Contrarian Investor: Slow puncture of a housing bubble

I am in Sydney for a conference and as I write, all I can hear is the sound of drills and building site construction along the harbour side.

The world economy may be slowing down but Australia seems to be in relatively chipper mood - although among the financial cognoscenti at the conference, there is a palpable sense of anxiety. China, of course, dominates conversations as does the long commodity swoon. Yet the troubles do not seem to unduly faze too many locals, not least because so much of the money exiting the Communist superpower seems to be heading into Australian bank accounts and properties. If there is one word that sums up most local concerns it is a familiar one - 'bubble', specifically, a local housing bubble. ...