global financial crisis

Housing affordability plunges

March 2, 2010 by admin

(SMH) Soaring house prices, rising interest rates and a winding back of the first homeowners grant all contributed to housing affordability taking a nose-dive at the end of 2009. The deterioration was widespread in all capital cities and regional areas, with the largest falls recorded in Sydney, Brisbane and Canberra, according to a Housing Industry Association (HIA)/Commonwealth Bank of Australia survey. read more

related: Hourly pay rates ex bonuses rose 0.6%

Modern World Economy is Built on a Foundation of Unsound Money

March 1, 2010 by admin

(Daily Reckoning) Last time the world's financial markets panicked, something strange happened: the U.S. dollar and U.S. bonds rallied while stocks, commodities, and emerging markets sold off. The same thing could be happening now. It's not so much a flight to quality as it is a flight to liquidity and a massive case of global risk aversion. [..] ..just because Ben Bernanke and the global cabal of counterfeiters don't want something to happen doesn't mean it won't happen anyway. The deflating of the reflated asset bubble is going to happen sooner or later. The world's massive inverse pyramid of debt is supported by a very small asset base. read more