Property Bubbles – PDI,
May 1, 2013: PH property market to
remain buoyant; firm sees sustained rise in values, rental rates. By Doris C.
Dumlao
“The local property market remains buoyant on the back
of “momentous” economic growth and confidence arising from the Philippines…” “This
was based on the first quarter 2013 report issued by property consultants
Colliers International that was released yesterday, which said that the
government’s newly minted investment grade status would result in greater
activity in the property market for years to come. The market is still staying
strong in all sectors … Colliers’ Julius Guevara said in a briefing. He said
the recent move of the BSP aimed at
preventing asset price bubbles was a very prudent move. “It’s in anticipation
of the bubble, which so far we haven’t seen” he
said, reaffirming that the local property market was under no threat of a
bubble.
Dear Governor
Tetangco,
Since the bubble break in the US in 2008, bubbles have
become a favorite but often misunderstood buzzword. But are bubbles visible? Can
bubbles be seen?
The Matiglangilan is a tribe in the border highlands
of Agusan, Bukidnon and Davao provinces whose concept of “thank you” can only
be expressed in words literally translated as “what you’re doing is good”.
If you aim to prevent bubbles without waiting to see
any, what you’re doing is good - thank
you!
Did you ever stop to think and try to imagine a
bubble? Kids play with soap bubbles all the time. Imagine - when you are inside
a bubble - would you see a bubble happening? If you can’t see a bubble when
it’s happening, would you know that it’s not
happening? When imagining a bubble, doesn’t it become clear that the only instances
one is able to see bubbles at all, are:
1. When one is outside the bubble or not part of it;
2. Or when the bubble has burst, in which case there is no more bubble.
Yes, there is no more bubble to prevent or to reverse, only the remains of the
damage done. Remember the junk bonds, the toxic assets, the TARP, the Madoffs
and the aftermath of “USA 2008”. Why do you think Greenspan, Bernanke and all
those expert financial market regulators, regulatees and practitioners did not
see the bubbles coming and bursting?
Aha! Since we are all in the same potential bubble
field, isn’t it right to say no one will see bubbles start, grow, or get to the
near-point of bursting? Was it Einstein who said “one cannot solve a problem with
and within the same system that created the problem in the first place?
For not taking
chances about something as profoundly devastating as bubbles, we say, what
you’re doing is good. Thank you!
What wisdom the Matiglangilan have when they say “what
you’re doing is good” when they want to say “thank you”. When the Bible says
“in every situation, give thanks”, the Matiglangilan will say - in every
situation, do good! How relevant!
Again, thank you Gov. May you bring our folk wisdom to
the global Alliance for Financial Inclusion Steering Committee that you chair.
Pardon me for being informal, after all your boss says – kami ang boss mo!
And, as they
say in da Pilipins, tenkyu – maayo and imong gibuhat!
Bob Calida
We Also Walk Dogs
Asian College
