Grave fears are mounting for the future stability of the Australian economy as new data released today shows the Reserve Bank of Australia’s housing bubble is surging at records not seen since 2003. The RP Data statistics confirms reports of investor led irrational exuberance in the Sydney and Melbourne markets. …
The latest annual QBE report into mortgage and property market sentiment shows Australian’s perceptions towards the residential property market is deteriorating rapidly amid concerns the market is overvalued. The survey found only 36 percent of respondents now believe it is a good time to buy property in the next twelve …
The Australian has today reported on an emerging wave of subprime repossessions in Australia as times start to get tough. On Saturday, we reported how Australia has one of the largest property bubbles in the world, significantly larger than the USA subprime bubble. While evidence is emerging, our politicians are …
The International Monetary Fund (IMF) recently reported Australia has, based on price to income ratio, the third most overvalued property market in quarter 4, 2013. Since then, according to the Australian Financial Review, we have leap frogged Canada to take second place honours, behind Belgium who has honours as the …
Australia’s official cash rate has remained at record emergency lows for twelve months now, a setting not seen in over five decades. But signs are now emerging a hike in interest rates is imminent to quell the dangerous and unsustainable Sydney property bubble. Former RBA board member Warwick McKibbin, now …
The Financial System Inquiry’s Interim Report released yesterday confirms what we already know – Australia’s tax system is broken as it encourages risky leveraged and speculative investment that will one day come back to bite Australia hard and “compromise the speed of a subsequent recovery in economic activity”. The report …
It’s the age old question that’s bound to attract heated debate from those with vested interests. Is it cheaper to rent or buy? The bulk of comparisons have, to date, been flawed – deliberately – to swing the outcome in the way the author so chooses. A cursory glance normally …
A crackdown of money laundering in China is expected after the predominant state owned CCTV (China Central Television) aired undercover footage showing the Bank of China offers these services for a fee during a 20 minute bulletin. A Business Spectator article republished in The Australian reports: “We don’t care where …
The negative gearing debate is back in the media. On Monday, the ABC’s Michael Janda warned everyone will lose in the long run when our investor lead property bubble bursts. (‘Few positives to be found in negative gearing‘) Today, The Business Spectator’s Callam Pickering is singing the same tunes (‘Why …
The Bank for International Settlements (BIS) has warned record low interest rates could fuel a new global financial crisis, one much more severe and prolonged than experienced in 2008. In the bank’s 84th Annual report, released on Saturday, it raises the phenomenon it calls the debt trap. When debt bubbles …
On Thursday night, Moody‘s Investors Service warned Australia’s real estate market may be overheating and it “appears to be increasingly likely to get caught up in a positive price-feedback loop and eventually could face a correction.” Echoing warnings from the International Monetary Fund (IMF) last week, Moody’s indicate “both price-to-income …
The International Monetary Fund (IMF) has warned another devastating global housing crash, reminiscent of 2008, is on the cards if governments around the world fail to take decisive action. Global house prices are now at a level that could pose significant systemic risk to economies around the world. In a …
Paul D. Egan and Philip Soos has just had their new book published – Bubble Economics: Australian Land Speculation 1830 – 2013. It is available for download from the World Economics Association. Egan and Soos looks back over Australia’s three Depressions showing how land bubbles attributed predominately to their creation …
Last night at a gala dinner held at The Rocks in Sydney, Nobel prize winning economist Sir James Mirrlees voiced his professional opinion that Australia’s high wages cannot be sustained and must move closer to countries such as China, otherwise unemployment will continue to steadily grow as capital leaves the …
According to figures released by SQM Research, Australia’s national rental vacancy rate has increased by 0.3 percent in April and now sits at a record high of 2.3 percent, the highest since the index commenced in 2005. The high vacancy rate is putting downward pressure on asking rents as Landlords …
Consumer confidence has crashed in Australia – just one week since the release of the Federal Budget. According to the ANZ-Roy Morgan survey out today, consumer confidence plunged 3.2 per cent last week pulling down the monthly index by 14 per cent, as word started leaking onto the street of …
As Australians argue about the level of government debt and if we need a debt tax ahead of next Tuesday’s Federal Budget, the Australian Bureau of Statistics (ABS) has today released data showing where Australia’s real debt crisis is. According to the ABS, Australian household debt at the end of …
News Limited is today warning first home buyers to hold off buying now, spreading rumours the Australian property bubble is about to pop. How irresponsible! Maybe they hope to increase the number of listings in their newspapers and part owned RealEstate.com.au. » Australian property prices ready to pop? – News …
The International Monetary Fund (IMF) this week warned Australia’s budget position over the past 6 months is deteriorating at the fastest pace of any of the world’s 29 most advanced economies. “Australia will need massive budget savings of about $90 billion if it is to stabilise its government debt by …
As widely feared, Chinese appetite for Sydney and Melbourne real estate has caused house prices to surge in Australia at the fastest pace since records started 18 years ago. According to data released today from RP Data, Sydney house prices have increased at an unsustainable 15.6 per cent year on …
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