Predicting Economic Crashes Through Architecture

An interesting story came out recently in The Christian Science Monitor. According to research by Mark Thorton, an economic crash in a particular country or region can be predicted by a spate of ‘world’s tallest buildings’ in that area. It seems tallest buildings are usually a result of factors often leading up to economic slumps – interest rate and price distortions, and a feeling that things can only ever keep on improving.

Known as “The Skyscaper Index”, this chart reveals that such an analysis isn’t foolproof – but it does get things right more often than not.

Source: The Christian Science Monitor

This may be a classic case of Warren Buffet’s maxim, “Be fearful when others are greedy. Be greedy when others are fearful”. Time to short against China, anyone?

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