Re:Commodities Are Crashing Like It's 2008 All Over Again
by cryoshon on Thursday August 06, 2015 @04:54PM
(#10019378)
I agree with you in regards to the SV scene, but it's important to remember that even established firms could sink under the right economic conditions. Sure, there's no obvious pets.com.
As far as the US real estate market goes, I'd say it's possible that people parking their money here in even greater numbers will accelerate the current drive for luxury real estate while causing a shrinking of the middle value real estate market. You also see this in London right now, with tons of new luxury buildings being built and sold off, only to sit empty and used as a value bank. The general effect is that real estate values in general rise sharply and people are forced out of middle-value areas so that they can be redeveloped into ultra-high value areas. These are geographically centered effects, though. I'm really not sure how much it could drive the larger real estate market, which is already as hot as it's been since the crash.
As far as the US real estate market goes, I'd say it's possible that people parking their money here in even greater numbers will accelerate the current drive for luxury real estate while causing a shrinking of the middle value real estate market. You also see this in London right now, with tons of new luxury buildings being built and sold off, only to sit empty and used as a value bank. The general effect is that real estate values in general rise sharply and people are forced out of middle-value areas so that they can be redeveloped into ultra-high value areas. These are geographically centered effects, though. I'm really not sure how much it could drive the larger real estate market, which is already as hot as it's been since the crash.