- APerry wrote:The graph does indicate the reality of what is going on over there in terms of inflation.
That can't be right. Ben said it was all under control and we all believe Ben…. don't we?
Alrighty we are in the Opinionated Forum so we can have some fun.
OK time to get back to basics.
Governments get voted back in by majority vote. Let's explore what that means.
Can't take benefits away. Way too many voters enjoying benefits.
Can't make housing so unaffordable that everyone lives on the street. Then we'd have to pay even more benefits.
Can't afford to provide rental accommodation for all those that need it so we need private investors for that. All the mum and dad investors.
Can't make investing in property make no sense because then there will be no rental properties for those that are not able to buy or do not wish to buy.
If everyone is homeless then you don't get voted back into government because people don't like to be homeless. They like to have a microwave and an x-box thankyou very much. Come to think of it, I cannot see how you can even be on the Electoral Roll register if you have no address!
In summary, it really is not in the Government's best interest to mess up the housing sector
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Freckle wrote:vagirl2012 wrote:In uncertain times like this I'd say property all the way…The property investor sector could be decimated given that the vast majority are leveraged to the gills. A 20% move in property could push 60% or more into negative equity.
A property correction accompanied by a AU$ fall would see a massive rise in inflation. RBA would have little option but to raise interest rates.
Double wammy..
Hey Freckle, I don't quite get it. A fall in the AUD would increase import prices and so be inflationary (whammy), but a drop in the property market is deflationary. A whammy for sure but not inflationary. Am I missing something?
Fun, i was drawn by the heading 'Anyone need a lifeboat'?
I though freckle was setting up a business selling them as a mode of transport in Brisbane as the roads are covered in water most days and cars are darn useless.
Had a discussion with my neighbour lunchtime who had bought a new boat.
I asked him was it to get into the City quicker than driving thru the flooded tunnels.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Nathopoly wrote:Hey Freckle, I don't quite get it. A fall in the AUD would increase import prices and so be inflationary (whammy), but a drop in the property market is deflationary. A whammy for sure but not inflationary. Am I missing something?
Inflation hits your operational budget (cash flow). Deflation hits your asset values (equity).
Ok….
Google is high, so you sell when your stock is high. First thing I learned when i got into trades. Google are tech genius's, they can adjust and come back strong. Computer driving cars, gig a second fiber, google glasses, Android platform, street view.
The economy will be flat to slow till the housing market comes back. It's what caused this mess.
kylermrice wrote:Ok….Google is high, so you sell when your stock is high. First thing I learned when i got into trades. Google are tech genius's, they can adjust and come back strong. Computer driving cars, gig a second fiber, google glasses, Android platform, street view.
We're tech'd out. We're entering a phase of tech consumer exhaustion. Advances aren't big enough now to really capture our imagination like they did in the past.
Quote:The economy will be flat to slow till the housing market comes back. It's what caused this mess.Housing was a casualty not a cause. New home construction was driven by synthetic demand (credit growth) over the last 2 decades. Credit capacity (by consumers) is a factor of rising income and wealth. Incomes didn't rise but wealth was artificially driven by a property boom fuelled by cheap easy credit. Once the housing boom collapsed it took trillions off the wealth capacity of the average citizen.
You won't get organic economic growth until real wages and income can rise but with a largely low income population and continued migration of wealth to the top 1% that remains an illusive goal.
And on and on she goes. Where she stops nobody knows…..
Fed Injects Record $100 Billion Cash Into Foreign Banks Operating In The US In Past Week
$100 billion in one week!!!!! Holy moley
Click graphic for larger view
It's alright folks.. nothing see here move along…
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