Real Estate Bubble Series 7: Once upon a time, why did the prophecies of house price advocates come true so often? (Top)

Let's start with a story that seems to have nothing to do with the subject of this article.

When the daughter was newly married, the mother told the daughter that she should take care of her husband, otherwise her husband would divorce her later. The daughter believes that her mother is good for herself, believes in her mother's words, fully adopts the suggestions, and resolutely implements the spirit of "tight management". Since then, the daughter has been keeping an eye on her husband who loves her deeply, and has set up countless "family rules": for example, she must go home at 11 o'clock at night, is not allowed to have dinner with friends of the opposite sex, spends money in advance to ask for instructions to report, and all wages and income are handed in. On a business trip, you must tell you the location, what you are doing, and who you are with every three hours... My daughter often calls every three to five minutes, and also video chat... In short, the words and deeds of the husband are "tightly controlled".

Dear friends, what would you do if you met such a wife (or husband)?

Like you, unsurprisingly, the husband in the story couldn't stand it, and eventually divorced, righteous! Go away!

The end of the story is: after the divorce, the mother proudly and proudly said to her daughter: Child, you see, I was right! Your husband is divorced! (Never mention the pain and hurt that divorce has caused to her daughter!) ）

So, what does this story have to do with this article? Please don't be impatient, and listen to me break it down later.

Back to the point.

In the process of China's real estate as a whole continuing to rise for more than 20 years (of course, there are several short corrections in the middle), no matter at what stage, there are always many bricks advocating: house prices will rise! Rose! Rose! When house prices are in a period of correction, house price advocates shout with all their might: the pullback is temporary, and house prices will eventually rise! Rising is an eternal iron law!! Hurry up and buy, don't buy again, and you won't be able to afford it later!

In short, once upon a time, the process of rising house prices was always accompanied by the shouting of slogans from advocates.

Under the advocacy of the brick family, under the overwhelming publicity of the media, hundreds of millions of ordinary people believed that it was true, panicked, they believed what the brick family said, "if you don't buy it again, you can't afford to buy it later", under the general expectation that house prices will rise sharply, no matter whether their income can afford to support house prices, they all smash the pot to sell iron, borrow money everywhere, collect a down payment from the bank loan, and desperately pour into real estate. At the same time, a large wave of speculators have also flocked to the first-tier, second-tier, third- and fourth-tier cities to speculate. There are also many enterprise units that have joined the army of speculators, including large state-owned enterprises and many listed companies... Banks have also seen it profitable to invest in real estate, loosen monetary costs, and even violate mortgages. Such as the fire cooking oil, in short, under the advocacy of the brick family, the entire society has formed the "expectation that the house price will rise", people are convinced that "if you don't buy it again, you can't afford it", almost all the funds of the society flow into the real estate market, can the house price not rise? So a surge in house prices is inevitable!

Dear friends, do you understand the "power of expectation"? This is the investment psychology of "buying up and not buying down". In this sense, confidence is more expensive than gold, and it is not without reason.

When the house price did rise, the brick family said triumphantly, look, how accurate my original prediction was! How clever I am! How prescient!。。。。。。

Since the advocacy of the brick family has been repeatedly verified, it is naturally convinced by the people... Just attract more ordinary people to smash pots and sell iron, shrink clothes and diet, tighten their belts, and devote themselves to real estate regardless of their bodies.

The next cycle arises, and the cycle begins, and the cycle continues, and the cycle continues, and the cycle continues... Just like the drumming flowers, the drumming is intense, the drums do not stop...

Until finally there was a moment, a snap! The drums stop! Finally the last baton receiver was produced, and he found that the baton could not be passed on... He's already in a high position, who is he? He is a high-level buyer and speculator in 2017-2018! He is a Yanjiao buyer with an average price of 40,000, he is a Shenzhen speculator who buys a house at an average price of 120,000, he is still...

Dear readers, please look back at the previous story paragraphs, can you find something? Did you find anything in common?

New questions are coming. If the daughter in the paragraph believes her mother's words because she believes that her mother has a sincere and selfless love for her (her mother's advice is out of "good heart", the story is "good intentions do bad things"), then, in real life, why do countless residents believe the words of the brick family and finally buy a house at a high position? What are the secrets of the bricklayers?

And listen to the next breakdown.

Next Preview: Real Estate Bubble Series 8: Once Upon a Time, Why Did the Prophecies of House Price Advocates Come True? Tried and tested? (Part 2)