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Get set for bubble burst: Keen

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Australian Broker | 10 Mar 2011, 05:20 AM Agree 0
Controversial economist Steve Keen has told Australian BrokerNews a tumble in housing values will occur as affordability worsens
  • Brian Hastings | 10 Mar 2011, 11:02 AM Agree 0
    As usual keen is full of doom and gloom. He was wrong last time before the GFC. He predicted the crash but was wrong on the outcome. this time he ignores that Australia has a housing shortage. If property prices stagnate but there is not enough property around surely we will see an increse in rents....which will stimulate price in the long run.
  • bob | 10 Mar 2011, 11:10 AM Agree 0
    typical economist pessimism. never beleive what they say, they only ever look back to move forward. you dont travel to well looking in your rear vision mirror. who says house prices in the 60's being on avearage 2 years of disposable income was the right place to be for affordability. there was a lot more vacant land around then not to mention less people.
  • Jim | 10 Mar 2011, 11:10 AM Agree 0
    ""Since up to 30% of the market is now investors and only a moron would invest for rental returns in Australia"
    Don't agree anything else Keen said, except this bit !
  • Allan Faint | 10 Mar 2011, 11:36 AM Agree 0
    Does Keen think if he tries to talk things down and if the media bothers to report it enough times that he may get it right eventualy.
    he forgets supply and demand. people have to live somewhere, either rent or buy. shortage of homes, increases demand for rent,rents go up, increases demand for purchases. people should not invest in property for rental returns, should invest for long term capital growth.
  • Troy From Adgreen Properties | 10 Mar 2011, 12:48 PM Agree 0
    Back in the 60's there were mostly single household incomes to pay a mortgage and plenty of available land. Current day household income is more than likley to include a second bread winner!! Pretty sure this Associate Prof sold his house prior th the GFC and has missed out on 15% + growth. I wish he would go for a long walk....oh he lost that bet and already has!!
  • Ken Bruns | 10 Mar 2011, 02:50 PM Agree 0
    Firstly I must point out that I'm NOT a trained economist, BUT having read Mr Keens work I've come to the opinion that at least one question should be asked of him. As he's a currently a resident of Sydney I would assume that he has, (given his prediction of large future price falls)sold his property(ies) and is now simply holding cash and waiting for his chance to take advantage of the new values.
    If Mr keen has done this I for one am full of admiration for a man that puts his beliefs on the line with his behaviour, however if he has not, then does he truly believe his own prediction?
  • Paul | 10 Mar 2011, 03:56 PM Agree 0
    Just to answer Bob's question Keen did sell his property whern he made his earlier incorrect predictions. This would have cost him dearly and I would say that he is still bitter about this and his current predictions are not based on any logic at all. Life in 1960 is a far cry from today as was 1960 compared to 1910.
  • Positive Broker | 10 Mar 2011, 10:14 PM Agree 0
    Why does anybody give this goose airtime? He was wrong before and he will be again.
  • Stuart Bayliss | 11 Mar 2011, 10:52 AM Agree 0
    Can we ask for a copy of Dr Keen's degree? Is it actually in Land Economics?

    I realise the man needs air time to support his career, but it's getting a little reminiscent of Henny Penny. The sky is not necessarily falling in!
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