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 | ContinuedAll Posts Tagged With: "house prices"
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 | 8 comments | Continued
Looking Down the The Bio-tech Corridor
Our new friend mentioned the I-70 bio-tech corridor from Washington, DC to Gaithersburg and Frederick, Maryland. It is a center of the “bio- tech” industry — very near the source of its funding, regulators, and market, in Bethesda.
December 6th, 2011 | Bill Bonner | 0 comments | Continued
RBA Governor Glenn Stevens Reveals Intention to Raise Interest Rates to Normal Levels
When the man who sets interest rates tells you that you’re rising, it would be wise to at least hear him out. Whether you take him at his word is up to you. But if you’re making financial plans – say, like you’re going to buy a house and are trying to figure out if you can stand a few extra points rise in the interest rate – the man has told you what is going to happen.
March 30th, 2010 | Dan Denning | 48 comments | Continued
Majority of Australians Believe House Prices Will Rise in Next Twelve Months
Now you have to assume a lot of income growth from here for affordability to remain the same with house prices at those levels. Or you’d have to assume much lower interest rates. That would be a stupid assumption, though, given that interest rates are headed up at the moment…
January 25th, 2010 | Dan Denning | 293 comments | Continued
Dollar Rally the Sort of Thing that Will Lead to Correction in Gold Price
House prices were up 6.2% in the third quarter over the same time last year, according to data from the Australian Bureau of Statistics. House prices in the capital cities are surging. Stocks are surging. Gold and oil are surging.
November 17th, 2009 | Dan Denning | 5 comments | Continued
Ireland Going Through Same De-leveraging Process as the US
“House prices here in Ireland are still too high,” judged our man on the scene. Chris is our main man at the family office…
October 23rd, 2009 | Bill Bonner | 3 comments | Continued
Most People Think a Rising Housing Market Makes Them Richer
House prices seem to be stabilizing. In some areas, they are going up. Of course, in some places you can get a house at half the price it sold for two years ago. That lures buyers back into the market.
October 1st, 2009 | Bill Bonner | 11 comments | Continued
Markets Rise While the Economy Sinks
The problem is that the global economy in general, and the US economy in particular, is operating on so much medication that it is difficult to conduct an appropriate examination of the patient at the current time.
September 21st, 2009 | Bill Bonner | 0 comments | Continued
Economists Agreed the Stimulus Was Working and the Recession Was Coming to an End
We don’t know when the recession will end…but we’re dead sure that those 53 economists interviewed by Bloomberg…and those at the Fed too…don’t know either. Few of them seem to have any idea what is really going on.
August 17th, 2009 | Bill Bonner | 2 comments | Continued
A Depression Long and Deep
First, as you know, this is a depression. It will probably be long. And deep. You wouldn’t know it from looking at the stock market or reading the news. The Dow went up another 114 points yesterday. Oil rose to $71. And the dollar – anticipating inflation – fell to $1.44 per euro.
August 5th, 2009 | Bill Bonner | 0 comments | Continued
Building a National Economy Around the Housing Industry
Let’s also assume that the government cannot borrow its way to larger stimulus payments. With lower spending forecast for government, businesses, and households, you begin to wonder if Australia’s economy has a home grown engine, or if it will rely on something else, or someone else beyond the borders.
July 30th, 2009 | Dan Denning | 9 comments | Continued
Equity Premium Will Be Replaced With a Tangible Asset Premium
Geez. Last Friday we made the case that the equity premium in stocks is going to revert to its historic mean. Remember that the equity premium is your willingness to pay more for future corporate earnings today because you believe stocks do better than bonds and cash over time.
July 27th, 2009 | Dan Denning | 2 comments | Continued
House Prices in California and Las Vegas Hit Hard by Wave of Foreclosed Properties
A fellow loses his job; he can’t pay his mortgage. The house goes onto the market and pushes down prices. Prices in California are off 30% year-to-year, with the median house at $267,000. In Las Vegas, the median house is only $135,000…
June 29th, 2009 | Bill Bonner | 3 comments | Continued
Three Kinds of Money in the Marketplace
There’s the smart money that goes with the trend. There’s the dumb money that bets against the trend. And there’s the money that doesn’t know whether it is coming or going.
The trouble is always figuring out which is which.
June 9th, 2009 | Bill Bonner | 0 comments | Continued
