Keating did not call Australia a banana republic, he was referring to what he saw could be a crisis and could turn Australia into a banana republic. He did this to force through a lot of unpalatable asset sales and cost savings.
What you have to understand is that for that debt there are assets - you harp on an on about the evils about having debt of over a years GDP but mention nothing of the assets that correspond to this debt nor the savings. You are selling a very old puritanical lie that was used to keep poor people in their place over hundreds of years.
This graph from the RBA tells the truth.
If Personal debt is 125% of GDP then personal financial assets are at ~250% of GDP and dwelling assets are at well over 300% of GDP.
Now you know these facts are you still gonna run around like chicken little claiming our levels of personal debt are unsustainable? If you do you just show what a fraud you are selling fear to young people where no fear should exist.
Yep, debt financed ponzi. Especially given how you clowns recon we haven't been building enough homes. The increase in wealth is then related to scarcity of assets right?
So the increase in debt is not actually meeting underlying need.
At least according to you illogical clowns.
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
Yep, debt financed ponzi. Especially given how you clowns recon we haven't been building enough homes. The increase in wealth is then related to scarcity of assets right?
So the increase in debt is not actually meeting underlying need.
At least according to you illogical clowns.
But everything is debt financed, including your next meal. Should you not eat?
Take risks - if you win you will become wealthy, if you lose you will become wise
Yep, debt financed ponzi. Especially given how you clowns recon we haven't been building enough homes. The increase in wealth is then related to scarcity of assets right?
So the increase in debt is not actually meeting underlying need.
At least according to you illogical clowns.
Housing is not a Ponzi that is just another doomster scare tactic.
There have been times of over-speculation in some markets - when people buy and sell just to profit and buying off the plan can resemble a Ponzi - but these times are rare and are certainly very very far from existing in any of our cities at the moment.
The biggest reason house prices rise is because of increased competition for the best located houses, it is silly to believe that this is not a real or sustainable thing.
You simply cannot drop the chicken little act can you? yet you are not scared enough of your own made up horror stories to sell up your own properties are you?
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Housing is not a Ponzi that is just another doomster scare tactic.
There have been times of over-speculation in some markets - when people buy and sell just to profit and buying off the plan can resemble a Ponzi - but these times are rare and are certainly very very far from existing in any of our cities at the moment.
The biggest reason house prices rise is because of increased competition for the best located houses, it is silly to believe that this is not a real or sustainable thing.
You simply cannot drop the chicken little act can you? yet you are not scared enough of your own made up horror stories to sell up your own properties are you?
Million dollar Mout Druitt homes lol.
It's a ponzi dude.
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
Housing is not a Ponzi that is just another doomster scare tactic.
There have been times of over-speculation in some markets.
Perth 2003 to 2007 rings a bell.
Then there were the idiots who expected a resurgence in 2012 and jumped in feet first.
Of course Skammy, you weren't one of them.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Housing is not a Ponzi that is just another doomster scare tactic.
There have been times of over-speculation in some markets - when people buy and sell just to profit and buying off the plan can resemble a Ponzi - but these times are rare and are certainly very very far from existing in any of our cities at the moment.
The biggest reason house prices rise is because of increased competition for the best located houses, it is silly to believe that this is not a real or sustainable thing.
You simply cannot drop the chicken little act can you? yet you are not scared enough of your own made up horror stories to sell up your own properties are you?
Also as well as, the worst located houses, in fact the worst located, most crime ridden, high unemployment areas. God knows how the brand new landlord is going to extract his rent places.. This is not investment, its a case of new landlord holding her nerve and hoping some other 'Investor' buys them out in the future. Meantime, these areas are getting worse, not better, less desirable due to more ice-heads, chemists who specialise in methadone etc, more unemployment..... you get the picture. I know a place or two in the outer skirts of Melbourne which was sort of respectable 15 years ago but as people have sold up, landlords have moved in and then rented them out to a gradually declining class of person/animal till now the gardens are full of old cars, toys and other broken objects you cant put a name too, long grass everywhere, police sirens all day and all night with the occasional stake out and roads cut off and parents who call their kids ' hey C&&t' ... Like I say, this is the result of landlords and speculators hoping for a quick buck.. this buck will stop and some of you will end up holding a particularity nasty baby.
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