In all past cycles since 1873 the world’s tallest buildings have consistently opened at the peak of the real estate cycle, after which there has been a downturn, some downturns were worse than others.

I expect history to repeat because the fundamental structure of capitalism – (built on those government-granted licenses) has not changed. In Dubai, this one – the Burj – is scheduled for completion, as it happens, in 2008, the US tower to follow some time after that. (Thanks to an alert class participant for the photo.)

Can you see the inklings of a setup coming here? World’s tallests coming to completion, events at the peak of the cycle to focus the world’s attention onto something else apart from; the declining credit standards at banks, the wayward credit creation, wanton and totally unproductive speculation in real estate. Economic activity will be frenetic into the peak, much busier than it is presently.