Beware the real estate sales mantra that property prices always go up.

'Housing markets in the world’s leading economies continue to recover,says the Global Property Guide's summary of housing statistics for the year to end-Q3,2009. (www.globalpropertyguide.com)

Many housing markets in leading economies remain distressed. Of the 27 countries which have already published their Q3 data,more countries have experienced house price falls (17 countries) during the year to date,than have enjoyed price rises (10). In addition,the house price falls in several countries have been much larger than house price rises anywhere,and include unprecedentedly severe falls in Latvia (-59.7% year to date),the UAE (-48.1%),Bulgaria (-28.7%),Iceland (-21.2%),Russia (-19.5%) and Slovakia (-15.3%) (all figures inflation-adjusted)...'

Read more:

http://www.globalpropert...overing-unevenly-Q3-2009

Sasa this karanjakinuthia is masquarding as kinuthiakaranja...who is who. Just wazuaring. @ the former, Price controls are a neccessity in a fractionated economy like ours, Too much 'trust' in the efficient market theory led us to the current mess...REGULATE

@ Waria, it is I KK. Perhaps, the tale below will shed some light on the effects of socialism, Marxism and Communism.

An economics professor at a local college made a statement that he had never failed a single student before, but had failed an entire class. That class had insisted that socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, "OK, we will have an experiment in this class on the present administration’s plan".

All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A.

After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy.

As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D! No one was happy.

When the 3rd test rolled around, the average was an F.

The scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great but when government takes all the reward away, no one will try or want to succeed.

Could not be any simpler than that.

@Waria. I am glad you have been reading this forum. I too am against cartels which distort prices in their favour albeit sometimes matters turn awry leading to collapses. Kenyan oil marketer, Triton comes to mind.

Regulation is welcome so long as it ensures transparency and accountability. Wall Street's peddling of toxic over-the-counter derivatives around the globe should have been nipped in the bud early.

I have endeavoured to illustrate the foundation of a global rise in commodity prices. The weakening U.S. Dollar is the culprit. It has been on a multi-year decline causing a commensurate increase in commodities traded in Dollars to compensate for the loss in purchasing power.

The international community led by the Chinese have implored the U.S. to take measures to strengthen the Dollar. All they've gotten back is lip service.

Any attempt at controlling prices will result in distortions and the rise of a black market (free market). The government's attempt in December 2008 to cap the price of maize caused a farmer's revolt who had priced in much higher prices to cover high input costs. Faced with looming supply shortfalls, the government resorted to importation at higher prices than the local market offered.

The only way to buffer against international inflation is to have a strengthening local currency such as the Yen, Australian and Canadian Dollars, Norwegian Krona and Euro.

The dog of the continent is certainly on the mend. 9 years of declining output and hyperinflation has shattered confidence and caused human as well as capital flight.

Inflation in October was 0.8% versus 231 million percent in June of 2008.

"HARARE, Dec 2 (Reuters) - Zimbabwe's battered economy is on track to expand for the first time in a decade this year and to grow by 7 percent in 2010 as key sectors such as agriculture and mining start to recover, the finance minister said on Wednesday.

Finance Minister Tendai Biti delivered the first full budget since a unity government was set up 10 months ago between President Robert Mugabe and his opponents to try to end a crippling economic and political crisis...."

Read more:

http://www.reuters.com/a...le/idUSGEE5B11GP20091202