Comments on: All Ordinaries Reach 52 Week Low

By: Wall Street Bankers: The World’s Most Privileged Outcasts | Bear Market Investments

Thu, 05 Feb 2009 17:26:04 +0000

[...] All Ordinaries Reach 52 Week Low [...]

By: darrus

darrus — Mon, 07 Jul 2008 23:37:22 +0000

Hey Popeye,
Answer to your riddle. Healthcarians are paid to spot the unwell, hopefully before they splutter and expire on the couch in the waiting room!

By: POPEYE

POPEYE — Sun, 06 Jul 2008 06:36:28 +0000

When they talk about property going up/down/sideways over x amount of time, are they quoting in real-terms, or are they ignoring inflation?

I see the following happening:
1. RBA will puss out of stinging the debt laden public properly because of risk that the market will crash.
2. This will therefore cause inflation.
3. Property will not increase in line with inflation because of the huge external pressures facing "investors", therefore housing will come back towards the mean in real terms only....I assume over a LONG period.

Saw an investor on mainstream television today forecasting a significant drop in house prices over the next year....haha...you never hear bearish comments about realestate in the mainstream...was so refreshing I didnt need to take a shower and wash off all the TV filth.

And riddle me this, why could a "layman" like me in the health industry predict the ASX crash and my goldman sachs cousin and his buddies not?

By: Zaphod

Zaphod — Sun, 06 Jul 2008 04:55:50 +0000

Here, Here Karl!
Totally agree! it's the same with this so called rental crisis. I see the same thing here. Houses that just sit empty for sometimes over 12 months.Bit of a crisis for the landlord no doubt, but come on.It's true that a good house for a good price in a good location will always have some heavy competition for it.But we're lead to believe that all of these immigrants are flooding in with millions of dollars, buying up property.I'm sick of all this crap and it's good to see more people are waking up tp it.

By: Nils

Nils — Sun, 06 Jul 2008 04:36:32 +0000

I remember the last housig recession in Sweden - back in 91. We went from a severe housing shortage to (at least what appeared to be) a glut from the onset of the recession to the bottom a few years later. One year you had to advertise to find a flat to rent (correct - the RENTER advertised)and even then you'd be third in the queue. A few years later empty dwellings were everywhere.

My theory is that people's living habits change during economic contraction. Friends share houses, kids stay home longer and falling prices force landlords to maximise occupancy for cashflow. As housing availability is a marginal phenomonon it doesn't take much to tip the equilibrium from scarcity to glut. I now live in Brisbane and things seem to repeat. I could be wrong.

By: karl

karl — Fri, 04 Jul 2008 02:17:21 +0000

I find it really, really hard to believe there is a shortage of housing in Australia. I walk past several real estate agencies on my way to work and there has never been a sign in the window of any of them saying "Sorry, nothing for sale today.". I would be surprised, and interested to know if any real estate agencies in all of Australia have ever had nothing for sale because everything available was sold. Until that day, there is not a shortage of housing, just a shortage of buyers.

Because of that, I suspect the media and people/agents who cry out about a housing shortage are simply trying to whip up the buyers into buying.