Survey reveals most households on a knife edge despite savings claims
Survey reveals most households on a knife edge despite savings claims; With unemployment on the rise and with job security looking precarious, most Aussies one pay away from disaster
Tweet Topic Started: 4 Aug 2014, 06:39 PM (823 Views)
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
Savings are a thing of the past I am afraid. Comforted in the knowledge that a big pot of gold awaits them in 10 or 20 years at retirement most spend up big now, as much as their credit rating will allow them to. It's quite a shock when they go to get a loan for a car and they are turned down because they have too much debt already. I saw a man go through this not long ago, he was mystified, why won't they give me the 50 thousand? They'll get it back. Evidently they had an other opinion.
Savings are a thing of the past I am afraid. Comforted in the knowledge that a big pot of gold awaits them in 10 or 20 years at retirement most spend up big now, as much as their credit rating will allow them to. It's quite a shock when they go to get a loan for a car and they are turned down because they have too much debt already. I saw a man go through this not long ago, he was mystified, why won't they give me the 50 thousand? They'll get it back. Evidently they had an other opinion.
Imaginary credit fuelled expectations powered by imaginary asset wealth.....because we are "different"
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
It's a 300 year old theater that plays over and over. Create ever more money via bank loans until the entire system is so overloaded that even repaying the interest becomes untenable. It always starts the same way, after a devastating depression where the former debt is written off through bankruptcy.
At the beginning no one trusts the banks because everyone knows someone who has lost a business or a home to them so the loans go to commercial enterprises, established companies or a few brave souls buying homes. As confidence is restored home loans become the acceptec norm again and other loans like car loans come into vogue. But the bank/money creation system is voracious and needs an ever increasing level of debt so the economy can continue to grow and the interest and principal on all the prior debt can continue to be repaid.
That is why new innovative types of debt are created. Credit cards, loans for company stocks, reverse mortgages, the list is endless. But! As we are now observing, there is a limit when the rate of debt creation exceeds the ability of the economy to sustain it. Then interest rates have to fall and fall as debt creation contracts along with economy that was dependant on that debt creation. If we hadn't had the massive housing bubble ramp up from 2000 onward we would not have gotten this far. If the property investors hadn't taken on that extra trillion in debt our economy would have been in a shambles years ago.
The property investors are just the last ones to arrive at the dance. When the music stops they will be totally exposed, most will be wiped out and those that used their superannuation in the vain hope of protecting it will find their retirement savings pouring into a dead end asset.
How nieve of people to believe that corrupt government and greedy corrupt banks would have their best interests at heart. That is the amazing part. People are basically trusting, which is another way of saying they are gullible.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
Has anybody else noticed that the "get out of debt" ads have been smashing prime time lately? it used to be that it was only late night TV or Fox 8 you would see them. That tells me that there are a lot of people out there in trouble - those companies dont advertise on prime time tv if they arent getting the business.
Has anybody else noticed that the "get out of debt" ads have been smashing prime time lately? it used to be that it was only late night TV or Fox 8 you would see them. That tells me that there are a lot of people out there in trouble - those companies dont advertise on prime time tv if they arent getting the business.
Indeed, along with income protection ads...
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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