Sat Jan 26, 2008 8:32pm EST
By Emma Thomasson
AMSTERDAM (Reuters) - The house sugar merchant Cornelis Sasbout built in 1617 at number 150 on Amsterdam's Herengracht canal tells a cautionary tale about investing in property -- prices fluctuate wildly, but are ultimately flat.
From boom to bust, the plot Sasbout bought for 4,600 guilders (2,100 euros) and which today might sell for several million euros on the prestigious canal, will in the long run always revert to some kind of price equilibrium.
This can be seen in a unique index dating back 350 years, drawn up by Piet Eichholtz, a real estate professor at Maastricht University using records of house prices on the canal. Even for people with no intention of buying property, it has been cited by Yale economist Robert Shiller for its reflection of the inexorable logic that bubbles always burst.
Just now for Eichholtz, the arrow is pointing down. He says home-owners worldwide may need to brace for double-digit losses in once-booming markets, and even more in places with low birth rates like eastern Europe as well as Japan and South Korea.
"I'm really concerned about housing markets where the demographics look bad," he said. "Then prices can really fall a long way."
His Herengracht index came to prominence in 2005 when Shiller, whose book "Irrational Exuberance" forecast the 1990s stock market bubble would burst, picked up on it as an ill omen for the U.S. house market.
Shiller and fellow economist Karl Case did the pioneering research in the 1980s that produced the S&P/Case-Shiller index of the U.S. housing market which has shown big recent falls.
Eichholtz says what makes his index stand out from house price histories in other cities is what he calls "constant quality" -- the Herengracht has always been prime real estate. The index corrects for rising consumer prices but not wages.
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General news or articles related to Development, Construction & Utilities in Indonesia.
Change (Peace, Love & Unity) is in the Air Now ! ... Time to GET IT !
"This World Belongs to Everybody" & "The Big Picture - You Are Not Alone"
"The State of the Earth" - The Predicted Weather Shift (Mini Ice Age - 2032 !!)
"The State of the Earth" - The Predicted Weather Shift (Mini Ice Age - 2032 !!)
(Solar and Heliospheric Observatory - website / spaceweather.com)
"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,.. etc.)
"A Summary" – Apr 2, 2011 (Kryon channeled by Lee Carroll) (Subjects: Religion, Shift of Human Consciousness, 2012, Intelligent/Benevolent Design, EU, South America, 5 Currencies, Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Middle East, Internet, Israel, Dictators, Palestine, US, Japan (Quake/Tsunami Disasters , People, Society ...), Nuclear Power Revealed, Hydro Power, Geothermal Power, Moon, Financial Institutes (Recession, Realign integrity values ..) , China, North Korea, Global Unity,..... etc.) - (Text version)
“.. Nuclear Power Revealed
So let me tell you what else they did. They just showed you what's wrong with nuclear power. "Safe to the maximum," they said. "Our devices are strong and cannot fail." But they did. They are no match for Gaia.
It seems that for more than 20 years, every single time we sit in the chair and speak of electric power, we tell you that hundreds of thousands of tons of push/pull energy on a regular schedule is available to you. It is moon-driven, forever. It can make all of the electricity for all of the cities on your planet, no matter how much you use. There's no environmental impact at all. Use the power of the tides, the oceans, the waves in clever ways. Use them in a bigger way than any designer has ever put together yet, to power your cities. The largest cities on your planet are on the coasts, and that's where the power source is. Hydro is the answer. It's not dangerous. You've ignored it because it seems harder to engineer and it's not in a controlled environment. Yet, you've chosen to build one of the most complex and dangerous steam engines on Earth - nuclear power.
We also have indicated that all you have to do is dig down deep enough and the planet will give you heat. It's right below the surface, not too far away all the time. You'll have a Gaia steam engine that way, too. There's no danger at all and you don't have to dig that far. All you have to do is heat fluid, and there are some fluids that boil far faster than water. So we say it again and again. Maybe this will show you what's wrong with what you've been doing, and this will turn the attitudes of your science to create something so beautiful and so powerful for your grandchildren. Why do you think you were given the moon? Now you know.
This benevolent Universe gave you an astral body that allows the waters in your ocean to push and pull and push on the most regular schedule of anything you know of. Yet there you sit enjoying just looking at it instead of using it. It could be enormous, free energy forever, ready to be converted when you design the methods of capturing it. It's time. …”
Geothermal Energy
Nuclear Energy
Sunday, January 27, 2008
As safe as houses? Dutch history suggests not
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