While Canada is being praised for their progressive, open-minded new laws, they’re really just following in the footsteps of countries like Uruguay and the Netherlands, and American states like California and Colorado.
Construction has played a huge role in the demand for dwellings in Australia. And was a significant factor in the cost of homes. Now, it has been revealed that construction took quite a hit in the September quarter of this year.
It’s not an unreasonable assumption to make that the trade tensions would have an effect on the Australian economy; we’ve mentioned in the past that Australia could be affected.
It’s not looking great if you’re planning an overseas holiday. But if you’re not, then this just may be what you’ve been waiting for.
The back and forth between the two economic powerhouses began earlier this year. We all know the story, the US put down a 25% and 10% tariff on steel and aluminium, respectively. And it’s grown from there.
Central banks around the world used stimulus packages to boost their economies and in Australia, it also kept us out of a recession. For this to work, countries had to spend money, which has led to debt.
You may remember a few years ago the Chinese lost their trust in locally produced products after mass death and illness was caused by contaminated baby formula. But it’s not only baby formula that the Chinese have been lied to about.
Without a rising and stable real estate market, the economy will suffer. Both federal and state governments benefit from higher property prices. They can generate more fees and taxes from higher land prices, allowing more money to flow through to governments.
With the Reserve Bank of Australia unable to flood the economy with cash, a recession may be the only way out Australia has. A lot more pain before any gain. While Australia was well placed in the last financial crisis, it doesn’t seem that will be the case the next time round. So will next time be the recession Australia needs to have?
Do you like being ripped off? I didn’t think so. But that’s exactly what the big banks of Australia are being accused of. The banks’ reputations are in tatters, but will that be all the punishment they receive? And what will it mean for their shareholders?