The state of the economy at the street level

[basilio]

There is a building disaster unfolding in West Australia at the moment that will affect many thousands of home owners as well as banks. 12,000 recently built homes have serious defects in their plumbing which will have to be replaced. It seems this will also affect another 15,000 buildings on the East Coast

Earlier this year, Fletcher revealed that there were complaints about a pipe it previously manufactured under its Iplex Australia brand. About 30,000 of these pipes were sold and installed in new homes, around half on the east coast and half in WA.

Builder and manufacturer trade blows as pipes burst in newly built homes across Perth​

ABC Radio Perth
/ By Emma Wynne
Posted 4h ago4 hours ago, updated 3h ago3 hours ago

Homes need extensive work to replace the pipes after they burst.(Supplied: Ashley Rozze)
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Major Perth builder BGC is pleading with homeowners affected by bursting pipes not to start legal action as the company grapples with almost seven burst pipe reports a day.

The issue, which first came to light last year, involves a particular polybutylene water pipe manufactured by Iplex, and installed by BGC in almost 12,000 new homes constructed between 2017 and 2022.

Homeowners first began reporting burst pipes and extensive water damage in their kitchens and bathrooms in 2020.

Sam Gray, general manager of strategy and commercial at BGC, told Nadia Mitsopoulos on ABC Radio Perth the company had used Iplex pipes for 20 years, but in 2017 the pipes were changed.

Key points:​

• Pipes in newly-built Perth homes are bursting at a rate of almost seven per day
• Major WA builder BGC says pipes may have to be replaced in almost 12,000 homes in WA
• BGC says the manufacturer of the pipes is at fault, maker blames faulty installation

Builder and manufacturer trade blows as pipes burst in newly built homes across Perth

Major Perth builder BGC is pleading with homeowners affected by bursting pipes not to start legal action as the company grapples with almost seven burst pipe reports a day.

www.abc.net.au

 

[basilio]

There is a more detailed story in the West Australian. It goes into more detail on the ramifications acros Austrealia.

Blame game: BGC braces for $700 million plumbing bill over deluge of faulty pipes

Iplex says its own investigation points to installation as the cause of the burst pipes while construction giant BGC says it is struggling to respond to 46 leaks a week.

www.watoday.com.au

 

[basilio]

This Polybutelene piping issue is a well known disaster that has already had huge impacts in the US. The question is

"Which Fletcher executive did the due diligence on the history of this product ?" Because if they had this is what they would have found.

How to Identify Polybutylene Pipes, Lawsuits, & Replacement​

How to Identify Polybutylene Pipes, Lawsuits, & Replacement

From the 1970s to 1990s home builders used polybutyelene pipes. Discover how to identy PB pipes and what to do about them if you have them in your home.

moderncastle.com

 

[Smurf1976]

Had a discussion with a refrigeration mechanic on Thursday.

In short, work's fairly busy at the moment despite them expecting it wouldn't be. Reason being there was a huge rush on air-conditioning installation during the pandemic so they'd expected a slowdown but it hasn't happened yet.

Then they had a rant about politics which I didn't prompt for the record.

 

[mullokintyre]

Had a discussion with a refrigeration mechanic on Thursday.

In short, work's fairly busy at the moment despite them expecting it wouldn't be. Reason being there was a huge rush on air-conditioning installation during the pandemic so they'd expected a slowdown but it hasn't happened yet.

Then they had a rant about politics which I didn't prompt for the record.

Similar to me.
Had a dishwashing tech visitvafter waiting two weeks.
Says he is run off his feet. Cannot get workers at any price, wants to retire by the time he is 70 next year but no one is interested in taking over.
Will just close down business.
mick

 

[basilio]

The Poly B pipe issue has been reported earlier in Darwin. Exactly the same story.

'It was raining inside': Plumbing pipe leaks causing ceilings to collapse

A pipe which stopped being sold in the US almost 30 years ago is failing in some Top End homes, leading experts to call for an update to Australia's plumbing codes.

www.abc.net.au

 

[basilio]

One of the things that struck me in the original story was the 6 months repair time, huge cost and extensive internal damage. Now the US had a mammoth problem with PolyB pipes in the 1980's/1990's. Mass repairs required. How did they do that ?

I came across this US company which seems to have got it down pat. Well worth a checkout particularly if you are a tradie.

Better Plumbing - polybutylene plumbing, poly repipe & plumbing supplies.

Information central on polybutylene, repipe and plumbing supplies for plumbers, homeowners and real estate professionals.

polybutylene.com

 

[mullokintyre]

Meanwhile, back in the real world where people live and eat.



Edited : HEM is the Household Expenditure Measure.
Mick

 

[divs4ever]

Meanwhile, back in the real world where people live and eat.


View attachment 164000
Edited : HEM is the Household Expenditure Measure.
Mick

every time they ring up to sell me private health insurance , as soon as i tell them i am on a disability pension ... they hang up

( and i don't have any school age children either )

just as well i never get to the phone in time to answer surveys ( or they would be jacking rates higher )

 

[basilio]

This analysis of global financial markets is very sobering. I have pasted the last part in full

Why global financial markets are walking a tightrope​

Pain points​

There's an old saying in banking: Owe the bank a million dollars and can't pay? You're in trouble. But owe the bank a billion dollars and can't repay, and the bank is in trouble.

Souring loans are a disaster for those who can no longer meet repayments. But when enough small borrowers or coterie of very large borrowers can't repay, that can quickly turn into a crisis, as we witnessed back in 2008.

It's not just households in a world of pain. Governments and corporations across the globe have borrowed heavily in recent decades as interest rates plummeted.

Long after the GFC, the European debt crisis threatened to reignite the flames and the underlying issues have never gone away.

Italy, Greece, France and Ireland all carry heavy debts, the repayments on which have spiralled. Then there is Japan and China. While a large part of their debts are domestic, China's economy in particular is in deep distress with a property market meltdown in full swing and little appetite from Beijing for further debt driven stimulus.
https://www.abc.net.au/news/2023-10...nturn-evergrande-australian-economy/102953810
And don't even mention places like Venezuela, Sudan or Lebanon.

But some of the biggest problems lie with the banks themselves, particularly in the US.

Many of them hold US government debt as assets. Until early this year, this was considered the safest asset of all, the safe harbour to which everyone gravitates when times are uncertain, such as now.

The only problem is that the capital value of those debt securities, the US government bonds, has plummeted as interest rates have risen. But the commercial banks holding those bonds haven't marked them down to market value. They're all still carrying them in the books, valued at the purchase price.

It only becomes an issue if credit dries up, or customers demand their deposits returned.

Why global financial markets are walking a tightrope

Even before the Middle East tragedy, the sudden shift in interest rates had begun to expose serious problems in the global economy. That's now suddenly escalated, writes business editor Ian Verrender.

www.abc.net.au

 

[Dona Ferentes]

nothing like an anecdote.

In Woolworth’s Big W chain, where sales were down 5.5 per cent in the first quarter, the toy department provides a good example of how consumers are thinking.

Big-ticket items, such as large Lego sets, are out, while smaller treats are in. CEO Brad Banducci revealed the chain sold a remarkable 680,000 toy Hot Wheels cars in the September quarter; at $2 each, or five for $9, this is a gift still within reach.

 

[farmerge]

nothing like an anecdote.

In Woolworth’s Big W chain, where sales were down 5.5 per cent in the first quarter, the toy department provides a good example of how consumers are thinking.

Big-ticket items, such as large Lego sets, are out, while smaller treats are in. CEO Brad Banducci revealed the chain sold a remarkable 680,000 toy Hot Wheels cars in the September quarter; at $2 each, or five for $9, this is a gift still within reach.

hello the boffins at the top of the tree are waking up. Not everyone is flush with spare coin.

 

[moXJO]

People are burning through their savings. The crunch won't be pretty

 

[wayneL]

People are burning through their savings. The crunch won't be pretty

This is also the only explanation I can come up with for the rampant spending I'm seeing.

 

[farmerge]

This is also the only explanation I can come up with for the rampant spending I'm seeing.

Not to sure about rampant spending with the people I deal with, though they are certainly forking out mega bucks on fencing this year. Perhaps a different type of animal, spending it because they have and they can.

 

[divs4ever]

People are burning through their savings. The crunch won't be pretty

is that a bad thing ( if they are spending wisely )

cash sitting in banks under the threat of bail-in ' moves and ever confounding of 'acceptable customers policies of some banks maybe some customers are calmly de-banking themselves ( high real inflation rates would accelerate that decision , 'spend now while it still buys something '

the crunch will be when a large amount of the world economy that relies on consumer-driven nations meets a consumer shutdown ( because they have all they need for say three years stock-piled in the pantry/spare-room )

 

[divs4ever]

THE GOVERNMENT IS NOT BEING HONEST ABOUT INFLATION​

 

[mullokintyre]

Meanwhile, back at street level where the middle class live ..



Obviously demand has dropped off, but that does not always create a fall in inflation.
Time will tell.

Mick

 

[over9k]

Consumer goods, not experiences.

Spending on experiences/services is still high.

 

[investtrader]

I'm going to rename this thread to "Kill me now".