Monthly Archives: September 2017

30 of the Punniest Valuation Puns You Can Find

And then, that will cause rising unemployment, which underwriters everybody’s belief that our property prices will remain high as long as unemployment remains low. The falling property prices are a signal that unemployment’s about to rise, which undermines the whole argument.

Ryan Okay. So you’re saying that falling property prices precedes growing unemployment.Steve Yup. Yup.Ryan Okay. I guess my question now is in terms of when will all this sort of stuffhappen?Steve Yeah. I think it’s starting to happen right now because of the total demand that we get in the economy.that is the sum of household borrowing and corporate borrowing and Australia’sbeen on a whole series of waves of borrowing since.

Because we had both householdborrowing to buy property, obviously. But also, corporations borrowing to invest inthe mining boom. And the combination of the two meant that the change in credit in Australianwent from something on the order of $ billion a year back in to $ billion a yearnow.Now, of course you can tell that the property bubble is to some extent still continuing,people are still borrowing money to buy housing.

But people have stopped borrowing money tobuild mines. That’s fallen over completely. And now, you’re getting a plunging in corporateborrowing. In fact, corporations are starting to re-pay their debt. So that means, one ofthose two sources of credit is disappearing. It doesn’t matter where the borrowed money-dollar comes from, in effect once it’s in