Tuesday, September 18, 2018

House prices in Sydney and Melbourne could 'fall by 40 per cent' - posing a huge risk to Australians living beyond their means with massive mortgages

This is utter rubbish. Even at the height of the 2008 financial crisis, Australian house prices declined only a little and they soon bounced back. And a big change would elicit corrective Federal monetary policy anyway. 

And there is a complete lack of logic in the warning to existing mortgagors.  If they can or cannot already afford their payments, how is a price crash of the asset going to make them more or less able to afford them?

Australians who are enjoying lifestyles beyond their means could soon find themselves in the red as housing prices plummet by 'as much as 40 per cent', according to a leading market analyst.

The drop will see housing prices in Sydney and Melbourne decrease as banks tighten lending restrictions and end low-interest loans.

In the past 10 years, many first-time buyers were able to snap up their dream homes with the help of generous mortgage loans from banks.

Now, bright-eyed investors who purchased properties outside of their financial means have helped trigger the housing market plunge. 

Leading property analyst Louis Christopher told 60 Minutes Sydney and Melbourne were both long overdue for a drastic 'correction' in house prices.

'On our numbers, Sydney was effectively over 40 per cent overvalued and Melbourne was overvalued by the same amount,' Mr Christopher said.

Taking to social media after the program aired, Mr Christopher said the risks faced by Sydney and Melbourne were 'not as present in our other cities'.

'Of course a  scenario where those two cities are having a major correction would be damaging for the greater economy,' he added.

Data scientist Martin North agreed, saying he believed Australia was facing a 'debt bomb' similar to the United States in 2006 before its market crashed, sparking the global financial crisis.

'We are uniquely exposed, because as a society and as a government and as a regulatory system - we're all banking on the home price engine to just (keep) giving and giving - but it's not going to,' Mr North said.

'We've got a debt bomb, we've got a debt crisis, and at some point it's going to explode in our face.'

There are now concerns housing prices in Sydney and Melbourne could plummet to almost half their former asking price, with optimistic analysts predicting a fall of at least 10 per cent to 15 per cent. 

Some homeowners have been advised to 'get out while they can' and not sit on their property. 'The ones that can't afford to sit should effectively sell - get out while you can,' leading liquidator, Jamieson Louttit said. 'I think the banks are going to cover their own a*se.'


Ruling Australian conservative party has been taken over by climate denialists, says Labor party leader

If only it were true.  There is a great deal of skepticism among Federal conservatives but it has not yet become formal policy

Bill Shorten has confirmed Labor is prepared to adopt the government’s junked national energy guarantee if it wins power, as he declared the Liberal Party had been taken over by “climate denialists”.

The Opposition Leader said the framework of the NEG could be used by a future Labor government to create a policy that would lower carbon emissions.

“The government did some work on this national energy guarantee and we are prepared to use that as part of our framework going forward. That’s not our final position, I hasten to add, and we’ll have consultation and discussion with my colleagues,” Mr Shorten told the ABC.

“I think that people are sick and tired of the climate change wars. The climate denialists for all intents and purposes, like Tony Abbott, have taken over the Liberal Party. They didn’t want the clean energy target. They didn’t want an emissions trading scheme.

“The real issue here is that we’ve now got a climate denialist party in power, and the only policy they can do now they’ve rejected the national energy guarantee is one that will drive up power prices and do nothing to encourage more renewables.

“So I’m hoping to work with the sensible part of the Liberal Party, with industry, with environmentalists, and we’ll come up with a framework which will look a lot like, I hope, parts of the national energy guarantee and, of course, we want to see lower prices and more renewables.”

“It just led to a loss of jobs, higher prices and greater unreliability and a lack of investment,” he said.

Mr Shorten failed to endorse his energy spokesman, Mark Butler, who said he did not support the Adani coal mine.

“I think that that is essentially Mark’s judgment, that he doesn’t think it is going to happen and he doesn’t support it. I think that a lot of people feel that way. Our policy is that we won’t put a single taxpayer dollar into the project. There’s a lot of scepticism if the project is ever going to happen,” he said.


Australian University graduates increasingly accepting jobs which require only a year 12 education

University graduates are increasingly accepting jobs which require only a year 12 education, with graduates in law, IT and engineering less likely to use their qualifications.

As detailed in the Herald Sun, a Grattan Institute report found graduates in the fields of science and commerce particularly are failing to gain work that makes use of their degrees.

Andrew Norton, Higher Education Program Director at the Grattan Institute, told Ross and John there are a number of reasons why this has started occurring.

“We increase the number of university students, then we had two downturns, global financial crisis, the end of the mining boom, and that meant the number of jobs declined for a while,” Andrew said.

“People have to be aware of the risks of certain courses, commerce and science, that are easy to get into, some of those people should probably just do something else instead.

“A lot of people do a degree, they don’t get a job that matches that degree but it does give them substantial insurance to having no job at all, so it’s not a complete waste of time.”

“Just a fantastic description of a university degree,” Ross said. “Quote, ‘Not a complete waste of time’.”


Nigel Farage attacks political correctness, the ABC and Left in rousing Sydney speech

British politician Nigel Farage has told a convivial Sydney audience they are living in the “most exciting political time” in decades, no matter how much the Left refute it.

Speaking at Doltone House, in the inner-city Sydney suburb of Pyrmont on Thursday night, Mr Farage told the audience of 1200 that Brexit had marked the beginning of a global political revolution.

“We are living through the most exciting political times we have seen in decades,” Mr Farage said. “It doesn’t matter how much protesters scream, it doesn’t alter how much negativity we get from the state-sponsored peasants. Are you here, ABC?”

The co-founder and former leader of the UK Independence Party (UKIP), who was a driving force behind Britain’s vote to leave the European Union, told the audience: “We are now living through a global political revolution, and we the people will bring down the Establishment.”

The controversial politician, who is in Sydney as part of a week-long speaking tour of Australia and New Zealand, was met by an energetic round of applause at several points during his speech. Many in the audience gave the British MP a standing ovation as he took his position on centre stage.

Throughout his talk Mr Farage discussed issues such as Brexit, populism, immigration and political correctness.

“I’m not going to bow down to political correctness or be told I can’t do this or can’t do that,” Mr Farage said. “We need politicians to reflect the same values and, you know what, the same flaws we have too.”

Mr Farage also lamented the leadership of former British prime minister Margaret Thatcher, and said in comparison many modern leaders were “as dull as dishwater” and “so politically correct they’re too scared to say what they think.”

At one point Mr Farage joked that despite “current political turmoil across Europe”, “things were arguably even worse” in Australia.

He warned that if the Liberal Party, which recently ousted Malcolm Turnbull as Prime Minister in favour of Scott Morrison, didn’t “sort itself out” Australia would experience “real, radical change too”.

He later said he was struck by the disconnect between Canberra’s politicians and the Australian people, and hoped Brexit would give Britain the chance to reconnect with their “real friend,” Australia.

He said despite being unpopular with many British politicians “riding the gravy train”, YouTube had cemented his support base. He said he shared US President Donald Trump’s view that Twitter was the future.

Some members of the audience called “lock her up” in reference to Hillary Clinton when Mr Farage discussed a Mississippi speech he gave in favour of Mr Trump prior to the 2016 US presidential election.

“I’m the only human in the world who was involved in the campaign for Brexit and in the election of Donald Trump,” Mr Farage said. “I’m pretty proud of that.”

Mr Farage said he became disillusioned with British prime ministers after Margaret Thatcher’s leadership.

“I thought the hell with open door immigration, the hell with being ashamed of being patriotic, I’m going to stand up and fight them, that’s how I got involved with politics,” Mr Farage said to cheers from the audience.

There was a large police presence outside the venue but unlike events in Perth and Auckland, the Sydney show didn’t draw any protesters.

During a question and answer session run by tour promoter and publisher of porno mag Penthouse, Damien Costas, Mr Farage nursed a glass of red wine in his hand as he criticised the “baying mobs” for obstructing his event.

“They want to shut down free speech,” Mr Farage said. “They’re not just undemocratic they’re anti-democratic and it’s a monstrous thing to see in a free society. It’s wrong, wrong, wrong.”

“In Perth they were blaming me for all that has gone wrong with the aborigines, what the hell has that got to do with me?”

When asked by a man wearing a red “Make America Great Again” cap what kind of future ethnically British people could expect in England due to an influx of non-white migrants, Mr Farage said it wasn’t a case of “Black v White.”

He said that while immigration in Britain had blown out of control, only “a few cultural groups” and terrorists were trying to destroy the British way of life.

He said many immigrants had successfully integrated into British society and adopted British values. “It’s not about people’s skin colour it’s about who they are how they feel,” Mr Farage said.


Posted by John J. Ray (M.A.; Ph.D.).    For a daily critique of Leftist activities,  see DISSECTING LEFTISM.  To keep up with attacks on free speech see Tongue Tied. Also, don't forget your daily roundup  of pro-environment but anti-Greenie  news and commentary at GREENIE WATCH .  Email me  here

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