We are on the cusp of a full property melt down.

Originally posted by Fishinnick ↑

'How did we get to this point? ' ....... A global political shift to the left with socialist ideology and policy has got us to this point imo. The capitalistic free-market fundamentals don't exist anymore. Since after say about '87 crash, when governments see their economy slow or move into recession they no longer let natural market forces dictate 'value', instead they slash rates, borrow money and artificially stimulate economies, they also loosen banks lending criteria's and reduce regulatory oversight. We can see here from the banking RC that our banks have been lending money to people (mainly for property) that can't 'afford' it, today we see the banks knocking back 50% + of loan applications because they are actually looking at a more realistic financial situation of the applicants...... Thanks to the GFC we also saw that American banks, brokers etc were also lending money to anyone, probably same in Europe and in China we always see their gov propping up their stock-exchange, pegging currency to $US and adjusting its value how they see fit. The GFC saw those in control panic about loosing control so helicopter Ben and the US gov bailed out banks and temporarily saved the system (not the people), then the Fed dropped rates to zero and printed trillions so they could lend it out to governments and banks so the gov could stimulate and banks could lend cheap money to people which in-turn reversed property price devaluation and made stockmarkets return to + roi etc.

They never addressed fundamental free-market economics, instead they flooded the world with currency stupidly thinking that will stabilize economies and put us on a path to normalisation, however all it has done is create a bigger global asset and property bubble, lined the pockets of the elites and reduced the average persons standard of living. Because theres now so much borrowed money by governments and people etc the central banks can't raise rates because of the global impacts.....we have recently seen the FED try to reverse QE and increase rates and with a little poke from Trump they have stopped dreaming and have likely realised they are going to have to reduce rates and stimulate again to keep things ticking.

It all boils down to governments buying votes to retain power, rather than applying prudent fiscal spending or cuts and living within its means.

Australian Banks borrow money from where-ever the cheapest place is, it doesn't all come from our RBA, foreign banks lend to Oz because Oz rates are higher.... using rough numbers....they say borrow at 0%-0.25% and lend it to us for say 1.5% - 2%, its easy free money and profit for them.

Anyway just my 2c worth.

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The figures that I have seen state that "new" money made from the "air" and injected into band aid solutions is $20 trillion dollars world wide