Links 19 July 2016

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Unconventional Economist

Comments

    • It sounds like Melbourne needs a shooting gallery so that the users and public can be looked after.

    • Shows you how completely dysfunctional this financialised property bubble “economy” is. On the one hand, the value and number of empty apartments and foreign owned houses is exploding, on the other hand, in the last few years the number of homeless people living in our streets and parks has been soaring. And for every person pushed out onto the streets there are many more hanging on by their fingernails and that number is increasing all the time. But the treacherous clowns in parliament are silent in their part in creating this monstrosity.

      • Or the ones in military flack jackets and black gloves ready to take granny down for a tram ticket but never see them on Collins Street where the real criminals hang! It’s all bullshit, like Gunna says

      • Add to that the common concern that all this homelessness is “a bad look” and “off putting” and you see how heartless and selfish we have become.

      • @footsore I don’t know dude I’m inclined to the possibility that’s just a media propaganda line, most people in #Hellbourne know it’s fucked up and something went deeply wrong, most people steer clear of them only by an inch and don’t say anything about shelters made from window groves. The CBD has become so crowded you see them in North Melbourne, Carlton, Fitzroy…

      • What’s happening in the city centre is just the tip of the iceberg If you go to the outer suburbs you can see people squeezed into run down small homes and units. I have seen myself families and friends squeezed into rented two room units and this is now common. It really is developing country stuff.
        re: Clowns in Gowns. Indeed.

    • Interesting is right, apparently if you have $700k worth of assets you’re a commoner. What’s wrong with this picture?

      • overlay that with a 400k mortgage – 2 parents working (in shitty gigs) a couple of screaming kids etc and you are probably in middle Australia. Maybe 500 outside the big cities.

      • An Australian wrote the book on it. Check out Clive Hamilton’s ‘Afluenza’.

        Af-flu-en-za (n). 1. The bloated, sluggish and unfulfilled feeling that results from efforts to keep up with the Joneses. 2. An epidemic of stress, overwork, waste and indebtedness caused by dogged pursuit of the Australian dream. 3. An unsustainable addiction to economic growth. –

        See more at: http://clivehamilton.com/books/affluenza/#sthash.J2IYZ5lH.dpuf

      • Mig, we have the best possible outcome, Turnbull and team are re elected so there is no ambiguity as to who is responsible for the implosion. Turnbull wont see out the 3 years, nor will Shorten,
        Events from left field will collapse the housing market and all will be reset.
        This headland overlooking the surf is the best possible location to be an observer.
        Did anyone find out why the Deputy Pres of the USA was here,??

    • Hmm Affluenza sounds about right. We have the Government we deserve. Australian’s love their housing unaffordable, so long as they are on the ladder it’s “fuck you I got mine.”

  1. Wages eh…

    CEO compensation grew faster than the wages of the top 0.1 percent and the stock market

    Economic Snapshot • By Lawrence Mishel and Jessica Schieder • July 13, 2016

    CEO compensation in the largest firms dipped temporarily in 2015 and remains 940.9 percent above its 1978 level. This growth in CEO compensation far exceeded the growth of the stock market, which grew forty-two percent less (up 542.9 percent). This shows that executives have done far better than the firms they have led and executive pay cannot be simply attributed to better firm performance. Neither can the spectacular rise in CEO compensation be attributed to the ‘market for talent’ providing more rewards for those at the top. The wages of the top 0.1 percent of wage earners (top one out of a thousand) is a decent proxy for the pay of the most financially successful and grew a remarkable 320.5 percent from 1978 to 2014 (the last year for which data are available). Yet, CEO compensation grew roughly three times faster than the wages of the top 0.1 percent. The fact that CEO compensation grew so much faster than the pay of other very highly-paid earners, and far faster than stock prices, indicates that unique dynamics are at play and that corporate governance is not adequately restraining executive pay. – go to epi.org

    Disheveled Marsupial…. Don’t even get me started on the studies that show CEO et al pay is not correlated to performance… outside some industry fashion… ripping yarns of Al Dunlap and Perelman still echo…

    Edit… skynet remove it before for some reason…

  2. RBNZ acts to urgently tighten lending to investors; proposes 60% LVR limit for rental property investors nation-wide from Sept 1; also plans to tighten LVR lending above 80% for other borrowers | interest.co.nz

    http://www.interest.co.nz/news/82658/rbnz-acts-urgently-tighten-lending-investors-proposes-60-lvr-limit-rental-property

    The Reserve Bank has proposed a significant tightening of lending to rental property investors across the country from September 1, and will also reduce the speed limit for other borrowers with Loan to Value Ratios (LVR) of over 80%.

    The Reserve Bank said a new LVR limit of 60% would be set for landlords across the country, essentially extending and lowering the current limit for Auckland investors of 70%.

    The Reserve Bank announced in a statement shortly after 9 am it had released a consultation paper proposing changes to loan-to-value restrictions (LVRs) “to further mitigate risks to financial stability arising from the current boom in house prices.” … read more via hyperlink above …

    New Zealand’s homes top an ‘obscene’ $900 billion combined value | Stuff.co.nz

    http://www.stuff.co.nz/business/82025712/New-Zealands-homes-top-an-obscene-900-billion-combined-value

    Tracy Watkins: Housing solutions out of reach | Stuff – Fairfax New Zealand

    http://www.stuff.co.nz/national/politics/opinion/82146247/housing-solutions-out-of-reach