In A Good Position With Sound Fundamentals

(h/t Tasmanianrealestate Trouble for the pic, all your pics are hilarious mate)

Good positions and sound fundamentals, blah blah blah....apparently thats Australia.

So says that bloke Penny Wong, the village idiot Swan, the Redhead that runs those clowns, and every nodding, waffling, talking 'expert' (def: has-been drip under pressure) on Sky Biz Channel and Mainstream news and current affairs.

• No mention of the nett $650B+ the banks owe overseas so they could fuel the property bubble,
• No mention of the well over $1Trillion borrowed by wildebeeste to fund mortgages that are only worth half of that ammount.
• No mention of the fact that Bank of America, Societe Generale, Uni Credit etc are dead banks walking.

Plenty of lies about global recovery etc, its just a pity the G20 economies are shrinking.

We (bloggers aplenty) have written ad nauseam that when property bubbles burst unemployment lags initial falls in prices and then it becomes a feedback loop aka death spiral. So in the car just before, on ABC Newsradio, the lemming reported that Unemployment UNEXPECTEDLY rose in Australia and it surprised many experts and economists.

Unexpected (?), are you fucking joking? Are these the same spruikers that bullshit about fundamentals on the Biz channel, ABC news (wink) and lateline etc? Wildebeeste in glossy coats.

One more time...Unemployment lags property falls and THEN feeds it
USA:

Ireland:

(h/t Unconventional Economist @ Macrobusiness for the bottom three charts).

Spain:

United Kingdom:

Secretly Broke In Australia.

Was most surprised to read Mike Shedlock in the USA (one smart cookie who reads it accurately and tells it like it his - I have a link to Globaleconomicanalysis on the right of the blog in the links) adding another chapter to his routine analysis of the bucket of shit that is the Australian Housing Market.

His post, Secrtely Broke in Australia, is brilliant.

The housing boom in Australia is now an escalating bust. Many Australian homeowners put every cent they had into their homes and they needed double incomes to just scrape by. Unfortunately, those jobs are disappearing in a construction and commercial real estate bust.
I warned about this event for years, but in Australia, like everywhere else "It's Different Here" until it's not.

60 Minutes Australia picked up the Secretly Broke story in "The Big Squeeze". Click on link for a 60 Minutes video. Here is a partial transcript.

ALLISON LANGDON: To the world, Tracy and David Dodd are the very model of Australia’s relaxed and comfortable middle-class. They’re living the dream – three kids, a mortgage and a suburban family home on an acre block. But Tracey and David have been keeping a secret from their family and friends – they’re drowning in debt. No-one to look at you would think that you are struggling.

TRACY: It might look like we have got everything but you don’t see the mortgage, you don’t see the loans. You don’t see everything and nobody wants to talk about it you know, because it is embarrassing.

ALLISON LANGDON: Has it taken a toll on you both?

TRACY: Mmm…sorry.

DAVID: Oh it has – it has taken its toll but you’ve just got to do it.

ALLISON LANGDON: Like most young couples, the Dodds invested their heart and soul and every spare cent they had into the ideal of home ownership – the biggest mortgage their double income would allow. But last June, Tracy lost her job in the construction industry and David was made redundant. Just to keep money coming in, he’s taken a lower-paying job. Ever since, the Dodds, like tens of thousands of middle class families have been going secretly broke in the suburbs.

TRACY: We went from having a really great income including a company car, fuel card, phone – things like that – to basically losing all of that.

ALLISON LANGDON: So do you have more money going out each week than what you’ve got coming in?

TRACY: Absolutely.

ALLISON LANGDON: How much difference are we talking about?

TRACY: Probably – it’s getting very embarrassing – probably about 400 bucks…$400

I suggest you read MiSh's full post and watch the 60 mins story linked in the post.

They are forking out $400 more each week than they earn, $20,800 a year. Probably off Credit Card.

This is worse that I thought, its not just a ticking bomb, its a financial nuke.

What about this comment (you HAVE to sign up for the Ponzi and enter debt peonage/slavery)?

DAVID: Oh it has – it has taken its toll but you’ve just got to do it.

Just like the following Wildebeeste have to cross the river at this very point because the ones ahead have shown the way.

They just HAVE TO.