Heading for a crash

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Perrorist
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Re: Heading for a crash

Post by Perrorist » 01 Jun 2017, 18:09

But mortgagors weren't up to their eyeballs in debt, Buck, unlike now.

Anyway, here's someone who agrees with you: http://www.abc.net.au/news/2017-06-01/h ... ic/8578544

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Buck_naked
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Re: Heading for a crash

Post by Buck_naked » 08 Jun 2017, 11:25

26 years of non stop growth. world record holders.
most of it is from population growth.
wages share of GDP is the lowest since 1964.
supply and demand, 7 billion people on the planet and they all want a job.

Image

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grandduke
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Re: Heading for a crash

Post by grandduke » 08 Jun 2017, 11:30

And an equal share of the loot (money) and until inequality
is brought to balance there will be strife =D= =D= \:D/ \:D/
“You see things; and you say, ‘Why?’ But I dream things that never were; and I say, ‘Why not?’”
George Bernard Shaw

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Perrorist
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Re: Heading for a crash

Post by Perrorist » 08 Jun 2017, 13:19

When you read how they calculate GDP, you see how misleading it is for measuring productivity. For instance, rising house prices are factored in, yet they signify nothing other than decline in affordability.

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grandduke
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Re: Heading for a crash

Post by grandduke » 08 Jun 2017, 15:02

Yet again it brings me to the question, why are we
ruled by lawyers the most devious shower of bastards
one can imagine and referred to in scripture as scribes.
“You see things; and you say, ‘Why?’ But I dream things that never were; and I say, ‘Why not?’”
George Bernard Shaw

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Perrorist
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Re: Heading for a crash

Post by Perrorist » 10 Jun 2017, 08:37

More bad news: http://www.abc.net.au/news/2017-06-09/s ... ss/8598890

The huge rise in profits is mostly going offshore. So much for trickle down.

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grandduke
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Re: Heading for a crash

Post by grandduke » 10 Jun 2017, 11:37

I am know working on an age- old principle, believe nothing
of what we hear, and only half of what we see.

Then again expect nothing and we will not be disappointed. :character-oldtimer: in this
age of lies and misinformation.
“You see things; and you say, ‘Why?’ But I dream things that never were; and I say, ‘Why not?’”
George Bernard Shaw

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Perrorist
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Re: Heading for a crash

Post by Perrorist » 20 Jun 2017, 17:29

In a further episode of my Chicken Little saga, Moody's has just downgraded Aussie banks from AAA to AA because of their exposure to risky home loans.
Moody’s blamed its decision on the banks’ exposure to an economic downturn linked to the property market.

The agency said it feared heavily indebted households – who’ve been forced to borrow large amounts because of soaring prices – will stop spending if there is another economic shock, such as higher unemployment or higher interest rates.

“Any increase in household sector stress would have the potential to weaken consumer confidence and consumption, creating negative second and third order impacts on overall economic activity and, accordingly, bank balance sheets,” Moody’s said in a statement.

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godfather
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Re: Heading for a crash

Post by godfather » 20 Jun 2017, 20:04

I am actually surprised that Moody's took so long to react to the housing bubble.
There are many young couples and even some investors who now regret having
taken such large mortgages or loans. There was no way that any economy could
sustain growth rates in the housing market forever without seeing long term stability in the job market.

:character-oldtimer: :character-oldtimer: :character-oldtimer:
The devil whispered, “You cannot withstand the storm“ and I replied: “I am the storm!”.....Unknown.

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Perrorist
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Re: Heading for a crash

Post by Perrorist » 21 Jun 2017, 06:03

As I heard on TV last night, the bigger the bubble, the bigger the crash.

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kfchugo
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Re: Heading for a crash

Post by kfchugo » 21 Jun 2017, 07:25

Despite the constant forecasts and predictions, we have not had a real "crash" since 1929. I am more of a proponent for "soft landings" when it comes to economic downturns. Still, we have Putin in the Kremlin, Trump in the White House and numerous nut cases in power around the world, so I suppose anything is possible.

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Buck_naked
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Re: Heading for a crash

Post by Buck_naked » 21 Jun 2017, 08:48

Soft landing for real estate now predicted.
the world ain't gonna end, resume normal programming...
until the next terrorist attack. :lol: :lol: :lol:
Put your walking boots on Perry, and start the trek to Mt Kossie to join Steve Keen. :lol: :lol: :lol: :lol:

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Perrorist
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Re: Heading for a crash

Post by Perrorist » 21 Jun 2017, 11:18

I didn't agree with Keen at the time because the level of private debt was low and there was plenty of demand. There's plenty of demand now, but a lower price levels. Anyway, my main concern isn't Australia but globally. I still see dark clouds on the horizon. If not later this year, then next.

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godfather
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Re: Heading for a crash

Post by godfather » 22 Jun 2017, 00:07

There will be 'dark clouds' globally for some consumers especially after Brexit.
However, we should really be concerned about Australia with little or hardly any manufacturing at all.
The sheep's back has lost its shine and resources are far too dependent on exports.

We sold most of our assets to foreigners and with 20/20 hindsight we received far too little in return.

Maybe we should concentrate on what we are good at; immigrant bashing!

:sad: :sad: :sad:
The devil whispered, “You cannot withstand the storm“ and I replied: “I am the storm!”.....Unknown.

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Perrorist
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Re: Heading for a crash

Post by Perrorist » 22 Jun 2017, 06:02

Maybe we should concentrate on what we are good at; immigrant bashing!
We're good, but Trump has exceeded even our efforts.

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