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Post by spinifex on May 26, 2018 10:01:29 GMT 10
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spatial
Senior Member
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Post by spatial on May 26, 2018 14:28:56 GMT 10
"Sao Paulo, a megacity that’s home to more than 12 million people, declared a state of emergency and warned that shortages caused by the five-day strike may cause a state of public calamity, while export group ABPA said a billion chickens and 20 million swine may die in coming days due to a lack of feed" Airport out of fuel, truck drivers striking - 1 billion chickens and 20 million swine to die due to lack of transport feed. Fuel crisis gets out of hand very quickly. Over the last 2 months there has been a very disturbing failure of emerging markets due to rising USD and liquidity drying up. Turkey currency is tumbling out of control early in the week they raised rates by additional 3% within 24h the currency crashed even further. Argentina is applying for emergency IMF bailout - Venezuela is gone, Russian, Iran, South Africa are on the rocks. If Brazil joins the failing economies it can set of contagion. Get ready, high potential for Sept/Oct crash like the world has never seen before.... www.zerohedge.com/news/2018-05-25/one-billion-chickens-may-die-trucker-strike-paralyzes-brazilwww.zerohedge.com/news/2018-05-25/summer-disappointments-will-lead-extended-economic-crash |
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tomatoes
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Post by tomatoes on May 26, 2018 17:02:37 GMT 10
Any thoughts on what this would mean for the housing market in Australia? And what do you think it would mean for money just sitting in the bank? |
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Post by spinifex on May 26, 2018 17:23:13 GMT 10
Zero hedge is pro-doom. MSM is (generally) anti-doom. The truth is somewhere in the middle I suppose.
For reasons I can't fathom the Oz housing market seems indestructible. People who want to own a house to live in can't afford them ... investors who neg gear them can't seem to own enough. I will pee myself laughing when economy contracts, business slows, rents crash and the investors can't make interest payments anymore. Banks will shit themselves at that point ... liquidations will perhaps finally lower prices to a point where those who just want to own a house to live in can actually afford them again. Of course ... with all that going on ... unemployment will rise and the average battler STILL won't be able to buy in.
Your first 100k in bank deposits is (I think) still covered by government insurance scheme?
The thing that will get smashed (until the inevitable bailout) in a big down-turn is your compulsory super investments.
Post script: I actually do kinda fathom the Oz housing situation: A fair part of the HUGE compulsory super fund pool IS real-estate investment. So 'our' money gets put to work by Investment companies putting the price of housing out of 'our' reach. It's a perfect racket from a banking/finance perspective. Pump the Capital value out of reach and then take the rent from the same people who can't afford to buy.
One day the younger generations (Y and Millenials) might wake up to how the system is stacked against them and start taking revenge.
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spatial
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Post by spatial on May 26, 2018 19:40:21 GMT 10
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spatial
Senior Member
Posts: 2,403
Likes: 1,561
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Post by spatial on May 26, 2018 19:45:20 GMT 10
Any thoughts on what this would mean for the housing market in Australia? And what do you think it would mean for money just sitting in the bank? Borrowing costs have to eventually go up due to high debt. This has to affect interest rates at some point. Bond rates are already rising and as soon as rates rise a bit there will be major drop in prices. WA has already had a shift in prices due to the mining boom collapse. With most of houses now bought by investors that are over leveraged - I expect a big crash in prices. There is still a housing shortage and banks are lending money very liberally that will all soon change. |
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spatial
Senior Member
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Post by spatial on May 27, 2018 21:59:41 GMT 10
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Post by spinifex on May 28, 2018 18:32:37 GMT 10
I'm following this as a 'tutorial' on what happens when supply chain breaks down and Government 'restores order'.
Feel sorry for the man/woman/nonspecific-gender-identity-person in the street who is just trying to get by.
On the upside: they're not subject to artillery or airstrikes ... yet.
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