False Prosperity

Very interesting times......

False prosperity | Opinion

 

Why based on that article?
Pretty factless, opinionated article IMO

 

Knowing my own portfolio, I couldn't care what anyone wants to call it; false, real, easy money, lucky money, government aided - whatever . I couldn't care less.

I'm realising profits, compounding gains in high demand areas and enjoying profits from commercial ventures while reinvesting some profits. All on low levels of debt.

Most articles I've glanced over the years with sensationalist headlines, new phrases touted by brilliant economists and doomsday rhetoric has mostly been noise. Nothing more.

 

If this is FALSE prosperity, I can’t wait for it to become REAL.

 

For now its Just about printing money

I reckon we may see further tightening of finance. Somethings gotta give

Greed and fomo a heady mix

RBA to pump $100bn into Australia's economy by extending quantitative easing

 

Enjoy the ride, I am

 

Fake news, gods, prophets, currency and now prosperity. I can live in a false world. Just need to put my beer down and loosen my belt, that was a big lunch. Gee that was a huge burp, sorry ma’am lol.

 

It was an opinon piece. Tick.

 

Nah i get it. My networth is up but my cashflow (rent and dividends) is down. What's real and fake? Cashflow seems more real to me, personally. But for people with nothing, the escaping rising capital values (of all asset classes) is quite real to them.

 

Factless. Tick.

 

They get the best of both worlds - no cashflow & no capital growth.

 

So rents gone south?? Melb and Syd taking a hit here

 

The economy has been weird since the GFC.

I'm not an economist, but it feels as though central banks were desperate to avoid a depression after 2008 and inflated everything. Whilst low interest rates have boosted asset prices, in particular property, but the rest of the economy feels slow.

There was talk some years ago that Iceland was the model coming out of the GFC. It allowed its banks to fail, arrested executives, and its property market and currency collapsed. A few years later it was growing stronger. Much of the rest of the world skipped the Schumpeterian creative destruction part of the cycle, and has languished ever since.

Of course, we didn't experience the counterfactual. How bad would things have got if the banking sector was allowed to implode?

 

Wonder whether we will see interest rate hikes???


RBA makes interest rate call amid house price boom

 

They don't forsee a hike until 2024 according to the RBA minutes.

 

Some banks have already increased rates

 

Sorry I should have been clearer. They don't foresee a hike in the cash rate until 2024.

 

yes exactly

my logan rents have remained resilient, but Sydney got hit hard

 

I remember when I was in high school, Steve Keen and others were bleating from the rooftops about how overvalued Australian property was and that a crash was imminent.

The crash never happened but the bleating never stopped. Look on Reddit Ausfinance or Whirlpool, the salt from entitled inner city types is hilarious.

 

Too many losses on a one way ticket to nowhere.