NEW YORK (CNNMoney.com) — Employers made their deepest cut in staffing in almost five years in February, the Labor Department reported Friday. There was a net loss of 63,000 jobs, which is the biggest decline since March 2003 and weaker than the revised 22,000 jobs lost in January. Economists had …
AUSTRALIA’S financial institutions have lent billions of dollars to home buyers who were not subject to basic credit checks and had a history of defaults, putting them in the “sub-prime” category that continues to terrorise world financial markets.The revelation, contained in research conducted by Dun & Bradstreet exclusively for The …
The Australian and US economies are not chalk and cheese. They are both suffering the same inflation spike, the same fallout from the credit crunch, the same low levels of unemployment, and while the preliminary figure for US first quarter GDP growth is 0.6%, Australia’s is 0.8%. (The 2nd graph …
HOMEOWNERS in Sydney’s outer suburbs have been losing as much as $450 a week every week since early 2004 on the value of their properties as the real story of mortgage belt misery begins to emerge. Since the peak of the boom in early 2004, Sydney’s southern suburbs has dipped …
This means the Australian economy is heading for a very sharp slowdown next year, which might seem a big call with unemployment at a 33 year low of 4.1 per cent . . . . » Something’s about to snap (Alan Kohler) – Business Spectator, 14th February 2008.
The Age asks Steve Keen about house prices : It has to fall at least as far as the US market will, and probably a lot more. Some conservative pundits think US prices need to fall another 25 per cent to restore pre-bubble valuations, and they’ve already fallen 8%. That …
Long time readers of whocrashedtheeconomy.com will remember a post back on the 28th of April last year about the Herengracht Real Location Value Index created by Piet Eichholtz dating back 350 years. It tracked house prices on Amsterdam’s Herengracht canal and shows over the 350 years when corrected for inflation …
From U.S. recession to Global recession. . . The U.S. economy may already be in recession; other countries might not be far behind. Japan, Britain, Spain and Singapore, which together represent about 12 percent of the world economy, are vulnerable as fallout from the U.S. worsens their economic weakness. Even …
The median house price in Australia is now 50 per cent higher than the median price in the United States. This is a huge disparity between the cost of housing in Australia and the US, and is not matched by a difference in incomes. » The price of fish – …
First it was subprime, then it was the home equity crisis. Today it is margin loans. In a day when the Australian Stock Market slumped 7.3%, making it the biggest fall in 28 years, debt was again playing its role. With double digit returns as long as you could remember, …
THE first real hint that something was wrong came in February last year. People started using the word “subprime” and talking about defaults in the US mortgage market. …. The long-proposed theory of ‘decoupling’ is also breaking down, and market watchers are less convinced the Australian economy can withstand a …
A leading economic analyst says Australia’s strong resources sector could suffer if the United States economy slides into recession. Craig James from Commonwealth Securities says the slowdown in the United States will have a follow-on effect for Australian shares, particularly the resources sector. “If the US economy slows and there’s …
“There is a clear and present danger of the world economy coming to a near standstill,” the UN’s Department of Economic and Social Affairs said in an analysis released today in New York. “The domino effect of a U.S. recession would be to knock down export growth from China, Europe …
There has been this misconception that as our population gets older, most will own their house outright and hence more will be immune from the credit crunch gripping the world. In today’s AFR they published this interesting graph : It would seem while more and more of Australia’s population, aka …
CONSUMERS who default on their post-Christmas credit-card bills could swiftly be declared bankrupt and have their homes auctioned to meet their debts as the banking sector tightens the screws. » Debtors face loss of home – Sydney Morning Herald, December 30th 2007.
The rising economies of Asia are too small and deformed to rescue world growth as America, Britain, Australia, and Club Med face their day of debt reckoning. China may make matters worse, not better. The seven pillars of global demand over the last year – measured by current account deficits …
AUSTRALIAN households are in good financial shape and not facing huge risks, despite debt levels reaching record highs, the central bank says. Speaking today at the opening of the 20th Australasian Finance and Banking Conference in Sydney, Mr Battellino conceded that household debt, as a proportion of total debt, had …
A new openness at the Reserve Bank has revealed a board increasingly worried about the chaos in world credit markets and the outlook for the world economy. “It’s very clear from the statement this morning that the bank is a little bit more concerned about global credit conditions and the …
The effect of the US housing crisis on Australia is still unclear and it will all depend on how deeply America and Europe are hit, a leading Australian businessman says. » US housing crisis on Australia ‘unclear’ – The Age, 3rd December 2007.
NEW YORK (MarketWatch) — Economies in Central and Eastern Europe continued to grow at a robust pace in the third quarter, but rising inflation, the global credit crunch and cooling property markets will likely lead to a slowdown in the region next year. » Emerging European economies post robust growth; …
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