I attending a talk on property today, which brought to mind the “evidence” that we have a budding property bubble. The consensus today is that there isn’t one, despite the anecdotal evidence – just a boom stemming from pent up demand. Prices haven’t zoomed as excessively high or are as volatile as they are in Singapore or Hong Kong.
But my focus is more on what systemic risk a potential bubble – or boom, as the case may be – might pose to the banking system. I already talked about this issue at the beginning of the month, which to my surprise was one of my more popular posts.