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Brisbane apartments have their Lehman moment

No hiding it now, via the AFR: A marketer is offering discounts of up to 39 per cent on apartments in a newly-completed residential development in a sign that Brisbane’s apartment oversupply may be biting. Two-bedroom apartments in The Hudson development on Albion Mill marked down from $805,000 to $490,000, three-bedroom penthouses cut from $1.2


Switzer does the housing bubble

LF Economics’ co-founder, Lindsay David, appeared on Switzer today to discuss Australia’s housing bubble (watch video here). On the segment, Lindsay David notes multiple evidence of a housing bubble, most notably “Australian house prices have risen in real terms by 131%, whereas real wages have risen by 38%… and real rents have only increased by


Carrying capacity is central to the immigration debate

Cross-posted from Independent Australia: We need to recognise Australia’s very limited human carrying capacity before it’s too late, writes Sue Arnold. THE AUSTRALIAN‘S Greg Sheridan writes that, as a nation, we would be better off with 40 million people ‘rather than 28 million elderly people’, who apparently ensure a declining economy. No surprises there. The 2016 State


WA feels wrath of falling mining investment

By Leith van Onselen The ABS has released engineering construction data for the December quarter of 2016, which revealed a 2.1% seasonally adjusted fall in the value of work done over the quarter, a 18.1% fall over the year, and an ongoing reduction in the construction pipeline. According to the ABS, private sector engineering construction


I come in praise of Virat Kohli

From the Herald Sun today: VIRAT Kohli has saved his biggest disgrace for last as he pushed India’s victorious captain off centre stage and bitterly declared his ‘friendship’ with Australian players dead forever. Despite being injured, Kohli donned the whites as soon as champagne corks were popping and in an extraordinary display of selfishness strode


IMF on why high household debt is a problem

By Leith van Onselen The IMF has released a new working paper entitled “Excessive Private Sector Leverage and Its Drivers: Evidence from Advanced Economies”, which provides a quantitative assessment of the gaps between actual and sustainable levels of debt and identifies the key factors that drive excessive borrowing. Below are some key extracts: High private


Productivity Commission slams Auckland’s failed housing system

By Leith van Onselen New Zealand’s Productivity Commission (PC) has released a new report entitled “Urban planning – moving beyond the wheel spin”, which examines the current urban planning system in New Zealand and provides recommendations for a better-performing system. Unfortunately, I am not able to download the full PDF report, so instead I have


As Trump ends the “war on coal”, will it rebound?

Via Reuters: President Donald Trump on Tuesday signed an order to undo Obama-era climate change regulations, keeping a campaign promise to support the coal industry and calling into question U.S. support for an international deal to fight global warming. Flanked by coal miners and coal company executives, Trump proclaimed his “Energy Independence” executive order at


Debbie damage to coal output unlikely

Via UBS: Tropical Cyclone Debbie crossing Queensland coast TC Debbie (Typhoon/Hurricane for Asian/American readers) has crossed the Queensland coast around midday AEST. The cyclone was classified a Category 4, which carries very destructive winds with gusts up to 260km/hr at the eye. The Cyclone crossed the coast near Proserpine & currently forecast to head south


Dick Smith owns population bully boy Stan Grant

By Leith van Onselen On Episode 4 of ABC’s The Link, presenter, Stan Grant, interviewed Dick Smith and a group of workers at a Sydney market to talk population growth. Grant demonstrated that he is clearly a ‘Big Australia’ mass immigration advocate, believing that Australia must run one of the world’s biggest immigration Ponzi schemes in order


Trumpflation or global reflation?

DXY rebounded strongly last night: Commodity currencies too: Gold fell: Brent rebounded on Libyan issues: Base metals joined the party: Big miners too: And EM stocks: Plus high yield: US bonds were dumped: European spreads compressed: And stocks roared: Trumpflation returns and why not? US consumer confidence soared and manufacturing partials are thumping along. Add


Australian dollar hollowed out as yield spread keeps crashing

New narrows today for the carry trade into Aussie dollars as the yield spread on the two year bond hit 45bps overnight, it’s narrowest since April 2001: The last time the spread was this narrow, the Aussie dollar was trading at 49 cents. There are many variables at work but it gives you some notion


Gittins: Housing market is a war on youth

Ross Gittins has turned over  new leaf in recent times, penning some excellent material. The renaissance continues today: You know the remarkably high price of homes is now a top issue for our politicians, state and federal. But you may need reminding that house prices are an intergenerational issue. As a general rule, the younger


Do-nothing China treaty captain’s call blows up

From Domainfax One minute, the government was moving swiftly towards the final “ratification” stage of a criminal extradition treaty signed with Beijing under John Howard a decade ago, and the next, it had been mothballed. Cory Bernardi was cock-a-hoop, having leaned into the issue rather vigorously in the preceding hours to note inter alia the