An old great uncle who was in the war with the Spanish back in the day told me this:
"Only Aspie Cholos who Need To Buy Prestige In Them Prestigious Ghetto Suburbs to Make Up for their Impoverished Childhoods believe in White Shoe Gurus"
When Australia was colonized, the aristocracy, those free settlers with the hereditary links, expected Australia would be the sheep run of the planet. (large, granted holdings shepherded by free convict labour).
The actual outcome has been a little different in that Australia has evolved to be very efficient at sheep shearing, especially of the punters, by the aristocracy.
I agree “there is nobody – nobody – more equipped with information and irrationality than any randomly selected Aussie”, especially those who consider they understand any asset price because they have all available information. Information commonly garnered from taxi drivers, mates and the domestic press, for example.
In the past the punters did not have the financial assets to really place themselves at risk of a financial upheaval. However over the last 20 years the community has been awash with bank funds looking for a higher return than bank interest and the punters have taken to those funds like the free settlers of old took to land grants.
Aided and abetted by both governments and the banks the expectation was capital growth would continue forever, especially in housing pricing. The punters however have been blind to the rent seeking behaviour of the banks, and the banks have been siphoning off considerable quantities of the punters funds during this period. The emotion propping up this loop of continuous capital appreciation of asset prices, particularly housing, disregarded the detachment of housing prices to income.
The Nobel prize for optimism should go to that group who think they can increase their wages the 2 or 3 fold necessary to bring housing values back to household financial perspective, without ruining their employer or the nation.
The Nobel prize for endeavour should go to this nation if we can endure the forthcoming collapse in either housing prices or the economy, or probably both, without causing massive ruin for generations.
When Australia was colonized, the aristocracy, those free settlers with the hereditary links, expected Australia would be the sheep run of the planet. (large, granted holdings shepherded by free convict labour).
The actual outcome has been a little different in that Australia has evolved to be very efficient at sheep shearing, especially of the punters, by the aristocracy.
I agree “there is nobody – nobody – more equipped with information and irrationality than any randomly selected Aussie”, especially those who consider they understand any asset price because they have all available information. Information commonly garnered from taxi drivers, mates and the domestic press, for example.
In the past the punters did not have the financial assets to really place themselves at risk of a financial upheaval. However over the last 20 years the community has been awash with bank funds looking for a higher return than bank interest and the punters have taken to those funds like the free settlers of old took to land grants.
Aided and abetted by both governments and the banks the expectation was capital growth would continue forever, especially in housing pricing. The punters however have been blind to the rent seeking behaviour of the banks, and the banks have been siphoning off considerable quantities of the punters funds during this period. The emotion propping up this loop of continuous capital appreciation of asset prices, particularly housing, disregarded the detachment of housing prices to income.
The Nobel prize for optimism should go to that group who think they can increase their wages the 2 or 3 fold necessary to bring housing values back to household financial perspective, without ruining their employer or the nation.
The Nobel prize for endeavour should go to this nation if we can endure the forthcoming collapse in either housing prices or the economy, or probably both, without causing massive ruin for generations.
Sounds like the desciption of a ponzi scheme, or is that the housing market and economy rolled into one.
The governments latest trick , getteing people to leverage using their super, they need to get their grubby hands on anything you have left now, they wasted most peoples super over the last few years and instead of let the rest of it sit around for years where they cant touch it, or should that be destroy it , they have come up with a way to get there hands on it and destroy anything left, by promoting a ponzi scheme and diverting more money away from the economy at the same time. it now wont go into buisiness investment or be spent on usefull areas of the economy that are suffering, not just because of the mindless government antics but also because the modern world has caught up to us rool fast and now we dont stand a chance with high wages, and to think that the US is struggling because they cant compete with this and yet our minimum wage is more than double their wages, and our wages are the highest in the world, not for much longer if you think we can have any sort of economy , let alone a growing one.
Looks like the western worlds mindless government stadegies are finally catching up with them and now only temporarily bandaged together using behond comprehension record low interest rates. the interest rates are almost at the bottom, with no end in sight for jobs losses or buisiness closures and not the slighest of insights into how they may get the economy ever going again in the modern world , not the slightest.
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