During a recession.............Of course they will.
Simon savings are at record levels too - you conveniently forget about this when you get paralysed with fear just because aggregate debt has risen to match aggregate wealth.
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.
I suggest you watch the video. You might even learn something.
However, there is a situation in which some house prices can go up in a recession, but only after they have gone down by quite a lot.
In the US the predators moved in to certain areas to buy up distressed assets and rented it back to the poor bastards who had defaulted on their predatory loans.
Crushing poverty and hedge fund profits. Double win
Australia is far too communist for that to happen here though.
Maybe ya missed tha bit where I said I've seen it happen? - 'N in Australia like.
Apart from short term fluctuations prices will continue to rise long term, and so will aggregate debt, especially with our rising population.
The same will apply in 10 years, 20 years, etc until our household formation peaks, which is well outside our lifetime, so who cares.
PS we aren't in a recession, although you may be.
I'm not as positive as you maybe Rufus?
'N would still be inclined ta do a bit of tha grumble, grumble, grumble routine at any of tha youngies in me family wot reckoned they woz hopin' ta hold after purchasin' for less than 10 years - 'N wif me bein' tha conservative negative (as in just naturally bearish?) ole f*** that I am, inclinin' ta tha view I'd be happiest ta hear 'em say "At least 15" - As in yrs ta hold.
Simon savings are at record levels too - you conveniently forget about this when you get paralysed with fear just because aggregate debt has risen to match aggregate wealth.
LOL.....do you think at 8% of Disposable Income they are at record highs?
Household Saving Rate in Australia decreased to 8 percent in the second quarter of 2016 from 8.10 percent in the first quarter of 2016. Personal Savings in Australia averaged 10.02 percent from 1959 until 2016, reaching an all time high of 20.60 percent in the third quarter of 1973 and a record low of -0.70 percent in the fourth quarter of 2002.
When private debt to GDP is at 125%...................
Rufus
13 Dec 2016, 11:10 PM
Apart from short term fluctuations prices will continue to rise long term, and so will aggregate debt, especially with our rising population.
The same will apply in 10 years, 20 years, etc until our household formation peaks, which is well outside our lifetime, so who cares.
PS we aren't in a recession, although you may be.
Lots of convincing facts in that post.........
So House hold formation will drive economic growth in Australia..........
Jon Snow
13 Dec 2016, 10:58 PM
However, there is a situation in which some house prices can go up in a recession, but only after they have gone down by quite a lot.
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