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The high cost of snake oil
Topic Started: 7 Jan 2017, 10:18 AM (10,296 Views)
Terry
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Rufus
9 Jan 2017, 01:56 PM
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.
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Trollie
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Terry
9 Jan 2017, 02:51 PM
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.
We get it, he's your hero.
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Khaderbhai
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Wealthy Suburbanite

Terry
9 Jan 2017, 02:51 PM
you wonder why Steve Keen would appear frustrated
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.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"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."
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Rufus
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Terry
9 Jan 2017, 02:51 PM
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.
Edited by Rufus, 9 Jan 2017, 03:04 PM.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Sydneyite
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Khaderbhai
9 Jan 2017, 03:00 PM
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! :re:
Edited by Sydneyite, 9 Jan 2017, 03:32 PM.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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Bardon
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Sydneyite
9 Jan 2017, 03:32 PM
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! :re:
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.

http://www.news.com.au/finance/real-estate/buying/the-uk-affordable-home-ownership-scheme-that-australia-needs/news-story/78eeeb662f192c75cf10d3c485e936f6
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stinkbug
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Simon_S
9 Jan 2017, 01:17 PM

What does his Doom and Gloom message sell to the Masses?

Advertising.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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Chris
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Bardon
9 Jan 2017, 03:36 PM
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.

http://www.news.com.au/finance/real-estate/buying/the-uk-affordable-home-ownership-scheme-that-australia-needs/news-story/78eeeb662f192c75cf10d3c485e936f6
Sounds like a cheap and efficient way to buy property, everyone should be doing this, prices to the mooooooooon
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Rufus
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Sydneyite
9 Jan 2017, 03:32 PM
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! :re:
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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Bardon
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Chris
9 Jan 2017, 03:55 PM
Sounds like a cheap and efficient way to buy property, everyone should be doing this, prices to the mooooooooon
Anything that helps the less fortunate amongst us to get a foothold up on the ladder has to be a good thing.
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