Wednesday 18 July 2012

no quarter or crowded house

Here’s a pessimistic thought: the same mob-mentality that fomented the same froth of bubbles that burst with the real estate market is likewise the authoritative voice on what constitutes a secure harbour, a safe-haven investment to berth one’s wealth and is kettling (purposefully or otherwise) to the same supposed shelters.

Not finding the proposition of holding fiat currency liable to fluctuation at interest rates that are not keeping pace with inflation and an uncertain stock market, people sought shelter in fundamental instruments that were lauded to retain the value that by all rights they should’ve: homes and real property. This trend, however, attached more takers than the market could honestly sustain and some trickery and greed kept up the enticement far too long. Though they have economic trifles of their own to address, bigger markets like the US and Germany are able for the time being to absorb the rush and act as a relatively secure harbor, but brokers are redirecting interest and channeling fear to a clutch of smaller economies to their acute displeasure. I don’t think a Switzerland, a Norway or an Iceland on the mends particularly like being dubbed a safe-bet as the influx of phantom money, held in trust but not benefitting the local marketplace, that they cannot accommodate and is proving ruinous for trade as it over-values their domestic currencies. Consequently, like with the housing sector, or anything else over-sold and amateurish, one seriously risks inflating so-called safe-havens and worse denigrating the commodity that is one’s home—maison, zu Hause, Huset, Hรบsiรฐ, and making it worth less through attribution.