Ewan. I’d like to do the legwork on this problem but I don’t know where to get the data for it. Let’s just say that I’m feeling that the developments going in and around the Metro (GMA, Metro Cebu, Metro Davao, Some Parts of Luzon) are the beginnings of a housing bubble Japan style, only we don’t have a government flush with cash and a household savings of more than 3 Trillion dollars. I pray I’m wrong because this may not be good.
As the dual forces of technology and globalization progressed over the past decade, I suspect it became pretty clear to most average workers that holding a job at the prevailing wage offered little hope for getting ahead. Recognition of that reality certainly played an important role in the politics that led to the creation of subprime lending programs. You can make a pretty strong case that the housing bubble was caused not simply by low interest rates but by widespread recognition that investing in a home represented perhaps the only viable hope for a typical American family to achieve any measure of prosperity.
via An Alternate Theory about the Root Cause of the Current Economic Crisis | Angry Bear.