After watching videos of tearful Americans getting foreclosed in YouTube, I was beginning fell sorry for those poor Americans. American economists are complaining about home prices being too high in USA during their speculative bubble in 2005 and Americans are too much in debt due to property. However, when I found out what the average home cost in USA, I think we can make a comparison:
1. At the height of the US housing bubble in 2005, an average American home cost S$375K (freehold, 3 bedrooms, 2350 sq feet)....vs S$410K for a 5-Rm HDB in Tampines on the resale market. Yes, private housing in USA is cheaper than public housing in Singapore....and cost less than half price per square feet.
2. At the worst point the average household debt of Americans is 100% of GDP vs 174% of GDP for Singaporean households.
3. The per capita GDP is US$44K for USA vs US$31K for S'pore.
Americans are soft people who can't even shoulder 60% of the debt burden of a Singaporean household. ...their economists like that bearded feller called Paul Krugman are a bunch of alarmists who go on TV to warn people about the impending doom and gloom because the US property bubble has burst. Oh come on, you call that a bubble?....That is one heck of a pathetic little bubble compared with the one we had in 1996 & 2007. They really have alot to learn from the PAP when it comes to asset enhancements.....don't their govt have a PR govt that ensure their media doesn't use the wrong alarmist terms like bubbles & crash?...replace it with wonderful words like asset enhancement when prices go up & increasing affordability when prices fall. In Singapore, go up good, go down also good. ...either directions the PAP has done a spendid job.
I think the solution for this subprime mess is the CPF! If the Americans are able to copy this wonderful system of ours in which retirement funds can be tapped for housing, their property prices will double in no time. ,