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Post by memoryfault on Apr 1, 2021 15:13:43 GMT 8
Interesting article on the ABC News, home prices are rising at the fastest rate since 1988.
Left completely unmentioned in the article is the fact that a year later, in 1989, interest rates on home loans soared to 17% and more, and home prices fell a staggering 30% plus, triggering "the recession we had to have".
Is history about to repeat itself?
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Post by NFA on Apr 1, 2021 22:30:00 GMT 8
memoryfaultGood pickup. As far as I understand it, and you may have other information, but what we in Australia pay for the cost of borrowing money is basically determined by world/global credit ratings! The current fuckwits in control of the levers of our so called Australian governments have now managed to have the financial hierarchy of the World start looking at their risk/reward exposure to Australia. Check the chart at www.worldgovernmentbonds.com/credit-rating/australia/ and scroll down to historical data and observe the dip in credit worthiness during that 1980's period you refer to when interest rates exploded. Victoria has already been downgraded and like NZ is basically gone. cheers NFA
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