Myth 223 –The govt cannot do anything
When property prices were at its height of frenzy, the people complained furiously. The answer from gods, it was all the doing of market forces. The govt cannot do anything about it. It was a case of free market forces and supply and demand. What happens? Who were the fools who were trying to pull wool over the eyes of the people? What market forces? The truth is so apparent that it is looking ugly and embarrassing. But to deaf frogs, they chose to hear nothing and thought they had done a good job, the right thing, good for the people. And they let the momentum run. Was it being clever or foolishness, was it market forces at play or was it intentional? Your guess! Saturday’s ST frontpage news was about how effective the new anti property speculation measures were. They are taking effect, lesser demand, lower asking price for flats and COVs etc etc. So the frenzy is slowing down. It could be just a cooling period. The wind down could be just a knee jerk reaction. Prices could spiral again when the speculators see that prices are not falling and still good profit to be made. How could prices fall when the demand and supply mechanism is still the same one that led to the froth? How could prices come down when the bidding system for land is still the same, going to the highest bidder? How could prices fall when the official position is not to let it fall? They could not let it fall as the buyers of exhorbitantly priced flats would become suckers overnight. How could prices fall when the same…. But that is beside the point. The point here is that it is not market forces at work. At best it is managed or contrived market forces, engineered market forces of supply and demand, and turning a blind eye to the huge increase in population. See the myth?