Just last week, Federal Treasurer Peter Costello told Australian’s not to worry about the subprime issues in the U.S. as the rate of defaults here in Australia is much less than in the U.S. Yesterday, GE lodged accounts with ASIC showing Loan impairment losses for GE Capital Finance Australasia jumped …
Immediately when Australian’s think about the drought, they think about the farmers doing it tough or possibly the local lawn mowing business hitting the wall. But a far bigger problem is emerging. The lack of water is causing havoc with our power generators who uses this precious commodity for cooling …
Last night unexpected results were released for the Reuters/University of Michigan’s preliminary index of consumer sentiment. While the consensus among economists was a likely fall to 86.0, the index actually rose for the first time in four months to 88.7, up from 87.1 in the previous month. » U.S. Economy: …
Some say Copper has a PhD in economics. Because Copper is used in everything from electrical wiring to water pipes, it is seen as a good measure of the economy. If demand for Copper falls, then it’s believed the economy is slowing. On Tuesday, Treasurer Peter Costello had spruiked the …
More poor housing data out overnight from the US, showing building permits fell 8.9% to a 10 year low of 1.429 million. This fall was the largest percentage fall in 17 years. Meanwhile housing completions fell 5.8% to a 6 year low of 1.523 million. Housing completions across the USA …
Crack out the Champaign, consumer confidence is at 32 year highs. Don’t worry, I can afford Champaign – I’ve just put it on my 2nd credit card – but, I’m confident I can pay it off maybe next year. The Westpac/Melbourne Institute index of consumer sentiment rose to 123.9, up …
Overnight in the U.S. the National Association of Home Builders/Wells Fargo housing market index has fallen to 16 year lows. “This weakness suggests we should not expect a sustained rebound in starts anytime soon,” wrote Drew Matus, an economist with Lehman Bros. Data from the Federal Reserve would suggest at …
On Macquarie Regional Radio today, Costello was playing down the effects on the subprime mortgage crisis in Australia. Costello said he would continue to closely monitor developments in the US, but the Australian situation was “different.” Data from the Reserve Bank of Australia and the US Federal Reserve would indicate …
This video is an insight into the mistakes 24 year old Casey Serin made in the property market. Now Casey Serin tells his tale in the hope of warning other property investors the pitfalls of property speculation. Casey started out trying to make a quick profit in ‘flipping’ properties, that …
More evidence today that the US consumer is curbing spending. Poor retail data out last night caused a sharp fall in the Dow Jones : The International Council of Shopping Centers weighs its results differently and tallied an overall same-store sales drop of 2.3% to set the largest decline on …
Last night US employment data was released for April showing a weaker than expected 88,000 jobs added, one of the worst results for two years. Drilling into the report, it showed Significant job losses in April came in general merchandise stores, where employment dropped by 41,000, and credit intermediation, where …
The ABC reports that the median price for houses at the Gold Coast has fallen 3 percent in the first quarter this year. » Report reveals lower Gold Coast house prices – ABC, 30th April 2007.
I came across a video taped guest lecture today from the Department of Economics at Humboldt State University that pretty well sums up the current situation. The guest lecturer was Dr. Christopher Thornberg from Beacon Economics. The lecture was given on the 30th November 2006. » Real Estate Bubbles and …
A report today shows bankruptcies are rising. In NSW in the first quarter this year, there were 2,404 bankruptcy proceedings. This is reported to be up 7.1% from the previous quarter (December 2006) and up 22 per cent for the year. With many people entering into debt arrangements, the problem …
There are reports today that a four bedroom house in Detroit sold for $7,000, cheaper than many used cars. Detroit which is known for its car industry but this industry has been in decline which is only exaggerating the subprime mortgage problem. Detroit now holds the title of capital of …
The second largest subprime mortgage lender, New Century Financial, last night filed for bankruptcy. It said it would immediately lay off 3,200 employees making up half of its workforce. » New Century files for bankruptcy, is selling units – Market Watch, April 2nd 2007
The crisis among US subprime mortgage lenders continues as Accredited Home Lenders fall 64% in a single trading session. » ‘Liquidity crisis’ seen looming for Accredited Home; shares plunge – Market Watch, March 23th 2007.
Panic today among shares of US subprime lenders with NovaStar Financial falling 41%, Accredited Home Lenders falling 26% and Fremont General falling 32% as investors make way for the exits of a industry full of bad debts. » ‘Panic’ takes hold as subprime lenders slump – Market Watch, March 5, …
There are concerns today in the US subprime market after New Century Finance fell 7.6% after it delayed filing earnings. Countrywide Financial also fell 1.1% after a report suggested it saw a sharp increase in late payments in 2006 » U.S. stocks end lower as jitters continue, Dow falls 80 …
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