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The state of the economy at the street level

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https://amp.smh.com.au/politics/fed...-rather-than-spending-up-20191111-p539ee.html

Are these your friends
 
Humid said:
https://amp.smh.com.au/politics/fed...-rather-than-spending-up-20191111-p539ee.html

Are these your friends
Click to expand...
Thats interesting humid, my son is an underground sparky and his wife works, they are rattling down their loans asap, so are the two daughters. The guy over the road has three married daughters and he reckons theyve had a wake up call and are doing the same. The same goes talking to the 5-10 blokes that attend the golf day, who knows they may not be representitive of the general public.
The other thing of course could be, they are paying off other debt than the mortgage, which would be the sensible thing to do.
 
Although paying down debt is good personally it is not good for the system, they need debt to keep on expanding for economic growth and to service the interest. Else someone has to go bankrupt.

The RBA can lower interest rates to negative but they cant change if someone is credit worthy or peoples attitude to debt.
 
sptrawler said:
The other thing of course could be, they are paying off other debt than the mortgage, which would be the sensible thing to do.
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Agreed. Paying down mortgages first while credit cards are still at 19% and personal loans around 7+% would be crazy.

I also agree that a lot of younger people are much smarter about money that I was at their age. My two are both considering buying a house or unit. They do spreadsheets, read extensively and seek (pay-as-you-go) professional advice (including legals re defacto partnerships and splits). One is considering an investment property somewhere where house prices are lower and better transport infrastructure is planned or underway. They also both know how much super they have and how it is performing. Jeez, I was struggling with basic impulse control at their stage of life.
 
Sounds like what my son tells me, he says the latest group of workers coming through the mining industry, are far more switched on than those 10 years ago.
So maybe the current 24/7 doom and gloom media is having an effect and causing the young to be a tad more carefull.
 
sptrawler said:
The guy over the road has three married daughters and he reckons theyve had a wake up call
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I've heard much the same but it's a bit broader than that.

In short there's a general caution about the future and it applies to not only the economy as such but to the actions of government.

In particular, there's a distrust in superannuation now - people would prefer to have the money in their hands and invest it outside that system rather than within it despite incurring higher taxes for doing so. Reason = they don't trust the future actions of governments of either persuasion indeed they've lost confidence in government as such.

In short - people have concluded it's up to them to do it themselves so that's what they're doing.
 
Always negative, maybe right one day.

Australia and a lot of other economies will just muddle along.

I MO the closing of the car industry and ASIC/APRA over regulation will stand out in our country's history.
 
bull****
Toyota Lexcen said:
Always negative, maybe right one day.

Australia and a lot of other economies will just muddle along.

I MO the closing of the car industry and ASIC/APRA over regulation will stand out in our country's history.
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The car industry was f--ld, no focus on singular product development, APRA/ASIC what did you want them to do, nothing? Provide a solution or at least an answer or a question other than the old, weak comment of someone/organisation didn't do something in hindsight.
 
satanoperca said:
The car industry was f--ld
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The proverbial Blind Freddy could see it was stuffed at least 20 years before it finally closed.

The only real surprise is that it lasted as long as it did really. Once Nissan went, the writing was well and truly on the wall for the rest and surely nobody would have doubted that once Mitsubishi also went.

APRA/ASIC what did you want them to do, nothing?
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To quote a former boss of mine back in the 1990's:

"It seems that there's a fixed number of regulators in the world. Once they stopped regulating things which actually needed regulating, like banks, they turned their attention to regulating all sorts of things which really don't need regulating and have become a bloody nuisance. We'd all be better off if they went back to regulating the banks and left everyone else to get on with their jobs".

That's would be very close to the exact words, it stuck firmly in my mind as one of the better observations I've heard as to the overall state of affairs. All trades and professions get things wrong but rarely does anything other than finance manage to take an entire state or even country down with it - banks need regulating far more than anything else apart perhaps from nuclear reactors and chemical factories.
 
As Sir Rrrrrumpole of the Bailey says.
The Mohamed has spoken, people will listen and prepare for the inevitable.
Maybe ye don't think it's time for a correction and a half?
Me thinks it is. Well overdue, so we're gunna need a bigger boat.
Ye can put ye noggin in a hole in the sand, or ye can keep your cauliflower ear on the rail....
Cheers,
F.Rock
 
Seven weeks from now it will be 2020. Christmas Day is 6 weeks from today.

Retail sales in the lead up to Christmas will be somewhat telling in themself and also influence the mood of business and consumers in 2020 I expect and there's really only three classes of outcome.

Doom and gloom.

Muddle through.

Boom.

Regardless of the actual sales figures over the next few weeks, it'll end up pigeon holed into one of those three categories ultimately and is a given to be mainstream news especially if it's in either the "doom and gloom" or "boom" categories.
 
Spoke with a mates young tradie son the other day. I was quite surprised at how naive he was about financial investment matters. Told him to look up on the 'net about compound interest. Also pay yourself first. Ask me some questions after that.
I will be back there in a few days. Interested to know if he looked it up.
 
SqM Property Research released an article about future property pricing.

In their view APRA has influenced the economy more than RBA. APRA stopped banks loaning money.

They have made significant errors I MO.
 
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