tag:blogger.com,1999:blog-6955370338439917430.post153817477993389141..comments2023-10-20T07:31:25.948-07:00Comments on Not Fooled By Property Spruikers Hype: The Great Australian Dream - Just a Dream?Not The Greater Foolhttp://www.blogger.com/profile/07017076350566919683noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6955370338439917430.post-71145665876623066572011-08-15T15:58:34.798-07:002011-08-15T15:58:34.798-07:00The Aussie housing market is in its death throws a...The Aussie housing market is in its death throws and things are looking very bad. The irresponsible GFC stimulus simply kicked the can down the road and now the crash will be twice as bad.<br /><br />I expect to see house prices and share prices down 30-40% within 3 months. This is GFC2 and its been predicted on the Australian Property Forum for some time (see <a href="http://australianpropertyforum.com/topic/8822068" rel="nofollow">GFC 2 Crisis Alert</a>). For the real estate and ASX speculators, the party is well and truly over. The decades long bull run is dead, and markets will be falling for the next few decades at least. This was all caused by too much debt!<br /><br />The housing bubble is destroying Australia. The RBA has obviously abandoned the notion of inflation targeting. All the readings pointed to a need for the RBA to lift interest rates yesterday - inflation is well outside their comfort zone, the housing bubble is still fully inflated, unemployment is low, and the mining boom is funnelling huge amounts of money into the economy.<br /><br />But the RBA chose to sit on their hands and allow inflation to continue bursting outside their 2-3% target range.<br /><br />The problem now is all this money flooding into Australia is inflating retail prices but leaving us with nothing to spend because we have directed all the money into repaying debt on overpriced dwellings. Ridiculous. Sack the RBA!<br /><br />Tom.Tom Klinehttps://www.blogger.com/profile/17092138986190370624noreply@blogger.com