22 Apr '11, 9am

Mr Wang Says So: Mah Bow Tan is so Disappointing #sgelections #ge2011

I am not sure if you were serious at all. There is a lot of misinformation in your comment. The price has risen so much largely due to imbalanced supply and demand (Econ 101.) If the government announces tomorrow that it will build 10,000 flat to meet the demand this year, property prices will stall if not plummet. The government has a monopoly on land and can set whatever prices it wants. Unfortunately, when house prices become out of reach, the bubble will eventually pop. Otherwise why can’t governments around the world bail out banks by propping up house prices which is a major cause for bank failures? WP's proposal is sensible although the best solution is to build just enough flats to meet the demand. But incompetent as MBT is, he could not figure out how many flats to build, which creates the current mess. Declining asset prices is bad policy (as it loses too many vo...

Full article: http://mrwangsaysso.blogspot.com/2011/04/mah-bow-tan-is-s...

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