How the crash will appear is starting to raise its heads!!
The facists or socialists( depending on your point of view and either way interventionists) can only manipulate the market and peoples will to such extremes until it eventually becomes unbearable for the human!
We are now starting to see the market take over as the manipulators lose the debt handle!!!
There are many articles pointing to this across the globe but today a couple of articles linked locally to OZ seem more poignant.
Now what is interesting is the ponzi bias of the articles and the ignorance of the common theme( housing unaffordabilty and simply put housing assets are way overinflated with far too much debt attached to them as real world investments.
The first article talks about South Australia needed migrants because of an apparent skill shortage. It is interesting because no facts where produced. The second article makes the first article interesting because it talks about growing vacancies in Sydney and Melbourne supposedly because of over supply and some moving to Queensland if one believes that. The trouble is if the first article is correct then how can the second article be correct because supposedly SA is booming but NSW and VIC are not. Or are we mean't to believe migrants are not needed in SA but rather people need to move from NSW and VIC because more jobs are there?? Or are we to believe its all BS and no jobs there and no jobs in NSW and VIC because of increasing vacancies? Or are we to believe demand is there but prices are just far too high and unjustified when in the first post some tradies are getting up to $100 and hour for work!!!! What gets more interesting is in the final article the social media has a crack at the millennial's budget for house saving in UK but no one seems to be concerned that that saving required may not be justified due to unsustainable debt based inflated housing assets and eventually the house prices will crash so why buy high now and save for it????
What I find interesting is the cracks are appearing in the housing market IMO due to the vacancies. Simply put the Sydney and Melbourne markets are probably overvalued as with the tradies wages so only a fool buys a house now before an imminent crash. More immigration makes the crash worse as the false construction based on debt and intervention rather than income is unsustainable so the vacancies will only grow until the next upswing after a long protracted downturn. The other thing that the governments need to bear in mind for their re-balancing is a lot of tax revenue will drop as incomes in the now and future drop due to the can being kicked down the road in the past. This means due to the markets governments will be forced to recoup tax revenue streams by taxing existing property to rebalance the economy so out of balance due to central bank interest rate manipulations meaning more impetus for housing decline and anyone jumping into the house market now is an utter mad person or a total fool!!!
