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Bubble of MONACO (and of CHINA) - exploding - NOW!
The Bubbles in real estate of Tokyo, of Las Vegas, of California, of Spain, of London and Ireland and some other nice places - are history since months or years.
The Bubble of China, not only in matters of real estate, will be history in the year 2010 or 2011 at the latest. The New Bubble of Wall Street and City of London are bursting any moment and tearing New Economy of heroic Bernanke-year 2009 down to hell.
Only the bubble of MONACO seems to be established for all Times,
This is what a cunning agent in real estate Agency explained us recently, in view of the fact that beautiful apartments in France with splendid views of parks and the Mediterranean Sea are sold as low as Euro 200'000 to about 800'000.
Whereas, only some miles away, in MONACO, the very same apartments with view on the stone heap of ugly sky-scrapers and a miserable shore of Monaco - are sold for Euro 2 to 8 million.
This was the right moment for asking the crazy Expert:
"Listen Guy: Whoever pays some millions for a miserable apartment on the square-mile of Monaco must be nuts. Even if being rich: His income is ceased by taxes where the profits are generated - unless your name is Michael Schumacher. So, for taxation reasons, it does not make sense, unless you are a rich Russian oligarch, hiding all profits won before, from the reach of State of Putin and Medvedev...."
The genius for speculation gave following answer:
"Taxes? Richness? Reasonableness? Ethics? Commonsense? - What are you talking about? Forget it for all times. What we experience here in Monaco is pure SPECULATION of greedy and stupid investors, nothing more. All hope the price for Flats will increase the next day and therefore, no supposed chance should be left out. For the last 10 years, we had an explosion of prices in Monaco for flats in this ugly Stone Heap by hundreds of percent, whereas only the Prince on his Hill has a nice view on Monaco and the Mediterranean Sea. For the rest, it is craze of greed and an additional Casino to the one near the most expensive Hotels on this Globe - and it will stay so for all eternity."
I wanted to have a big laugh - but kept silent:
Why should Monaco be different to Dubai, Moscow, Marbella, London, Paris, Rome, San Francisco or New York and soon shattered Shanghai and Beijing? All is Wall Street, the whole World is Brown's City of London or Joe's Frankfurt, all is tax-free richest Skunks-world of Bahnhofstrasse Zurich and Bank secrecy law Geneva or Lugano or Zug or Vaduz in Liechtenstein
- The whole world of VIPs has in their empty heads a tiny little Luxembourg-Brain of Delaware near Bahamas or Hong Kong.
DELAWARE near Wall Street and Hedge Funds represents the greatest tax haven of the world, what cheating figures and volume are concerned (NZZ wrote), but the whole world thinks: It's Zurich, or Jersey, or Singapore, or Panama or the White House in Washington.
Perhaps it's Monaco. In any case, there is the place of the next exploding Real estate Bubble, friends.
Go to this small town, another Vatican - and pay NOW astronomic figures for nothing. You should get it finally - Stupidity always pays --- until the last crook made his deal----- and then late-comers, inclusive the last resort, the normal middle class taxpayers are always and for ever bitten by the dogs and pay for their own bankruptcy or loss of jobs.
And don't blame anybody to make explode a Bubble too early:
The longer it gets, the higher the lightning and stronger the thunder in Wall Street, China or Monaco. For Wall Street, the bankers craze lasted 5 years too long and the thunder therefore will go on wide over 2020. For China, the lightning will be seen all over the Globe and the thunder will go on for ever and crash Capitalism.
For comparison, in little State Monaco, the thunder will be far less than the one in DUBAI - recently - and hidden by Abu Dhabi.
Somehow, the towns of Monaco, parts of Beijing and Shanghai are nearly dead, because for speculation, lots of apartments are empty and no people living in them. It's a sad thing, going at night through such places.
And what more is: Those towns remind very much of TOKYO before the great crash, destroying trillions in values of Real Estate and others.
Somehow, the whole thing reminds "rich" CALIFORNIA - before its bankruptcy. Today, we have a "rich" CHINA, not learning any economic lesson of the past.
Rene Delavy - Berlin and Bournemouth
Author of "Why richness turns into poverty of the future" / "When Stock exchanges tumble under Derivatives" / "High time for GW Obama and other Fukuyama dreamers" / "Neo-cons (French: cons = dull folks) are again high on bankers' speed" / "The Lightning and the Thunder" - and some other nice stories, proving sceptics being right - by the end.
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