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Crikey - There is NO Australian Housing Bubble; Four Corners hypes Australia's property 'bubble'
Topic Started: 23 Aug 2017, 08:49 PM (4,169 Views)
Rat
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Filthy Rodent

Veritas
25 Aug 2017, 12:20 PM
Are Australian’s just smarter?
Only those who know how to use an apostrophe.
Consumer protection laws extended to small businesses. Banks not permitted to repossess due to non-monetary defaults (for example, a fall in the property value).
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Veritas
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Rat
25 Aug 2017, 01:48 PM
Only those who know how to use an apostrophe.
So back to the question at hand, if lending to property is so smart how come other countries’ banking systems aren’t cashing in on this ingenious business strategy?

Is the answer because ‘it’s all part of the cycle’?
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?

The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly.
Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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Rat
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Filthy Rodent

Veritas
25 Aug 2017, 02:44 PM
if lending to property is so smart how come other countries’ banking systems aren’t cashing in on this ingenious business strategy?
Some country has to lead the way. Why not Australia? But I'd say this approach will be increasingly adopted by other countries as they see the stability and profitably of our banking system
Consumer protection laws extended to small businesses. Banks not permitted to repossess due to non-monetary defaults (for example, a fall in the property value).
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Chris
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Veritas
24 Aug 2017, 12:34 PM
All bubbles are characterised by high buyer demand you moron.

Whats your point?

Yes, but it's artificial demand that creates bubbles, it's yet to be seen whether the demand is genuine or artificial. If it's artificial then we're farked!
Veritas
25 Aug 2017, 02:44 PM
So back to the question at hand, if lending to property is so smart how come other countries’ banking systems aren’t cashing in on this ingenious business strategy?

Is the answer because ‘it’s all part of the cycle’?
I've asked this question in the past and got the obligatory bull response 'you're to dumb to get it'. The fact remains it is basic basic economics, there is an enormous financial bubble in context of private debt, this is fine as long as things in the economy keep ticking along nicely but it will be Armageddon if unemployment rises and IR rise.

Other countries have done this, the US, Spain, Ireland etc and they all wiped out, Australia is just waiting its turn.

We are not living in a superior financial haven, Australia is subject to the same basic rules of economics as everyone else.
Edited by Chris, 25 Aug 2017, 03:03 PM.
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Ex BP Golly
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Bardon
24 Aug 2017, 03:04 PM
No, buyer demand is not bank demand.
Bank simulated demand.
Rat
24 Aug 2017, 10:38 PM
It's much less risky than business lending. Smart banks.
Then there is absolutely no need to paying Narev etal big money.

They are just dumb f*** one trick ponies.
Veritas
25 Aug 2017, 12:20 PM
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It is a wonderful scam alright: pump up the price of an essential good and reap the profits in mortgage interest payments.

It does beg the question however, why aren’t all the rest of the world’s banks as super clever as the Aussie ones?

Are Australian’s just smarter?

Maybe the 'property cycle' is different overseas?
How much of the remaining 40% is loaned to purchase imported consumer goods, imported cars, and foreign holidays.

What a mess!
Edited by Ex BP Golly, 25 Aug 2017, 03:27 PM.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Bardon
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Chris
25 Aug 2017, 02:50 PM
Yes, but it's artificial demand that creates bubbles, it's yet to be seen whether the demand is genuine or artificial. If it's artificial then we're farked!
Don't worry too much, I have it on good authority that the people buying houses are in fact real people.
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stinkbug
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Ex BP Golly
25 Aug 2017, 03:23 PM

Then there is absolutely no need to paying Narev etal big money.

They are just dumb f*** one trick ponies.
Do you think you could do his job successfully? Serious question.
---------------------------------------------------------------

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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Veritas
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Bardon
25 Aug 2017, 03:52 PM
Don't worry too much, I have it on good authority that the people buying houses are in fact real people.
Real people are doing the buying in every bubble you clown.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?

The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly.
Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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Chris
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Bardon
25 Aug 2017, 03:52 PM
Don't worry too much, I have it on good authority that the people buying houses are in fact real people.
you are just plain dumb aren't you!

The demand is artificial not the purchasers, how could you not comprehend that ?
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Ex BP Golly
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stinkbug
25 Aug 2017, 04:24 PM
Do you think you could do his job successfully? Serious question.
It would be great to have that job.

You hang around till the shit hits the fan, then pretend that accountability is actually you f***ing off to Majorca, while toadies insist that accountability isn't necessary because it will upset the share price.


WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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