Wealth within Australia

Interesting article in "the Australian" today P23

Twenty nine thousand Australian households have over $10m of net wealth
Four hundred and thirty thousand have over $1m of investable assets (this excludes family home)

 

Beano do you have a link

 

Out of 25 million people... let's halve it because of children etc. still not a lot is it?

 

No i was reading the hard copy so no link perhaps someone else can provide a link?

 

When you look at it that way ..you are right it is not much

 

About 5%, its not too bad.

Blacky

 

You would need to check AND stats.. but we have an aging population. Waaay under half for kids.

 

That's a crisis actually there are over 12million households. The inequity is incredible .

The economic collapse of society occurs when you exceed the following. No more than 80 percent of the wealth of the country in 20 percent of the people's hands.

 

And even those rich have very little riches actually. They should be far richer. That explains so much. That means that the vast majority have very little asset value.

 

Which we know is true because Australia has the highest private debt of any country. So unsustainable and so stupid.

 

I struggle a bit with the whole inequity argument in relation to first world countries. Spent a lot of time around 'the poor.' Not all but many of them think nothing of spending way beyond their means on over the top gifts for the kids, tattoos, all sorts of crap to be honest. Victim mentality, inherited or otherwise. No one helps me, no jobs to be had..blah blah. Sorry but I genuinely think there are so many opportunities for the little guy to get head. Yes you may have to make sacrifices, move to a region you don't want to live in, work a job you don't want to. Of course, everyone's starting equity position is different. There will always be rich and poor, do you want to just bleat about it your whole life, or try to move in the direction of the former?

 

I love this quote from the Wall Street movie:
"The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's ********. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now you're not naive enough to think we're living in a democracy, are you buddy? It's the free market".

The irony is that the system hasn't changed at all since the late 1980's it has just continued and actually got worse. The economic theory since the 1980's has been that if you deregulate markets and give widespread tax cuts to the wealthy the benefits trickle down to the domestic markets. The theory assumes that benefits given to the wealthy trickle down to the needy. Emphasis has been shifted in favour of capital, finance, banking, and away from labour. By labour I mean working people in general, wages, the robust economy that allows wages to rise, and spread prosperity more broadly. These changes in regulation and policy transformed corporate culture to this single mission of maximising profit. Over the last 30+ years corporate monopolies have swallowed up small businesses and manufacturing moved to less industrialised countries where labour was cheap, natural resources less tapped, and environmental regulations less strict. So on the workers side you've got a race to the bottom. Yet on the capital side you've got a siphoning to the top. The world has finite resources yet we are living in a world that bases itself upon compound growth. Scary.

 

A few stats from a meeting yesterday with John Peters Director of Economics at the CBA:

• Avg household wealth in Oz: $500k (cash, house, super, equities, car & other assets)
• Unemployment: 5.6% & still heading downwards
• Consecutive Years of Economic growth: 26
• Govt debt vs GDP: 18%
• CPI: <2%
• Avg national housing growth: 7.5%
• Reserve Bank interest rates: 1.5%
• Projected increases of 0.25% Q4 & 2017/18
• Economy was 15% bigger in 2015 than pre-GFC
• Govt spending on infrastructure is increasing (economic stimulus)
• Business confidence still low

Australia is going to hell in a handbasket

Eurozone - interest rates <0%
US debt 80% of GDP
China still growing over 6% pa
Chinese economy is >50% larger than pre-GFC
India growing about the same rate as China
Eurozone, UK & US account for <15% of Australian exports
US house prices well below pre-gfc levels

 

Did John Peters really say that last line?

The <2% CPI is what creates the low business confidence.

 

...and several other things that we're sworn to secrecy over as well as a few interesting conjectures on the US economy under Mr T.

 

Still? It's been years, I thought they had caught back up. Or is it just the San Fran's and NY Cities that are back up and kicking along?

 

A few major cities are doing OK - but not everywhere.



Source

 

This chart confirms what I have been posting.... recovery, and opportunity
The US property market was at peak in 2007, and crashed 70% falls, started rising in 2011/12...now look at today/2016, this is very interesting, we see a total recovery.

What is amazing is the property markets in US today continuing to rise, see this in most States. I think what this crash did was bring foreign buyers on mass into the US market.