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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (117456)	3/28/2016 8:59:30 AM
From: John Pitera	Respond to of 217737

In Australia, 3 or 4 years ago in Sydney the Government put in rules that non citizens could only purchase new construction and not existing homes as a measure to tamp down the huge explosion in Real estate prices. Australia has such a small population and so many people are eager to get in that it keeps upward pressure on housing prices. In the 1980's when I lived in Sydney for 4 years there was a flood of money coming in from Hong Kong due to concerns regarding what communist China might due to Hong Kong when the British handed the area back to the Chinese in 1998. Back then a foreigner could get into the country if he had something like at least 2 million dollars and stated that they would create a company that would employ Australian's here's one article on how the property bubble in ozzie real estate has never deflated in the past 40 years smartcompany.com.au -------------------------- here is the key part of this article in my opinion.... the big Australian banks are very very leveraged. Westpac, ANZ, CommonWealth Bank, and National Australia Bank..... prior to the opening of the Australian banking system to foreign banks in 1985 (when they also floated the AUD) those were the only banks.... outside of the US equivalent of Savings and Loan banks... in Australia the shops like St. George Building Association. wsws.org t Australia’s big four banks have grown fat on the back of home lending. They are in the top 25 banks globally by market capitalisation. They are also among the most leveraged. From 1880 to 1940, Australia’s major banks had equity and retained earnings of 15 to 25 percent of their assets, *but today they have little more than 5 percent.* This week, Reserve Bank of Australia (RBA) deputy governor Philip Lowe sought to hose down fears of a housing bubble but admitted that the rapid surge in house prices was starting to slow. In a speech to the Urban Development Institute, Lowe insisted that the central bank had “a high degree of confidence that the Australian banking system is resilient to house price fluctuations.” An RBA report last year argued that wealthiest 40 percent of households hold 80 percent of the mortgage debt and most could survive a 25 percent fall in house prices. This only proves that it is the richest layers of society that have benefited from the housing boom, at the expense of working class people unable to buy homes. In any crash, however, as in the US, it would be the poorest and most vulnerable households that would lose their jobs and homes. The author also recommends: Global volatility triggers concerns about Australian banks [20 February 2016]