This clip offers a good update on issues affecting the Australian property market, households and the economy overall. There are many parallels to Canada as well.
When it comes to housing bubbles, the bigger the bubble, the bigger the pop. That’s what Australia is probably experiencing at the moment — A large deflation that isn’t showing any signs of slowing down. It was once thought that it was just a healthy, but overdue, correction. But now regulators, policy makers, and the Reserve Bank of Australia, are all beginning to worry. Although the current slide hasn’t shown too much of a threat to the broader economy, even the most conservative of observers are suggesting that prices will continue to fall at least until the end of 2019. The biggest problem is that the main causes of the downfall cannot be altered easily. The only tool left in the RBA’s arsenal is another rate cut, but many commentators have argued that such a cut will only ease the pain — not cure the affliction. Here is a direct video link.
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