Economic Armageddon, ten myths

Step 9, embrace spirituality.

Jesus will pay the bills.

 

The article has generally reasonable advice and I am already doing most of it. I still question this part though

"Australia today is experiencing the largest household debt bubble in our nation’s history"

 

Could be the other kind of spirituality where a spiritualist can see the future.

Years ago my mate worked as a town planner for a local council. A spiritualist lodged a development application for a home based business. She kept ringing up to see if the application had been approved. Every time, he just wanted to say "well, has it?"

lol

 

You watch, fast forward 5 years and there will be no 70% nationwide disaster. I'm willing to bet Grandma Tu Tu's estate on it.

Never did like her much though.

 

Step 11. Consider becoming a hermit.

 

BOOM TOWNS: Australian property and the lessons from the Irish experience

An older article, but there is a great kicker at the end if you can get to it.

 

"On the facts available, there is no indication Australia is at risk of going through anything like what happened to Ireland. But there’s no harm in understanding the lessons about debt buildup, speculating, and the importance of risk levels in banking loans that it offers."
Read more at BOOM TOWNS: Australian property and the lessons from the Irish experience

But, but, but... where's my property crash?

 

Points to you-you found the kicker

 

One wonders why the author even wrote the article-he built it all up and then said 'nah, chill'.

 

Because. It's in the journalist's job description.

 

I think the article is a good summary of the risks. You would have to be reasonably ignorant to ignore the risks completely. That said, it is equally ignorant to claim the Aus property market will collapse because the Irish property market collapsed.

To compare Aus and Ireland you would have to quantify the extent of overbuilding in Ireland and also locations where the overbuilding occurred. My limited understanding was the scale of overbuilding was almost unimaginable but much of it was in locations with little or no demand. Is this happening in Australia to the same extent? Not really, from my understanding.

That said, the apartment markets in Brisbane, Sydney, Melbourne and Perth have been subject to many warnings from banks and market analysts. I some parallels there with the Irish property collapse

 

@Herbert @Foxdan

ABC
Bank bailouts: it's now taxpayers who need protection

But the $120 billion taxpayer bailout of Australia's banks during the crisis - that's the amount they borrowed using the taxpayer guarantee - changed all that. It set the bailout provisions in stone. Depositors were protected at zero cost to the banks. More significantly, the guarantees on offshore debt shifted all the risk from bank shareholders to taxpayers.