RBA assistant governor Philip Lowe said in a speech in Sydney yesterday that constraints on home building are restricting the supply of homes in Australia. The shortage is one factor keeping prices up. Nothing was said about the lending boom.
March 11th, 2010 | Dan Denning | 43 comments | ContinuedAll Posts Tagged With: "foreign debt"
As a Wealth Survival Strategy the Stock Market is a Death Trap
You should, by our reckoning, own a small portfolio of stocks leveraged to positive Black Swans (low probability but high magnitude events that drive a share price higher…like the discovery of a new ore body or the development of a new drug). These are the sort entrepreneurial ventures that will create new wealth.
March 5th, 2010 | Dan Denning | 25 comments | Continued
China Using Holdings of U.S. Treasury Bonds as Cudgel to Bludgeon United States
Figures in the People’s Liberation Army want the financiers to sell U.S. bonds as a way of punishing Washington for selling arms to Taiwan. Mind you this might not seem like such a good idea if the bond selling triggers a run on the dollar and swift devaluation in China’s forex reserves. But maybe China’s arsenal of U.S. bonds is a like a pile of bullets – they’re no good unless you fire them.
February 11th, 2010 | Dan Denning | 26 comments | Continued
CBA and Their Bad Debt Problem
It rode the FHOG to higher loan values and volumes and market share. If those borrowers struggle with higher interest rates or – horror of horrors – Aussie house prices grow less fast (or even fall) – we’d expect to see the bad debt problem again affect earnings growth…
February 10th, 2010 | Dan Denning | 119 comments | Continued
