Goldman declares war on Obama

[mawilson 2,133]

Are you speaking from experience or are you saying it's a good thing that people in various states can simply walk away from their mortgage, without any repercussions.

It's definitely a good thing for the people, not so for the banks.

[w¡n9Nµ7 §£@¥€r 123]

Speaking of the Australian property bubble, it's not looking good.

It's looking more and more like the US property bubble before the crash. Probably a good time to invest in Australian credit default swaps...

Boo Yah will try to put you to death for saying that. Lucky for you, he's a nobody.

[Ali G. 37]

Speaking of the Australian property bubble, it's not looking good.

It's looking more and more like the US property bubble before the crash. Probably a good time to invest in Australian credit default swaps...

Too bad their house prices are going up for different reasons.

[w¡n9Nµ7 §£@¥€r 123]

Too bad their house prices are going up for different reasons.

Are you the Aussie Larry Yun?

[Ali G. 37]

Boo Yah will try to put you to death for saying that. Lucky for you, he's a nobody.

Unlike you of course. The hotshot Indian IT worker in town; who lives, sleeps and breathes on these forums. Dude, you weren't a challenge when you had 20 friends backing you on here, what makes you think you are a challenge now?

[w¡n9Nµ7 §£@¥€r 123]

Unlike you of course.

I don't go around threatening to put people to death. I know I'm a nobody. You continue to suffer from the delusion that you are not.

[Ali G. 37]

Are you the Aussie Larry Yun?

No, just a hell of a lot wealthier, better educated and after looking at this photo (Thanks ____) better looking than you.

[w¡n9Nµ7 §£@¥€r 123]

No, just a hell of a lot wealthier, better educated and after looking at this photo (Thanks ____) better looking than you.

It's easy being wealthier, better educated and better looking than me. Do you always set such low bars for yourself?

[Ali G. 37]

I don't go around threatening to put people to death. I know I'm a nobody. You continue to suffer from the delusion that you are not.

Hypothetical laws akin to those in China are hardly the equivalent of advocating for everyone's death.

It's easy being wealthier, better educated and better looking than me. Do you always set such low bars for yourself?

I have to, when dealing with you.

Edited April 19, 2010 by Ali G.

[mawilson 2,133]

Too bad their house prices are going up for different reasons.

Doesn't matter why they are going up, a bubble's a bubble.

Australia has one of the world's highest rates of household debt which it makes

it more vulnerable to rate increases. Unlike American mortgages (which are

mostly fixed-rate loans), Australian homeowners tend to borrow at floating rates.

A rate increase may very well cause the country to follow the US and Britain

into a downward spiral of defaults and foreclosures.

[w¡n9Nµ7 §£@¥€r 123]

A rate increase may very well cause the country to follow the US and Britain into a downward spiral of defaults and foreclosures.

If anyone tried to raise rates, Boo Yah will show up at their house with a sawed off shotgun.

[mawilson 2,133]

If anyone tried to raise rates, Boo Yah will show up at their house with a sawed off shotgun.

Yet the Reserve Bank of Australia did just that, claiming that Australian house

prices were "getting too high" and that it was important to return interest rates

to "normal levels". It was a very close call.

[Ali G. 37]

Doesn't matter why they are going up, a bubble's a bubble.

Australia has one of the world's highest rates of household debt which it makes

it more vulnerable to rate increases. Unlike American mortgages (which are

mostly fixed-rate loans), Australian homeowners tend to borrow at floating rates.

A rate increase may very well cause the country to follow the US and Britain

into a downward spiral of defaults and foreclosures.

Australia's debt-to-GDP is one of the lowest in the world. The federal government currently has about a ~$16 billion deficit and that is after about eight years of budget surpluses.

Australia's interest rate is currently at 4.25%. I actually receive about a 7% by simply parking my money into various Australian banks. Evidently, as are numerous wealthy Asian investors.

Irrespective or property prices, Australia also has a massive shortage of houses; hence the high prices. Something that was not the case for the US boom (bubble).

Lets not even mention that they are on a drive to parity with the US dollar. The reality is that much like Canada, Australia has enough resources to sit on its azz for the next 200 years and simply mine them for China. It's why my cousin is still earning well over $250K for working at one of BHP's mines. All expenses paid for might I add.

Edited April 19, 2010 by Ali G.

[mawilson 2,133]

Australian household wealth has undoubtedly increased in recent years,

but their debt levels have increased more. Home prices are severely

unaffordable. Mortgage rates are already too high and the RBA can't

raise them any more without causing a crash. It's not looking good....

[Ali G. 37]

Australian household wealth has undoubtedly increased in recent years,

but their debt levels have increased more. Home prices are severely

unaffordable. Mortgage rates are already too high and the RBA can't

raise them any more without causing a crash. It's not looking good....

Agreed. For someone to start from scratch there, it's going to be very tough. They are going to have to increases rates even more, otherwise, can you imagine the growth once the global economy comes back again? By increasing rates though, even more money will be pumped into the Australian economy. Anyone with half a brain would borrow money from here or Japan, with record low rates, and simply sit it in banks in AUS.

Edited April 19, 2010 by Ali G.