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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: Who crashed the Economy? How not to handle a Property Bubble

Posted by on in ROYAL COMMISSION URGENT
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You also need to read Bubble Economics 2014: Philip Soos and Paul D Egan  and Pages 621 - 660

Bubble Economics: Australian Land Speculation 1830 – 2013, has been published through the World Economics Association website, at http://www.worldeconomicsassociation.org/books

http://www.whocrashedtheeconomy.com.au/blog/2014/04/rp-data-shows-australian-housing-bubble-out-of-control-rba-house-prices-can-fall-and-have-fallen/

RP Data shows Australian housing bubble out of control – RBA warns house prices ‘can fall and have fallen’

Written by admin on April 1, 2014 – 8:06 pm

As widely feared, Chinese appetite for Sydney and Melbourne real estate has caused house prices to surge in Australia at the fastest pace since records started 18 years ago.

According to data released today from RP Data, Sydney house prices have increased at an unsustainable 15.6 per cent year on year, followed by Melbourne at 11.6 per cent. Both Sydney and Melbourne left the rest of the country for dead and together, helped push up the combined capitals by 10.6 per cent.

On the weekend, under the headline House prices enter danger zone, the Australia Financial Review warned “House price growth picked up again this month and expected further increases risk pushing prices into the danger zone that previously has led to a market correction.”

The AFR warned, “Australia has now overtaken Canada as the most stretched housing market among English-speaking countries.”

With such a large bubble at hand, both the Australian Government and the Reserve Bank are now sitting on their hands – like a stunned mullet.

Neither want to be blamed for doing something that will tip an increasingly unstable system, plunging Australia into a significant recession. Both would rather let surging unemployment or a China hard landing do the unpopular dirty work for them.

Canada is one of three countries in the world with negative gearing and until recently held the record for the largest housing bubble in English speaking countries, dethroned now by Australia.   It has recently axed an immigration visa allowing Chinese to snap up its real estate citing it posed significant economic stability risks. Prior to making the decision, the Canadian Government opted to prudently freeze the visas while it carried out the 2 year inquiry.

The Abbott Government last month has asked the House Standing Committee on Economics to carry out a similar inquiry, widely seen as window dressing – demonstrating to the increasingly concerned Australian public that it is actually doing something, while allowing foreign investors to continue to flood the market. Many believe it is simply delaying tactics, with a final report due on the 10th October 2014.   Any recommendations could take months to implement, if a decision is made at all.

Documents from the Reserve Bank of Australia, released under FOI, indicate the central bank was looking at macroprudent controls, similar to what New Zealand has implemented – the other country with negative gearing and a sizeable overheating housing market.   But has now decided to do nothing...............We live in interesting times.    .read more http://www.whocrashedtheeconomy.com.au/blog/2014/04/rp-data-shows-australian-housing-bubble-out-of-control-rba-house-prices-can-fall-and-have-fallen/

 

» Capital city home prices surge most on record according to RP Data – Rismark index – The ABC, 1st April 2014.
» House prices enter danger zone – Australian Financial Review, 29th March 2014.
» Report into foreign investment in residential real estate could come too late – Who Crashed the Economy, 19th March 2014.
» Housing bubble has RBA backed into the corner – Who Crashed the Economy, 22nd September 2013.

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Guest Wednesday, 26 February 2020