National Australia Bank economists predicted growth would drop to 1.25 per cent by the middle of next year, with an interest rate cut to 4.5 per cent and unemployment at about 6 per cent by the end of the year, meaning the loss of 200,000 jobs, Fairfax newspapers report today. …
The weekend emergency briefing about the actual state of the economy must have come as quite a shock to Prime Minister Kevin Rudd and the Government. Just as big was the shock to see both the Government and Opposition united in what ever decisive action was needed to safe guard …
The Perth medium house price is now 10 percent lower at $426,000, down from $472,000 in December, the Real Estate Institute of Western Australia (REIWA) reported today. With falls of this magnitude, the increased capital contribution from the FHOG announced by the government will disappear in a month and a …
"Golden Opportunity" : The increased FHOG. Among the backdrop of a global “systemic meltdown” caused by irresponsible lending and fueling the biggest housing bubble built on spiraling household debt, the Rudd Government has today announced a new $10.4 billion economic stimulus plan. Ironically, as part of the package, first home …
BBC news has an story on Australia’s Housing Bubble and concerns have been raised that it could be about to burst. The story is centered around Sydney’s Western Suburbs which has the Highest Repossession Rates in the country and where they claim prices have already fallen 30%. It interviews two …
Prime Minister Kevin Rudd has warned that economic growth and job security could be in jeopardy as the global financial crisis entered a “new and dangerous” phase. As he equated the current financial turmoil to a national security crisis, Mr Rudd signalled the jobless rate for next year was likely …
In an Interview for 60 minutes, Prime Minister Mr Rudd has indicated the current downturn will effect the Housing Market. With Australian Housing costing 7.5x the average wage, one of the highest multiples in the world, a downturn in the Housing Market is probably something Rudd doesn’t need to guarantee, …
Australian’s should be able to sleep better tonight, knowing that PM Rudd has today decided to guarantee all deposits (of any size) in ADIs (Authorised Deposit-taking Institutions) for three years. Rudd has also gone further to guarantee all money Australian banks borrow internationally and instructing the Australian Office of Financial …
THE government’s cabinet budget committee will meet later today to take any action deemed necessary from key meetings of the International Monetary Fund and Group of 20 finance ministers in Washington today. Foreign Minister Stephen Smith said there was a growing realisation that the international financial crisis was worse than …
Only last week the IMF was quite conservative on this crisis. Today the head of the IMF, Dominique Strauss-Kahn is saying “Intensifying solvency concerns about a number of the largest US-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown.” umm, on the …
With a turbulent couple of weeks on global financial markets, credit around the world freezing up and with the RPdata Rismark Hedonic Index for August 2008 (prior to recent carnage) showing a fall in house prices in every Australian state (missing data for Tassy), I’m willing to endure egg on …
AUSTRALIA’S big four banks have warned they may need extra backing from the Rudd Government and the Reserve Bank to prevent Australia from being sucked into a global credit-crunch recession. The chief executives of the Commonwealth Bank, Westpac, NAB and ANZ all agree that the world’s finance ministers and central …
THE G7 nations have vowed to take all necessary steps to unfreeze credit markets and ensure banks can raise money but have offered no collective course of action to avert a deep global recession. » G7 vows to fight credit crunch – The Australian, 11th October 2008.
Well what a turbulent week it has been. On Friday the All Ords fell through 4000 points for the first time to close at 3939.5 down -8.93% for the day. The All Ords peaked on the 1st of November 2007 with a high of 6853.6 and today’s close is now …
To even all the boom & gloom up, Gold Coast property analyst Bill Morris is predicting a property boom in 2 years time. But he does come bearing bad news. He claims : the value of million dollar homes has halved since 2006 and prices for more modest properties have …
It seems US debt is still spiraling out of control. The debt clock ran out of digits last month after US debt exceeded 10 trillion U.S. dollars. » US debt clock runs out of digits – The ABC, 10th October 2008.
New data released shows UK house prices fell 12.4% for the year to September. This is the biggest annual fall in over 25 years. » UK house price fall steepest in 25 yrs – The Guardian, 12th October 2008.
While it would appear this week that the ceiling is caving in, it is always good to take a moment to benchmark our economy with that of others. Official stats just released show Zimbabwe has a July inflation rate of only 231 million percent! » Zimbabwe inflation soars to new …
Official figures show the jobless rate climbed in September. The Bureau of Statistics says the unemployment rate jumped from 4.1 per cent to 4.3 per cent in September, as employers’ demand for workers eased against the backdrop of a slowing economy. » Jobless rate jumps to 4.3pc – The ABC, …
The US Federal Reserve has led a global round of emergency interest rate cuts in an effort to contain the worst financial crisis since the 1930s. The Federal Reserve said it was cutting its key federal funds rate by 50 basis points to 1.5 per cent. » Central banks cut …
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