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Australian Economy

Sydney property priced beyond 75% of families.

The Sunday Telegraph has printed an article today suggesting Sydney property is now priced out of reach of 75% of families. With the medium house price in Sydney now $521,100, they indicate when a 10% deposit has been put down, you need an annual household income of $145,412. From recent

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Australian Economy

Peak Oil, now ‘Peak Debt’

Don’t worry about peak oil, now a new house price surge is predicted which in the words of property analyst, Michael McNamara, will bring “Peak Debt”, when mortgage repayments outstrip disposable income. Australian Property Monitors predicts that in the next decade many in the mortgage belt of “average Australia” will

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Australian Economy

Australian’s hit the $1 trillion debt figure

The ABS released figures on Friday showing Australians in May had $1.001 trillion in debt. This is up from $886 billion in May last year. Prime Minister John Howard is not concerned. He said, “I don’t think there is any particular magic in a particular figure, but when you talk

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Australian Economy

Rising debt keeps Australian dream out of reach

THE DREAM of debt-free home ownership is slipping further from reach for the typical Australian family, as rising mortgages outpace growth in household earnings. Census figures were released today giving a snapshot of 2006 compared to 1996. In 2006, 33% of homes were fully owned. Ten years prior, 41% of

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Australian Economy

Great Depression II looming

The Bank for International Settlements has noted the risk of a 1930s-style economic slump has been heightened by “euphoric” markets tapping cheap global credit. The bank said the conditions which led up to the Great Depression of the 1930s and the Asian crises in the 1990s were reflected in the

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Australian Economy

Australians now floating in a record sea of debt

The Age today is reporting new figures from the Reserve Bank of Australia showing income spent to service debt has risen to 11.9 percent in March. In contrast, three months earlier 11.6% of income was spent to service debt. Credit card debt is also at record highs of $39.6 billion.

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Australian Economy

Casey Serin is in Sydney – Australia.

In May we mentioned the story of Casey Serin who tried to make it rich in the Sacramento property market by ‘flipping’, only to come unstuck with the downturn of the US property market. He now tells his story on his blog at http://iamfacingforeclosure.com. The USA today brands Serin “poster

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Australian Economy

Economy follows property by 12 to 24 months.

The Advertiser today reports on a 34 year study showing that the rise and fall of the economy follows the housing market by 12 to 24 months. National Australia Bank chief economist Alan Oster said this has a wide economic impact, as people decide to either spend more or spend

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Australian Economy

Super raided to pay off debt

Figures from Fairfax Newspapers indicate the amount of money Australian’s have withdrawn from Super to pay off debts have quadrupled in the past five years. Applications can be made to access superannuation in cases of severe hardship, such as to prevent foreclosure on your home. In 2001, there was 13,871

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Australian Economy

ABN Amro fears world housing crash

The UK daily mail reports Investment Bank ABN Amro has warned of housing slump on a global scale due to soaring borrowing costs. Families have taken on ‘unsustainably large’ mortgages, leaving them vulnerable to the sharp increases in bond yields and official interest rates seen in recent weeks, wrote economist

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Australian Economy

Climate Change vs a Garrett Recession

As we get drawn closer to a federal election, the effects of Climate Change and the cost to the economy gets raised more and more frequently. Today Howard is scare mongering the voting public with the possible effects a 20% cut in emissions would have on the economy. “A 20

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Australian Economy

John Howard’s white elephant

There is an interesting article in today’s AGE newspaper which talks about some of the issues preached here at whocrashedtheeconomy.com. JOHN HOWARD may claim to have no rabbit this election — or even a hat to pull one out of — but he does have an elephant. . . .

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Australian Economy

What Rental Crisis?

Today’s Sunday Mail in Adelaide has an article titled What Rental Crisis, Some properties on the market up to five weeks. ADELAIDE’s rental crisis is over, according to real estate agents. Rental properties which earlier this year were being snapped up before being advertised are now are more than a

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Australian Economy

Bad debt blowout drags on GE Capital Finance Australasia

Just last week, Federal Treasurer Peter Costello told Australian’s not to worry about the subprime issues in the U.S. as the rate of defaults here in Australia is much less than in the U.S. Yesterday, GE lodged accounts with ASIC showing Loan impairment losses for GE Capital Finance Australasia jumped

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Australian Economy

The drought a source of job loses

Immediately when Australian’s think about the drought, they think about the farmers doing it tough or possibly the local lawn mowing business hitting the wall. But a far bigger problem is emerging. The lack of water is causing havoc with our power generators who uses this precious commodity for cooling

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Australian Economy

Copper has a PhD in economics

Some say Copper has a PhD in economics. Because Copper is used in everything from electrical wiring to water pipes, it is seen as a good measure of the economy. If demand for Copper falls, then it’s believed the economy is slowing. On Tuesday, Treasurer Peter Costello had spruiked the

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Australian Economy

Crack out the Champaign – Australian Consumer Confidence at 32 Year High

Crack out the Champaign, consumer confidence is at 32 year highs. Don’t worry, I can afford Champaign – I’ve just put it on my 2nd credit card – but, I’m confident I can pay it off maybe next year. The Westpac/Melbourne Institute index of consumer sentiment rose to 123.9, up

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Australian Economy

Mr Costello : Don’t worry about subprime, everything will be all right – or will it?

On Macquarie Regional Radio today, Costello was playing down the effects on the subprime mortgage crisis in Australia. Costello said he would continue to closely monitor developments in the US, but the Australian situation was “different.” Data from the Reserve Bank of Australia and the US Federal Reserve would indicate