Counting eggs before they hatch (Part 2 of 4)

Posted to The Age (13/1/2011) on 13/1/2011 at 2:55 PM
Commenting on “Counting eggs before they hatch”
http://theage.domain.com.au/real-estate-news/blogs/domain-investor-centre-blog/counting-eggs-before-they-hatch-20120110-1pt5n.html

If there is a bush fire in a country town does not imply the whole of Melbourne is on fire. The crash in some regions is more evident and severe than others. Indeed, some suburbs do experience fall of 40%.

Many properties in certain suburbs are highly inflated, due to overseas investors’ coming to snap up properties in a rather uncontrolled manner – without requiring FIRB’s prior approval. This was an ill-thought out policy from Kevin Rudd who tried to avoid the GCF. This policy has now been reversed, and the overseas investors’ retreat stops further speculation, and the prices fall substantially and hurt many locals who follow the Joneses. Easy finance also attracted many who could not afford to fall into the mortgage trap and these people will be victims suffering from financial suffocation.

Life is more than just possessions and owning a property. During difficult times, people need to make sacrifices. My wife and I went without chairs for two years when I bought my first home. We used to sit on cardboard health drink cylindrical boxes.

End Part 2 of 4

Shares lose $20b as sell-off continues

Posted to The Age (3/10/2011) on 3/10/2011 at 1:14 PM
Commenting on "Shares lose $20b as sell-off continues"
http://www.theage.com.au/business/markets/shares-lose-20b-as-selloff-continues-20111003-1l4ai.html

We have not seen the last of the fall yet. ASX ordinary index will fall to 3500 within the next few days. While we need to live more optimistically, or else life is not worth living, we also need to be realistic and live within our means. Everything, in the universe, is always in a state of equilibrium. When something goes negative, another goes positive. The share market fall results in larger amount of money in the bank deposit; share market players lose but bank account holders win. In fact, this is the fundamental principle of accounting rule.

Borrowers cannot keep on borrowing, because the lenders cannot even get their interests from the borrowers let alone the principal. Germans cannot just handout money to the Greeks who work shorter hours, and many live on social welfare enjoying the Mediterranean sun. Young Greeks of today suffer because the romantic, casual and relaxed life style enjoyed by forebears of yesteryears did not create solid foundation for employment.

European financial crisis is analogous to a fast descending hot air balloon. It has reached a stage that almost everything, except the balloonists, in the balloon basket has to be thrown overboard to keep the balloon afloat. If the rest of European countries go down with Greece, no one is wiser, and even if with the best intention, Greece will not survive, because the rest also become exhausted in energy and fund.

As what the former Singapore Prime Minister Mr Lee Kwan Yew once said, “give a beggar a gold coin, he will ask for a second one.”

Asylum seekers, carbon tax legislation on table for Julia Gillard

Posted to Herald Sun(12/9/2011) on 12/9/2011 at 1:56 AM
Commenting on "Asylum seekers, carbon tax legislation on table for Julia Gillard"
http://www.heraldsun.com.au/news/more-news/asylum-seekers-carbon-tax-legislation-on-table-for-julia-gillard/story-fn7x8me2-1226134300031

Rudd started the mess, Gillard only made it bigger! Rudd did some seemingly palatable things to Australian voters, until he was dropped from the "flavour of the month" list. Gillard is getting from bad to worse, behaving like a spoilt brat and wanting to interfere with the separation of powers between the Executive and Judiciary.

Kyoto Protocol is a formality that will become empty promises. Many European countries' carbon emission has been reduced NOT because of their conscious effort to do so, but their manufacturing industries have gone south (or to China precisely). This leads to drastic reduction of power consumption and in the meantime less output of carbon dioxide.

An apology to Indigenous Australian will not make their livelihood improved. Once precedence is set, in decades to come, future Government will have to apologise to "stolen" children of illegal asylum seekers whose parents were sent back to refugee camps, say in Malaysia.

WorkChoices was the key issue that brought down the previous Liberal Government. History will tell whether the people of Australia had made the right choice, by electing Rudd for dismantling it. There are already signs that wage breakout and strikes returning to Australia sooner than expected.

The Iraqi War was a war that should not have taken place at all. The real evils of axes were the two George Bushes and their Administration under their command. The Americans did not want their sons and daughters to fight in the unjust war, and why should Australia follow? The WMD turned out to be Worldwide Mass Deception. On one hand, Rudd recalled the combat personnel from Iraq, and on the other hand he sent troops to Afghanistan.

The stimulus package meant to prevent Australia falling into the cracks of GFC benefited overseas manufacturers of flat screen televisions and outbound overseas tourism. The effective impact was minimal and lasted for about two months. Without the package, Australia would not have sunken; it would be better off to use the money for future rainy days or tempests.