That's where we find ourselves; hocked to the eyeballs with no obvious way out. Wages growth has slumped and savings have depleted.
Mortgage delinquencies are on the rise, house prices are still tumbling and borrowers are falling into the quicksand of negative equity in their property. It's bad.If it's temporary, and you can keep paying the mortgage, that's not a problem. But an extended price decline hits a growing number of homeowners and if the economy sours and firms start laying off indebted workers, the banks and the financial system take a hit..
That immediately changed housing market sentiment. But the spruikers predicting another property boom may have some time to wait. It's more likely the market bottom will be reached sooner and not be quite so severe. But prices still have some way to fall.No-one is mentioning the 'R word' quite yet. But the run of bleak news on our economy has been unrelenting of late, on almost every key measure. In fact, it's extraordinary no-one made much of a fuss about it during the election.
...rates can go all the way to zero and then negative... no one has a clue how it will pan out
Not with these idiots at the helm, another Venice around the corner. Say goodbye to our AAA rating and here come the recession we DIDN’T have to have.
The chickens are coming home to roost.
Not under this government. Expect a 2014 style budget with deep cuts to services, education, science and the ABC to give tax cuts to companies. Of course, it'll be all Labor's fault for not winning the election, or for cushioning us from the GFC.
No, not a chance.
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