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: "housing market"
Welcome to the House of Debt
Aussies have bid up the price of houses to absurd levels using debt. The debt that the mainstream will tell you doesn’t matter. But it does.
December 10th, 2011 | Nickolai Hubble | 4 comments | Continued
Geithner Says it Would Take a “Long Time” to Repair the Housing Market
Some wait for the housing market to ‘recover.’ Some may imagine that they will once again see profits from their houses. Others just hold on…
March 29th, 2010 | Bill Bonner | 1 comment | Continued
Inventory of Unsold Houses Will Probably Continue to Hold Prices Down
At $170,000, reports Floyd Norris in the NYT, the housing market corrected all the way back to 1997, adjusted for inflation. Twelve years’ worth of real pricing gains have been wiped out.
February 2nd, 2010 | Bill Bonner | 0 comments | Continued
What Happens to Market and Economy When Boomers Begin Consuming their Retirement Incomes?
The burden of today’s Daily Reckoning is to figure out what’s going to happen when Australia’s millions of baby boomers retire. From the looks of it, the stock market will crash, government finances will be stressed, and the economy is going to slow. None of that sounds very promising.
February 2nd, 2010 | Dan Denning | 27 comments | Continued
Capital One Financial Not Convinced Economy is On the Mend
Yesterday afternoon, at the Goldman Sachs US Financial Services Conference in New York City, Capital One’s Chairman and CEO, Richard D. Fairbank, wowed the crowd with a dizzying collection of grim assessments and forecasts.
December 11th, 2009 | Eric J. Fry | 0 comments | Continued
Mortgage Crisis: Shark With an Appetite
It shows you that we are past the viscous subprime crisis, when that shark chewed through the balance sheets of a number of banks and financial institutions, in some cases devouring them whole.
November 6th, 2009 | Chris Mayer | 10 comments | Continued
Market Feels So Weak Because it IS So Weak
The stock market rallied throughout most of yesterday’s trading session, then stumbled into the close. This pattern has become unnervingly familiar of late.
November 6th, 2009 | Eric J. Fry | 1 comment | 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
Total Meltdown of the Aussie Housing Market
Next Wednesday will see the release of the national accounts for June. Those figures will probably show the economy being less bad than previously expected. That might lead to the end of the “emergency setting” of the RBA cash rate at 3%, which will precipitate the decline and fall…
August 28th, 2009 | Dan Denning | 93 comments | Continued
Austerity is Missing from the Financial Bailout Debate
Within the billions of sentences about the financial bailout there is one word notably absent, austerity. All talk is of payments, supports, subsidies, incurring more debt, stimulus packages.
July 3rd, 2009 | Juan Enriquez | 1 comment | 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
The Rule of 72 vs. Housing
Australian house prices will go up an average of 20% over the next three years. We’re not making that up…
June 16th, 2009 | Dan Denning | 36 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
Binge Housing, Australia-style
There’s more news on the housing front to report and argue about. Remember, all we’re saying is that rising Australian housing prices had a lot more to do with the credit boom than any critical shortage of housing stock. This alleged shortage is often alluded to but never proven, so far as we can see. If someone does have proof, we’re happy to publish it. But if there were really a shortage of housing units, wouldn’t there be a lot more people living in the streets or in their cars?
March 25th, 2009 | Dan Denning | 15 comments | Continued
