Wednesday, October 20, 2010

World Markets as Intertwined as Financial Markets

This article is a bit schizophrenic.
World Markets as Intwined as Financial Markets
"Local housing markets are certainly very open to invasions of capital from abroad, and these can be disruptive," Goldberg said in an interview.
However, just as easily as it flows in, Goldberg noted that capital can flow out "as somebody finds the next hot place where you simply have to have a condo in the global marketplace."
Yeah, warns of the dangers, fine . . .
However, he argued that public officials need to be wary of situations where international flows of foreign capital overtake local demand and create "a market that is overly hot."
Warns of them again . . . we read it the first time, but okay . . .
In the case of Metro Vancouver, Goldberg said he sides with those who do not believe the city is in a bubble, and he is doubtful that the capital flowing into B.C. from investors, such as wealthy buyers from Mainland China, is cause for concern. 

"If it's at the high end of the market, where much of this foreign stuff is, I don't care," Goldberg said. "That's not a social issue."
Maybe Professor Goldberg needs to play a few rounds of Crack Shack or Mansion Everything is at the high end of the market in Vancouver. 

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