http://savecapitalism.wordpress.com/2012/01/09/hot-china-is-going-down/ Those with an eye on markets probably haven't been able to miss that the Chinese stock market is in free fall. Here is some more news that signals that the problems have just started, the shit is hitting the fan: Contrary to its usual practice, the central bank did not release foreign exchange reserve figures along with money supply and lending data. The bank did not say when those numbers would be released.
*giggles manically* It amuses me to know end to note that in Australia we're immune from the rest of the world (depending which investment class you look at) and yet, we're in living in constant fear of what other countries are doing. Seriously, you have to laugh at it all.
Like I've said before and will say again, the perpetual growth of RE in Australia will prop up the economy through capital gains and steady income flow. What are you all worried about?
Well if that's what helps you keep your shit together. I'd prefer it if we didn't have to laugh - and unfortunately, we are not immune. On a side note, if you keep giggling away in the corner Aus, we'll all think you've gone mad
Real estate is classic fuel for a bubble. Happened in Japan in the late 80s - bust. Europe and the US - bust. China - busting. Australia - a small 22 million people country that is living off the fortunes of a 1.2 billion people economy - will bust. Thank my lucky stars I only want a house as a place to live!
Shows once again that Wayne Swan is a monumental idiot. Wasn't it just last week that he once again stated that the Australian economy will not feel the negative effects of Europe or the US because China's strong economy will protect us and keep buying our resources?
I used to be disgusted, now I'm just amused. I finally get why Reno has this as his quote. I don't live in fear of 'what if', I just laugh at those who do and expect me to share their emotions. Like some dumb arse skateboarder who's doing a stunt that goes wrong, you don't feel sorry for them - you point and laugh at them. [youtube]http://www.youtube.com/watch?v=VqHKQLo9wkc[/youtube]
ASX is down 25% in 12 months, China is down 33% in 12 months, Silver is down 41% in 8 months - tell me again which is in free fall? Before everyone jumps down my throat about manipulation etc please note - I'm not bagging silver. I have silver investments (and trading holdings), as well as others. I just find on here we can be a bit like a one eyed Collingwood supporter - the world is against us and we are the only true believers. We grab hold of anything to prove our point without considering the wider implications/impacts. The share markets are going through a rough time - definitely. Real estate is going through a rough patch - definitely. PMs are also going through a rough patch - definitely. Is one a better investment than the other - sometimes, it depends on the individual transaction. I guess all I'm saying is don't be one eyed. Do yourself a favour - read these types of articles but look at what the authors are pushing and how this relates to the wider investments circles. Then look at your individual transactions and see how they may be impacted. Trust me - even in a market in free fall - there are bargains!! malachii PS - Not having a go at Hiho - I think the articles makes some interesting points and I'm glad he posted it. Just a bit worried people use this type of article to reinforce the "PMs are the only true investment" argument.
Yep, saw that one. Chinese exports to both the US and Europe have declined dramatically, so we're hit on the rebound. http://www.bloomberg.com/news/2011-...urope-falling-off-cliff-chart-of-the-day.html It's something in the order of 30% according to that article. Combine that with an 18% drop in demand in the US. Ugly.
Here we go again: The essence is not so much a bubble bursting but an inevitable cyclic correction. Source: http://theconversation.edu.au/should-we-be-bracing-for-an-inevitable-housing-bubble-bust-2588 I think our major problem is Japan. Second largest export market and very tired, I was alarmed to see the JPY EURO ratio yesterday. If the Yen is falling against the Euro (!!!) someone knows something I don't. (btw that's a really big list who know more than me!)
Agreed, mind you, silver rose well over 100% in the 8 months before that and then corrected down. On a 16 month tome scale it's performing very well. Not to say that it can't still plunge a lot more though...
And above all, there is no need to laugh at other people's misfortunes, they all operating with their best intentions to get ahead in life no matter how misdirected they are/were.
Couldn't disagree more. This is the attitude and thinking of the mob who will verify any action they take and remove any aspect of personal responsibility under the guise of a 'noble' goal. I've no doubt at all those who run the reserve banks of the world and send the global economy to the gutter do so under the assumption they are simply looking out for their own too. You can go back through history and verify many of those actions we deem abominable in hindsight as acting legitimately and with the 'best intentions' in mind, no matter how misdirected they were at the time. Please don't make me invoke Godwins' law.
I would hope that most are above the finger pointing, 'I told you so' and the 'Ha ha, you deserved it' attitude. While they may indeed deserve to lose their jobs, and even possessions if criminal charges are likely, putting your boot into someone while they are down is not necessary and i'd be disappointed should these attitudes prevail. Re your Godwin's Law comment - good one.
Im not convinced that it will affect us as much as some seem to think. It might even help .The chinese investors might just come back & buy aussie property again & invest their money here because its more stable. You can say a lot about the aussie economy but one thing i know is its more stable than most economy's in the world atm & that might just help to get us through the storm a little better off than most
Agree, and I believe its because of our low debt to GDP. My concern related to China is that if their export market is damaged beyond repair due to Europe screwing itself - and they won't recover without a lot of mess, unless they come up with some radical plan that no one has ever thought of or tried before - then, China will need to look to its domestic market to take up the slack in the purchase of manufactured goods to avoid a recession. If that doesn't happen, our export market will be damaged, and we don't have a competitive manufacturing industry to take our raw materials. Did that make sense?
China being China, it's quite possible they'd not just "look to" the domestic market but force it to consume more Chinese made goods. Whether they'd do that by using the carrot of monetary easing or the stick of restricting outward flows of currency I don't know, but I suspect they wouldn't mess about with things like the Europeans have been. If it got to that point I'd not be surprised to see restrictions on Chinese people sending lots of money out of China, which would affect the number of Chinese buyers in the Australian property market.
