Dopey, we are 'in interesting times' and where do they go from here?
Inflation is subdued and looks to be subject to the global deflation phenomenon. Where we saw massive drops in property values in the past were in countries that got hit by the GFC. The values there seem to be recovering but this could be a short term pause in a larger downtrend.
Maybe Australia is on the cusp of the first wave down. Are interest rates will take a while to get to ZIRP if things become that way.
I still can't see (I ignore all the hyperbole) that the FED will not alter rates this year and if they did might have to undo what they did at a later stage. The US recovery is still very weak.
Overseas investors look to still be driving the Sydney market which is supporting the property markets Australia wide. When overseas investment dries up then there will be a problem for property, ipso facto banks, the share market, and our economy.
I feel that many do not understand just how fragile our economy is.
