D-day for Australia’s Real Estate Bubble—-Unknowable Degrees of Insanity
by Pater Tenebrarum •
Keep in mind though what we have mentioned in the annotation to the chart of Australia’s money supply above. The credit expansion that has been the driving force of the bubble has largely been the work of commercial banks. While the central bank has enabled them to offer loans at lower and lower rates, it is their willingness to actually do so that is decisive.
DYI Comment: Central and commercial banks gone wild! Anyone with a right mind knows this will end in a crash except for delusional Aussies. No wonder most Australians believe housing is a sure winner housing prices in Australia are marching to the heavens for 22 years except for three small dips. A true mania. When this bubble bursts those who got in since 2006 will be in for a rude awakening along with a string of bankruptcies and a major recession. Once that happens Australia will take 10 to 15 years before any reasonable growth resumes.
DYI
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