Gotti’s 10 reasons investors fear Australia

From the Old Dog:

1. [If Glencore goes] That would mean the value of all mining assets would fall sharply.
2. The Gladstone LNG plants face a testing time so Santos and Origin shares have been pummeled.
3. Australia is reluctant to alter its spending and living standards.
4. Those who have invested from overseas [in property] are being toweled by the currency fall and are telling their mates.
5.  There is a real estate bubble in Australia of huge proportions.
6. If the apartment boom cracks along with the mining boom Australia will face a severe recession.
7. We have a government that is way out of its depth.
8. There is no real debate about infrastructure alternatives.
9. Instead of embracing the China-Australia Free Trade Agreement we allow the building unions to hijack the debate.
10. Australia is going to be caught on the wrong side of the carbon/emission trading debate.

Let’s add a couple more:

11. The whole idiotic box and dice is externally funded.

12. Sovereign downgrades are near certain.

13. We have a near-terminal dose of Dutch Disease.

14. The RBA thinks everything is awesome.

Good job, Gotti (if ten years too late), though often the arrival MSMers signals short term relief.