The History of The 18.6-Year Australian Land Cycle. Is this time different?...

Who could have seen it coming?

To most, the 2008 land price collapse, was totally unexpected. The world was blindsided by a financial catastrophe that brought economies to their knees.

The headlines screamed of failing banks and crashing stock markets, but beneath the surface, the crisis was rooted in something far more fundamental: land.

For years leading up to the collapse, global real estate prices soared to unsustainable heights, fuelled by easy credit, speculative buying, and a culture that believed land values could only go up.

In the U.S. banks eagerly handed out risky subprime mortgages to buyers who could barely afford them. The debts were packaged into complex financial products, masking their true danger.

It was a house of cards built on the backs of everyday punters chasing the unearned gains of inflated land values.

What triggered the fall was as simple as it was devastating. As money was syphoned away from the productive sectors of the economy into land speculation, weakening small industries: people stopped being able to pay their mortgages.

Defaults rose, land prices started to slide, and the once "safe" mortgage-backed securities became toxic, dragging down major financial institutions with them.

On 15 September 2008, Lehman Brothers collapsed into bankruptcy — the largest in U.S. history, with $639 billion in assets. The news sent shockwaves through global markets.

That day, the Dow Jones Industrial Average plunged 504 points, a drop of 4.4%, marking its worst single-day decline since 9/11.'

The collapse triggered a full-blown credit crisis, froze interbank lending, and marked the tipping point into the Great Recession.

The Phone Call that Saved The Aussie Land Markets from Collapsing..

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