Archive for the 'real estate' Category

David McWilliams deflates our wealth bubble

Thursday, July 13th, 2006

David McWilliams deflates our wealth illusion, with a salutary comparison with the property bubble in Japan,

A good example was the fact that in 1988 the land on which the Imperial Palace in central Tokyo sits was valued at more than the entire real estate of the State of California or Canada – the world’s second largest country. By that benchmark, Japan was indeed the wealthiest country in the world. Needless to say, it was all nonsense – not because the Japanese were not wealthy, they were; but the property bubble (which burst in 1990 with dire consequences) had overstated that wealth enormously. The Japanese had income which had been built up over generations from making stuff, but they were not as wealthy as they thought they were.

David goes on to state that when the bubble burst at least the Japanese had a wealth creation industry (manfacturing) to fall back on, what will we do when the so called softlanding catapults us out of our seats and into the aeroplane bulkhead?

Posted in Business, DavidMcWilliams, Software, economics, ireland, irishblogs, real estate | 3 Comments »

Digital Realty Trust needs to pick up a copy of the Irish Times

Monday, May 8th, 2006

Silicon Republic reports on Digital Realty Trust’s acquisition of a 20,000 sq. ft. (whatever happen to the Metric system? ed.) data centre in Clonshaugh. They go on to say,

Digital Realty’s strategy of acquiring property assets at the bottom of a cycle in the telecoms market and reconditioning them in time for growth in an uncanny way matches Ken Peterson’s own methodology. Peterson made his fortune in the US by buying aluminium plants while at the bottom of an economic cycle and later selling them on when prices recovered.

So apparently we are at the bottom of the property market cycle….

Posted in Business, Software, irishblogs, real estate | 2 Comments »