Asset Bubble

I feel we are on a serious Asset bubble right now. This feeling increased after my recent visit to India. I was shocked to see the real estate prices increasing like anything. As everybody know the stock market is rising like anything in India till last week and I am very bullish about the Indian stock market . I am very happy that I predicted that Sensex highs will be around 12K before it crashes. Don't get me wrong here I am a layman in this stocks, economy and other financial stuff but I am getting into it day by day.

Coming to the bubble I am talking about, Yes the real estate is on crazy boom in India. The biggest problem is the amount of black money involved in each and every transaction. We can't sell or buy even a Sq.yard of a land without involving black money in it. There is always a difference between the price set by the government for that particular land which it approves and the land which is sold by the sellers. The difference is so enormous. It's not that this business is going on secretly. Everybody knows it and everybody is getting used to deal it that way. The scariest thing for me is, I think people in India are getting tough on these kind of issues. This is how it works is the kind of attitude it is set there in everybody's mind.

I think also the root cause for this problem is people have money now. With all this globalization and people getting high paid jobs and as the demand for the land is increasing day by day due to increase in the population I think we r getting to the peak very soon.

I just hope Government does some thing to regulate this because this is creating huge holes to it's tax money.