When a bubble burst, all the people who invested are caught. They cannot sell the assets that they are holding. Nobody wants to buy them.
This was the case with the tulip bubble, with the ponzi schemes and is likely to be the case with Bitcoin (when it burst eventually).
When people were investing in the gold bar ponzi scheme, many investors knew that it was a ponzi, but they thought that they could get out at the "right time". When they made the decision to get out, it was too late. Many other people also decided to get out. There were no buyers.
If you invest in a property bubble, it is not so bad. You can still hold on to the property and wait for the next cycle. You may have to wait for three decades, as has happened in Japan, and still there is no sign of light. This may apply to property in Singapore also.
Investors in bubbles and ponzis should learn this lesson. It happens all the time.
This was the case with the tulip bubble, with the ponzi schemes and is likely to be the case with Bitcoin (when it burst eventually).
When people were investing in the gold bar ponzi scheme, many investors knew that it was a ponzi, but they thought that they could get out at the "right time". When they made the decision to get out, it was too late. Many other people also decided to get out. There were no buyers.
If you invest in a property bubble, it is not so bad. You can still hold on to the property and wait for the next cycle. You may have to wait for three decades, as has happened in Japan, and still there is no sign of light. This may apply to property in Singapore also.
Investors in bubbles and ponzis should learn this lesson. It happens all the time.
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