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Originally posted by surrealist
Australia's love affair with property is about to turn sour as an "economic tsunami" looks set to hit world markets, American economic forecaster Harry Dent says.
Mr Dent, who arrived in Australia on Sunday, predicts the world will experience a second, deeper downturn, which will arrive between the beginning and the middle of next year.
Starting in Europe, the downturn will spread to the US, China and eventually Australia, he said.
"Australia is probably the best place in the world to survive this, but we do think Australia will not escape as well as it did from the last crisis (in 2008)," Mr Dent told AAP....
Mr Dent said Australia's house prices would return to late 1990s or early 2000 levels.
So the economic forecaster predicts the world will enter a second deeper downturn by the beginning or mid next year
. He also predicts, as per further on in the article, gold and silver are going to crash as they are in a bubble now.
Other than a drop off in spending, Dent doesn't provide a trigger as to what is going to lead to the next downturn or The Great Crash Ahead as his book is titled,.
Originally posted by XplanetX
Originally posted by Agit8dChop
oh yeah i agree, America took a nose dive off a cliff...
but lets be honest... if your working at 7-11, have minimal savings and no real long term goals, and your given a 200-350,000 k mortgage.. thats a means to disaster. and the US banks just seemed willing to hand out credit to every tom dick and harry... your work dried up, people couldnt pay mortgages, all of a sudden you have uber amounts of cheap, common housing..
Australia but, the people owning the houses OWN the houses..
the small sector of mortgagee's stupid enough to take a 2x1 fibro from coodanup for 350,000 will lose their homes.
but this is a minority..
Also, Australia's built on mining... now, if there was a super massive world drop off.. the world will still need metal, minerals and mining, which is where a large portion of Australias home ownership income comes from.
it would take something pretty astonishing to kill all mining and export in Australia, of which will force realestate to drop like a rock.
Actually we don't own them. Our private debt to GDP ratio is worse than the US.
This is a fact