Greece (European) Crisis

[AngKuKuih]

Hi All

The Greece crisis has commenced to take an effect on stock market around the world. In my opinion, this will become a contagion effect and will spread to all weak financial European countries. With US economy limping along and the EU crisis, the world economy will affect China and Asia in general. This will affect Australian economy in general, employment, stock market and finally realestate. I am predicting that the housing prices will be affected substantial and I think this will be opportunity when it strikes Australia.

Please let me know of your opinion. All opinions are welcome.

Regards
AKK

 

[axe168]

Yo AKK,

Ya worrying too much.. You have no idea how tight the banking/lending market here.. unlike US, Australia banking system practice prudent lending.. They will lend you a penny, if you have a thousand.. They will lend you thousand, if you have a million dollar house for them. This is why developers cannot build enough coz local banks refused to lend more..

The ever biggest financial crisis can't cripple Australia, I dunno what else can.. US is the next biggest trading partner, apart from China.. Euro has little impact to Australia, IMHO.

I have placed all my bets in Australian stocks.. I am gaining few pennies along the way.. Soon ASX will reach its glory days - 6500 pts and beyond..

Great tips for you :p

Hi All

The Greece crisis has commenced to take an effect on stock market around the world. In my opinion, this will become a contagion effect and will spread to all weak financial European countries. With US economy limping along and the EU crisis, the world economy will affect China and Asia in general. This will affect Australian economy in general, employment, stock market and finally realestate. I am predicting that the housing prices will be affected substantial and I think this will be opportunity when it strikes Australia.

Please let me know of your opinion. All opinions are welcome.

Regards
AKK

 

[Aussie Prick]

Hi All

The Greece crisis has commenced to take an effect on stock market around the world. In my opinion, this will become a contagion effect and will spread to all weak financial European countries. With US economy limping along and the EU crisis, the world economy will affect China and Asia in general. This will affect Australian economy in general, employment, stock market and finally realestate. I am predicting that the housing prices will be affected substantial and I think this will be opportunity when it strikes Australia.

Please let me know of your opinion. All opinions are welcome.

Regards
AKK

Its not just greece. Spain has an unemplyment rate of 20% and is just as broke, along with Ireland - the Euro is tipped to reach parity with the USD. Its sad really, especially when Germany is doing so well but Europe in general is in serious trouble. The US economy is expanding again, and is slowly getting back on track on the bright side. China's economy, however, is in serious danger of imploding in a year or so. These moves by the chinese government to tighten are too little too late. The Chinese stock market is at a 7 month low.

Australia will be affected to some degree but housing prices might not suffer much due to one factor - undersupply. Australian property is grossly overvalued and indeed is the "most unaffordable in the world" but the government has done little to increase supply. The PM of Australia has openly declared that houses in Australia "will never be cheap" as a net result of its prescriptive planning policies. The Australia government seeks to curtail urban sprawl and its subsequent consumption of resources. Many property experts have been predicting the Australian property bubble will burst at some point - but with such an undersupply the bubble is being perpetuated well past market norms so its being artifically supported by lack of viable supply. It would take a banking crisis as well as a recession to move the markets beyond their normal 10-20% typical cyclical swings. We did see some property in South and East sydney drop 40% during the last correction in 2008 though, so its very regional when it comes to Australia too.

 

[neddy]

Hi All

This will affect Australian economy in general, employment, stock market and finally realestate. I am predicting that the housing prices will be affected substantial and I think this will be opportunity when it strikes Australia.

Please let me know of your opinion. All opinions are welcome.

Regards
AKK

As far as this developer is concerned, Perth prices just continue to rise.
Forget about interest rate rises, forget about so-called housing shortages, forget about Greece.

If you understand how the property prices here works, you will still see record prices for the above $500k range. It is a matter of targeting the right people.

My concern is about China in the 9 months ahead, as more manufacturing shift to lower cost countries, and the central govt fight against the provincial govt.

The Greek tragedy will continue to unfold, with or without IMF. My Turkish friends are laughing at the Greek now, they used to envy these communists on how they managed to get into Euro zone. So what now, The Greeks can "Eat the Rich" or "Burn foreign banks", whichever route they chose, they left it too late.

PIIG+UK

 

[axe168]

Hi All
..............................
Regards
AKK

Let me tell you what I have experienced for the past few weeks..
My investment has gained 400-500k.. plus our income at xxx,xxx... we applied to cash out 70k to renov my house. Guess what ? It was refused ! CB local banks..

Now I have no choice but to call out our "Ace" card - SG bank to assess and provide us with short term funding.. Very sad..

If you think Australian Banks are failiing, think harder..

 

[AngKuKuih]

Hi All

It has been 2 months since my first post in early May. The Greece economic situation seems to have spreaded and the stock markets around the world is reacting to the EU slow down and also limping US economiy. My take is the global economy will slow down and will finally affect Australia. I attended 2 auctions, one property with ESR $1100K and one with $550K last Saturday. Not surprsing to me...., there were no bids at all. This is an indication of things to come.....

I believe that there will be a double dip global recession .........

Regards
AngKuKuih

 

[neddy]

Hi All

My take is the global economy will slow down and will finally affect Australia. I attended 2 auctions, one property with ESR $1100K and one with $550K last Saturday. Not surprsing to me...., there were no bids at all. This is an indication of things to come.....

Property ?
Some properties are going strong, it really depends on whether your target buyers got money or not.

Anyway, I am not sure how many of the foreign investment properties sold to Singapore buyers actually make money.

I believe that there will be a double dip global recession .........

Regards
AngKuKuih

There is no double dip, it is actually just one single dip, before the G-20 stimulus interfere with the recession just applying the wrong solution to the crisis.