Ann: Drilling Update - Mohawk Discovery Drill Holes, page-23

Pretty accurate post. The obsession with house prices has infiltrated every facet of Australian culture and not in a good way. I don't even write this as a millennial who can't afford a home, i'm older and have mine bought (though that's a big problem in of itself).

Just think about how the housing sector affects Australian business innovation.

- Sucks capital out of business investment into housing/construction sectors
- High rent causes businesses to pass the costs onto consumers
- Less entrepreneurs because the segments of society that would normally take risks are too busy paying their rent.

All of these then result in a less competitive and innovative society which affects everyone in small ways. From going out to dinner or buying something from a shop.

The irony is it's not even that good for a good segment of property investors when the spikes are this hard and fast. You might get a huge increase in your PPOR but then the home you want to upgrade to has also spiked. I appreciate some people do well out of it of course (and it's a good place to park money safely).

Deeply sick for the society but I don't blame the investors, they are just following what's a good investment based on how the country has set things up. And the problem is actually far deeper than housing.

The relentless spending and money printing is to blame for a huge chunk of it.

So how does this relate to Carnaby? Well as @WoodySpoon has accurately highlighted in the current environment you can expect most retail investors to be selling off all positions to save their house as the interest rates have skyrocketed their repayments. This starts with speculative investments and luxury cars and then will continue into blue chip investments.

There can be nothing wrong with an investment but the selling pressure can be relentless because people will save their home before anything else. It makes perfect psychological sense.

I'm pretty bullish on CNB at these levels though. Nice value.