The Ultimate Visualization Of Australia's Housing Bubble

Tyler Durden's picture




 

Will Steve Keen be proven 'early' and correct? We suspect so; and the following infographic from DebtConsolidation.com.au provides some more compelling evidence of the growth of the Aussie housing bubble and its geographical diversity (and should you consider a trade on the back of this - Australian bank CDS are trading near 12-month tights).

 

State of the Australian Property Market

Source: DebtConsolidation.com.au

 

...and for those thinking of a trade... Aussie Bank CDS (average)...

 

Chart: Bloomberg

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Tue, 08/28/2012 - 17:38 | 2744690 JeremyWS
JeremyWS's picture

No, no problem here, Haven't you heard? the world is fixed!

Tue, 08/28/2012 - 17:46 | 2744706 Dan The Man
Dan The Man's picture

sounds bullish

 

Tue, 08/28/2012 - 17:51 | 2744716 Michael
Michael's picture

After snubbing Ron Paul at the Republican Clusterfuck National Convention by not reading Ron Paul's votes at the podium, I am definitely directly voting for Barack Obama in November.

Good luck on your next 4 years President Obama, you'll need it.

Tue, 08/28/2012 - 17:53 | 2744722 Xibalba
Xibalba's picture

"We're not going to let our campaign be dictated by fact-checkers," said Neil Newhouse, a Romney pollster.

Tue, 08/28/2012 - 17:54 | 2744730 Michael
Michael's picture

CNN covering the RP snubbing clusterfuck. No mention from FIX news.

Tue, 08/28/2012 - 17:56 | 2744733 Xibalba
Xibalba's picture

Iowa delegates gave Paul 22 votes and Romney 6.  The announcement from the podium, "Romney gets 6 votes from Iowa!"  

Tue, 08/28/2012 - 18:10 | 2744758 Michael
Michael's picture

CNN did talk extensively about the clusterfuck, so that should make for some good Youtube videos.

Tue, 08/28/2012 - 18:18 | 2744771 Dr. Engali
Dr. Engali's picture

You sound like an Obama supporter pretending to be a Paul supporter. If you really want a protest vote then write in Ron Paul's name. That will send them a message loud and clear. Obama will win anyway so your vote for Obama will have meant nothing and it will just be registered as an Obama vote.

Tue, 08/28/2012 - 18:29 | 2744817 Michael
Michael's picture

My only motivation at this point is only REVENGE!

Tue, 08/28/2012 - 18:34 | 2744839 Dr. Engali
Dr. Engali's picture

Ridiculous motivation, especially since Obama will win anyway. You accomplish nothing except for feeling Shitty about yourself after casting your vote for Obummer. Ron Paul is a man of principle... a principled supporter would never consider voting for either one of the two official choices.

Tue, 08/28/2012 - 20:45 | 2745220 TwoShortPlanks
TwoShortPlanks's picture

At least you two have a choice...who the fuck can I vote for in Oz? It's a political jail cell I tell-ya! Hell, even our Olymipc athletes are a tragic mess...and our fucking home grown television is wrist-slittingly embarrassing, see: ttp://www.youtube.com/watch?v=kBbQbCBga_8 The greatest frustration of all is that our Gen-Y really do act like these moronic fuck-bags.

Fuck-it, I'm moving to Chiang Mai too!

Tue, 08/28/2012 - 21:29 | 2745343 Dr. Engali
Dr. Engali's picture

We have the same stupid shit here. That's why I got rid of cable. Nothing but idiocy and propoganda on the damn thing.

Tue, 08/28/2012 - 21:58 | 2745420 Al Gorerhythm
Al Gorerhythm's picture

If you go to Thailand you'll miss out on getting richer as your house price goes up. What the fuck is the matter with you?

Tue, 08/28/2012 - 22:13 | 2745475 Dr. Engali
Dr. Engali's picture

Have you read the main post ?;->

Wed, 08/29/2012 - 00:11 | 2745673 Al Gorerhythm
Al Gorerhythm's picture

Article, schmarticle. That's not what the govt. figures state. If we all had a bit more faith in the government's expertise in fixing the economy, we'd all be better off. It's not like they're to blame for people over-spending on houses. If buyers push the prices up, the government can't be held to blame for dumb decisions, right?

Wed, 08/29/2012 - 01:23 | 2745735 TwoShortPlanks
TwoShortPlanks's picture

I hope you're forgetting to post <sarc/off> at the end of your comments...coz, damn!

Tue, 08/28/2012 - 21:46 | 2745391 Freddie
Freddie's picture

Santorum had Romney beaten in Iowa, MI, OH, WS and the RINO GOP "counted" the votes.  Detroit won MI for Romney.  It really sucks but the muslim in the Choom wagon is even worse.

Anyone who watches any TV is a tool and supports the Matrix.

Tue, 08/28/2012 - 22:27 | 2745514 gnomon
gnomon's picture

Why does that not surprise me.  All of you Obummer retreads who "nobly" followed Ron Paul to the cliff edge were destined to slink back "home" for some very special S&M by the master.  Your master awaits.  Kiss his ass and while you are doing that kiss your own goodbye.

 

Tue, 08/28/2012 - 20:19 | 2745146 Zoran
Zoran's picture

Australia is pretty much doomed. The mining boom is dead, house prices are falling, unemployment will soon skyrocket and the entire economy is on the edge of collapse. Read this for a sober assessment of the severity of the situation.....

When the capital leaves - all we will have is a hangover and debt

Make no mistake. Australia has a massive debt bubble and property bubble.

The collapse will be momentous.

Tue, 08/28/2012 - 20:29 | 2745169 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Australia (pop. 22 million) bank market cap now = All European banks market caps combined (pop. 350 million).

Sounds like a nice pair trade: short/long

Tue, 08/28/2012 - 21:06 | 2745283 intric8
intric8's picture

And the scary thing about australia is - they are an island, in numerous senses of that word

Tue, 08/28/2012 - 17:41 | 2744691 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Somewhere Steve Keen is waiting for deflation......

....hopefully it is on a beach and he has a cold drink in his hand.

Tue, 08/28/2012 - 17:43 | 2744696 Xibalba
Xibalba's picture

The southern hemisphere will be the last place the radiation hits after the Great Flash. 

Tue, 08/28/2012 - 21:53 | 2745411 Freddie
Freddie's picture

Well Oz and NZ are the places people with money are going to get away from the rest of the world. 

Tue, 08/28/2012 - 17:53 | 2744697 Dr Benway
Dr Benway's picture

A third of the Australian share market is made up of banks up to the hilt in mortgages.

 

Current house prices are predicated on future growth, which makes a steady deflation of the bubble impossible - if there is no prospect of rising price, there must be a sharp decline.

 

There are plenty more catalysts that act as fuel on the fire, such as negative gearing. Just a perfect shitstorm.

Tue, 08/28/2012 - 18:54 | 2744913 Jay Gould Esq.
Jay Gould Esq.'s picture

Any and all entities even remotely associated with the housing bubble in New Holland must be shorted -- if I may borrow a term from Mr. Durden -- "with both hands."

Sage money is buying in New Zealand, not the People's Republic Down Under.

Tue, 08/28/2012 - 19:42 | 2745047 TwoShortPlanks
TwoShortPlanks's picture

 

 

****************************************

WARNING! Most Australian Super Funds are heavy Equities and light Fixed Assets.

A global slowdown represents a Triple Whammy to the Aussie middle class (Economy{jobs}, Housing{assets} and Superannuation{pension})

Gold Reserves of only 50 Tons

Fat assed red headed skank at the helm

THE Perfect Storm!!!

****************************************

Tue, 08/28/2012 - 21:05 | 2745277 saulysw
saulysw's picture

Australia has a lot of in-ground gold.

And then there is this...

http://blog.perthmint.com.au/2011/10/27/perth-mint-makes-worlds-largest-...

Ours is bigger than yours!! lol.

Tue, 08/28/2012 - 21:58 | 2745419 TwoShortPlanks
TwoShortPlanks's picture

And the Perth Mint is advertising on prime time TV to buy Gold from the public for what reason?

The writing is on the wall, they got caught-out with Silver early last year, and they're gearing up for Gold right now.

We may have Au in the dirt, but production costs are rising in the double digits per year, mining shares are woeful, and if a Gold boom hits there's no way the miners can gear up that fast.

Tue, 08/28/2012 - 22:01 | 2745431 Al Gorerhythm
Al Gorerhythm's picture

She pulls policies out of her ass, I'm told. Do her policies make her ass look big?

Tue, 08/28/2012 - 23:28 | 2745606 TwoShortPlanks
TwoShortPlanks's picture

Let's just say the fucking tard should move to Brazil.

Stupidity Examle: 3 months ago she said our mining industry was, "our economy's strong right arm"...Wow!

Wed, 08/29/2012 - 02:39 | 2745783 bluemaster
bluemaster's picture

I like fat assed red headed gilrs is that normal ?

 

Tue, 08/28/2012 - 20:35 | 2745183 Red Herring
Red Herring's picture

Can you point to some further reading re: "Sage money buying in NZ"? No sarcasm here, been contemplating just that for the last 6 months, but don't know enough about this, and haven't found a good place to look.  Thanks in advance.

Tue, 08/28/2012 - 22:07 | 2745453 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

LOL, New Zealand is an even worse unpopped bubble, no real economy besides butter and sheep, Maori land rights law putting every land title in question. Ask most NZealanders, who are all leaving for Australia and elsewhere

Nice place to visit but I wouldn't want to invest there

Tue, 08/28/2012 - 19:13 | 2744975 bilejones
bilejones's picture

Wasn't some 40% of S&P500 profit from financial institutions in 2006?

 

Look how well that turned out.

Tue, 08/28/2012 - 17:49 | 2744698 Dr Benway
Dr Benway's picture

To be perfectly honest, that is a pretty poor infographic though, as the Australian housing bubble can be illustrated much more simply, cogently and effectively.

Tue, 08/28/2012 - 17:43 | 2744699 LawsofPhysics
LawsofPhysics's picture

Wages fucking matter, imagine that.

Tue, 08/28/2012 - 17:48 | 2744711 Dan The Man
Dan The Man's picture

get out !

Tue, 08/28/2012 - 17:45 | 2744704 Doubleguns
Doubleguns's picture

When China sneezes a typhon will hit Australia.  China has a bad cold right now. Pitty Australia.

Tue, 08/28/2012 - 17:47 | 2744707 css1971
css1971's picture

SAUD

Tue, 08/28/2012 - 17:52 | 2744720 q99x2
q99x2's picture

Looks like Al Gore isn't going to be getting as much income from his carbon taxes this year.

Tue, 08/28/2012 - 22:03 | 2745439 Al Gorerhythm
Al Gorerhythm's picture

I got a rebate. The government is my saviour.

Tue, 08/28/2012 - 17:53 | 2744724 PSEUDOLOGOI
PSEUDOLOGOI's picture

Yipeee!!!!! let's all go down under...

until, oh no, GASP, someone shows that these # are cooked...

that would never happen, right?

Tue, 08/28/2012 - 17:54 | 2744729 roadsnbridges
roadsnbridges's picture

Just short the whole world, and be done with it.

Tue, 08/28/2012 - 17:56 | 2744732 tweake
tweake's picture

BETTER THAN I THOUGHT.

Tue, 08/28/2012 - 17:59 | 2744740 Paracelsus
Paracelsus's picture

You left out one little detail. Ten % unoccupied houses?Squatting is legal in Oz.It is unlawful to leave a building empty for long periods when there is a shortage of housing.Provided the squatters take care of and maintain the property the landlord cannot lock them out while they are staying on.Also,the squatters can act as a live-in security guard,preventing the building being used as a crack-house.Some of the laws derived from the UK are sensible. The point is that the landlord should lower his rents,but won't,so the property sits empty,and he accepts a loss for tax purposes.... Uni students have squatted for years.There's books written on the subject.

Oz does so much trade with Chinese that when the music stops there will be some major deleveraging.The great thing about Oz is they kept their interests rates high,no ZIRP and none of those Ninja loans. 

Tue, 08/28/2012 - 18:08 | 2744755 falak pema
falak pema's picture

Bubbles are so infectious; you'd think it was a disease if it weren't so Wall Street fashionista.

You can make a killing on a bubble pop!

Like robbing blind the poor, like taking candy from a sub prime baby! 

Tue, 08/28/2012 - 18:09 | 2744756 Surrealist
Surrealist's picture

Re Average Weekly Income

Is the % of income on mortgage payments where it states 26% in 2001 and 34% in 2011 a typo where it should be a comparison that states 26% in 2006 and 34% in 2011?

Trying to leave this comment on the site but it won't allow it for some reason.

Tue, 08/28/2012 - 18:10 | 2744759 dottjt
dottjt's picture

haha. As an Australian, I find it hilarious how everyone says that the only way for the housing market, is up. They have this delirious logic that things can only go up, because that's how it's always been for the best part of a decade. The problem is that we've had it too good for too long, and we haven't experienced any of the financial termoil like in over the states or Europe. We feel invulnerable, almost. Jobs are exactly the same and the econonmy is still moving as expected. Wait till the storm hits and China goes down. Our mining industry is basically the only thing holding us together. An instant GG. 

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