Nerfonomics

Nerf Herder

Wheel size expert
For those that watch markets ... you know it’s like a pendulum... reaction, over reaction ...

This vid is pre-COVID ... since this AU is at 0.1% and the US fed is at 0.25.
AU shares the aging population challenges that Japan has.
But Japan’s journey is/was vastly different to Australia’s

Japan is still our 2nd largest trading partner.
 

pink poodle

気が狂っている男
I thought Japan may have returned to being our biggest trade partner with China currently blocking so much trade.
 

Nerf Herder

Wheel size expert


"In terms of the near term outlook the trade tensions with China are clearly concerning. We have written extensively about this issue (see here and here. This is impacting selected exports, most recently wine. While these impacts can be large for the businesses involved, in a macroeconomic sense for Australia it is unlikely to impact the size of the economic recovery we expect in 2021 unless it escalates further. Iron ore remains Australia’s largest export, with a record dollar value exported in October. China imports 90% of its iron ore, with 60% from Australia, 20% from Brazil making this relationship hard to disentangle "
 

Squidfayce

Eats Squid
They will be once their property value falls below what they still owe on the loan.
Not overly likley unless they had high LVR loans taken out recently (ie last 3-6months).

Lenders and LMI providers have been bearish on high LVR loans for the better part of a year now so most high lvr lending has been sitting at 85-90% rather than 95-97%. Leaving relatively safe levels of equity in newer purchases.
 

jrewing

Eats Squid
I reckon building trade will get hit. They drove the ebike prices high. So I might get a Santa Cruz ebike for 4K soon
 

Flow-Rider

Burner
Not overly likley unless they had high LVR loans taken out recently (ie last 3-6months).

Lenders and LMI providers have been bearish on high LVR loans for the better part of a year now so most high lvr lending has been sitting at 85-90% rather than 95-97%. Leaving relatively safe levels of equity in newer purchases.
A lot of people have 4 or 5 different types of loans including credit cards, in other words a debt up to their eyeballs. I personally know a few that are crapping themselves, money is all gone and bugger all to show for it other than their own home which will be what they're going to lose. People are still paying debts from the covid downfall.
 

Squidfayce

Eats Squid
A lot of people have 4 or 5 different types of loans including credit cards, in other words a debt up to their eyeballs. I personally know a few that are crapping themselves, money is all gone and bugger all to show for it other than their own home which will be what they're going to lose. People are still paying debts from the covid downfall.
That has zero to do with this

They will be once their property value falls below what they still owe on the loan.
 

fjohn860

Alice in diaperland
Not overly likley unless they had high LVR loans taken out recently (ie last 3-6months).

Lenders and LMI providers have been bearish on high LVR loans for the better part of a year now so most high lvr lending has been sitting at 85-90% rather than 95-97%. Leaving relatively safe levels of equity in newer purchases.
I'm sure there will be plenty of people who bought houses at the very top (maybe even a bit over) of their budget because "keeping up with the Jones". Instead of being sensible and buying well within their means.

These people will be absolutely crapping their collective pants.
 

Asininedrivel

caviar connoisseur
Quite a few building firms are in trouble in Qld because of the materials price hikes.
Australia's largest home builder Metricon almost went under last week. Currently being propped up by the CBA and some justifiably panicky shareholders.

You know the market is having some "issues" when a company responsible for over 10,000 homes in the last couple of years is in that kind of shit.
 

Flow-Rider

Burner
That has zero to do with this
They basically end up in the same boat as people with high LVR's

Well those idiots should have just taken the money out of their super...
The super money is just the start, banks gave covid business loans, business overdrafts at the max, nonpayment of tax and the list goes on.
Australia's largest home builder Metricon almost went under last week. Currently being propped up by the CBA and some justifiably panicky shareholders.

You know the market is having some "issues" when a company responsible for over 10,000 homes in the last couple of years is in that kind of shit.
Yeah, scary times for some people and nothing seems to be changing fast at this present time too, and the homeless are still homeless.
 
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