece of information – I think anyway. It shows per square meter prices and is, assuming its correct, showing New South Wales’ per square meter land price to be the second cheapest in the country with Queensland just behind it. Victoria is almost $100 per sq m dearer and WA is more than $200 per sq m dearer.
    Now please correct me if babbling like a moron but to me this information seems to mirror what is actually panning out in real life.
    ie. WA prices have topped out and are probably too high. Victoria is just cruising. NSW , Sydney in particular, is climbing quite nicely (and may be the bubble I suspect Mr Keen has seen ) – my talents are wasted as a builder – I should have been a poet – and Queensland is set to make a move possibly like Sydney has.
    Now one of the things I have frequently heard over time is that land appreciates and buildings depreciate.
    I personally think Victorian land prices may be where they should be at around $350 – $400 per sq m.
    NSW and Qld prices are too low at $250 – $300 per sq m and will move up at least $100 per sq m.
    WA prices may be too high at over $500 per sq m although WA has the highest median income of the whole country so may not be too high. Maybe this is the new bar that has been set and when incomes allow Vict. NSW and Qld will eventually meet the challenge and clear this lofty height as well.
    I think Mr Keen needs to spend more time studying local information to give a more pertinent forecast as he seems to base his predictions mostly on worldwide events which may or may not be relevant to our situation.
    Who knows? Maybe I am the one who’s wrong. After all I’m only talented poet. Sorry I mean builder.

    Reply

    • November 23, 2013 @ 2:17 pm Michael Yardney

      Bob, somehow I think you have a better handle of what’s going on than Prof Keen

      Reply

      • November 23, 2013 @ 4:23 pm Prof. Bob the builder / poet / bloody genius

        Thank you Michael for your vote of confidence. I am truly flattered to be told I have a better understanding than a professor. I’ll be careful not to let it inflate my ego too much but please note my name change.

        Reply

  3. November 23, 2013 @ 3:24 pm Derek

    Next time you give an update on Prof. Keen’s position on the property I’d like the headline to read :
    “Financial Quack Strikes again”
    The sad thing is that students are shaped by their teachers. How many students has he corrupted?

    Reply

  4. November 24, 2013 @ 12:25 pm Charles Ponzi

    Most economists don’t agree with Prof Keen, eh?

    True.

    Most economists didn’t see the GFC coming either.

    Prof Keen did.

    That is all.

    Reply

    • November 24, 2013 @ 12:47 pm Michael Yardney

      Thanks for your thoughts Charles.
      I’m not sure Prof Keen saw the GFC coming. I can’t remamber him predicting it, but I stand to be corrected

      Saying “the end is nigh” years in advance isn’t predicting. He didn’t sell his house before the GFC in anticipation, he sold it after just as Sydney prices started rising.

      Predicting rain isn’t being a prophet. Building an Ark is!

      Reply

  5. December 9, 2013 @ 10:27 pm Mike

    It’s not rocket science, we are in the midst of a cheap money ponzi scheme backed by corrupt bankers that fund our political parties directly or indirectly.

    We are headed for 0% Rba rates and then when the next recession hits look out!!

    They will stretch it out for as long as they can before crushing all the sheep…

    Reply


Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*

0
0

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!