Man Australians can be stupid. I’ve been to Moranbah. Blind Freddy could see the boom was only temporary.
Holy moly. 40% of housing finance is interest only. Watch the cards fall.
It’s amazing to see Dominos pizzas being delivered by a student on a bike to people who have had all Sunday in the park! What a strange world this has become. No danger money or insurance for the student. It reminds me that whatever decade we are in everything comes back to economics. Clearly atm we’re a bit divorced from reality. Low interest rates do that. But I think in the next few years rates will re-enter the equation. In a big way. the bond market will make sure of that and The Fed will follow. Then we’ll be living in the real world again.
Two daily dojis and a strong GDP (4%) indicates more downward pressure is in store.
I think we’ve seen the tailspin. Sure rates may rise again based on a 4% GDP on Friday but if they do the US housing market will stall and growth will be affected. Bonds may also rise quickly forcing rates to follow fast. It’s a ticking bomb and there will be a rush back into gold. 20% fall in FB and Twitter stocks may present a sign also.