Where was the panic? Where were all the think pieces about the dangers of Australia’s economy being so strongly focused on selling iron ore to China?
As of yesterday, 19 April 2017, the occupation list that underpins the 457 visa has been significantly condensed from 651 to 435 occupations.
While it’s all good in the short term, China is simply building up long term problems to keep the economy humming along.
Because it makes for good click bait, there is generally a prediction about a house price crash making the headlines once a week in Australia, these days.
Our average Aussie saver (represented by the fictitious John Bull) could put up with a lot…but he couldn’t put up with an interest rate of 2%.
With the Reserve Bank of Australia holding interest rates steady at 1.5% yesterday, the Aussie dollar fell back below 76 cents.
If you want to boil history down to a few words, it’s always been a battle for scarce resources. Land is the resource. In land there is power.
It will take interest rate hikes by the RBA to bring the Australian housing market down. And the RBA is simply not about to do that.
The slightest withdrawal of the economic stimulant plunges an economy into depressive conditions. A very serious problem.
Last week’s correction of 1% caused a whole bunch of anxiety and hindsight analysis, but the simple fact is, from time to time, market’s simply correct.