Writing is on the wall – Labour will win

I have already started sand bagging my position for any economic bombshells.
Here is an interesting thought.
Let's say you had a really bad tennants. They weren't paying thier debts and are wrecking the house. They run up a debt that is sending you broke. In fact you discuss passing this huge debt on to your kids to pay off it is so big.  You finally evict them.
Put in a really good tennants that looked after the place, paid on time, and had not caused you a problem in 11 years.
You get ahead, and pay off the mortgage you once though would drown you. Golden days instead. But you get bored with your new found economic prosperity.  What could go wrong you say?  So you decide to kick them out and bring back the Tennants from Hell. (After all they had nice new Kevin 07  T- shirts now).
Hmmmm.  Quite an interesting choice.

Housing affordability was mentioned more than once by Mr Rudd as an issue in this election. Must confess i cannot recall what his solutions were? Could we see alterations to tax law such as depreciation rates and CGT?? I guess time will tell.

Hallg

Interest rates will increase no matter which government is in power (Labour/Liberal) but I believe that by labour now gaining control it will amplify the situation and result in a sharper and more powerfull increase in interest rates and inflation.

Labour will literally spend spend spend and we will probably see budget deficits (The best way to predict future behaviour is from past behaviour) and this is what the labour party always does.

Employment laws will go back into the dark ages and by trying to increase a few peoples wages by a dollar or two will have huge negitive impacts on unemployment. Employees will discontinue to employee people because of the red tape sinews attached and bosses will be very hesitant to hire new staff, This will lead to an increase in unemployment, less money in the ecconomy, more dole payments and repossessions.

Interest rates will skyrocket, the government will be broke and property prices will be forced down by a recession leading to many golden investment opportunities (if you didn't get capsized in the storm)

This is my prediction for the future, grim as it may be for some, but prosperous for people whom are prepared.

Now is a good time to start liquidating paper assets and have money in the bank.

I agree with the general theme of the above topics, especially the post by jtw.
I was at a birthday BBQ saturday night and obviously surrounded by Labour voters. They were ecstatic about the result. I was feeling a little ill myself!
Where are the Labour voters on the forum? Or are property investors more inclined to favour the Liberals?

I'll happily deliver a touch of reality:

*in spite of a huge mining boom, Australia is running a current account deficit the largest in its history (funny how that particular measure has gone out of favour). In other words, when in the best position in a lifetime to sell more than we buy, Howard has ignored addressing the fact that we are continuing to run up the international credit card. If the US economy slows and China's output eases, watch the number increase…..
*related to the above is the massive increase in govt spending and middle class welfare which has a gone a long way to overheating the economy and in spite of the RBA sending out lots of warnings, Howard proposed to increase the pressure with $40 odd B in additional cash added to the system. The only way the RBA won't move again in February to have another go at slowing spending will be if the banks move independently to pass on their increased funding costs caused by the US sub prime crisis b4 Christmas – I'd bet on most doing something over the next two weeks.
*the average Australian can no longer afford to buy a house. A plasma TV sure. Cheap gear made in China, lots. A roof over their heads…wait until your parents die.
*Howard has reduced our spending on education to well below the OECD average and into banana republic territory….but the sills crisis is someone else's problem. In 10 years time and in the absence of a change of attitude or government, we'd have a bunch of unemployed truck drivers who used to make $100K a year in the mines and no engineers, scientists or tradies to build the next industry. Remember when we used to worry about being China's quarry and Japan's beach rather than celebrate it?
* in short, Howard was Menzies. Managed to ride a boom but did nothing with it but make people feel better about their present but neglect their future. When his legacy is written it will be one of wasted opportunity and a minor tax.

Far from it.  That particular cat is out of the bag, running around the house and swinging from the curtains. The key issue for Rudd should be to get the current account issue back on the agenda and start to plan for the day with the mining boom is no longer paying the bills.

You remember the days when our political leaders planned for the future beyond the next election and were prepared to tell their constituents what the didn't want to hear….that's what we need now.

Interest rates have another .50% to go over the next 6 months just based on the heat in the economy. The momentum gathering over the last few years can't be managed quickly without risking some serious hurt. With luck Rudd's first decision will be to do the common sense thing and delay the big ticket spending items until the economy stops racing.

Do not mean to offend anyone but only Yossarian has a clue about what it happening. His honesty has my fullest respect. And the rest of you, for God sake please read “Robert Kiyosaki” latest book on the global prediction and read the financial review. 

“I am sorry” if anyone is offended, “But I am not apologizing”

Come on kokjhoonwong, I think people in this post are just commenting on how they see the new government, not so much complaining about how it affects their investments.

As far as 5% interest rates are concerned, I'm only drawing a conclusion from the blurb that the Labour Party went on with leading up to the election.  They continually rammed it down the throat of the Liberals about the increase in interest rates. One has to conclude Labour can lower interest rates, otherwise what the hell were they on about. Wouldn't have been just to gain a bit of political mileage would it?

Oh, sounds like Mr Kiyosaki has pumped out his next book, has he? What, predicting global doom and gloom? Robert Kiyosaki is very high profile and has a loyal following, but when he speaks it doesn't mean he's right.

Yossarian

How do you see the dismantling of Workchoices? Unions back with full force and the ability to strike at the drop of a hat? What about the influence of people like Shorten and Combet?