Apparently we are heading for a resession

B

Blixsem

Apparently we are heading for a recession?

Correct me if I am wrong? but we are not heading for a recession or 40% medium house price drop. I always like to talk to new people and go about life with the motto that I can learn at least one think from everyone I meet.

I was very happy to see a work colleague on a real estate website over lunch. I unwittingly approached said colleague and within 5 mins I was cursing myself for never finishing the time travel machine I always wanted to build at Uni. I would hop in and slap myself before even starting the conversation with the gentleman.

Apparently the world economy is stalling, China is crashing and Australia is already (unbeknownst to the people running the country, people much smarted than me ? yes we could argue the point!!) in a subprime mortgage crisis. Defaulting on mortgage loans has gone up and aliens are about to attack. Ok I made the last one up.. he did not actually say that.

So waiting for the 40% drop in house pricing is apparently what we are waiting for these days before we get in and buy that first PPOR. No effort from me could help change his mind (I tried for about 2 minutes)?. Or end the conversation.

I can see the point that sometimes caution is possibly the best way forward. We already had various warnings from the RBA that we should not be banking on future capital growth in property as seen over the last few years. But seriously?.

And now I find myself forever marked as the go-2-guy at the office coffee machine to talk doom and gloom with?. Someone shoot me.
 
Tell your workmate that a mate of mine has been waiting for that 40% drop to jump in and buy a home in Sydney for many years. Prices are now completely beyond his reach and always will be.
 
Blixsem said:
Apparently we are heading for a recession?

Correct me if I am wrong? but we are not heading for a recession or 40% medium house price drop. I always like to talk to new people and go about life with the motto that I can learn at least one think from everyone I meet.

I was very happy to see a work colleague on a real estate website over lunch. I unwittingly approached said colleague and within 5 mins I was cursing myself for never finishing the time travel machine I always wanted to build at Uni. I would hop in and slap myself before even starting the conversation with the gentleman.

Apparently the world economy is stalling, China is crashing and Australia is already (unbeknownst to the people running the country, people much smarted than me ? yes we could argue the point!!) in a subprime mortgage crisis. Defaulting on mortgage loans has gone up and aliens are about to attack. Ok I made the last one up.. he did not actually say that.

So waiting for the 40% drop in house pricing is apparently what we are waiting for these days before we get in and buy that first PPOR. No effort from me could help change his mind (I tried for about 2 minutes)?. Or end the conversation.
Click to expand...
Maybe just do a bit of reading within the site there has been some that have been waiting from 2004,for the big 40% drop and that is another aspect of the problems with prediction the more media knowledge they have and do nothing with the data,may well decrease their ability to forecast anything..
 
Surely the governments will just print more money, lower taxes and increase government spending...

Wait some governments already are doing these things today.
 
Blixsem said:
Surely the governments will just print more money, lower taxes and increase government spending...

Wait some governments already are doing these things today.
Click to expand...

In case you haven't noticed, the current governments fiscal and political motives are to constrain spending for the medium term. :)

Recession will absolutely come sooner than later, but that's just a nature of economies - a healthy part of a functioning system.
 
D.T. said:
Everyone knows its cyclical
No one wants to see the bottom half
Click to expand...

What time of the cycle are we do you think? Different for different areas/states but generally as most graphs from each states follow each other.

Are we about to hit a slow/stagnating period?
 
yes there is a recession coming, as stated by peter, but when?

Just do what you can to prepare for the event as best you can.
As another said, many people see this as an opportunity.

I think it won't happen until the car manufacturing has closed down.
 
kathryn d said:
yes there is a recession coming, as stated by peter, but when?

Just do what you can to prepare for the event as best you can.
As another said, many people see this as an opportunity.

I think it won't happen until the car manufacturing has closed down.
Click to expand...

There seems to be a lot of people thinking like that from the early 1970's up too yesterday ,or as my broker tells me each week,we do not know what we will know..

http://channel.nationalgeographic.com/channel/doomsday-preppers/episodes/you-said-it-was-non-lethal/
 
willair said:
There seems to be a lot of people thinking like that from the early 1970's up too yesterday ,or as my broker tells me each week,we do not know what we will know..

http://channel.nationalgeographic.com/channel/doomsday-preppers/episodes/you-said-it-was-non-lethal/
Click to expand...

True.
I guess it depends on the person.

During the Great Depression, there were many people who were not affected, as they still had their job. It wasn't until they lost their job, that it became serious.

Everything goes in cycles..it is going to happen.

Not sure I want to live in a "doomsday prepper" society.
 
There is always going to be someone saying recession is coming, and this and that is coming.

I remember back in 2012 my neighbour was telling me that the end is coming, we better prepare for it etc...
Even on the news these people were going to the extreme to prepare for such things

But the reality is, Where is this doom/recession/the end?
 
Retail spending is down,wages have not increased a great deal,everyday living expenses has increased,unemployment on the rise and more job losses,as we smoothly roll along.

Might have a better picture by mid 2015.
 
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