Comments on: Reserve Bank’s Financial Stability Review Shows Bear Market in Credit http://www.dailyreckoning.com.au/financial-stability-review-3785/2008/09/26/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Coffee Addict http://www.dailyreckoning.com.au/financial-stability-review-3785/2008/09/26/comment-page-1/#comment-43527 Coffee Addict Mon, 29 Sep 2008 07:11:36 +0000 http://www.dailyreckoning.com.au/?p=3853#comment-43527 Lack of business credit equates to the certainty of a very major recession. I don't know that I understand the chart. What does "six month ended annualised percentage change" mean? Resource revenues, existing credit arrangements and corrupt local government practices (restricting supply) are temporarily propping up Aussie house values. A long term credit squeeze will make a 30% (or more) fall in Aussie house values inevitable. Prices have to drop to what is affordable. At the moment, new landlords can't generally get a reasonable return on investment (based on what tenants can afford to pay). Lack of business credit equates to the certainty of a very major recession.

I don't know that I understand the chart. What does "six month ended annualised percentage change" mean?

Resource revenues, existing credit arrangements and corrupt local government practices (restricting supply) are temporarily propping up Aussie house values. A long term credit squeeze will make a 30% (or more) fall in Aussie house values inevitable. Prices have to drop to what is affordable. At the moment, new landlords can't generally get a reasonable return on investment (based on what tenants can afford to pay).

]]> By: Fast Ben http://www.dailyreckoning.com.au/financial-stability-review-3785/2008/09/26/comment-page-1/#comment-43386 Fast Ben Sun, 28 Sep 2008 09:59:05 +0000 http://www.dailyreckoning.com.au/?p=3853#comment-43386 Subprime is contained. The USA economy is sound.It's a Goldilocks economy. Budget deficits don't matter. Bail outs are a moral hazard. Australia is decoupled from the USA. House prices never go down. Subprime is contained. The USA economy is sound.It's a Goldilocks economy. Budget deficits don't matter. Bail outs are a moral hazard. Australia is decoupled from the USA. House prices never go down.

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