Posted to The Age (17/4/2012) on 17/4/2012 at 10:49 AM
Commenting on "Markets Live: Stocks dip after RBA minutes"
http://www.theage.com.au/business/markets-live/markets-live-stocks-dip-after-rba-minutes-20120417-1x4gg.html
The graph looks spectacular, doesn't it? It is just the scale of the graph that plays the trick.
There's nothing to celebrate these days - the PIIGS are still getting leaner, China has to dig into her own pocket because lean PIIGS are not good for Chinese export, and lean China means less mineral export from Australia to China or same volume at lower prices.
If banks keep increasing interest, more money will be deposited and not go out, that means less profit eventually. If borrowing becomes more and unaffordable, the real estate will continue to decline. Collapse in real estate industry means more defaults, and bank write-off.
Am I too pessimistic? No way, I think I have my brain at the right place and think like a common citizen, while those gurus sitting in the ivory tower having been throwing darts to the future outlook dart board.
Commenting on "Markets Live: Stocks dip after RBA minutes"
http://www.theage.com.au/business/markets-live/markets-live-stocks-dip-after-rba-minutes-20120417-1x4gg.html
The graph looks spectacular, doesn't it? It is just the scale of the graph that plays the trick.
There's nothing to celebrate these days - the PIIGS are still getting leaner, China has to dig into her own pocket because lean PIIGS are not good for Chinese export, and lean China means less mineral export from Australia to China or same volume at lower prices.
If banks keep increasing interest, more money will be deposited and not go out, that means less profit eventually. If borrowing becomes more and unaffordable, the real estate will continue to decline. Collapse in real estate industry means more defaults, and bank write-off.
Am I too pessimistic? No way, I think I have my brain at the right place and think like a common citizen, while those gurus sitting in the ivory tower having been throwing darts to the future outlook dart board.
