<?xml version="1.0" encoding="utf-8"?>
<rss version="2.0" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom">
	<channel>
		<title>Australia: The Land Down Under(water in mortgage debt)</title>
		<description>Discuss Australia: The Land Down Under(water in mortgage debt)</description>
		<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt</link>
		<lastBuildDate>Thu, 20 Jun 2013 00:33:48 +0000</lastBuildDate>
		<generator>JComments</generator>
		<atom:link href="http://boombustblog.com/component/jcomments/feed/com_k2/1967/10" rel="self" type="application/rss+xml" />
		<item>
			<title>seanm says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1721</link>
			<description><![CDATA[Don't forget the AUD$13Trillion in derivatives held by the 4/5 major banks posted at the RBA's web site (Reserve Bank of Australia)-the central bank. Another bunch of zombies swapping trash for cash.Actual Tier 1 capital levels are farcical. All private loans are 40% foreign supplied from international markets. Also there is no capital gains on the personal owner occupied home. Just recently, ING, Australia's 5th largest lender started touting interest only loans. Also the RBA has bought RBMS from smaller mortgage entities since 2008/9. First tranch was of $8B. Second tranch of $8B well underway. From the penthouse to the shithouse via the elevator shaft.]]></description>
			<dc:creator>seanm</dc:creator>
			<pubDate>Wed, 16 Jun 2010 16:05:37 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1721</guid>
		</item>
		<item>
			<title>TexaninOz says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1745</link>
			<description><![CDATA[Reggie, First, nice call on Europe, writing was on the wall for sometime, but you continued to pound the table with great analysis, nice one. On Oz. I am an American living in Sydney. Was relocated from LA on 1 Jan of this year, it was maddening to witness the mania in the socal real estate market, where the last chapter has yet to be written (should end in CA bk, we’ll see). Many similarities in Oz to ripping markets in the US in 2005-2007, (ie. real estate is a constant topic of conversation, everyone has to be an owner, buy before you’re priced out, etc.) Not a member of your site, so haven’t seen all the pieces, but in the short notes, didn’t see a coverage of an important part of the story in the Oz RE market - negative gearing. Interest on investment property loans is fully deductible and if the interest is more than your income (CF) on the investment property, this offsets income from other sources, such as the wages and salary. There are several other benefits, but you get the point that it encourages RE investments/malinvestment. A 25-year old co-worker owns 12 properties with $30k in negative CF per year! He argues he was somewhat incentized to build a mediocre investment portfolio to directly offset personal income taxes (consider the highest rate here is 45%). A bit perverse (kind of like prop 13 in CA) if you ask me, but Aussies love it. Further, real estate is a national obsession. TV shows, magazines, books, more over the top the US in 2006. Ex the superannuation funds, equity investing is fairly small, say versus the US. Most ‘investors’ view real estate as the only option and have been rewarded, esp. as of late. And many Aussies I speak with understand that as China goes, Australia goes. That’s why there is some outrage against the mining tax, those in the bush view it as a potential ‘jobs killer’, those in the cities think ‘lower superfund account value’. That said, a lot of it is pandering by both sides. Oz’s day of real estate reckoning will come, but being on the ground here, think local currency demo gov’t bonds are a decent place to be, esp. as an American investor, given we’ve got heaps of problems on our own shores and the RBA is in a pretty decent spot w/ leverage to lower rates should the market fall, plus to monster deficit issues ala many other G20 nations. Not sure about your call on Aussie banks, keep in mind these are recourse loans, junk credit loans are newer in this market, and the 4 pillars dominate and are diversifying in Asia, I’d esp. be wary of shorting ANZ. Probably better shorts elsewhere in the Oz market, esp. if China slips…]]></description>
			<dc:creator>TexaninOz</dc:creator>
			<pubDate>Sat, 12 Jun 2010 14:07:32 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1745</guid>
		</item>
		<item>
			<title>V says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1747</link>
			<description><![CDATA[You are using the same logic as US hosing is only 5% of US GDP, echoed before the crisis. You may be right Chinese exports is only 4% of GDP (I haven't checked your figures), but how much GDP in the service sector and the rest of the economy does this 4% support?]]></description>
			<dc:creator>V</dc:creator>
			<pubDate>Sat, 12 Jun 2010 05:02:35 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1747</guid>
		</item>
		<item>
			<title>Terry says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1748</link>
			<description><![CDATA[Look at the other side of the coin. Our young people have been priced out of the housing market. Real wage increases has been negative for over a decade now. A good correction (like 50%) is needed. Rudd with his super tax will fix the mining industry, real-estate turns over and Australia's 2 trick pony economy tanks.99% of the Aussie population will then say, WHAT THE BLOODY HELL HAPPENED.]]></description>
			<dc:creator>Terry</dc:creator>
			<pubDate>Sat, 12 Jun 2010 03:56:59 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1748</guid>
		</item>
		<item>
			<title>TheGoat says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1783</link>
			<description><![CDATA[Hi Reggie, Yes bubblepedia is a good Aussie house bubble site and if you don't know Dr Steve Keen you may enjoy reading some of his work on debtdeflation blog link above. Enjoy reading your well written and researched articles, thankyou..]]></description>
			<dc:creator>TheGoat</dc:creator>
			<pubDate>Sun, 06 Jun 2010 17:03:10 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1783</guid>
		</item>
		<item>
			<title>Reggie Middleton says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1782</link>
			<description><![CDATA[Interesting site.]]></description>
			<dc:creator>Reggie Middleton</dc:creator>
			<pubDate>Sun, 06 Jun 2010 12:04:07 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1782</guid>
		</item>
		<item>
			<title>TheGoat says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1785</link>
			<description><![CDATA[Interested in the Aussie house bubble. try http://www.bubblepedia.net.au/tiki-index.php http://www.debtdeflation.com/blogs/]]></description>
			<dc:creator>TheGoat</dc:creator>
			<pubDate>Sun, 06 Jun 2010 04:11:53 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1785</guid>
		</item>
		<item>
			<title>TheGoat says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1778</link>
			<description><![CDATA[June 7 US hedge funds dump Australian bank shares AUSTRALIA'S biggest banks have become the victims of aggressive international hedge funds, which are shorting the banks' stocks after growing concern about the strength of the domestic property market. A New York hedge fund manager, who did not want to be named, said sentiment towards the Australian banks had soured because of doubts that the strength in the national property market would be sustained. "There's a lot of scepticism in the US regarding the Australian property market," the hedge fund manager said. "A lot of people have doubts about whether the strength of the market is going to be maintained. "I think it's the case funds are shorting the banks. If you're of the view that property is going to come off, then shorting the stocks is a very clean way to express that view. It's an attractive trade." Westpac is thought to have been targeted most heavily by hedge funds because of its large residential mortgage book, which has grown rapidly over the past two years. http://www.theaustralian.com.au/business/us-hedge-funds-dump-australian-bank-shares/story-e6frg8zx-1225875702144]]></description>
			<dc:creator>TheGoat</dc:creator>
			<pubDate>Sun, 06 Jun 2010 03:58:08 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1778</guid>
		</item>
		<item>
			<title>Reggie Middleton says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1807</link>
			<description><![CDATA[We're working on that now.]]></description>
			<dc:creator>Reggie Middleton</dc:creator>
			<pubDate>Wed, 02 Jun 2010 04:44:57 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1807</guid>
		</item>
		<item>
			<title>PapaKosmon says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1806</link>
			<description><![CDATA[Any thoughts on how to play a collapse of the Aussie Real Estate market, or short ETF that zeros in on a decline?]]></description>
			<dc:creator>PapaKosmon</dc:creator>
			<pubDate>Tue, 01 Jun 2010 20:46:01 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/1967-australia-the-land-down-underwater-in-mortgage-debt#comment-1806</guid>
		</item>
	</channel>
</rss>
