JavaScript disabled. Please enable JavaScript to use My News, My Clippings, My Comments and user settings.

If you have trouble accessing our login form below, you can go to our login page.

If you have trouble accessing our login form below, you can go to our login page.

Markets Live: Investors sour on banks

Date

Patrick Commins, Jens Meyer

Shares eased lower with falls in the major lenders outweighing gains in miners, while another top economist ruled out further rate cuts.

Sort posts by:
Sort comments by:
  • "Aizen sent dozens of invoices to the owners of rental properties, charging for maintenance work that was never done. The names of the contracting companies on the invoices were fakes and the money was steered into accounts Aizen held with the Commonwealth Bank and the Bank of Cyprus"

    Real estate agents behaving badly. This time Run Property. A one week course doesn't make you a professional.

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    June 05, 2014, 4:38PM
    • "About 40 million tonnes of iron ore stocked at Chinese ports are linked to financing deals, a trader in Singapore estimated. Iron ore at Chinese ports stood at a record high 113.6 million tonnes last week, according to industry consultancy Steelhome."

      Speculators have been holding up the iron ore price. Look out below!

      Housing boom!

      Commenter
      Allan
      Location
      Prahran
      Date and time
      June 05, 2014, 3:56PM
      • Great Dane, you are correct in saying that the Swedish welfare system is generous no doubt it is, but it is not as generous as it used to be. These days it is harder to get by, just on benefits. The system is clever and generous where it needs to be. For example day care is free, this means that Swedish mothers have the highest rate of employment in the world. All education is free as well, including University, this means that everybody in Sweden is in charge of their own destiny. It is up to you if you want to go to Uni. You can be poor and/or an immigrant from Somalia and still become a Doctor and make it. This used to be the big dream in USA, but no longer.
        The key to the Swedish welfare, growth and economic stability is the incredible level of innovation in Sweden. Bloomberg recently rated all the three large Swedish cities including Stockholm, Gothenburg and Malmo at the top of world class innovation (number of patents per inhabitants). The Swedish economy has a mixture of world class companies and provides an excellent base for R&D which in turn feeds into innovation through government and companies.

        Commenter
        Viking
        Location
        Sydney
        Date and time
        June 05, 2014, 2:56PM
        • Great post. I am for free education upto Univ.- the way it used to be in good old days. We have stuffed our education system by turning it into a business and filling it with overseas students and compromising quality oif education in the process. This has become a backdoor entry for obtaining PR. How come a clever country with expensive pollies could not think it right. They are driven by short term policy of selling assets to foregners.

          Commenter
          xyz
          Date and time
          June 05, 2014, 3:54PM
      • Just sold TLS and bought MTU with the proceeds.

        TLS overpriced and MTU on a growth track from what I can make of it. Anyway only time will tell.

        Commenter
        craig
        Date and time
        June 05, 2014, 2:54PM
        • Compare MTU and IINET's last results vs their share prices and MTU appears to be tremendous value IMO. MTU does things the other telco's do not, like reselling Gas / Electricity / Insurance - a % cut for managing the front end of the customer experience.

          Commenter
          FANATICAL
          Location
          Diablo2
          Date and time
          June 05, 2014, 3:38PM
      • all the big yielders taking a decent hit.

        Dividend boom!

        Commenter
        clive
        Date and time
        June 05, 2014, 2:46PM
        • Or not, if the prices are falling in anticipation of lower dividends. I wouldn't be pinning too much hope that the good dividends of the past year can be maintained as the level of economic activity shrinks. Look for companies that pay a good steady dividend no matter what, eg TLS. Others will appreciate their dividend stability and bid the price up.

          Commenter
          mitch of ACT
          Date and time
          June 05, 2014, 3:59PM
        • Only about 20% of credit card debt gets zeroed every month.

          Commenter
          Peter
          Location
          Oz
          Date and time
          June 05, 2014, 2:36PM
      • Time to buy up big on the ASX200, way underpriced compared to Dax/S&P/DJIA. Watch it lift over the coming days.

        Commenter
        Banstown Bulldog
        Date and time
        June 05, 2014, 2:33PM
        • Or is it anticipating the correction of the Euro and US bubbles?

          Commenter
          Bubble O Bill
          Date and time
          June 05, 2014, 2:45PM
      • Fair Dinkum why is the AUDUSD being bid up? Exports are forecast to deteriorate over the coming quarters. You will lose if you are long AUDUSD. May get some value out of long AUDEUR.

        Commenter
        Ridgy
        Date and time
        June 05, 2014, 2:26PM
        • Poor Gina

          She wants her workers to earn less so she can be more profitable.

          Commenter
          dunno
          Date and time
          June 05, 2014, 2:15PM
          • The sooner we start this debate the better the outcome for Australia. Bring it on Gina.

            Commenter
            JohnBB
            Date and time
            June 05, 2014, 3:46PM
        • Banks will create ‘as much credit as is needed’ to support high property prices in a boom. It’s all to do with economic cycles.

          Commenter
          anonymous
          Date and time
          June 05, 2014, 2:12PM
          • You're wrong if you think incentive payment always gets the best results. For mundane tasks it works. For jobs where a bit of thinking outside the square is required it fails miserably. Watch this video to understand why.
            http://www.youtube.com/watch?feature=player_detailpage&v=rrkrvAUbU9Y

            Commenter
            Cliff
            Date and time
            June 05, 2014, 2:10PM
            • ISD yep nice debut,out at 2.44 quick 20%
              looking for that monash ipo now
              trades over for today
              glad im not reading too much in the comments here....its getting rather monotonous from the quick skim over
              cioa4nowa

              Commenter
              BearshapedBull
              Location
              Mugpunters Lounge
              Date and time
              June 05, 2014, 2:00PM
              • Who's your broker. Do you recommend them?

                Commenter
                me
                Location
                sydney
                Date and time
                June 05, 2014, 2:45PM
            • "Exports grew by 10% over the year. Yes, some deficit."

              Huh? The trade balance fytd is -348M. You're not debunking anyone.

              http://www.abs.gov.au/ausstats/meisubs.NSF/log?openagent&536801.xls&5368.0&Time Series Spreadsheet&6FE3D44368F481FFCA257CED0011D1F5&0&Apr 2014&05.06.2014&Latest

              Commenter
              Allan
              Location
              Prahran
              Date and time
              June 05, 2014, 2:00PM
              • Don't know if anyone noticed but "First Home Buyers" that were present in previous versions of the RBAs chart pack (under Houshold Sector) has been recently omitted from the graph "Housing Loan Approval".
                Guess even the RBA realizes there are no first home buyers in the market...

                Commenter
                Bye Bye Fiat Money
                Date and time
                June 05, 2014, 1:55PM
                • That is pretty well spot on. The interest I had on my last property was ENTIRELY investor only. I will not buy housing again.

                  Commenter
                  Liberator
                  Location
                  SEQLD
                  Date and time
                  June 05, 2014, 2:29PM
              • Thinking about shorting CBA, surely it has reached its peak, any thoughts?

                Commenter
                herman
                Date and time
                June 05, 2014, 1:49PM
                • Agree, not just CBA, but all 4 banks. Some months ago, someone described them as "ripe plums" (Bill Gross??). The question is when will they go into correction mode? Like myself, you have to judge that yourself. But I know one thing, despite good dividend yields, the Basel III requirements may arrest further div growth. HTH. GG

                  Housing doom!!

                  Commenter
                  Gordon Gekko
                  Location
                  Greg Coffey World
                  Date and time
                  June 05, 2014, 2:21PM
                • "Investors sour on banks"

                  Short. $$$$$

                  Commenter
                  Allan
                  Location
                  Prahran
                  Date and time
                  June 05, 2014, 3:50PM
              • This "Housing Boom!" situation is going to worsen in the next decade. Get used to it. Governments now, worldwide, have become totally dependent on rising house prices and all the taxes associated with property. Real estate itself has now become a world-wide game, with international payment easy, travel to visit the place very easy, and the world’s wealthiest 10% generating income like never before.

                Commenter
                anonymous
                Date and time
                June 05, 2014, 1:32PM
                • If you earn $25,000 or more annually, you are in the top 10% of the world’s income-earners.
                  http://irememberthepoor.org/3-2/

                  Commenter
                  Rabbit
                  Date and time
                  June 05, 2014, 1:51PM
                • I do not think 10% of people are generating wealth like never before. I would say AT BEST 3% are gaining at far greater rate than the rest.

                  Commenter
                  Liberator
                  Location
                  SEQLD
                  Date and time
                  June 05, 2014, 1:58PM
                • @Rabbit...Nice to always remember that....keep stuff in perspective....fight the machine but appreciate what we have and where we were unbelievably lucky to have been born. Thanks mate.

                  Commenter
                  JohnBB
                  Date and time
                  June 05, 2014, 2:11PM
                • its actually not so much a housing boom as a debt boom.

                  Commenter
                  fortune cookie
                  Date and time
                  June 05, 2014, 2:20PM
              • We want a statement today re what politicians are going to do about our hopelessly gridlocked, economy destroying traffic. Thanks.

                Commenter
                JohnBB
                Date and time
                June 05, 2014, 1:28PM
                  • White Paper + Independent Commission.
                    Nothing will be done till after the next election or two. Please go back to sleep and keep voting comrade!

                    Commenter
                    Bye Bye Fiat Money
                    Date and time
                    June 05, 2014, 2:07PM
                • "We do not forecast the first rate hike until the second half of 2015, by which time the base of growth in the economy should have broadened away from resource exports, household spending and home-building ought to have firmed, and AUD likely will be lower." Markets live 5/6/14

                  C'mon...start jacking up the interest rates. Do it now, not next year. I'll be another year older then. I'm screaming for some action.

                  Housing doom.

                  Commenter
                  Gordon Gekko
                  Location
                  Greg Coffey World
                  Date and time
                  June 05, 2014, 1:14PM
                  • Yes, Gordon, because certain doomsayers (maybe not you) require blood for their satisfaction.

                    Commenter
                    guy
                    Location
                    Pymble
                    Date and time
                    June 05, 2014, 1:57PM
                • "To rebalance China's economy towards something near normal, growth in investment in physical capital will need to slow progressively to zero over the next decade and stay there, a tough ask when it has expanded at double-digit rates almost every year since the mid-1990s."

                  And they need to pull their head in on the South China Sea or they might find the USS Nimitz docked in Shanghai.

                  http://www.youtube.com/watch?v=LhqLn1wKJAw

                  Read more: http://www.smh.com.au/business/markets-live/markets-live-adios-to-rate-cuts-jpmorgan-20140605-39jtc.html#ixzz33jK2l0So

                  Housing boom!

                  Commenter
                  Housing boom!
                  Location
                  Housing boom!
                  Date and time
                  June 05, 2014, 1:03PM
                  • Boom boom boom doom doom gloom gloom whom whom is spreading this room room room rumour because it aint happening soon soon soon.

                    Commenter
                    guy
                    Location
                    Pymble
                    Date and time
                    June 05, 2014, 1:35PM
                • Technology should compensate for loss of jobs. Sad for all our children and people, the loss of work and income.
                  Clever Sweden (Herald today) is trialling a 6 hour working day which is very
                  sensible.
                  http://www.smh.com.au/world/working-nine-to--three-sweden-trials-a-sixhour-
                  work-day-20140604-zrwrh.html

                  It is illogical to think that all
                  people can now be employed. There should be higher tax on technology to
                  compensate for the loss of jobs. It is so obvious but the politicians
                  can’t see the wood for the trees. Simply raising the GST on tech products
                  from 10% to 20% would have a massive effect. We could then give some compensation to the
                  public with a living wage and ask them to be involved in community art and
                  social programs, etc. Machines should assist humanity and not destroy it
                  in my opinion.

                  Commenter
                  It's All About Making Money
                  Location
                  Lennox Head
                  Date and time
                  June 05, 2014, 12:43PM
                  • Sweden is often held up as the example to follow, reality is different to our outside perception. They have problems getting people to work because their welfare system is too generous. For some people it makes better financial sense to stay at home, rather than work. Long term it is unsustainable, unless they create robots to do everything and abandon the financial system.

                    Commenter
                    Great Dane
                    Date and time
                    June 05, 2014, 1:31PM
                  • Correct Mitch. Big debts and empty pockets coming our way En-masse.

                    Commenter
                    Liberator
                    Location
                    SEQLD
                    Date and time
                    June 05, 2014, 12:41PM
                • Luci Ellis comments about the Australian lending market is incredibly naive and not soundly based .

                  Very surprising considering her position maybe she has academic expertise but zero on the ground experience.

                  The Australian banking system is up to it's old tricks again viz. CBA senate enquiry. Losers are the public and CEO's walk off into sunset with bag of money and etc etc

                  As history tells us they won't change unless forced.

                  Commenter
                  Harry Rogers
                  Date and time
                  June 05, 2014, 12:38PM
                  • It is an average ... so the thousands of people who max out their 4-5 credit cards and make the minimum payments every month will 'skew' it back in the other direction.

                    Commenter
                    jezza
                    Date and time
                    June 05, 2014, 12:37PM
                • Here we are with a budget of approx $300 billion. The pollie in charge is paid around $300 k. How can we expect better outcomes if we pay them peanuts.

                  Commenter
                  Wally
                  Location
                  Flynn
                  Date and time
                  June 05, 2014, 12:26PM
                  • Over the years the pollies, through the Remuneration Tribunal, have argued that better pay produces better results and so their salaries have grown much faster than AWE. I'm still waiting to see the better results but they have had better pay for years. Perhaps we shouldn't put politicians in such roles but instead employ properly qualified professionals. Hockey's a lawyer. What does he know about economics, and it really shows.

                    Commenter
                    mitch of ACT
                    Date and time
                    June 05, 2014, 1:06PM
                  • After a certain point more pay doesn't mean better performance. In fact the opposite can be true. Do you think if we paid Tony Abbott twice as much he'd be doing anything differently? Do you perhaps think Clive Palmer must be the best politician we've ever had (he just donates his peanuts pay because he doesn't need it?

                    Commenter
                    Peter
                    Location
                    Oz
                    Date and time
                    June 05, 2014, 1:11PM
                  • How is $150/hr peanuts?

                    Commenter
                    Liberator
                    Location
                    SEQLD
                    Date and time
                    June 05, 2014, 1:15PM
                  • If ou can show me where CEO pay correlates with let alone causes company outperformance (beyond its peers/the market) then I am all ears for your politician pay rise proposal.

                    Commenter
                    Olaf
                    Date and time
                    June 05, 2014, 1:23PM
                  • Tony A would not be PM if the salary was $1 million. He'd be lucky to get a job as a doorman. True, these jobs should go to highly qualified individuals. The old saying that if you pay peanuts then you get monkeys is very true.

                    Commenter
                    Wally
                    Location
                    Flynn
                    Date and time
                    June 05, 2014, 1:36PM
                  • The executive and board of Bearn Stearns were amongst the highest paid group of employees in the World.

                    Fred Goodwin at RBS was paid annually in the tens of millions of pounds, way back in 2007.

                    All brought their institutions to their knees.

                    Unlimited reward does not induce unlimited talent and effort.

                    Time for a MAXimum wage structure within our society to protect the many from exploitation by the few, just as we have a MINimum wage for the very same reason.

                    Commenter
                    Joe the POM
                    Location
                    Geelong
                    Date and time
                    June 05, 2014, 1:49PM
                  • @Wally....I get your point but in today's climate I think it's in really bad taste.

                    How many politicians do we have per capita compared to other countries?

                    Commenter
                    JohnBB
                    Date and time
                    June 05, 2014, 1:53PM
                  • Comapring with rest of the world and their performance they are most expensive pollies in the world. Add PERKS too their salary to get the real figure. Raising salary is the only issue on which all the pollies sit OVERTIME and rest of the time they shout at each other. Salary has nothing to do with performance.It is competence which is missing.

                    Commenter
                    xyz
                    Date and time
                    June 05, 2014, 1:55PM
                  • @Wally...Seriously? I'm lost for words. Are you a politician?

                    Commenter
                    JohnBB
                    Date and time
                    June 05, 2014, 1:55PM
                  • Can't remember where i got it...."for everyone in power, the system is working".

                    There's the worlds problems in one sentence.

                    Commenter
                    JohnBB
                    Date and time
                    June 05, 2014, 2:14PM
                  • Is the contrary position that if we pay them less then they will get better. I had to dump my JBH last week as it went into its post budget death spiral. Tea party policies only make sense from the point of view of a small minority.

                    Commenter
                    Wally
                    Location
                    Flynn
                    Date and time
                    June 05, 2014, 2:19PM
                  • @Wally...I'll do the whole lot for $100k a year. Fed, state and council....In fact I'll fix the traffic for free. I'll ask people to send me their localised idea and implement it the same day (I've got a thousand traffic solutions myself)...I'll get cops on merging lanes and get everyone that can't do it retrained. Same for traffic lights. Anyone doesn't take off in under 180ms ...retrained..Sorry. "you're not taking driving seriously enough for my liking".......These politicians aren't interested in fixing anything or doing anything but feathering their own nests. Look at just the allegations that are probably 0.00001% of what's going on.

                    Commenter
                    JohnBB
                    Date and time
                    June 05, 2014, 2:50PM
                • "Rinehart details the 22-year odyssey required to get Roy Hill to where it is today, starting soon after the death of her father, Lang Hancock."

                  Too bad it's 10 years too late. And wasn't Lang Hancock a pillar of the community:

                  http://www.youtube.com/watch?v=pMaRuk6pGOc

                  Commenter
                  Allan
                  Location
                  Prahran
                  Date and time
                  June 05, 2014, 12:24PM
                  • "The world’s richest woman Gina Rinehart says that ‘‘jealousy-inspiring profits’’ are necessary for investment in the mining industry but she also insists that costs need to be lowered to keep the industry competitive."

                    Ed, Gina Rinehart is not the world's richest woman. According Bloomberg rich list that title falls to Christy Walton with $38.9 billion. Gina is number six on the list worth $15.3 billion.

                    EDs: Thanks Viking, reckon you're right. Cheers

                    Commenter
                    Viking
                    Location
                    Sydney
                    Date and time
                    June 05, 2014, 12:22PM
                    • Total credit card outstanding balance is $45 BILLION according to the RBA.

                      http://www.rba.gov.au/statistics/tables/xls/additional-credit-card.xls

                      Commenter
                      Allan
                      Location
                      Prahran
                      Date and time
                      June 05, 2014, 12:20PM
                      • There's a lot of tragedy out there.

                        Commenter
                        Gordon Akman
                        Location
                        Broadbeach
                        Date and time
                        June 05, 2014, 1:06PM
                    • Go after these rorters and the budget would be fixed overnight

                      http://www.theguardian.com/world/2014/jun/04/australias-richest-could-be-hiding-billions-from-tax-office

                      Commenter
                      Fred
                      Date and time
                      June 05, 2014, 12:17PM
                      • Yes ! Yes ! Yes ! I like it. I do the same.

                        Commenter
                        Josephus
                        Location
                        Sydney
                        Date and time
                        June 05, 2014, 11:52AM
                    • "Adios to rate cuts"

                      Housing boom!

                      Commenter
                      Allan
                      Location
                      Prahran
                      Date and time
                      June 05, 2014, 11:52AM
                        • Is this the sort of financial 'insight' Viking was referring to? I'd say it's an example of someone with way too much time on their hands.

                          Commenter
                          4Seam
                          Date and time
                          June 05, 2014, 12:19PM
                        • The rubbish continues. With rates at their longest ever phase at this low level, who expected cuts? And who seriously expects rate rises anytime soon? No bad news for leveraged property owners, then.

                          Commenter
                          guy
                          Location
                          Pymble
                          Date and time
                          June 05, 2014, 12:21PM
                      • Standard fare for the market pre June financial year end. Expect more falls as the accountants take control.

                        Watch last two days of June for accounting errors and maybe bargains.

                        Before considering buy have a look at volume orders on the Sell side and be patient.

                        Australian economy is in good condition we haven't even gone close to previous times (80's).

                        Commenter
                        Harry Rogers
                        Date and time
                        June 05, 2014, 11:51AM
                        • Yet. We had a resources boom remember? And that's now over.

                          Commenter
                          Allan
                          Location
                          Prahran
                          Date and time
                          June 05, 2014, 12:22PM
                      • "The April trade balance data is in and somewhat surprisingly we've dropped into deficit, as imports outpaced exports. "

                        Housing boom!

                        Commenter
                        Allan
                        Location
                        Prahran
                        Date and time
                        June 05, 2014, 11:50AM
                        • A new day, a new way to define an imaginary 'deficit', Allan style. Real GDP growth over the past year was 3.2%, 0.8% in th March quarter. Exports grew by 10% over the year. Yes, some deficit.

                          Commenter
                          guy
                          Location
                          Pymble
                          Date and time
                          June 05, 2014, 12:32PM
                        • I've an idea Al. Change your screen name to Housing Boom. What do you think? It's grand.

                          Commenter
                          Murray
                          Date and time
                          June 05, 2014, 12:43PM
                        • LOL Guy, deficit and GDP are totally separate. Deficit occurs when you spend more than you make.

                          Commenter
                          Allan
                          Location
                          Prahran
                          Date and time
                          June 05, 2014, 12:53PM
                        • Same here...sometimes up to 30k which includes school fees etc but have never paid a cent in interest

                          Commenter
                          Pete
                          Location
                          Prahran
                          Date and time
                          June 05, 2014, 11:48AM
                      • So the RBA doubts the need to rein in higher-risk lending by the banks on property. Are they setting the stage for a re-visit of 1992 when bad loans on property nearly turned the Big 4 into the not-so-big at all 3.

                        Commenter
                        mitch of ACT
                        Date and time
                        June 05, 2014, 11:45AM
                        • Correct Mitch. Big debts and empty pockets coming our way En-masse.

                          Commenter
                          Liberator
                          Location
                          SEQLD
                          Date and time
                          June 05, 2014, 12:41PM
                      • This is a fascinating, if scary article from Alan Kohler

                        "The replacement of humans with machines is contributing to a "new normal" of super-low interest rates, and the central banks are now racing to stop us slipping into a debt deflationary spiral and another 1890s-like depression"

                        http://www.abc.net.au/news/2014-06-05/kohler-central-banks-rage-against-the-machine/5501714

                        Commenter
                        Fred
                        Date and time
                        June 05, 2014, 11:43AM
                        • Just sold half of my ANZ shares and will buy back in at around $30 for a quick 10% profit later in the year plus 3% dividend. Pretty obvious what is going on with the banks!

                          May as well join the big end of town, let the trend be your friend so to speak!

                          Commenter
                          dewf hart
                          Date and time
                          June 05, 2014, 11:41AM
                          • Won't work if everyone does it, someone's got to lose.

                            Commenter
                            J
                            Date and time
                            June 05, 2014, 11:58AM
                          • Worked for me in November last year!

                            Commenter
                            which bank?
                            Date and time
                            June 05, 2014, 12:15PM
                        • Since we are talking about credit card debt, does anyone know who is included when calculating national debt? For example, my credit card may have around $3K on it during my 55 day interest free period, but I have never paid a cent in interest. I only use it for convenience and zero it every 55 days. So it's not really debt. But when the figures are added up, are people like me included in the total? That would skew the figures.

                          Commenter
                          Gareth
                          Location
                          Sydney
                          Date and time
                          June 05, 2014, 11:40AM
                          • 5 days. I have one with 12 months interest free. So yeah, haven't paid a cent interest. Banks are offering some good deals at the moment RE: Credit Cards. If your smart with them, they can be very useful tools.

                            Commenter
                            SI
                            Date and time
                            June 05, 2014, 11:45AM
                        • Wouldn't hang my hat on what JP Morgan say, even in these comments they are having two bob each way.

                          Rate cut is still on this year, just hope the RBA do it before the horse has bolted!

                          Commenter
                          Xenaphon
                          Date and time
                          June 05, 2014, 11:37AM
                          • JPM have a saying: Buy low, sell high. They apply it in their advice too. When Chinese stocks were up in the sky, they advised to buy. JPM sold all their Chinese investments and so the clients took the brunt. NEVER take advice from a major player.

                            Commenter
                            Josephus
                            Location
                            Sydney
                            Date and time
                            June 05, 2014, 12:10PM
                        • That's me done for the day, not going to sit in front of the screen and watch the chart go down for no apparent reason. Made my daily pocket money, so that will do me!

                          Good luck everyone but the sell off is on!

                          Commenter
                          cyril
                          Date and time
                          June 05, 2014, 11:32AM
                          • "DFAT websites cost taxpayers $113,000"

                            They could have been built for @$5,000 via oDesk or freelancer.

                            That's indicative of the problem. Australia is a high wage/high cost country increasingly looking vulnerable to deflation.

                            Consumers are voting with there fingers online via eBay and Alibaba where prices are 1/5th local retail.

                            Businesses are offshoring their work for 1/5th local wages.

                            Assets prices across the board are inflated and central banks have been propping them up by printing money.

                            Notice how inflation is not rising? That's because of the strong deflationary force of cheaper products and services from Asia.

                            Printing money is not working. Pollyannas have just taken that money and pumped it into real estate.

                            Eventually the taps will have to be turned off or the currency will drop off a cliff. When that happens real estate is in for a major correction.

                            Housing boom!

                            Commenter
                            Allan
                            Location
                            Prahran
                            Date and time
                            June 05, 2014, 11:32AM
                            • Mid 2015 before rate rises are predicted. Plenty of time for those people who took out loans to get their house in order. Pay off as much as they can while record low interest rates stick around for another full year and then have the opportunity to lock in fixed rates for 3-5 years at some seriously low rates.

                              Commenter
                              SI
                              Date and time
                              June 05, 2014, 11:31AM
                              • Further to that figure of the average credit card debt being $4500 per card (yes figure is correct IAW ASIC) $100 extra a week could pay off the total sum including the annual interest accrued on card. hey c'mon guys cheer up a little. why am i getting shot down for being an optimist, sorry not guys... guy and his split personas hehe

                                Commenter
                                Just
                                Location
                                Optimistic
                                Date and time
                                June 05, 2014, 11:28AM
                                • Maybe because:

                                  "Bankruptcy
                                  Total personal insolvency activity for the March quarter 2014: 7,655 -- an increase of 6.11% compared to the March quarter 2013"

                                  http://australia.creditcards.com/credit-card-news/australia-credit-card-debit-card-statistics-international.php

                                  Oh and total credit card outstanding balance is $45 BILLION according to the RBA.

                                  http://www.rba.gov.au/statistics/tables/xls/additional-credit-card.xls

                                  Commenter
                                  Allan
                                  Location
                                  Prahran
                                  Date and time
                                  June 05, 2014, 12:19PM
                              • 34 billion outstanding on credit cards, $4500 per card on average, thats $786 annually average p.a. why be so negative Allan? (and his 3 different personalities). This is good news, cheer up mate.

                                Commenter
                                Just
                                Location
                                Optimistic
                                Date and time
                                June 05, 2014, 11:21AM
                                • $4,400 per cardholder is quite high.

                                  But it's nothing compared to the

                                  1,300 BILLION in mortgage debt.

                                  putting household debt at record levels.

                                  Oh and what makes you think I need to cheer up? My largest position is an FMG short which is well in the money.

                                  Housing boom!

                                  Commenter
                                  Allan
                                  Location
                                  Prahran
                                  Date and time
                                  June 05, 2014, 11:43AM
                                • We got a $800 billion foreign net debt,
                                  that can't be a good thing. Foreigners pull back even a little bit, and we are stuffed.

                                  Commenter
                                  me
                                  Location
                                  sydney
                                  Date and time
                                  June 05, 2014, 2:00PM
                              • Mining boom and bust over the last 200+ years:

                                http://www.macrobusiness.com.au/wp-content/uploads/2011/03/200-Years-of-commodity-booms-busts2.gif

                                What are we due for next do you think?

                                Housing boom!

                                Commenter
                                Allan
                                Location
                                Prahran
                                Date and time
                                June 05, 2014, 11:14AM
                                • What are we due for next? Production phase of mining, mineral prices and sales still high enough to be plenty profitable for the miners, mining to be a continuing good story in the Australian economy. Housing construction will do OK too. Sorry to be the bearer of bad news, Mr bad news bear.

                                  Commenter
                                  guy
                                  Location
                                  Pymble
                                  Date and time
                                  June 05, 2014, 12:19PM
                                • Production phase with greatly reduced prices and 70% of the profits going overseas.

                                  Housing boom!

                                  Commenter
                                  Allan
                                  Location
                                  Prahran
                                  Date and time
                                  June 05, 2014, 12:56PM
                              • Interesting read the PWC mining report.

                                Actually shows this year and last year there were massive impairment charges in the industry accounts. I presume this is because of much stricter accounting guidelines than in the past.

                                Without these non-cash items the industry seems to be doing OK overall.

                                What happens when the market sentiment turns again in favour of mining, as highlighted in the report the future demand for all products is expected to continue to rise.
                                Do the accounting standards require them to write-UP the assets?

                                Commenter
                                Harry Rogers
                                Date and time
                                June 05, 2014, 11:11AM
                                • Don't you love it!!

                                  Headlines either reverberate around:

                                  Iron/ Housing and Banks

                                  That's it!!

                                  Commenter
                                  dunno
                                  Date and time
                                  June 05, 2014, 11:02AM
                                  • Spi Futures down Monday Market up
                                    Spi Futures up Tuesday Market down
                                    Spi Futures up Wed Market down
                                    Spi Futures up Thurs Market down.

                                    Why bother when they are 100% wrong.

                                    Commenter
                                    Macca
                                    Location
                                    Sydney
                                    Date and time
                                    June 05, 2014, 10:50AM
                                    • Can you not see the obvious? Do the opposite of the SPI.

                                      Commenter
                                      Gumly
                                      Location
                                      Mackay
                                      Date and time
                                      June 05, 2014, 11:54AM
                                    • Macca,

                                      There are many reasons futures were up for example, it may have been because speculators are closing short losing positions, they are thinly traded by a very few, it is not representative of the broader market which opens at 10am on weekdays.

                                      Its like watching people driving mostly bmw's down your street and then betting that that bmw's are most popular car in all of australia.

                                      Commenter
                                      me
                                      Location
                                      sydney
                                      Date and time
                                      June 05, 2014, 12:33PM
                                  • With today marking the 5th fall in the last 6 trading days I would say that the long expected and normal fall towards 30th June is underway. Plenty of bargains to come. Normally I would expect that the market would rise again come July but the Budget could put a real dampener on that due to its contractionary effect.

                                    Commenter
                                    mitch of ACT
                                    Date and time
                                    June 05, 2014, 10:48AM
                                    • Good stuff Mitchell. I too await some bargains * rubbing hands with glee.

                                      Commenter
                                      Bargain
                                      Location
                                      Hunter
                                      Date and time
                                      June 05, 2014, 11:12AM
                                  • Twitter goes up, Iron ore goes up...
                                    But ASX goes down !!
                                    All that grinding & churning for few months lost in 2 days... such a time waster !!

                                    Commenter
                                    frustrated
                                    Location
                                    ASuX
                                    Date and time
                                    June 05, 2014, 10:44AM
                                    • ASX200 index is illusory anyway, why not trade on something more tangible, with real buyers and sellers, like equities, commodities, foreign exchange.

                                      Commenter
                                      me
                                      Location
                                      sydney
                                      Date and time
                                      June 05, 2014, 12:35PM
                                  • Looks like bad news for mining stocks, forced to either eliminate or drastically reduce dividends. Will have big effect on the share price.

                                    Commenter
                                    Viking
                                    Location
                                    Sydney
                                    Date and time
                                    June 05, 2014, 10:42AM
                                    • So what news do we need to hear to have the ASX go up. Spi spent 8 hours getting to 13 points wiped off in 12 secs at 10.10. Now we are waiting for Europe and the Non Farms. We have been waiting for these for over 4 years. 4 years ago Europe was a basket case and Non Farms were non excitant. Now in over 4 years we have gone up 400 points. Today we have iron ore prices up and now all the banks are down again even though most of them are paying 8% fully franked grossed up and so are people selling their bank stocks to go into a Term Deposit at 3.5% paying half of that back in tax. The ASX makes no sense whatever .I know it's a Stock Market but the ASX is unbelievable. So far down 40 on Tues 35 on Wed and down again today for what. If bad news comes over the next two days then what is going to happen to the ASX on Monday. There are people saying the ASX will hit 6000 this year. Good Luck.

                                      Commenter
                                      Very Annoyed
                                      Location
                                      Sydney
                                      Date and time
                                      June 05, 2014, 10:42AM
                                      • Good question as to who is dumping the ASX. A year ago it was foreign investors who piled out the aud as it dropped. Could be them again as the iron ore price drops the aud may be set to also drop.

                                        Commenter
                                        Wally
                                        Location
                                        Flynn
                                        Date and time
                                        June 05, 2014, 11:17AM
                                      • Just remember, for the past 3 years the ASX ended June BELOW what it started the year at, but then surged in the last 6 months.

                                        Commenter
                                        Gumly
                                        Location
                                        Mackay
                                        Date and time
                                        June 05, 2014, 11:46AM
                                    • Got that old Nirvana song in my head this morning... Dive, Dive, Dive, Dive with me...

                                      Commenter
                                      Borg
                                      Location
                                      Melbourne
                                      Date and time
                                      June 05, 2014, 10:37AM
                                      • Not a bad song to have in your head!

                                        Commenter
                                        Fred
                                        Date and time
                                        June 05, 2014, 11:31AM
                                      • that's Dive in me

                                        Commenter
                                        brian
                                        Location
                                        no recess
                                        Date and time
                                        June 05, 2014, 11:33AM
                                      • And I've got Bruce Springsteen's "they're goin down, down, dowwwn".

                                        Housing doom!

                                        Commenter
                                        Gordon Gekko
                                        Location
                                        Greg Coffey World
                                        Date and time
                                        June 05, 2014, 11:39AM
                                      • @ brian

                                        Won't you believe it, it's just my luck

                                        Commenter
                                        Fred
                                        Location
                                        no recess
                                        Date and time
                                        June 05, 2014, 11:46AM
                                    • Back to the future, Jonaze effect is back today and the sell off with the banks is on in earnest.

                                      Commenter
                                      historian
                                      Date and time
                                      June 05, 2014, 10:33AM
                                      • average debt per credit card holder just $4372.23. Australia's credit card debt $34 million and falling by $8000 a second. fantastic news! australians must be feeling wealthier every day!
                                        Haters gunna hate :)

                                        Commenter
                                        Just
                                        Location
                                        Optimistic
                                        Date and time
                                        June 05, 2014, 10:22AM
                                        • At 15% interest... who are these poor souls living off bad debt?

                                          Commenter
                                          Liberator
                                          Location
                                          SEQLD
                                          Date and time
                                          June 05, 2014, 10:44AM
                                        • You mean BILLION. LOL.

                                          Commenter
                                          Allan
                                          Location
                                          Prahran
                                          Date and time
                                          June 05, 2014, 10:53AM
                                        • Think about those figures for a moment - they aren't even remotely correct. Where in the world did you get them from. You do realise the figure is more like $50b don't you (b means 'billion'). That's 50,000 million which is quite a bit more than 34 million.

                                          Commenter
                                          Gareth
                                          Location
                                          Sydney
                                          Date and time
                                          June 05, 2014, 10:55AM
                                        • So $4500 debt on average per card is terrible? and the fact Australians are currently reducing this debt makes you angry? this what i dont understand about gloomers. happy with bad data but not good data. and im terribly sorry yes $34 billion, with average interest being paid $786 annually terrible isnt it? keep trying to tell us the sky is falling, ill keep being optimistic :)

                                          Commenter
                                          Just
                                          Location
                                          Optimistic
                                          Date and time
                                          June 05, 2014, 11:18AM
                                        • Is that a big problem though? Looks to me the economic news is nearly all good for Australia. Real economic growth still happening, exports up, mining still booming in any objective estimate, the non-mining sectors going OK, household consumption up - Other than employment yet to grow again, can't see real reason for concern.

                                          Commenter
                                          guy
                                          Location
                                          Pymble
                                          Date and time
                                          June 05, 2014, 11:27AM
                                        • Sure, that's why there's a trade deficit and budget deficits projected for the next decade.

                                          Commenter
                                          Allan
                                          Location
                                          Prahran
                                          Date and time
                                          June 05, 2014, 12:11PM
                                        • The federal budget deficit is because of federal structural fiscal problems which they could easily fix through some tough political decisions. Nothing to do with the economy generally, which, as has been observed elsewhere, most other countries would give their eye teeth to have. Doomsayer fail yet again.

                                          Commenter
                                          guy
                                          Location
                                          Pymble
                                          Date and time
                                          June 05, 2014, 1:54PM
                                      • Yeah, they're down to making a measly $20 billion PROFIT at the moment. End of Days for sure..

                                        Commenter
                                        Peter
                                        Location
                                        Oz
                                        Date and time
                                        June 05, 2014, 10:20AM
                                        • To offset the cost of the pay increase for small business, why can we not get rid of the silly double and triple times paid on holidays? Most of this goes to teenagers who only spend in online with overseas companies.

                                          Commenter
                                          Gumly
                                          Location
                                          Mackay
                                          Date and time
                                          June 05, 2014, 10:17AM
                                          • Public holidays are supposed to be just that - a holiday. If your business is going to be profitable enough on the holiday then pay the wages. If not, close up for the day. You don't have to pay them.

                                            Back in the WorkChoices days I worked for a large chain restaurant who retrospectively stripped public holiday rates out of our employment contracts for most public holidays and yet somehow their 10% public holiday surcharge was never wound back. People wonder why WorkChoices was unpopular. Because employers used it to abuse their employees.

                                            Commenter
                                            Jimmy
                                            Date and time
                                            June 05, 2014, 10:46AM
                                          • Im sure there are a lot of dishonest employers out there.

                                            But Jimmy why not have a crack at setting up a business yourself? Good experience and an opportunity to contribute by giving some people a job.

                                            Commenter
                                            Harry Rogers
                                            Date and time
                                            June 05, 2014, 11:15AM
                                          • Re penalty rates.

                                            Until the footy grand final is held on a Monday morning, until the kids go to school on Saturday and Sunday, until parties are held on Wednesday lunch time rather than Friday and Saturday nights, weekends and weekdays are NOT the same.

                                            Until then attacks on penalty rates are an attack on family values and a denial of any form of social life to millions of people.

                                            Penalty rates deserve to be abolished the very same day as politicians and lawyers go to work on Christmas day, i.e when hell freezes over

                                            Commenter
                                            Fred
                                            Date and time
                                            June 05, 2014, 11:16AM
                                          • @Harry,

                                            Perhaps because I was a 17 year old student studying for my HSC? Is it realistic to think someone in that circumstance can just walk out and start a rival chain?

                                            It is ridiculous to believe that people in positions of weakness like I was then are able to negotiate on an even playing field with a multi-national company. Now days as someone with skills in demand I am happy to negotiate. Managed to wing myself a 20% pay rise this year.

                                            Later on while I was at uni I worked for a wedding function centre that was only open Friday, Saturday and Sunday and they attempted to move the staff onto contracts with no weekend loadings, despite the fact that they were massively profitable (I know they were because I was dating the owners daughter).

                                            This push on penalty rates is nothing at all to do with employment or productivity. It is just employers looking to hang onto a bigger slice of the pie by fair means or foul.

                                            Commenter
                                            Jimmy
                                            Date and time
                                            June 05, 2014, 12:18PM
                                          • Public Holidays - fine for penalty rates.
                                            But why on a Sunday? It is so old fashioned, and Sunday is not a public holiday.

                                            Commenter
                                            Irish Phil
                                            Date and time
                                            June 05, 2014, 12:38PM
                                          • Jim

                                            People are starting businesses every day in Australia ...some young some old ..win some fail.

                                            It's very easy to do and an excellent learning curve.

                                            I would recommend it should be manadatory for students leaving Uni even if we have to subsidise their first 2 years.

                                            Just to let them see the reality of being responsible for the day to day welfare of people other than their immediate family.

                                            Commenter
                                            Harry Rogers
                                            Date and time
                                            June 05, 2014, 1:22PM
                                          • @Harry,

                                            Why on earth would I want to do that? I have seen up close and personal the lives of a number of business owners. I have seen friendships ruined, international holidays cut short, Saturday nights spent doing BASs and being the slave to your business 24 hours a day. Maybe some people enjoy that but it has no interest for me in the slightest.

                                            Commenter
                                            Jimmy
                                            Date and time
                                            June 05, 2014, 1:41PM
                                          • Let us be fair. Start from the top and cut the bonuses and perks of executives and most expensive pollies in the world.

                                            Commenter
                                            xyz
                                            Date and time
                                            June 05, 2014, 1:46PM
                                          • Jimmy,

                                            You're reply is no surprise.

                                            Commenter
                                            Harry Rogers
                                            Date and time
                                            June 05, 2014, 3:56PM
                                          • I'm not trying to surprise. I don't see why you would want me to run a business anymore than I would want you bowling leg spin on Saturday. It takes all kinds to make the world go round.

                                            I make a decent wage, live a pretty modest lifestyle, save a lot and invest in the business ideas of other people. Why should I do things any differently?

                                            Commenter
                                            Jimmy
                                            Date and time
                                            June 05, 2014, 5:10PM
                                        • Will Draghi hit the taper button ? At 0.25% interest rate, will he cut more to the bone ? How can he print money if the EU is split ? What is your bet ? There is more blood to be sucked from the EU people and Count Dracula will do his masters' bidding. I almost forgot....Germany can always abscond on the US gold.

                                          Commenter
                                          Josephus
                                          Location
                                          Sydney
                                          Date and time
                                          June 05, 2014, 10:07AM
                                          • Your mention of Dracula is very fitting. The people of Cyprus found their bank accounts sucked dry by Draghi's bankers.

                                            Commenter
                                            Wally
                                            Location
                                            Flynn
                                            Date and time
                                            June 05, 2014, 10:47AM
                                        • What do people think the effect on the various ASX sectors will be when/if the ECB cuts rates as widely expected??

                                          Commenter
                                          mirage
                                          Date and time
                                          June 05, 2014, 10:06AM
                                          • Opposite to what SHOULD happen

                                            Commenter
                                            Gumly
                                            Location
                                            Mackay
                                            Date and time
                                            June 05, 2014, 10:35AM
                                        • EDs: I am getting very tired of "Housing Boom". Allan, please. Stop filling the blog with repetitive rubbish. You do have constructive comments, just leave the "humour" out. PLEASE.

                                          Commenter
                                          Lindsay
                                          Location
                                          Melbourne
                                          Date and time
                                          June 05, 2014, 9:57AM
                                          • All in favour.... *raises hand*

                                            Reiterations of the same statement day in day out are very boring and don't contribute to the blog. These posts should be on a property investment blog instead.

                                            Commenter
                                            FANATICAL
                                            Location
                                            Titanfall
                                            Date and time
                                            June 05, 2014, 10:10AM
                                          • Do not understand what your problem is. I believe that Allan together with many others add a lot of insight to people on this forum. The reality is that the so called 'housing boom' is part of Australian economics and is relevant to the discussion.

                                            Commenter
                                            Viking
                                            Location
                                            Sydney
                                            Date and time
                                            June 05, 2014, 10:16AM
                                          • What does it matter?

                                            Matters of the utmost economic and financial importance are freely debated here, who cares if someone writes housing boom at the end of a comment? Are you that bored that you need to take issue with matters of no significance at all?

                                            I'm sure the eds are busy enough without having to worry about whether to let 'housing boom' through or not.

                                            Commenter
                                            Fred
                                            Date and time
                                            June 05, 2014, 10:36AM
                                          • may be relevant, but do we need to read it 20 times every single day?

                                            Commenter
                                            confused
                                            Date and time
                                            June 05, 2014, 10:44AM
                                          • Lindsay.....just scroll past/ignore the posts that don't interest you.....

                                            Commenter
                                            mirage
                                            Date and time
                                            June 05, 2014, 10:46AM
                                          • Eventually we may have a housing boom and Al will be proved correct.

                                            Commenter
                                            bubbles
                                            Location
                                            galore
                                            Date and time
                                            June 05, 2014, 10:51AM
                                          • I the only appropriate response is:

                                            http://www.youtube.com/watch?v=LMw-2Wr2Kto

                                            Commenter
                                            Allan
                                            Location
                                            Prahran
                                            Date and time
                                            June 05, 2014, 11:17AM
                                          • gotta be this one

                                            http://www.youtube.com/watch?v=mLsE7cVJQZE

                                            Commenter
                                            brian
                                            Date and time
                                            June 05, 2014, 11:42AM
                                        • Can we get a graph that shows where Australia sits in regards to the price of minimum wage across other countries. Would make great analysis

                                          Commenter
                                          SI
                                          Date and time
                                          June 05, 2014, 9:56AM
                                          • Such a graph would be meaningless if it didn't factor in cost of living

                                            Commenter
                                            Fred
                                            Date and time
                                            June 05, 2014, 10:18AM
                                          • Massively higher...Massively.

                                            Commenter
                                            JohnBB
                                            Date and time
                                            June 05, 2014, 10:21AM
                                          • Yeah a cost of living analysis would be great as well next to it.

                                            However, its not the point I was really getting at. I want to see where we sit in relation to other countries. How does a higher minimum wage affect a countries manufacturing?

                                            Commenter
                                            SI
                                            Date and time
                                            June 05, 2014, 10:39AM
                                          • It coincides with the shut down of manufacturing companies since the 80s and our gross inability to compete in today's market place.

                                            Commenter
                                            Liberator
                                            Location
                                            SEQLD
                                            Date and time
                                            June 05, 2014, 10:46AM
                                          • Yep it's a massive part of the problem. In fact probably IS THE part....but....how do low wage earners live in Australia with such high costs RE is the cash cow of every god dept and neg gearing has made rent and mortgages off the scale...This is exactly what it seams...Check mate....The end of Australia's wealth. It's happening as we speak...Trouble is we're still hurtling down a terrible path oblivious, in denial, to what's coming. Something very big has to eventually give...Will it be allow horrendous poverty? Will it be end negative gearing? Will it be allow all Aust RE to be sold to foreigners? Will it be end state gov and councils? Something very big is coming. It has to.

                                            Commenter
                                            JohnBB
                                            Date and time
                                            June 05, 2014, 11:14AM
                                          • However, wages are not keeping up with inflation. No biggie.

                                            Commenter
                                            Alto
                                            Date and time
                                            June 05, 2014, 12:40PM
                                          • @Alto....I'd bet the upper wages are.....In fact I think I've read it somewhere...What's that scream? Wealth divide growing larger.

                                            Commenter
                                            JohnBB
                                            Date and time
                                            June 05, 2014, 1:07PM
                                        • Market Manipulation - The engineered falls of our market, over the last few days and regularly over time, while the DOW and others go up is so the big funds can buy our shares cheaply. Our dividends are like cash from the ATM's to finance the big funds. After all - It's All About Making Money.

                                          Commenter
                                          It's All About Making Money
                                          Location
                                          Lennox Head
                                          Date and time
                                          June 05, 2014, 9:52AM
                                          • You forgot to mention the engineered price rises in already expensive stocks around the world. Shares have gained because of a misallocation in asset pricing, it may go on for longer, but eventually there'll be a reality check.

                                            Commenter
                                            Engineer
                                            Date and time
                                            June 05, 2014, 10:23AM
                                          • Debt Level Ratio = Debt/Asset Price. The higher the asset price the less the debt ratio. The other world economies are raising asset prices to make their debt levels effectively less. This has been happening since time began.
                                            While we take a contrary position of higher interest rates, anti expansionary budget decisions we will lag the growth in the world in terms of economy and company share prices.
                                            DOW levels which recovered after the Great Depression finally in 1954 are still well below the DOW XAO and other sharemarket levels of today. Prices go up over time always. This was after periods of QE, government funding of projects (eg Nevada Dam project, Harbour Bridge, etc) and low interest rates.
                                            We do ourselves a disservice, often, by saying:"Australia is right and the rest of the world is wrong." By obstinately thinking we are right and they are wrong we miss growth opportunities personally and as a nation.

                                            Commenter
                                            It's All About Making Money
                                            Location
                                            Lennox Head
                                            Date and time
                                            June 05, 2014, 10:48AM
                                        • Marc Faber speaking the gospel on Bloomberg TV this morning. Asked what he would do if he were Mario Draghi (European Central Bank president).

                                          " Well, it's a very good question. But it's very hypothetical for me for the simple reason that if I were a Central Bank, I would be the greatest hawk in the world.

                                          I would squeeze the system like a lemon and bring inflation down to deflation, because deflation has some advantage for the majority of people, for the majority of people... "

                                          Indeed. The QE money-printing needs to stop. It's devaluing our currency, our values and our way of life.

                                          Commenter
                                          Dr No
                                          Location
                                          Sydney
                                          Date and time
                                          June 05, 2014, 9:48AM
                                          • @JohnBB, I have good friends living in Lake Cathie. Doesn't seem to far away from PM. But being a beachy person Lighthouse Beach looks a bit more centralised. 600K for an old beach house looking over both lighthouse and beach. don't woory about giving away your secrets....only 15 people reading as I post this.

                                            Commenter
                                            Retiring to
                                            Location
                                            Port Mac
                                            Date and time
                                            June 05, 2014, 9:42AM
                                            • Yep...I love it..We only bought over there because the return is great, if I were buying purely to live there, I'd be doing what you're doing.......My partner and I are buying another right in town...Maybe even a unit.....Haven't found it yet...Try the Spanish restaurant on the Town Green..near the pub...Sensational...great guy too....Life is great.

                                              Commenter
                                              JohnBB
                                              Date and time
                                              June 05, 2014, 10:33AM
                                            • Returns obviously come into play, but main reasoning is buying where I'd love to live come retirement, plus I can do FIFO with my field of work so it could also be alot sooner. Dragging career ambitious woman away from Sydney is the obstacle. Felt like I was there 20mins and I'd had lunch, had a surf, and bought some hippy pants to strut around in. Will definately try the Spanish Restaurant.

                                              Commenter
                                              Retiring to
                                              Location
                                              Port Mac
                                              Date and time
                                              June 05, 2014, 10:51AM
                                          • $18,70 minimum wage rise....Business blowing up about it...Australia can't afford this but what other options are there? Rent would take almost all their wages. What a mess Australia's economy is. Whole floors of corporate do nothings earning $300k. At least in places like the US, low wage earners have low cost of living options.

                                            Commenter
                                            JohnBB
                                            Date and time
                                            June 05, 2014, 9:32AM
                                            • Great for low wage earners. And you are right, we probably can't afford it. Don't agree with your rent assumption though. The weekly wage is now approx. $680. If you are earning that per week, you shouldn't be renting a place that costs anywhere near that.

                                              Commenter
                                              SI
                                              Date and time
                                              June 05, 2014, 9:55AM
                                          • I am a new cautious investor in the market (perhaps not the best time to enter the market I must say). Anyway, I have been following DJI in the past 3-4 months and it has been very uninspiring in the last two weeks or so. They used to be leading the market not confusing it.

                                            Commenter
                                            P2
                                            Location
                                            Jerra
                                            Date and time
                                            June 05, 2014, 9:27AM
                                            • DJI has been pumped up with fake money...Some money made it into AORD's. The question is will it continue to make it to Australia now the boom's over? That's the question.

                                              Commenter
                                              JohnBB
                                              Date and time
                                              June 05, 2014, 10:01AM
                                            • Its actually a great time to be entering the market - look beneath the hype and look to strong fundamentals like - CASH, low PE's and future PE's and then look at short to medium distortions caused by over-reaction. Hint look at GRR - mkt cap this week got to within a sniff of cash held at the bank with no debt and a captive purchase contract with their major shareholder

                                              Commenter
                                              GK
                                              Date and time
                                              June 05, 2014, 10:34AM
                                            • Using a market such as the DJI which is heavily inflated by a massive QE policy... not a good idea to be going haphazard in to the ASX.

                                              Commenter
                                              Liberator
                                              Location
                                              SEQLD
                                              Date and time
                                              June 05, 2014, 10:39AM
                                          • http://www.illawarramercury.com.au/story/2326867/chinese-investor-buys-otford-property-for-14m/

                                            ......."The bank said close to a fifth of new properties in Sydney had been sold to Chinese investors this year."....

                                            Hang on!!!!!!! This property's not new...It's presently a rental..Doesn't that defy FIRB rules?.. What the? He must be knocking it down to comply....

                                            Commenter
                                            JohnBB
                                            Date and time
                                            June 05, 2014, 9:27AM
                                            • JohnBB - FIRB / ASIC and other regulators are a joke. Only the best inner city properties are sold at a big price to foreigners who take advantage of never paying taxes here... but get the benefit of Aussie funded city infrastructure...

                                              Commenter
                                              Liberator
                                              Location
                                              SEQLD
                                              Date and time
                                              June 05, 2014, 10:48AM
                                            • ASIC has acknowledged it can't properly monitor FI rules on property with its existing resources, yet they're facing staff and funding cuts under Hockey's budget. Recipe for a free for all FI on Australian capital city housing. Where's Allan of Prahran - (whisper) housing boom. Politicians are property investors, why do they want to do anything that restricts price growth of property?

                                              Commenter
                                              alto
                                              Date and time
                                              June 05, 2014, 11:38AM
                                            • ....." Politicians are property investors, why do they want to do anything that restricts price growth of property?".....

                                              I thought they were also servants of the public.....They don't really take that role as seriously as feathering their own nests....

                                              Commenter
                                              JohnBB
                                              Date and time
                                              June 05, 2014, 1:03PM
                                            • @Liberator...."never paying taxes here... but get the benefit of Aussie funded city infrastructure"....

                                              Great point. Seriously stretched infrastructure at that.

                                              Commenter
                                              JohnBB
                                              Date and time
                                              June 05, 2014, 1:19PM
                                            • Rents all over Australia are expensive because of Australia's unique negative gearing and expensive building costs, fees, stamp duties...Catch 22 that is now catching us...Every gov dept has milked the cow to death..Even develop of new land have to pay massive fees passed on to consumers.... How's it going to unfold?

                                              Commenter
                                              JohnBB
                                              Date and time
                                              June 05, 2014, 1:50PM
                                          • "The world's top 40 mining companies – including Australian giants BHP Billiton, Fortescue Metals, Newcrest Mining and Rio Tinto – have seen profits by plunge by a staggering 72 per cent in the last 12 months to $20 billion"

                                            Housing boom!

                                            Commenter
                                            Allan
                                            Location
                                            Prahran
                                            Date and time
                                            June 05, 2014, 9:26AM
                                            • I wonder what their profits were like in the 10 years before this though?

                                              That's mining though. Riding the highs and the lows of commodity prices.

                                              Commenter
                                              SI
                                              Date and time
                                              June 05, 2014, 9:57AM
                                            • Most fundamentals in Australian economy going gangbusters. Great cherry picking, as usual.

                                              Commenter
                                              alto
                                              Date and time
                                              June 05, 2014, 11:34AM
                                            • Which fundamentals? GDP growth per capita near zero perhaps?

                                              Commenter
                                              Allan
                                              Location
                                              Prahran
                                              Date and time
                                              June 05, 2014, 12:55PM
                                          • $5b is the cost per annum of Sydney's traffic says Patricia Forsythe of the Sydney Business Chamber....You'd think it would be a massive priority to fix it.

                                            Almost all the fixes cost nothing. It's nothing but contempt for constituents and incompetence.

                                            Commenter
                                            JohnBB
                                            Date and time
                                            June 05, 2014, 9:25AM
                                            • Yes. 500000 more people coming to Australia each year should do the trick

                                              Commenter
                                              Buff
                                              Location
                                              Sydney
                                              Date and time
                                              June 05, 2014, 9:52AM
                                            • The fixes are so simple yet Duncan Gay says there's no easy solution...They've given up...I identified one yesterday that causes immense congestion for the sake of moving a bus stop 100m.

                                              Why aren't state mp's telling fed to stop populating unless you help fix the congestion?

                                              Commenter
                                              JohnBB
                                              Date and time
                                              June 05, 2014, 10:41AM
                                            • This mornings mess in the harbour tunnel would have cost $1billion of that $5billion.....

                                              Commenter
                                              confused
                                              Date and time
                                              June 05, 2014, 12:16PM
                                            • @confused...Exactly how does a driver deemed "competent" roll a car on a straight road where there's speed cameras?

                                              Commenter
                                              JohnBB
                                              Date and time
                                              June 05, 2014, 1:08PM
                                            • @JohnBB - agreed. Amazing feat. The bigger issue is that this is not the only moron on the road, but all it takes is one to bring the entire city to a standstill for 3 hours. Happens every single time there is an event in the tunnel or on the bridge. The traffic gets completely gridlocked when the original event should really only affect a small area.

                                              Commenter
                                              confused
                                              Date and time
                                              June 05, 2014, 1:59PM
                                          Comments are now closed