Oh dear.....
I didn't think so either, four years ago....then they ramped it up.
There is very little liquidity in the housing market in most places outside the major cities where lots of empty apartments, although sold, could never be re-sold. At some stage, people will start selling, there will be no buyers and the prices will really start to fall.
And yet the building continues, i can see a dozen cranes from my kitchen window.
This must be the biggest bubble in history.
CanOz
Since you have more first hand experience than most here, do you think there is a possibility of a soft landing? Or will the government keep propping the market until it is unsustainable?
known as the Department of Enemy Work , it specialises in ''carrying out work of disintegrating the enemy and uniting with friendly military elements'', according to a 2003 manual
Read more: http://www.theage.com.au/business/w...ess-leaders-20130524-2k717.html#ixzz2UgpAmaJu
Australian Businesses and their leaders are referred to by the Chinese as enemies of the state!
The Chineses install military strategists at Australian business meetings!
China issues civilised behaviour guide for tourists
Insane pictures of gridlock in China
Thirty-one Chinese were rescued from a brick works in Linfen in Shanxi run by the son of a Communist Party official. They worked for a year as slaves””with no salary and only bread and water for nourishment. Eight were so traumatized by the experience they couldn’t speak except to mutter their names. They carried uncooled brick and walked barefoot inside the kilns. Their bodies were covered with bruises, wounds and burns. One local newspaper reported, “The grime on their bodies was so thick it could scraped off with a knife.”
The kilns in Linfen were like prisons. Fierce dogs and thugs were used to deter people from trying to escape. In some cases workers were abducted and worked until a ransom was paid for their release. One newspaper reported the case of a boy who was abducted then ransomed. Instead of being transported home he was taken to another kiln and put back to work. According to media reports one child was beaten to death with a shovel and buried at night and another was beaten to death with a hammer for working too slow.
I love it..... social engineering on a Grand Scale. Mao would be most pleased...and Chairperson JuLiar too...
http://www.news.com.au/travel/world...ide-for-tourists/story-e6frfqai-1226653400934
My fear is what it will do the the 1 trick pony Australian economy when the Chinese crash shockwave hits our shores.
Ross Garnaut has recently commented on just such an outcome in relation to a fall in demand for resources...
http://www.brw.com.au/p/business/recession_garnaut_sooner_rather_WQRcjOFyNBxSt627NaPUPK
The key excerpt from the article for me was this...
"The speech described how the end of the mining boom will cause a fall in real incomes and spending as the dollar tumbles. In turn, this will require widespread “restraint” from people, who will need to accept lower wages growth, and businesses, whose profit margins will need to be squeezed.
Without the painful adjustment, Australia risks a surge in inflation, higher interest rates and a brutal recession that damages living standards."
Given how weak other sectors of the economy are now a significant slowdown in China looms as a big threat to our economy. Probably just a question of when not if this will occur.
Ross Garnaut has recently commented on just such an outcome in relation to a fall in demand for resources...
http://www.brw.com.au/p/business/recession_garnaut_sooner_rather_WQRcjOFyNBxSt627NaPUPK
The key excerpt from the article for me was this...
"The speech described how the end of the mining boom will cause a fall in real incomes and spending as the dollar tumbles. In turn, this will require widespread “restraint” from people, who will need to accept lower wages growth, and businesses, whose profit margins will need to be squeezed.
Without the painful adjustment, Australia risks a surge in inflation, higher interest rates and a brutal recession that damages living standards."
Given how weak other sectors of the economy are now a significant slowdown in China looms as a big threat to our economy. Probably just a question of when not if this will occur.
(CN) China 1-yr swap falls 36bps to 3.71% (lowest since June 14th)
- Source TradeTheNews.com
Same. I suspect a fair bit more up/down/up/down for a while.... so I'm still sitting out.
If anyone understands this,
Thats been the cause of the mess the last week.
If anyone understands this,
Thats been the cause of the mess the last week.
It's like WWF, everything looks real but it is all stage managed.
Well what i'm having a hard time to understand is what difference it all makes. I mean its not like the Fed, where they control the rate at the discount window, or LIBOR (fraud aside) where they agree on a lending rate....
Actually it's exactly like LIBOR, in this case its SHIBOR. Eurodollars are the USD interbank instrument, I guess you would call these "euroyuan". There are also euroyen, euroswiss and euribor (EUR LIBOR) instruments.
Basically denoting X denominated deposits outside the local banking system of X country.
http://en.wikipedia.org/wiki/Eurodollar
Here's what I don't understand. If overnight cash went to 25% in a developed economy (as it did in China) we'd have a full blow banking crisis worse than 2008, but in China it just seemed to be business as usual. Is there something I'm missing here? It's like WWF, everything looks real but it is all stage managed.
Yes, i understand that its meant to "look" like an overnight rate, smell like an overnight rate, but it doesn't act like an overnight rate...
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