But despite that warning, and despite debt far in excess of their incomes, Aussies are STILL spending money like it’s going out of fashion.
November 11th, 2009 | Kris Sayce | 3 comments | ContinuedAll Posts Tagged With: "household debt"
More Money in Cash Right Now Than Equity in U.S. Companies
Now, there is a very good reason investors are reducing their allocation to stocks. As we’ve said before, we think the equity premium – what people are willing to pay for stocks – is regressing to the mean. It was so high for so long because corporate cash flows in the second half of the last century benefitted so much from low interest rates and globalisation.
November 6th, 2009 | Dan Denning | 15 comments | Continued
Feds See Every Emergency as an Opportunity
So far, the feds are the only real winners from any of these crises. Federal outlays, as a percentage of GDP have shot up from less than 20% of GDP in 2000 to more than 26% in 2009.
October 28th, 2009 | Bill Bonner | 0 comments | Continued
AUD Price of Gold a Measure of Gold’s Strength Against Other Currencies
Ah. So for gold to move in Aussie dollar terms there has to be more than just a big bear market in the USD. Demand for gold has to rise globally.
October 9th, 2009 | Dan Denning | 2 comments | Continued
Biggest Problem With US Economy is Too Much Debt
Debt is ubiquitous across US society. Debt permeates the culture. Practically the whole nation has bitten off more than it can chew.
September 2nd, 2009 | Byron King | 0 comments | Continued
Household Debt Represents Spending Taken From the Future
But you can’t take an infinite amount from future earnings. You reach a point when the future can’t handle it. As more and more future earnings are absorbed by past consumption, pretty soon there’s not enough left to live on. At some point, so much of earnings are devoted to paying the interest…
August 11th, 2009 | Bill Bonner | 3 comments | Continued
Dr Gono or: How I Learned to Stop Worrying and Love the Inflation
The world’s financial authorities have a duty to maintain the integrity of the financial system…which means, maintaining the value of the currency. Those that lived through the ’70s have a horror of inflation. They feel they must fight against it…protect against it…and keep an eye out for it. Yet, in front of them is the worst financial crisis since the Great Depression…
January 30th, 2009 | Bill Bonner | 2 comments | Continued
Aussie Housing Market Actually Leads the U.S. by Three Years
There as an interesting contrast of positions on the state of the Australian housing market over the last few days. First, RBA Deputy Governor Ric Battellino gave a speech in Sydney earlier this week in which he gave three reasons why the Australian housing market is different than the U.S. market. Don’t worry about a crash here, he seemed to be saying. Battellino says the Aussie housing market…
October 31st, 2008 | Dan Denning | 17 comments | Continued