Bobby. wrote on Sep 18^th, 2014 at 12:05pm:



why should it worry me?  it was 85 a few months ago and some years back was 47c.  the way you think (not really a good word for you) is that every bit of change is negative even tho a lower dollar would help the economy, not harm it.

If the Aussie dollar does pop, two things are likely to happen to threaten to burst the property bubble as well.

The Aussie falling means less money coming into the country chasing our “high” interest rates and direct asset purchases. It would also mean the banks would have less money or no longer as cheap money to lend. In short, not just if you’re planning an overseas holiday, but if you are planning to buy or sell property, watch the Aussie.

longweekend58 wrote on Sep 18^th, 2014 at 12:16pm:



Read the OP:

Quote:

Longy - go on then - ignore good advice from the original article.

You'll end up in a salvation army hostel.

Bobby. wrote on Sep 18^th, 2014 at 12:28pm:


more likely I will end up owning a million dollar house freehold by the time I retire while renter-nail will still be renting one room in a slum suburb.

Walter Mitty is a fictional character in James Thurber's short story "The Secret Life of Walter Mitty", first published in The New Yorker on March 18, 1939, and in book form in My World and Welcome to It in 1942. Thurber loosely based the character on his friend, Walter Mithoff.[1] It was made into a film in 1947, with a remake directed by and starring Ben Stiller released in 2013.

Mitty is a meek, mild man with a vivid fantasy life: in a few dozen paragraphs he imagines himself a wartime pilot, an emergency-room surgeon, and a devil-may-care killer. The character's name has come into more general use to refer to an ineffectual dreamer, appearing in several dictionaries.[2] The American Heritage Dictionary defines a Walter Mitty as "an ordinary, often ineffectual person who indulges in fantastic daydreams of personal triumphs".[3] The most famous of Thurber's inept male protagonists, the character is considered "the archetype for dreamy, hapless, Thurber Man".[4]

Although the story has humorous elements, there is a darker and more significant message underlying the text, leading to a more tragic interpretation of the Mitty character. Even in his heroic daydreams, Mitty does not triumph, several fantasies being interrupted before the final one sees Mitty dying bravely in front of a firing squad. In the brief snatches of reality that punctuate Mitty's fantasies the audience meets well-meaning but insensitive strangers who inadvertently rob Mitty of some of his remaining dignity.

Dnarever wrote on Sep 17^th, 2014 at 10:18pm:



dollar was to high anyway ... overall, a lower dollar is better for our exports (we are still exporting aren't we?) and better for us, although yes, some things will cost more

Longy - go on then - ignore good advice from the original article.

You'll end up in a salvation army hostel.

'Dr Doom' Nouriel Roubini’s firm warns of 20% Australian dollar slump

The slowdown in China and a tighter federal budget will pull Australia's growth down to as low as 2 per cent next year, prompting interest rate cuts and a 20 per cent slump in the value of the Australian dollar, a prestigious global forecaster says.

Roubini Global Economics, founded by renowned US economist Nouriel 'Dr Doom' Roubini, says slowing Chinese growth will hit commodity prices and Australian export volumes, while domestic consumer and investment weakness will continue to drag on the country's gross domestic product.

Dr Roubini himself earned the "Dr Doom" moniker through consistently bearish analysis, exemplified by his accurate prediction of the 2008 US housing market crash and the global financial crisis that precipitated from it.
Dr Nouriel Roubini, co-founder and chairman of Roubini Global Economics.

Dr Nouriel Roubini, co-founder and chairman of Roubini Global Economics. Photo: Bloomberg

The Roubini report describes the federal government's fiscal austerity as "poorly timed" and sees GDP growth slowing from just below 3 per cent to below 2 per cent for 2015, after ending this year at 2.9 per cent.


The outlook is by far the most downbeat so far published on Australia, and contrasts with an almost consensus view that the economy, although not robust, is in fairly good shape and should improve throughout next year.

At the same time, however, a growing number of economists have begun qualifying their more upbeat view of Australia with warnings about the magnitude of China's credit and property market problems.

"Domestically, mining output is still strong, but investment in the sector is not, and iron ore prices are plummeting," wrote Roubini's local analyst David Nowakowski.

"Although some easing of China's credit crunch will help Australian exports in the short run, we see lower Chinese growth in 2015 as a headwind that will weaken Australia's growth and inflation next year, and weigh on growth-orientated assets such as equities and the Australian dollar."

Mr Nowakowski said flagging growth and low inflation would create room for the Reserve Bank of Australia to make a "cut or two in interest rates, to 2 per cent".

This would help drive the Australian dollar down as the US Federal Reserve started to lift interest rates, he said.

"The Australian dollar is likely to weaken to below US75¢ - a fall of around 20 per cent - on a combination of the lower interest rate differential and slumping GDP growth, with commodity price effects outweighing volumes," he said.

The local unit was fetching about US89.50¢ in early afternoon trade on Monday, up slightly on the day. After recovering slightly throughout last week, the price of iron more settled down again on Friday at a new five-year low of $US81.70 a tonne.

The bearish Roubini report also identifies Australia's housing boom as "increasingly out of line with fundamentals", including demand for goods and services and the unemployment rate.

Dr Roubini founded Roubini Global Economics in 2004.

Read more: http://www.smh.com.au/business/the-economy/dr-doom-nouriel-roubini8217s-firm-warns-of-20-australian-dollar-slump-20140922-10kc2e.html#ixzz3E5Zl76gH