‘It’s the vibe of the thing’ claims One Nation loon in High Court

Life imitating art today as the One Nation fruit cakes take their turn in the High Court: Dividing people into different classes of citizens based on whether or not they are born in Australia is “fundamentally unAustralian”, One Nation Senator Malcolm Roberts’ barrister told the High Court on Thursday morning. …”There should be no place in

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FHB patsies sucked into East Coast property bubble

By Leith van Onselen Today’s housing finance data for August, released by the Australian Bureau of Statistics (ABS), posted a large rise in lending to first-home buyers (FHBs) and well as an increase in lending to investors. According to the ABS, the total number of owner-occupier finance commitments (excluding refinancings) was dead flat in August


IMF downgrades Aussie outlook

Via ABC: Weaker mining exports and housing investment hurt by bad weather earlier this year have prompted the International Monetary Fund to cut its growth forecasts for the Australian economy. In what appears to be a blip, the IMF’s latest World Economic Outlook released overnight has sharply revised Australian growth down to 2.2 percent in


The crippling cost of Sydney infrastructure projects

By Leith van Onselen I have noted previously that one of the key reasons why Australia’s high population growth (immigration) is lowering the living standards of existing residents is because of the strain that it places on infrastructure, which inevitably leads to more congestion on roads, public transport, as well as more expensive housing. Basic


Domain: Sydney house prices fall sharply in Sep QTR

By Leith van Onselen Domain (formerly Australian Property Monitors) has released its State of the Market Report for the September quarter, which posted a fall dwelling prices fell across both Sydney and Australia. The below tables show the change in stratified median prices for both houses and units: As you can see, there is a


Hewson: Turnbull is weak (meh, it’s worse)

Via Domainfax: In a searing assessment of the Coalition’s chances of recovery, John Hewson told Fairfax Media that Mr Turnbull looked weak for failing to assert his past commitments on climate change, tax policy and marriage equality, and for refusing to call out Mr Abbott despite the growing absurdity of his arguments. Dr Hewson cited Mr


Roy Morgan unemployment begins to rise again

By Leith van Onselen The latest Roy Morgan Research (RMR) unemployment estimate for September registered a 1.1% decline in the unemployment rate over the month but a 0.6% increase over the year, with underemployment also rising significantly: Below are the key points from the release: In September 1.202 million Australians were unemployed (9.1% of the


Macro Morning

By Chris Becker Last night saw US stocks closing  at record highs – again – after the Federal Reserve released a summary from its last meeting, where it signalled an interest rate hike in December is increasingly likely despite low levels of inflation. European markets stabilised following the Catalan issue in Spain while commodity prices recovered.


Shorten tilts at wages “grand bargain” windmill

Via Domainfax: Unions, business and the federal Parliament should come together and strike a “radical” grand bargain that would deliver a much-needed pay rise for ordinary Australians, Labor leader Bill Shorten says. …In the speech, the Opposition Leader argued Australia is in danger of having growth without prosperity, and there has been a growing divide


Politics has pulled a Costanza

It is always wrong but right now nobody stands for anything! The Coalition is a centre-Right, liberal-leaning, small government party with a penchant for individualism and personal, as well as national, security. Yet today it’s major policy platforms are: anti-science and anti-climate change, especially market solutions; anti-markets and innovation in its embrace of rent-seekers; anti-competition


REA locust: “Cutting immigration won’t help housing”

By Leith van Onselen REA chief economist, Nerida Conisbee, has penned another self-serving article claiming that “cutting immigration won’t help housing”: There’s no doubt that the more people there are living in Sydney and Melbourne, the higher property prices go. This has led to some commentary about migration levels needing to be cut so that


Government turns blind eye as Chinese money floods Aussie property

By Leith van Onselen From Sam Jacobs at Business Insider comes yet another report on the torrent of Chinese money flooding Australia’s property market: New restrictions on foreign investors are unlikely to stop the flow of housing demand from China, according to Credit Suisse analysts Hasan Tevfik and Peter Liu. And crackdowns on capital outflows


Perth housing bust rolls on

By Leith van Onselen Several pieces of data have come to light illustrating just how bad Perth’s housing market is traveling at present. First, CoreLogic’s latest dwelling value results revealed that Perth dwelling values registered their 13th consecutive quarterly decline: Whereas values were also down by 2.9% in the year to September: The fall in


ASIC puts sub-prime interest-only lending on notice

By Leith van Onselen ASIC’s has released its review of interest-only lending, which has put both banks and mortgage brokers on notice to tighten up their selling of interest-only loans or risk regulatory intervention: ASIC has concluded the first stage of its targeted review, which involved data collection from 16 home loan providers (including large


Links 12 October 2017

Global Macro / Markets / Investing: The Market’s Got It Wrong – Daily Reckoning Global Economic Upswing Creates a Window of Opportunity – IMF Are Electric Vehicles Pushing Oil Demand Over a Cliff? – Inside Climate News OPEC Secretary General urges U.S. shale oil producers to help cap global supply – Reuters World Bank chief


Macro Afternoon

by Chris Becker Stocks in Asia were generally positive today with a retreating USD helping as well, as turmoil surrounding geopolitical tensions in Korea and Turkey simmered today. A lack of catalyst economic prints is also smoothing the volatility across the region. In mainland China the Shanghai Composite really wants to climb up through resistance at


Greens hold their heads up in High Court

Shame on the rest of the sad sack of carpet-baggers: The court of disputed returns should not reward “negligence” by letting off parliamentarians who did not take “reasonable steps” to investigate their dual citizenship, the lawyer for Greens Larissa Waters and Scott Ludlam has argued. In the second day of eligibility hearings on Wednesday, Brian Walters argued


Rate cut rally persists on ASX

Dalian iron ore is flat But coking coal is dead cat bouncing: Big Iron is still torn between a breakout for RIO and breakdown for FMG. I back the latter: The Pensioner Killers are up: Big Gold is up too. Sell! Aussie bank shares have been rising ever since the RBA indicated it would cut


Why slashing penalty rates is misguided policy

Cross-posted from The Conversation: A Senate committee has finally handed down a report on the Fair Work Commission’s decision to reduce Sunday penalty rates for workers in a range of service industries. The report recommends that the government bring in legislation to overturn the decision, citing mixed evidence of the impact of the penalty rate