Recall this from Gottiboff two weeks ago:
In the wake of the surprise May 18 election result Australia is experiencing one of the biggest sudden stimulations in its peacetime history.
The Chinese realise Australia’s outlook has changed and have created a surge of buying that has skyrocketed Sydney apartment prices by 10 per cent in just two weeks.
…These fundamental changes will soon spread throughout the economy (retail will take longer) and the Reserve Bank should delay next week’s planned interest rate reduction. Its pre-May 18 economic data is about the past and does not reflect this dramatic turnaround.
…A jubilant Harry Triguboff is staggered. The Chinese rush into the Sydney market covers both existing and off-the-plan apartments. Turnover has skyrocketed. Triguboff was holding the market by financing buyers but that’s no longer necessary—they have the money.
And now today:
We are vulnerable to the repercussions of the riots and cyber attacks in Hong Kong while the failure of the oil price to skyrocket after the attacks on oil tankers in the Gulf of Oman shows that world growth is under great pressure.
…And if the global game continues on the present course then the Australian dollar is vulnerable to further falls.
…In Australia we have had a post-election boost. Global events will make that momentum hard to maintain.
Highrise Harry’s sales must be falling again.
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.