Guest gratom Posted February 18, 2010 Share Posted February 18, 2010 A Yale economist[Robert Schiller] has listed the following as symptoms of a financial bubble-1/sharp increases in the price of the asset greater than its underlying value[ie cheap credit and its availability]2/media frenzy that results in collective envy.3/taxi drivers boasting about the subject.4/new era theories that this time its different. Any offers;whilst considering the above, on the following bubbles bursting sometime this year--gold,China,US treasury bonds or the Australian property market??.All seem like Ponzi schemes.The trigger to bring this about could be problems of the Euro or Chinese economic difficulties such as their overheated property market.The latter has been predicted to be the trigger by the man who saw Enron for what it was[John Chanos].He called the chinese propery market Dubai x 1000;also has some harsh comments on the chinese economy in general Link to comment Share on other sites More sharing options...
Guest iselinger Posted February 18, 2010 Share Posted February 18, 2010 A Yale economist[Robert Schiller] has listed the following as symptoms of a financial bubble-l And you believe an Economist! You will always find one to match your opinion Link to comment Share on other sites More sharing options...
fleabo Posted February 18, 2010 Share Posted February 18, 2010 You will always find at least one to match your opinion. There are an awful lot of them out there... Link to comment Share on other sites More sharing options...
heyyu Posted February 18, 2010 Share Posted February 18, 2010 this so called ponzi scheme has been going since ww2 Link to comment Share on other sites More sharing options...
gemjay Posted February 18, 2010 Share Posted February 18, 2010 Since 1930 and has had 5 massive peaks with this one the biggest since then 1930! Link to comment Share on other sites More sharing options...
heyyu Posted February 18, 2010 Share Posted February 18, 2010 :biggrin:so Link to comment Share on other sites More sharing options...
sgperry Posted February 19, 2010 Share Posted February 19, 2010 Given the comments in this thread about the level of mortgage and credit card debt in Australia, have folks seen this story in today's Brisbane Times (online). Many Residents Of Brisbane's Wealthiest Suburbs Have Severe Debt Interesting that this situation seemed to exist in the UK a year or two back, and look what happened. Link to comment Share on other sites More sharing options...
Guest Toorak Trev Posted February 19, 2010 Share Posted February 19, 2010 Judging by house prices and spending, you are not the only person in Australia living in a fantasy world. that chip weighing you down there? Never surprises me how gutted new arrivals feel when the locals are earning more and have achieved more. Some how the old colonial ideals still seep through. Link to comment Share on other sites More sharing options...
Guest boa Posted February 20, 2010 Share Posted February 20, 2010 The credit crisis here is a huge problem and the % of personal debt to income is rising continuously with no end in sight, as can be seen from the figures in that story it is having devastating effects on many homeowners. Link to comment Share on other sites More sharing options...
Guest iselinger Posted February 20, 2010 Share Posted February 20, 2010 Given the comments in this thread about the level of mortgage and credit card debt in Australia, have folks seen this story in today's Brisbane Times (online). Many Residents Of Brisbane's Wealthiest Suburbs Have Severe Debt Interesting that this situation seemed to exist in the UK a year or two back, and look what happened. You have to be very careful when reading this sort of article prepared by a commercial company who just extrapolate a small subset of the population. Ask yourself whats in it for them and almost exclusively the answer is a shock headline generating self promotion. And guess what it works!!! Have a nice day Link to comment Share on other sites More sharing options...
Guest boa Posted February 20, 2010 Share Posted February 20, 2010 While what you say is true and the media never overlook an opportunity for a good headline it is a fact that Australian personal debt is now greater than the country earns. We owe more than the US, the UK or in fact anyone else in the developed world. It obviously can't go on unabated. Link to comment Share on other sites More sharing options...
mr luvpants Posted February 20, 2010 Share Posted February 20, 2010 Hi An Australlian friend I was talking to yesterday said he had heard that interest rates are to rise to 15%! Is that true? JOHN Link to comment Share on other sites More sharing options...
Guest iselinger Posted February 20, 2010 Share Posted February 20, 2010 Hi An Australlian friend I was talking to yesterday said he had heard that interest rates are to rise to 15%! Is that true? JOHN Unlikely in the short term The bank is talking yesterday about a 1/2% to 1% increase in the next two months but that's one hell of a long way from 15% Link to comment Share on other sites More sharing options...
Guest boa Posted February 20, 2010 Share Posted February 20, 2010 John, to be honest anything is possible but who knows to be honest ? They are definitely on the way up and that upward movement wont stop anytime soon. I would expect maybe another 2 or 3% this year at worst. Link to comment Share on other sites More sharing options...
Ellie 2 Posted February 20, 2010 Share Posted February 20, 2010 The Government can't, for it's survival, let interest rates go over 10%. As for personal debt, who has the ability to stop idiots spending more than they can afford on credit? Only the banks! The credit limits are ridiculous! I dislike government intervention but that's what it might take to curb the credit spending spree as the banks seem very short sighted. Link to comment Share on other sites More sharing options...
Guest guest30038 Posted February 20, 2010 Share Posted February 20, 2010 The Government can't, for it's survival, let interest rates go over 10%. As for personal debt, who has the ability to stop idiots spending more than they can afford on credit? Only the banks! The credit limits are ridiculous! I dislike government intervention but that's what it might take to curb the credit spending spree as the banks seem very short sighted. Nah. It's the punters with the credit cards that are short sighted :biggrin: kev Link to comment Share on other sites More sharing options...
Ellie 2 Posted February 20, 2010 Share Posted February 20, 2010 Nah. It's the punters with the credit cards that are short sighted :biggrin: kev They wouldn't be able to be as big idiots if the banks/stores didn't give them large credit limits. :biggrin: Link to comment Share on other sites More sharing options...
heyyu Posted February 22, 2010 Share Posted February 22, 2010 The credit crisis here is a huge problem and the % of personal debt to income is rising continuously with no end in sight, as can be seen from the figures in that story it is having devastating effects on many homeowners. news:biggrin: Record figures: 150,000 people could be plunged into insolvency this year Britons are struggling with an astronomical collective personal debt of £1.46trillion. Advice agencies are under siege, with an increase of 30 per cent in the number of people seeking help in one year. Some are being forced to wait up to six weeks for an appointment. Others are being turned away, with two debt agencies refusing new clients because their waiting lists are too long, according to a report from spending watchdog the National Audit Office. The debt mountain, which includes everything from mortgages to credit cards and personal loans, has soared to record levels and is now equal to about £56,000 for every household, 60 per cent higher than average pre-tax income. The figures were issued as debt experts warned that a record 150,000 people could to be plunged into insolvency this year - 15 per cent more than last year. They said there is usually a time lag between the start of a recession and people losing the battle with their finances. Mark Sands, head of bankruptcy at the accountants RSM Tenon, said it is not necessarily losing their job which tipped people over the edge, but losing overtime pay or a bonus. He said: 'If you've got £50,000 of debt on your credit card and you've lost one of your shifts then you are going to hit the end of the line.' More... Osborne sets out eight-point plan to restore nation's finances (and clear up Tories' mixed messages on spending) Brace yourselves for pay freeze No.2: A second year with no increase looms for thousands Why Britain's debts are actually WORSE than in crisis-hit Greece (thisismoney.co.uk) Opinion: Why the pound may be about to plunge (thisismoney.co.uk) The Consumer Credit Counselling Service said its typical clients have 11 different creditors and debts of £24,300, excluding their mortgage. Link to comment Share on other sites More sharing options...
Guest boa Posted February 22, 2010 Share Posted February 22, 2010 Sorry is this just *** for tat ? I thought it was about the Aussie housing bubble ? No-one is saying borrowers in the UK and in fact almost everywhere aren't suffering. Link to comment Share on other sites More sharing options...
heyyu Posted February 22, 2010 Share Posted February 22, 2010 Sorry is this just *** for tat ? I thought it was about the Aussie housing bubble ? No-one is saying borrowers in the UK and in fact almost everywhere aren't suffering. do you want to be *** or tat:biggrin: Link to comment Share on other sites More sharing options...
tracy123 Posted February 22, 2010 Share Posted February 22, 2010 Would this thread be running if £1 = $3? Lets face it, it wasn't that long ago, that a professional person living in the UK could not afford to get on the property ladder and anyone looking at moving to Australia could buy a nice house for cash, the exchange rate being at £1 = $2.5 also helped..... Since then UK house prices have fallen, meaning alot of people owe more on their house than their house is worth, the pound dropping, as well as the Australian economy staying strong (in comparison to other countries) so people are getting hit 3 ways. But lets face facts how long can it last? The UK is running out of land, more and more people are coming here, house prices will rise again! It comes to a point on both sides, where people can't afford to buy, and people can't afford to sell and this is where prices level out.... History shows that what's happening now won't last forever, house prices in the UK will rise as will the pound, as for Australia house prices can't keep rising at this rate, if they do no one would be able to make it on the property ladder! I think the other point people need to remember is, if you can't afford to buy next to the beech, live in, or next to the city in the UK what makes you think you can afford to do it in Australia?! Just my thoughts Geoffrey Link to comment Share on other sites More sharing options...
heyyu Posted February 22, 2010 Share Posted February 22, 2010 canada's house prices are also climbing av house in canada now 330000can first or starter 500000 can in good area 13%rise in 12months Link to comment Share on other sites More sharing options...
gpo1971 Posted February 23, 2010 Share Posted February 23, 2010 Now, I like the beach, but with the very best will in the world Melbourne isn't London. I have just come back from London, which without any shadow of a doubt is the finest city in the world. It is now 2 hours from Paris, 1 1/2 hours flight from Barcelona, Geneva and Berlin. You can ski in the Alps, lunch in Lyon, sunbathe in Cannes and worship in Rome. Well you can if you're Roman Abramovich. My mate who lives in a scruffy 1-bedroom flat in Balham that cost him 200k rarely has days like that. He's too busy saving up for spuds and stuff. Link to comment Share on other sites More sharing options...
kernow43 Posted February 23, 2010 Share Posted February 23, 2010 how can they afford it they will be calling it all back in soon :jiggy: Link to comment Share on other sites More sharing options...
Guest gratom Posted February 23, 2010 Share Posted February 23, 2010 Interesting article concerning chinese economy in today's[Feb 24th] of the sydney morning herald in the business .com section[title'to much to fast].Pessimism is the general tone---why is my gut instinct that a lot over renumerated bankers/optimists/etc are running for the door?? Link to comment Share on other sites More sharing options...
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