so much negativity, surely it will not be that bad?
I have resigned from my job and need to find work in the New Year, bad timing eh!!!
but the world has to go on, just at a different pace.
LRH
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so much negativity, surely it will not be that bad?
I have resigned from my job and need to find work in the New Year, bad timing eh!!!
but the world has to go on, just at a different pace.
LRH
Awesome:(, US stock futures are down 2% before trading opens in the US in a couple of hours or so.
Another day of negatives for the DOW and bleak outlook for the Aus All Ords on monday.
Lots of opinions out there about whether or not a recession will eventuate but one fact remains the same, every stock market crash in history has been followed by a recession or depression!
I have heard a bit of talk about the markets being closed until the credit problems are sorted out. I think that would be helpful as it would certainly stop the computer stop loss selling...
Is the glass half full, or half empty?
Davy
There isn't a glass :D:DQuote:
Originally Posted by Davy
In the case of loans, the glass is twice as big as it needs to beQuote:
Originally Posted by Davy
I am currently being paid in $USD and my next job starting in Jan 09 is in GBP...sooo....dive you $Aussie$....DIVE!
My commiserations to anyone who has any booked travel and holidays to the US. It would give me second thoughts.
You know things are serious when the UK govt freezes the bank assets of another soveriegn state (Iceland) for 10billion pounds due to the bank not securing the deposits of its UK citizens...wow..what next :eek:
The ****e will hit the fan, its just a matter of when....bit like a financial volcano getting ready to blow.
Australia is a very different economy to the US. One of the causes of the sub-prime meltdown is that you can walk away from a home loan in much of the US without liability. If you have 100K of negative equity you are better to walk away from the loan and start again. You'll have a bad credit rating for a few years, but the pain of that will go away quicker than the pain of paying 100K that you don't need to. It is not as if the banks will give you a rate discount for paying the 100K.
In Australia, like most countries, you are liable for the debt, presumably until you declare bankruptcy. This means people will try much harder to repay negative equity and the banks will stay solvent.
I'll take a thorough economic downturn to keep the banks solvent. Much as it is grim to hear of the profits, we do need people not to lose their savings. Also, if the banks can make money, then there has to be a way for me to make money off that.
Cheers, Steve
I **really** hope you're right but as one commentator has said..Quote:
Originally Posted by 300+
"The four most dangerous words in the world for your financial health are: "This time it's different".
It's never different. It's always the same, but with bigger numbers."
Australia has massive consumer debt. I think the differences you mention will only make it more painful and prolonged here :(
I'm sorry if I'm a downer but if I'm wrong you can all have a good laugh at my expense in 18 months time :) If you can, I think you should do anything possible to batton the hatches.
EDIT: This is a favourite from this morning. Basically China saying sort yourselves out and keep buying stuff from us as this is inconvenient. No matter what the costs to you!
I recon this depression or whatever it is called will come ,gradually over the next year or so.
Things have been running too hot for to long,many things are overpriced including property.
For me,after working for around 30yrs,have a few investment properties,and have no loans.
The value of the properties will,or have dropped,but the domestic properties will always be tenanted.The commercial ones are more of a worry,as business confidence etc will drop.Without tenants,i will still have to pay rates,insurance,land tax,etc.
After paying off the last property,about two yrs ago,i started searching for another one,but the returns were to low,so held off.:)
As for my bussiness,it is small & family owned,& if work dropped off to around a quarter of what it is now,we would be ok.The staff would be the ones to go.The business also has no loans,and has good cashflow.
So overall,i should be ok,but as i am no financial expert,i really dont know what will happen ,these are only guesses.
The business will probably get a few bad debts,but we have to be smarter to avoid these.
I recon crime will increase,so we will have to be smarter in this area as well.
Govt spending will also drop,but how this affects us is unknown.