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For shares I think its fairer to use the earnings because some profits are re-invested than returned as dividends. Average PE of the share market is now 11.48 which is 8.7% earnings yield. Remember that companies over the long term have consistantly shown real profit growth grown while rents...

I said it is like a Ponzi scheme in that new inflows of loss makers pay out the previous loss makers (capital gains for negative gearers). But yes, a better description is a bubble not a Ponzi scheme, because there is underlying value, but it is trading for way, way above that value.

Those mad and crazy times when landlords didn't pay money for someone else to live in their house. It's perfectly normal to see people bidding houses up beyond the cash they generate - it's a new era! It's like a ponzi scheme, where new entrants lose money and pay out old entrants who've lost...