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July 16, 2013


Arijit Banik

It is often said that "real estate is local" and its value is about three things: "location, location, location" yet as we look around us we notice phenomena that are national and global in scale. On the global scale, the plutocracy has more capital than it collectively knows what to do with: where will that surplus go in a world awash with overvalued assets counterposed with a global pool of cheap labour? As such, the financial capital flows of the plutocracy continues to create demand for high end real estate, especially in cosmopolitan cities such as London and Manhattan and putatively save havens du jour (e.g. Canada and Australia).
Assuming that what is happening in Ireland is exacerbated by the ECB pursuing easy money policies that encourage asset reflation amongst the rich rather than productive investment; this, in turn, makes economies less not more resilient to future shocks. Money doesn't trickle down but real estate values do (until the party's over again).

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