[lbo-talk] Rundle on the Australian election

[Mike Beggs]

On Thu, Aug 12, 2010 at 10:34 AM, Doug Henwood <dhenwood at panix.com> wrote:
>
> On Aug 11, 2010, at 7:38 PM, Mike Beggs wrote:
>
>> The valuation-rent ratio is a more relevant factor.
>
> Hmm, interesting analysis. The price/rent ratio got way out of whack here - has that happened in Australia?

Yes, definitely - according to the Economist index, the ratio in
Australia is 56.1 per cent above its long-run average. That's pretty
high, but a lot of European countries are up there, even those which
have had falls. The UK is 31.2 per cent above average, Spain is 53.4
per cent and France 39.7 per cent. The US (3.9 per cent above average)
actually looks like the outlier, although Germany and Japan are well
below their long-run averages.

http://www.economist.com/node/15911113?story_id=15911113

Mike Beggs