Welcome Guest [Log In] [Register]


Reply
Perth property sets new all time high.; Bears smashed, again.
Topic Started: 10 Jun 2013, 06:43 PM (52,376 Views)
Perthite
Member Avatar


Ha.. everyone can read it later today.

90%...

You where so close.

:lol
Profile "REPLY WITH QUOTE" Go to top
 
Pig Iron
Member Avatar
Bogan scum

Veritas
16 Dec 2013, 02:18 PM

And virtually no one is saying that these retrenched workers will be reemployed building houses.

Timmy, where do you think they will go? What will they do?

Are you familiar with the multiplier effect?

:wak:
there's no multiplier effect on mining construction you fool. if they move into domestic construction THAT will have a multiplier effect.

read the article, they are already talking about the next skills shortage in resources.
Perthite
16 Dec 2013, 02:46 PM
Ha.. everyone can read it later today.

90%...

You where so close.

:lol
you realise there is a difference between a report forecasting something and it actually happening, right? :wak:

i look forward to this capex forecast you reckon i made, should be interesting. lets hope we aren't still waiting for it in a weeks time like the capex losses link you said you'd post...
Edited by Pig Iron, 16 Dec 2013, 02:54 PM.
I am the love child of Tony Abbott and Pauline Hanson
Profile "REPLY WITH QUOTE" Go to top
 
Veritas
Default APF Avatar


There is no multiplier from mining construction? :lol :lol :lol

Well alright. I'm sure the thousands of businesses that benefit directly and indirectly through the spending of those 90,000 people employed in mining construction projects wont mind at all if that customer base disappears.

Edited by Veritas, 16 Dec 2013, 04:25 PM.
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
Profile "REPLY WITH QUOTE" Go to top
 
Dr Watson
Member Avatar


More job losses could mean more interest rate reductions and higher house prices.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
Profile "REPLY WITH QUOTE" Go to top
 
newjez
Member Avatar


Dr Watson
16 Dec 2013, 04:53 PM
More job losses could mean more interest rate reductions and higher house prices.
Not if the job loses are localized.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Profile "REPLY WITH QUOTE" Go to top
 
Pig Iron
Member Avatar
Bogan scum

Veritas
16 Dec 2013, 04:25 PM
There is no multiplier from mining construction? :lol :lol :lol

Well alright. I'm sure the thousands of businesses that benefit directly and indirectly through the spending of those 90,000 people employed in mining construction projects wont mind at all if that customer base disappears.

i think you need to read up on what the multiplier effect is.





I am the love child of Tony Abbott and Pauline Hanson
Profile "REPLY WITH QUOTE" Go to top
 
Veritas
Default APF Avatar


Pig Iron
16 Dec 2013, 06:02 PM
i think you need to read up on what the multiplier effect is.




Timmy,

This is really basic stuff.

Here is a definition for you: The multiplier effect

Every time there is an injection of new demand into the circular flow there is likely to be a multiplier effect. This is because an injection of extra income leads to more spending, which creates more income, and so on. The multiplier effect refers to the increase in final income arising from any new injection of spending.


So, last Saturday I had lunch with my mining construction employed friend. Using the money she earned while working in the investment phase of the mining boom, she paid for lunch. Consequently, the restaurant we had lunch in derived income. This is how economies work Timmy: your spending is my income and my spending is your income.

90,000 people employed in mining construction and spending that money is the local economy on a whole range of consumer good ands and services creates a multiplier effect.

Equally, if people stop spending as a result of job loss or diminished income a negative multiplier effect is created as other parts of the economy suffer from decreased demand.

This is the key reason why austerity regimes in Europe, for example, have such a deflationary effect on the economy.

Geddit?
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
Profile "REPLY WITH QUOTE" Go to top
 
Count du Monet
Member Avatar


Posted Image
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
Profile "REPLY WITH QUOTE" Go to top
 
newjez
Member Avatar


Pig Iron
16 Dec 2013, 06:02 PM
i think you need to read up on what the multiplier effect is.




Timmy, regardless of terminologies, you know what he is trying to say.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Profile "REPLY WITH QUOTE" Go to top
 
Mike
Default APF Avatar


http://www.rpdata.com/research/back_series.html

Perth property prices rebounded over recent days much to the demise of some so call "expert" bear by the name of Newjez.

Newjez was last seen packing bags in London from the state commissioned housing project. He was evicted after hordes of angry Aussies descended upon him demanding compensation as they followed his advice only to be out of pocket tens of thousands of dollars.

Witnesses in the crowd spoke with the BBC describing lost years and the lost opportunities as they listened to this "expert" bears. Legal action is due to follow soon, although you cant get blood from a stone.

Newjez is apparently on a flight to Moscow where Vladimir Putin is keen to talk with him!
http://mike-globaleconomy.blogspot.com.au/
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy