Advance Notice
I’m speaking at a United Nations Environment Program conference in Bangkok next week, and giving some public talks there as well, so I’ve written my posts for the next two weeks for Business Spectator already–on the topic of Australian house prices.
The ABS will also release its House Price Index data next week (on Monday November 4th) and I’ll try to update a key graph in next week’s post–the correlation of the acceleration of mortgage debt to change in house prices–with that data before Business Spectator posts my article. Prior to the ABS data being published, this indicator is consistent with house prices rising substantially in real terms (see Figure 1).
Figure 1: Mortgage acceleration and house prices before next week’s ABS data
However it’s also interesting to note that the level of acceleration has been trending down over time—the peak in 2007 of 2% of GDP p.a. p.a. compares to just over 1% in 2010 (even under the influence of the First Home Vendors Boost). I expect this is because mortgage debt continued to rise in Australia after the crisis—it just grew more slowly than GDP for a while—whereas it fell in the USA (see Figure 2). The result is that there is very little headroom for mortgage debt to accelerate.
Figure 2: America has delevered, but Australia has not
Of course, the fact that Self-Managed-Superannuation Funds can now indulge in levered speculation on house prices and call it investing may mean that there’s more headroom here than Figure 2 implies. I’ll discuss this and other issues in a series of posts in Business Spectator, starting with next week.
For readers in Thailand, the public event there is being organised by the MBMG Group. Click on the link below if you’d like to attend:
Tuesday, 5 November 2013 7.00–9.00pm (6.30pm Registration)
Sheraton Grande Sukhumvit
- Professor Steve Keen, the leading Academic exponent of Minskyian instability
- Richard Duncan, New York Times best-selling author
- Paul Gambles, Managing Partner of The MBMG Group
Source: http://www.debtdeflation.com/blogs/2013/11/01/advance-notice/#utm_source=feed&utm_medium=feed&utm_campaign=feed
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).