If you need to ask that question, then I would be wasting my time explaining it to you. His books on the economy are negative. Naturally I wasn't including his book or papers on the environment in that statement.
Is your IQ larger than your shoe size yet? Maybe your feet are too big. Are they 145 cm long? Perhaps not.
You can't explain because you have no idea how to quantify debt quality at an aggregate level, as per my first question. And you wonder why Steve Keen would appear frustrated with you.
You can't explain because you have no idea how to quantify debt quality at an aggregate level, as per my first question. And you wonder why Steve Keen would appear frustrated with you.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
You can't explain because you have no idea how to quantify debt quality at an aggregate level, as per my first question. And you wonder why Steve Keen would appear frustrated with you.
Debt quality is governed by underwriting standards. If you don't know anything about lending, you may not fully appreciate that. Even if you did appreciate underwriting standards, you wouldn't know how those standards are being applied unless you're inside the black box.
Keen could however have some discussions with APRA and some bank hierarchy to get a feel for the standards, and he could talk to a lot of people out in the field. He hasn't of course, but he has listened to people who know nothing at all apart from their inner beliefs.
As for some quantifying model, which you appear to be wanting, that ain't gunna happen. It more complex than that, and at this point anecdotal evidence is probably the best way given the requirements of the privacy act and the expectations of the clients.
I did give you some metrics in an earlier post which you can plug in if you like, but they have their limitations.
If Keen is frustrated, it should be with himself, not me.
It's obvious why Keen is frustrated. He sold his Sydney home in 2008 predicting an imminent 40% crash, but instead prices have more than doubled.
That, plus he only bought that first property, with a massive mortgage, when he was already in his mid-50s.... the guy *needs* property prices to crash!
That, plus he only bought that first property, with a massive mortgage, when he was already in his mid-50s.... the guy *needs* property prices to crash!
Either that or staircasing.
It’s called “staircasing” and it works like this: Instead of buying a house outright, homeowners are able to purchase a share in a property and gradually increase this stake as their savings grow — effectively allowing homeowners to “staircase” up to full ownership.
It’s called “staircasing” and it works like this: Instead of buying a house outright, homeowners are able to purchase a share in a property and gradually increase this stake as their savings grow — effectively allowing homeowners to “staircase” up to full ownership.
That, plus he only bought that first property, with a massive mortgage, when he was already in his mid-50s.... the guy *needs* property prices to crash!
He needs some advice from Pete Wargent or some other property expert.
Perhaps we could give him some advice if he can't afford Pete's services.
Take risks - if you win you will become wealthy, if you lose you will become wise
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