Australian (ASX) Stock Market Forum

The state of the economy at the street level

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sptrawler said:
Australia needs a reset, they have been steered way too far off line, we as a Country are wandering around in the intellectual wilderness, still being led by ideological BS.
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I think what we're seeing there is that recessions are a necessary part of the economic cycle and this is what happens if we go so long without one. All sorts of inefficiencies and silly things become entrenched.

Meanwhile:

https://www.theage.com.au/business/...stores-as-profit-plunges-20190829-p52m49.html

It's behind a paywall but just reading the words in the link gives you the basics of it.

There's a pattern here - Big W, Target, Myer, David Jones - big retailers at all price points are struggling as are airlines and other things which depend on discretionary consumer or business spending. :2twocents
 
Thankfully it is only the talking heads that are believing all the BS, mainstream is still well grounded, as the last election showed.IMO

The reality is most 'normal' Australians are working in a parallel universe to the media IMO, I know most of the people in my immediate circle are working to a plan and it is nothing like what morning T.V talks about.
Be that regard housing, schooling, investing, relationships just about everything, most I know have an end game and are focusing on it.
There is a huge lack of confidence, in Australia's social and economic direction IMO and it will take some time to settle everyone down.
The last election, put a huge strain on people's underlying trust in their aspirations ever being met, they could see how everything is dependent on the stroke of a pen.
The other thing it did, was put back the Republic debate a generation.
Just my opinion.
 
Smurf1976 said:
I think what we're seeing there is that recessions are a necessary part of the economic cycle and this is what happens if we go so long without one. All sorts of inefficiencies and silly things become entrenched.

Meanwhile:

https://www.theage.com.au/business/...stores-as-profit-plunges-20190829-p52m49.html

It's behind a paywall but just reading the words in the link gives you the basics of it.

There's a pattern here - Big W, Target, Myer, David Jones - big retailers at all price points are struggling as are airlines and other things which depend on discretionary consumer or business spending. :2twocents
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I think the other thing that is happening is society is changing, it is being brought about by technology and things like social media.
30 years ago, it was really something to have a classy car, or wear up market clothing, serve afternoon tea in Royal Doulton china and sit in a chesterfield.
Now the car means jack $hit, they buy clothes that are already ripped and pay extra for it, they drink maccas coffee and sit on anything that can be put out on the next verge pick up, then replaced.
So David Jones, is trying to compete with the undertaker, for customers.
Big W and the rest are competing with ebay.
Just my opinion.
 
sptrawler said:
I think the other thing that is happening is society is changing, it is being brought about by technology and things like social media.
30 years ago, it was really something to have a classy car, or wear up market clothing, serve afternoon tea in Royal Doulton china and sit in a chesterfield.
Now the car means jack $hit, they buy clothes that are already ripped and pay extra for it, they drink maccas coffee and sit on anything that can be put out on the next verge pick up, then replaced.
So David Jones, is trying to compete with the undertaker, for customers.
Big W and the rest are competing with ebay.
Just my opinion.
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The "throwaway society". IMV we are going rapidly backwards and these consequences are becoming starkly clearer. I can see many issues coming to a head.
1) Wages are stagnating. In fact households now need two fulltime well paid wage earners to stay on top of costs of living. Is this realistic ?

2) The soaring cost of housing is crippling people now and into the future. There are now many , many people in their 50-60's still owing a bomb on their home. How will they survive in retirement? Let alone of course the younger people either unable to buy a home or in a dangerous debt position in doing so.

3) The upcoming revolution in AI will destroy thousands of jobs. So how will people make a living ?

4) The consequences of Global warming are coming home. Widespread fires, floods extreme weather, droughts are taxing communities and causing widespread loses of housing and infrastructure. Insurance companies are now uping premiums dramatically and refusing to insure whole areas.

5) There are very dangerous areas of shoddy construction appearing across our country. We are recognising that many of the apartment blocks built and sold in the last 10-20 have expensive problems. Who will pay for these repairs ? Who will lose their shirt ?
 
basilio said:
There are very dangerous areas of shoddy construction appearing across our country. We are recognising that many of the apartment blocks built and sold in the last 10-20 have expensive problems. Who will pay for these repairs ? Who will lose their shirt ?
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If the problem only affected apartment blocks then I'd have far less reason for concern....... ;)
 
sptrawler said:
they are just factories that push through anything that pays.
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Agreed. I finished a masters degree in 2014 and noted that every class had a predilection for group assignments. As the token Australian, I took the job of english-checking the final reports because I'll be damned if I'm letting the grade slip because nobody could put the language down on paper to a standard acceptable of post-grad education.
 
So far as retail is concerned, there's a few who really need to get their minds around the concept of making it easy for customers to spend their money.

Just tried to buy something online from an Australian supplier. It's a one off purchase but in order to buy it they need me to open an account. :banghead:

OK then, bought one from the UK instead for $10 less (delivered) and no account needed. Exact same branded product in both cases.

Because in 2019 no, I really don't want yet another account with yet another password to try and remember when it's completely unnecessary for a one off purchase and nothing more than a nuisance.

Surely one of the most basic things in business is to make it easy for customers to hand you their money. :2twocents
 
Smurf1976 said:
Surely one of the most basic things in business is to make it easy for customers to hand you their money. :2twocents
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As a customer ...my dear wife does not have any problem. No matter how hard businesses make it for you to spend.:(

Good point though Smurf. I am looking to sell a few things on the net and will keep that in mind..
probably just use ebay or gumtree.
 
Smurf1976 said:
So far as retail is concerned, there's a few who really need to get their minds around the concept of making it easy for customers to spend their money.

Just tried to buy something online from an Australian supplier. It's a one off purchase but in order to buy it they need me to open an account. :banghead:

OK then, bought one from the UK instead for $10 less (delivered) and no account needed. Exact same branded product in both cases.

Because in 2019 no, I really don't want yet another account with yet another password to try and remember when it's completely unnecessary for a one off purchase and nothing more than a nuisance.

Surely one of the most basic things in business is to make it easy for customers to hand you their money. :2twocents
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The other thing I hate is when I run a search for a particular product, it locates the website showing the product, I click on the website and it takes me to a list of Every bl##dy product they sell.

Too hard, just click on the next one, straight to what I searched for, buy it, done !
 
jbocker said:
I am looking to sell a few things on the net and will keep that in mind..
probably just use ebay or gumtree.
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If it's a business then "check out as a guest" is no problem. Choose the items, input address details, pay and you're done.

I do see that the economy isn't going great but on the other hand, something's rather odd when it's easier to buy "off the shelf" items from the other side of the world than to buy them from someone local. :2twocents
 
Smurf1976 said:
If it's a business then "check out as a guest" is no problem. Choose the items, input address details, pay and you're done.

I do see that the economy isn't going great but on the other hand, something's rather odd when it's easier to buy "off the shelf" items from the other side of the world than to buy them from someone local. :2twocents
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Local businesses probably think that they have got a better chance of repeat sales if they already have you signed up. They don't know if you are a one off.
 
SirRumpole said:
Local businesses probably think that they have got a better chance of repeat sales if they already have you signed up. They don't know if you are a one off.
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When I had my business the first thing I did was supply the requested goods asap, that way I had the sale in the till. I regularly used to mentally place myself in my customers shoes and look at my business with a critical eye.

Quick, friendly service with a smile will bring most people back and in time you find out all you need to know

I am quite sure that many people never actually test run their own website, some sites are atrocious and are quite difficult to spend money with.

I know that when I browse a site, if it works well I am far more likely to buy there rather than a clunky site that simply does not work efficiently.
 
From a W.A perspective, things seemed to have turned, nothing dramatic but houses that have been on the market 2-3 years are sold or under offer. It has happened in the last couple of months, time will tell but it does feel like it isn't getting worse any more.
Just my opinion.
 
sptrawler said:
From a W.A perspective, things seemed to have turned, nothing dramatic but houses that have been on the market 2-3 years are sold or under offer. It has happened in the last couple of months, time will tell but it does feel like it isn't getting worse any more.
Just my opinion.
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I hear reports of the same thing happening in Melbourne. That's what I've been told at least. :2twocents
 
Nice find @qldfrog

But I can't see this improving any time soon... not while some people still say Aussie wages are too high or workers are too greedy. So this "household recession" will get worse before it gets better, or until we blow up the corporatocracy :)
 

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