Stocks to crash up to 80% and real estate up to 60%.

Both.

 

Are you a financial advisor?

Today, the tightening remained at NOT beginning status ref: RBA.

 

Simom_s acts a really lot like a certain former member who had to walk quite a way up kosiosko. Just saying......

 

The banks have been tightening credit for the past three years, so we dont have to worry about rapid credit growth. Building activity has decreased. And?

 

Is it just me or what, this statement just doesn't ring true. (We are talking about Sydney, right? not Perth or some remote mining town)

Everywhere I go, just can't help noticing how bad the traffic is, how big the crowd is, how difficult to find parking, how difficult to get a seat on the bus/train etc. The exact opposite of a declining population.

Income? has anyone taken a pay cut in the past 5 years?

 

Yeah that got the better of me 4 years ago. going to my fav. Weekend hangouts like the fish markets or bondi beach had become a weekend traffic nightmare even back then. The M4 and parramatta road were taking more and more of my life... [I had given up on public trains and buses a few years prior.]

Brisbane's not too bad at the moment

 

Can you pm me your list of stocks please. When we make the bucks I will buy the bottle of Dom and we can drink it together watching the sunset.

 

The weakness in your argument is that you assume the people holding the savings are the same people holding the debt.

In reality it's different people. The deposits and savings are likely the sum of all deposits and savings by people who have paid off their houses or those who have not bought a house. While the debt belongs to those who are heavily mortgaged. What idiot would hold cash instead of paying down their loans?

So net debt is meaningless.

What I am sure of however is this:

A $550k mortgage is hell to pay off at 7% by a working couple with kids and easy to pay at 3.6% and interest rates are going up not because the country is doing well economically but because Australian banks source their finances from overseas and if Australian interest rates are lower than Americas it means a lot of money seeking a safe harbor will leave. So Australia will sacrifice its own dumb sheep to ensure that Aussie dollar does drop and interest rates can go higher. I expect house prices to go up still as a result of foreign buyers increasing resulting in the youth of Australia becoming renters for life. Eventually the baby boomers will sell their properties to foreigners and then the government will crash everything in order to avoid the young from either smashing canberra or putting socialists into power or worse.

 

All these arguments or similar have been made many times over the years, decades all over the world ad nauseam. And yet, still many people are able to select markets they understand using strategies they are skilled at and continue to build wealth, some slowly, others at a more rapid pace. When will some people learn that the most significant determining factor affecting an individual's (a large group can do poorly and yet an individual can do well in the same time period) wealth creation is much less to do with any external forces but rather the investor themselves.

 

Why would they government hurt those that are there major source of lobbyists dollars? We need just enough middle class and aspirationals and the major parties are safe as houses.

Not to say that there isn't room for a third party at the moment. I believe if a party came along with its main purpose being that of slashing politicians entitlements and capping pay increases whilst otherwise maintaining the status quo in other policy making that party would cause a major shake up.