Australia faces worse crisis than America

Written by admin on July 30, 2008 – 10:15 am

First the U.S., then the U.K.; Now the International spot light is on Australia :

Gabriel Stein, from Lombard Street Research, said Australia could prove vulnerable once the global commodity cycle turns down. It has racked up a current account deficit of 6.2pc of GDP despite enjoying a coal, wheat, and metals boom, effectively spending its resources bonanza in advance. Household debt has reached 177pc of GDP, almost a world record.

“It is amazing that in the midst of the biggest commodity boom ever seen they have still been unable to get a current account surplus. They have been living beyond their means for 10 years. What worries me is that productivity growth has been very low: they have coasting after their reforms in the 1990s,” he said.

“The easy money went straight into real estate,” said Hans Redeker, currency chief at BNP Paribas.

» Australia faces worse crisis than America – The Daily Telegraph, 29th July 2008.


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Downturn may be ‘the big one’

Written by admin on July 29, 2008 – 6:41 pm

The risk of a Great Depression-style global debt-deflation cycle is one in three, according to an investment bank economist.

“I think that for many Anglo economies the risk of a pronounced deleveraging-deflation cycle is higher now than it has been since the Great Depression,” Mr Minack said in a note to clients.

» Downturn may be ‘the big one’ – The Sydney Morning Herald – 29th July 2008.


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Local property the biggest threat, says ANZ’s CEO

Written by admin on July 29, 2008 – 8:38 am

DOMESTIC commercial property rather than the US sub-prime crisis is emerging as the greatest threat to bank profits.

Clime Asset Management managing director Roger Montgomery predicted tougher times ahead for the banks on a number of fronts. “What I think needs to be understood is that the consumers have only just stopped spending,” he said. “So the pressure on business has only just begun.”


» Local property the biggest threat, says ANZ’s CEO
– The Australian, 29th July 2008.


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Housing costs force Generation Y to live at home longer

Written by admin on July 25, 2008 – 8:40 pm

THE high cost of housing is being blamed for more than half of Generation Y still living at home with their parents, as shown in a new survey.

The proportion of 17-to-32-year-olds living at home hit 50.2 per cent in 2006, the Housing Industry Association survey shows.

» Housing costs force Generation Y to live at home longer – The Courier Mail, 25th July 2008.

» More than half of Generation Y are staying at home – ABS – The Adelaide Advertiser, 25th July 2008.


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UK House prices falling at fastest rate since records began 50 years ago

Written by admin on July 17, 2008 – 5:16 pm

Eariler in May we reported US house prices were falling at the fastest rate since records began. Now it’s the UK’s turn :

House prices are falling at a rate not witnessed since records began in the 1950s, according to the latest report from banking giant Halifax.

Its figures show the price of the average home in Britain has plunged by £17,000 since January.

It begs the questions, how soon before it’s Australia’s turn?

» Number of homes sold falls to lowest rate since records began 30 years ago – The Daily Mail, 15th July 2008.
» Home and unit sales tumble to a nine-year low – Adelaide Now, 17th July 2008.


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Property nearing once-in-100-year slump

Written by admin on July 13, 2008 – 9:02 pm

PLUMMETING property values have prompted warnings Australia is heading for a one-in-a-100-year real estate slump.

New figures from property analyst Residex showed house and unit prices in nearly every city and country centre fell last month. The last time all states fell at the same time was just before the Great Depression.

» Property nearing once-in-100-year slump – news.com.au, 13th July 2008.


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Aus house price fall

Written by admin on July 12, 2008 – 8:37 pm

A new report shows Australian house prices fell in every capital city last month.

It’s the first time it’s happened since the Great Depression, and housing experts say we’d better get used to further falls in the market.

» Aus house price fall – Sky News, 12th July 2008.


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Perth house prices drop $30,000

Written by admin on July 11, 2008 – 1:15 pm

What a difference a couple of weeks can make. On the 17th June, The Perth Sunday Times ran an article titled “Relief ‘within decade” predicting falls of 10 to 15% over a year or two.

The artcle quoted REIWA president Rob Druitt saying

“though Mr Ruthven’s logic was correct, he could not foresee house prices falling to such an extent.

“WA has never experienced an overall market drop by 10 to 15 per cent in such a short time,” he said.

“In the suburbs, yes, but not the whole market.

Today, the WA Business news runs an article with the headline “Perth house prices drop $30,000″.

As yes, you have REIWA president Rob Druitt saying

“Perth has experienced an overall slump of almost $30,000 in the median price since the beginning of this year, and the June quarter shows that this slump is found right across the metropolitan area and also that the regions have gone backwards a little too,”

So there you have it – in just 6 months, Perth has experienced a 6.7% fall across the best part of the whole market.

» Relief within decade – The Sunday Times, 17th June 2008.
» Perth house prices drop $30,000 – WA Business News – 11th July 2008.


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AUS: Full-time jobs shrink by 90,000

Written by admin on July 8, 2008 – 9:33 pm

AUSTRALIA lost almost 90,000 full-time jobs in the June quarter – a worrying sign for families struggling to pay bills, according to pollster Gary Morgan.

» Full-time jobs shrink by 90,000 – The Australian, 8th July 2008.


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Beware hits from bricks and mortar

Written by admin on July 6, 2008 – 9:07 pm

AUSTRALIA’S residential property prices are among the highest in the world.

But most of us still think that prices can’t fall. It’s time to put that fallacy to the knife, according to Intelligent Investor research director Greg Hoffman.

“The US property market meltdown should dispel this myth immediately,” Hoffman says.


» Beware hits from bricks and mortar
– The Australian – 5th July 2008


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AUS : Housing market flooded but few buyers

Written by admin on July 5, 2008 – 9:28 pm

STRESSED home owners and investors are flooding the market with thousands of houses but agents say they can’t find any serious buyers for some properties.

As home mortgage lending in Queensland dives for the second consecutive quarter, the number of houses for sale is up 150 per cent compared with the same time last year.

There were 4750 new listings added this week – 1842 in Brisbane.

» Housing market flooded but few buyers – The Courier Mail, 5th July 2008.


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