Alliance Bernstein warns of property bust

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From Alliance Bernstein via the AFR comes some sense:

Alliance’s senior economist for the Asia-Pacific region, Guy Bruten, said in a note to clients that the “long shadow of the commodity price bust” remains the key theme for the Australian economy, and said the impacts from price falls would be a “multi-year affair”.

“…there are implications here for tax revenue and capital spending (a steeper drop than anticipated as no new projects are commenced) as well as for expenditure on exploration and support services.

“In turn, that has ramifications for employment – a further shake-out lies ahead.”

…“There’s a clear risk that falling house prices may be the next phase in the post-commodity-boom adjustment story.”

The full report is here.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.