Australian economy

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Euler
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Location: Bet Angel HQ

An interesting peice in the FT, thought I would share: -

http://ftalphaville.ft.com/blog/2012/04 ... own-under/
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superfrank
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good article but i don't agree with this bit...
But a potential housing crash looks unlikely as there was no residential housing construction boom.
you don't need a construction boom to have a house price crash, although it does help. there's certainly no land shortage! it's all about the price and availability of credit - that's what drives all house price booms given that the vast majority of houses are bought with debt. if the banks start to think it might go pear-shaped then lending will dry up overnight (like it did here).

what to oppose the AUD with? SGD?
rubysglory
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Joined: Thu Nov 04, 2010 7:02 am

Australia. A two speed economy comprising a Resource Sector moving along a breakneck speed and every one else all but stalling or worse. Short the $AUD, sit back and watch the Reserve lower official interest rates when next they meet on 1st May and watch the $AUD fall against most major currencies whilst any savings locally are lost in the rebounding cost of higher fuel prices.

rg
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CaerMyrddin
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Short the $AUD, sit back
Whyle trouble in EU continues, it's much harder for other currencies to fall, imho.
Photon
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This article below is I think is more spot on on Australian economy than FT:

http://www.nakedcapitalism.com/2012/01/ ... art-i.html
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superfrank
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Australia surprises with half-point rate cut
http://www.marketwatch.com/story/austra ... 2012-05-01

no surprise here.
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Naffman
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https://au.news.yahoo.com/world/a/25707 ... y-falters/

Looks like the Australian economy and $A is in freefall now. Commodities are going cheaply, China is dramatically slowing down and a housing crash is on the horizon especially with interest rates due to go down.
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Naffman
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Australia now in a recession on a per capita basis 8-)
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