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Post by SA Hunter on Nov 26, 2017 16:33:16 GMT 10
I recently watched the federal treasurer, Scott Morrison, proudly proclaim that Australia was in “surprisingly good shape”. Indeed, Australia has just snatched the world record from the Netherlands, achieving its 104th quarter of growth without a recession, making this achievement the longest streak for any OECD country since 1970. ............................... www.zerohedge.com/news/2017-11-15/why-australias-economy-house-cards |
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spatial
Senior Member
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Post by spatial on Nov 26, 2017 20:28:28 GMT 10
I recently watched the federal treasurer, Scott Morrison, proudly proclaim that Australia was in “surprisingly good shape”. Indeed, Australia has just snatched the world record from the Netherlands, achieving its 104th quarter of growth without a recession, making this achievement the longest streak for any OECD country since 1970. ............................... www.zerohedge.com/news/2017-11-15/why-australias-economy-house-cardsThe follow up article, the worlds longest running bull market, Aus housing is showing signs of stress, it can be the catalyst that takes it all down. Personally I am expecting an global crash, and Australia will go down with the rest of the world. The 2008 GFC Australia got a get out of jail free card with the Chinese deciding to ramp up spending like crazy. Trillions on infrastructure etc... that pushed resource (coal, iron ore, copper etc..) prices sky high. The next crash there will be no China or any one else to save the world and Aus will go down with China.... The Party's Over For Australia's $5.6 Trillion Housing Frenzy
www.zerohedge.com/news/2017-11-24/partys-over-australias-56-trillion-housing-frenzy |
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Post by Peter on Nov 26, 2017 21:37:09 GMT 10
Don't tell WA about "no recession" - we're going through a proper bastard of one right now.
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fei
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Post by fei on Nov 26, 2017 22:29:05 GMT 10
China is still slowing down, despite what the government likes to tell people. Its obvious to many people that the government is pushing as many levers as possible to keep things running along when you see some of the things that are being built.
Case in point, there's a city nearby where we live that has a couple million population, yet the city is very compact. Nevertheless, the provincial government has provided funding so that a subway system can be built. Sounds good on paper, until you read the fine print that the longest line will be less than 10km long, and just follows the same route as the current roads do. That is, for the amount of people that will use it, they could spend a lot less money just fixing up the current roads and adding a few more buses.
But no, the government is funding the most expensive option; but of course providing hundreds of construction jobs and big orders for the state-owned steel mills. Of course, when the central government owns all the big banks that the provincial and city governments borrow from, they can set interest as low as possible, with long repayment times.
Basically they just do whatever they can to keep the system rolling. Who knows what happens if all the non-performing loans were ever actually called in?
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spatial
Senior Member
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Post by spatial on Nov 27, 2017 16:51:49 GMT 10
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Post by ziggysdad on Nov 29, 2017 16:51:08 GMT 10
I keep thinking it is going to be the condo/unit surplus that tips the balance. People who own units as investment properties through self managed super funds can't let them fail. To bail them out, people will be forced to sell their homes.
I've been predicting that the bubble would burst for years - part of the reason I'm not buying...part of me hopes this will just happen so we can move on.
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