WASHINGTON, D.C. (AP) — WASHINGTON, D.C. The World Bank, representing 186 countries, sees indications of the impending collapse of inflated immovable, stock and monetary values exchanged across the globe.
The World Bank sees such things: used car for sale
According to rumors, a premium apartment in the affluent Hong Kong neighborhood of Midlevels would sell for $55.6 million or $9.200 per square foot.
In the third quarter, Singapore's home prices rose by 15.8 percent, the highest pace in 28 years.
In 7 areas surrounding Seoul, South Korean authorities have tightened real-estate loans requirements, with prices rising significantly.
Last year, the Australian dollar rose by about 35%, as US dollars were borrowed from investors to purchase Australian currency.
Due to low global interest rates, expanding economies are attracting huge cash inflows from Beijing to London.
In this year, $53 billion has been invested in stock funds for developing markets.
The Emerging Markets Index grew by 60.7% this year. Brazil saw an increase of 100%, while Indonesia had a gain of 102.7%. The Dow Jones Industrial Average increased 11.5% during the same period.
According to the bank, the collapse in Asia and the Pacific Rim is especially probable.
The Bank cautions that governments and central banks may fuel the collapse that some international experts think the 65-year-old organisation, is unprecedented.
They accomplish this by working hard, according to the bank, to get out of the present slump. They also contribute to property, stock, and monetary asset bubbles, particularly in China, Hong Kong, Singapore, and Vietnam.
Simon Johnson, former IMF lead economist, said: "This is the start of another big and unsustainable upward trend in asset prices.
For the real estate channel, see also "SPECIAL REOPORT: Hong Kong's bubble bubble as house prices increase 28 per cent this year, November 1, 2000" and "GLOBAL REALTY CAPITAL MARKET: Nov. 2, 2009."
Policymakers initially resort to bubble-fighting legislation. But it is not sufficient to convince anybody to postpone the imminent collapse. Some say that quickly increasing costs are no convincing proof.
"Even those who claim that we can respond immediately [and deflate bubbles] have no concept of how to do this," says Laurence H. Meyer, former governor of the Federal Reserve Bank. "It's simple to have a philosophical stance, but it's more harder to implement."
"It doesn't sound like a bubble," says Hugh Simon, CEO of the Hamon Investment Group. There is "too much skepticism" among investors.
"One of the two or three key issues that remained unresolved at the conclusion of this crisis," says Adair Turner, President of the Financial Services Authority in the UK.
Lee Seong-tae, the Bank of Korea's Governor, said last month that if feasible he would raise interest rates to avoid a spiral out of control of Seoul's property market.
Asian stock values are rising, according to the Wall Street Journal, partly due to low interest rates in the United States.
According to Stephen Cecchetti, Chief Economist of the Bank for International Settlements, investors wanting better returns borrow in US dollars and then invest "into nations that are growing faster," which predicts the earlier asset bubble, which is doing so again.
"It may lead in such nations to property and equity bubbles," Cecchetti says.
The World Bank is traditionally not a bank. The IBRD and the International Development Association (IDA) are two development organizations owned by 186 Member States, which make up the Bank (IDA).
The IBRD's emphasis is on middle-income and moderately poor nations, whereas the IDA is working with the poorest countries in the globe. The Bank provides low-interest loans, non-interest loans, and grants to developing nations for a number of initiatives including education, health care, public administration, infrastructure, financial and private sector development, agriculture and management of natural and environmental resources.
Robert B. Zoellick is the new and 11th President of the World Bank, an American career diplomat. He has held the position since June 2007.