The commodity boom has created a “two track” economy. The mining and commodity boom benefits a small part of the economy whilst simultaneously creating problems for other parts. The mining and energy sector account for less than 10% of the Australian economy.
February 10th, 2012 | The Daily Reckoning | 1 comment | ContinuedReal Estate
Commentary on real estate and the worldwide bubble by your Daily Reckoning editors in Melbourne, Australia. Still haven’t subscribed to the Daily Reckoning? What are you waiting for… sign up here, it’s free!
A chronological listing of articles is below.
Why is Australia So Expensive?
We caught up with an old friend from the United States last night. He was last in Australia in 2001. He couldn’t believe how expensive things in Australia had become. Even taking the massive swing in exchange rates into account, on a one-for-one basis the price difference is huge.
February 10th, 2012 | Greg Canavan | 9 comments | Continued
How to Prolong an Inevitable Free-Market Correction
Markets – free markets – are meant to be unstable. They are meant to crack-up from time to time. And thank God they do. Otherwise, we’d be stuck forever with zombie industries and dead end investments.
February 7th, 2012 | Bill Bonner | 0 comments | Continued
Goldman Sachs is Probably Not a “Buy”
Matt Taibbi — like many other cynical financial market observers — has learned to regard every pronouncement from Goldman Sachs with suspicion. Recent experience has demonstrated that “tame” and “harmless” are attributes that rarely operate within the Goldman Sachs business model.
February 6th, 2012 | Eric J. Fry | 0 comments | Continued
Investment Alternatives in a No Growth Economy
The economy is not nearly as strong as most people think. There is no growth to speak of. And without growth, it doesn’t make sense to pay so much for stocks.
February 3rd, 2012 | Bill Bonner | 0 comments | Continued
Everything Isn’t Fine in the US Economy
The US economy has come back to output levels of ’07. But this feeble rebound not only holds the title of “weakest post-war recovery ever,” it also shows that something else is going on. Most economists have no idea what. So, they just think this “recovery” is unusually slow.
January 31st, 2012 | Bill Bonner | 0 comments | Continued
Tales from the Southern Hemisphere
The Southern Hemisphere is not a bad place to be in the wintertime. That is, when it is wintertime in the Northern Hemisphere. By the time the chilly winds from Baltimore reach the southern tip of Africa they have been warmed by the South Atlantic. Flowers bloom. The sun shines. Gentle breezes glide over the fields and parking lots.
January 24th, 2012 | Bill Bonner | 5 comments | Continued
China – The BRIC About to Smash Through Australia’s Windscreen
The BRICs – Brazil, Russia, India and China – are supposed to be the upcoming economic boomers of our age. In fact, the BRICs theory was our first exposure to the world of economics. But now part of the story is looking a little shaky.
January 21st, 2012 | Nickolai Hubble | 0 comments | Continued
When the US Economy Runs Aground
Captain Schettino will probably never be asked to take command of another cruise ship. But Captain Bernanke and his crew are still at the controls of the US economy. Apparently, they still have no idea where they are…or where they are going.
January 20th, 2012 | Bill Bonner | 0 comments | Continued
Why Low Interest Rates are Bad for the Economy
A year ago, the RBA and the horde of market economists who hang on its every word expected interest rates to be higher by now. Even as late as September 2011 the RBA was sitting on its hands, unsure which way to move.
January 20th, 2012 | Greg Canavan | 4 comments | Continued
U.S. Economy: Jobs Up, Income Down
Recession fears are receding. At least, that’s what it says in the papers. The U.S. economy has been adding new jobs at an average rate of about 130,000 per month. That’s only about what it takes to stay even with increases in the population.
January 11th, 2012 | Bill Bonner | 0 comments | Continued
Investment Hopes, Fears and Preparations for 2012 Investors
“Prepare for the worst; hope for the best,” was always good advice. And here at The Daily Reckoning it is the foundation of our investment approach. We never know what will happen. So, what we want are investments that don’t depend on knowing.
January 9th, 2012 | Bill Bonner | 2 comments | Continued
Central Banks Go Bonkers
This week, a certain joke became a painful reality, with a reshuffle at the European Central Bank.
January 7th, 2012 | The Daily Reckoning | 2 comments | Continued
Avoiding the Market Danger Zones in the Year Ahead
(Ed Note: Bill penned this note as 2011 was drawing to a close). The markets are fairly quiet. The politicians are keeping their mouths closed too. Here at The Daily Reckoning Christmas headquarters we’re drinking eggnog, eating fruitcake and wondering what 2012 will bring. We’ve given up trying to actually look into the future. We don’t seem to have the knack for it.
January 3rd, 2012 | Bill Bonner | 2 comments | Continued
The Daily Reckoning’s Best of 2011
Happy New Year!
Normal Reckonings resume Tuesday, January 3rd. To tide you over, we’re continuing a tradition we started last year. We reflect on some of the more colourful predictions of 2011. What follows is a selection of musings from Dan Denning, Bill Bonner and the DR team.
January 1st, 2012 | Dan Denning | 0 comments | Continued
