houses will never be affordable rba, page-39

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You are completely correct. I am saying exactly that. Don't invest in houses or the stockmarket.

I believe strongly that borrowing money causes price inflation in all asset classes.

Margin loans cause shares to become overvalued. Mortgages lead to houses becoming overvalued.

If people didn't have the money in the first place they wouldn't be able to pay the prices they have been.

We are now seeing the result of Greenspan's low interest and free credit policies and massive process of deleveraging has started.

If you saw the Four Corners report on debt in the housing market you can see this.

People are paying off mortgages with credit cards would you believe.

Similarly this business with Opes Prime and Tricom is all about margin lending coming undone.

At the consumer discretionary level, Myer is begging Glen Stevensons to cut interest rates. HVN with its interest free loans for four years has being smashed

The banks, so called safe investments and main stay of most mum and dad portfolios, are the top of the risk tree.

They are wearing all this and there is more pain to go

the IMF has said about $1 trillion if debt at all levels has to be unwound. We are only half way there.

DEBT IS POISON

Warren Buffett said that debt is a dagger mounted on the steering wheel of your car pointed at the drivers heart. One bump and it could be all over and it has for
ABS
CNP
AFG
Opes Prime
Tricom

companies to watch in future

BNB
MQG