Great news, but I’m still not seeing much reports on structural adjustment in Western economies, including the Australian economy.  I am concerned that these economies may remain consumption and services based, with Australia being the exception being commodities based (and consumption heavy), with the emerging power house economies doing all the producing. In other words, without significant structural adjustment, and the pain that...

I don’t think it’s a paradox at all.  It’s simple economics.  Buyers are being stretched too far and economics is like a rubber band – any market only has so much ‘stretch’.  Most of Australia’s economy is now committed to it’s most unproductive sector – residential housing.   A house does not ‘produce’ anything, it is a consumption item.  A consumption based economy...

Hear my words well, nothing lasts forever.  And unless Australia finds something else to do but sell dirt and coal to China, we will have problems if China stops buying that dirt and coal, and same with Korea and Japan. The Education export industry comes to mind.  I do not believe Australia doing enough to support this critical export industry. China’s six-year trade surplus streak ends – ABC News (Australian Broadcasting...

Yet more Australians are switching to interest only loans..  Perhaps the RBA is now trying to avoid pricking the housing bubble.  Do you think the RBA should push on to higher rates or stay steady? Interest rates nearing normal levels: RBA – ABC News (Australian Broadcasting Corporation). PHP Freelancer

In Market News this Week. from one of your humble editors favourite market blogs, comes this interesting comment: “What’s surprising, is how many bloggers mentioned they were going to switch to interest only home loans. It appears that many people have borrowed more than they could afford at these low rates and now are struggling to make the repayments with the increase. “ What is surprising to me is that anyone was actually...