Sir lastnail wrote on May 24
th, 2017 at 6:58pm:
Two things guaranteed to kill house prices are rising unemployment and rising interest rates !! I feel the former is rising as full time jobs are being replaced by casualized jobs with reduced hours. And we have already seen back door increases in interest rates independent of the reserve bank !
Unemployment:
I don't even believe the published figure do you?
As you say, things like casualisation make it meaningless, plus all the dodgy subcontract arrangements. It's no longer a reliable measure of economic health.
Interest rates:
Mortgage rates may be low in relative terms, certainly they're not Keatingesque, but how much household income is going to fund credit card and personal loan debt at monstrous rates?
At some point, the bank cartel will decide jointly in secret plenary session to turn off the housing tap. Thus will be the point where they calculate their risky lending has passed the fail safe point and they can gain more by sending in the bailiffs.
That's after they've had advice from the algorithm desk.
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Household debt level (Read 252 times)
