The RBA cut rates from already low 1.75% to 1.5% -BUBBLE ALERT- we will be going negative next. See my related articles Deflation Down Under, RBA Kangaroos Kick For Lower Rates!, Interest Rates Are A Market Price Signal Not To Be Interfered With, Central Banks Interest For Resolving Unemployment, and Money Pumping – What Malinvestments? … Continue reading RBA Rate Cut 1.5%, How Long Until Negative?
A housing bubble can be described as a game of musical chairs. In which, the increase in credit expansion is confused for real loanable funds. Here, people purchase investment property with lower interest rates. This increases asset prices and so the boom inflates the housing bubble, during which a house worth $500k at the first … Continue reading Housing Bubbles & Musical Chairs
CDO’s as complicated as they sound we will try to explain them in order to understand the impact they had on Wall Street. A CDO stands for collateralized debt organisation, and originated in 1987 by Michael Milken, where a CDO back then included AAA rated CDOs. Unlike todays mixture of investment and corporate bonds that are mostly junk, of which “Wall … Continue reading Wall Street’s CDO Mania
Australia’s net foreign debt exceeds $1 trillion for December. Net foreign debt (national debt) is the sum of money Australia owes and all the money they owe Australia. See the ABC figure chart, using the Australian Bureau of Statistic’s since the December quarter, 1998-2015. Net foreign debts are loans of one country owing to another … Continue reading Australian Net Foreign Debt Exceeds $1 Trillion