Aussie Dollar Plummets

[Track Coastal]

Yes it was aggressive...hollering from the rooftops - sorry.

Every downturn we have the same 'she'll be right' mentality.

Recession...
Danger of 'recession by Christmas' | The Australian

The Missing recession of 2002 (Britain 05 but relevant now).
The Mystery Of Britain's Missing Recession

"...Just how did Gordon Brown abolish the boom/bust cycle? By letting industry fall into recession...by forcing families into debt...and by inflating a house price bubble that will cause the Depression of 2010..."

There is even a forum watching our housing bubble unwind...
Global House Price Crash Forum -> Australian Property Discussion

House prices 4x earnings in 2011 and then we'll start again.

Watch the China GDP figures tomorrow and then watch RIO, BHP and the ASX200.

[packrat]

so what?

We do what we have always done ..start again.
You having a a little mental implosion will change nothing.
Find another more appropriate forum and have your meltdown there.
Be polite...good manners do count

[Track Coastal]

Adjusting house prices from 7x to 4x is more than a little 'start again'.

I'll check back in 6 months and see how the carnage is going.

Be polite...good manners do count

A quick reality check but this isn't the Pathfinders room at the Officer's Mess at Richmond.

If ONE PERSON and just one ONE liquidates a silly 100% geared rental position the hollering is worth it.

See you in 6m. Sorry for the yelling.

[Jabawocky]

Anyone else noticed the strange phenomena lately?

The Aussie dollar has tracked the oil price for the last week or more.

For example oil = USD$62 and USD$1 = AUD$0.62, all the way pretty much.

Whats going on?

J

[B747-800]

look at the SIN$ and at the other asian currencies........they are in a dive, too.

[ReverseFlight]

There has been a lot of talk recently in the media about the Aussie property market crashing 40% over the next 10 years.

Well, I believe it has happened already. Remember Purchasing Power Parity ? The Aussie dollar has plummeted from nearly a US dollar a few months ago to around 60 odd cents now. Meanwhile Aussie property prices have been in the doldrums but roughly unchanged.

In real world terms, therefore, Aussie properties have fallen 40% in the last few months. It could fall further in November if Canberra decides to slash interest rates again.

An overseas buyer who could only afford one property a few months ago will be able to buy an additional similar property with the same amount of foreign currency, assuming it closely follows US dollar trends. We have seen this in the Sterling, Euro and the Yen recently.

No property crash for us in Oz, but that is the effect from the outside world looking in.

[packrat]

Brave souls

Off Shore investors would have to be very brave and very cashed up to contemplate buying real estate any where except their own backyard.
Meanwhile rental property shortages particularly in Sydney mean that yields on investment property are the highest they have been for years.
Apparently property in ICeland is going to be great value for money in the coming months.

[training wheels]

Those working overseas and being paid in US dollars are laughing ..

[50 50]

Jesus where did you drag this one up from?

Congratulations sir, you are the most diligent Pprune searcher I have come across. Perhaps you should stand guard in readiness for the next "should I be an airline pilot" thread.

Kudos

[training wheels]

I didn't bring this thread back to life. The previous poster deleted his message,

[spinex]

He he, a little thread necrophilia is good for the soul occasionally. Interesting to see who called it correctly 6 years ago.

[Pinky the pilot]

Post #s 18 and 20 by Chuckles and plankbender respectively make good re-reading.

[Strainer]

Post #s 18 and 20 by Chuckles and plankbender respectively make good re-reading

Speaking of Chuckles, haven't seen him here for a long time. Still around?