How far gone is Australia's economy?

Anyone living down under knows there's a few storm clouds gathering on our economic shorelines. You can feel it in the people you talk to, friends all know someone who's not working and has been looking, the cost of living is extremely high, wages have stagnated and the aussie dollar has lost a third of its value in 3 years. Then there's the debt and the deficit which neither government seems to be able to control.

A couple of weeks ago news that the big banks were the subjects of mortgage fraud filtered out. The articles most Murdoch Media outlets wish wash over say that the banks were the victims and are investigating claims of mortgage fraud by multiple brokers.

What the articles don't explain well, is that the banks themselves may be complicit by fudging documents and also accepting documents it knew to be untrue.
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Luckily, the TV's are too busy with the election cycle to properly report on it.

Reading today in the news I found another about Australia's banks, which really got me worried..

The value of shares in the Big Four - Australia & New Zealand Bank (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Westpac - that were sold short totted up to 9.03 billion Australian dollars ($6.52 billion) as of May 16, up 85 percent since the start of the year, according to data from the Australian Securities and Investments Commission (ASIC).

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Shorts on Australia's banks have increased 85% since January.. Who shorts banks that make billions of profits year after year? Our banks have around $2 trillion in household debt between then while our nations GDP only runs at $1.6 Trillion.

Take into consideration some specifics on our 2015/16 budget..
The debt per person for an Australian adult has risen from $20k to $49k in 10yrs
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Australia's trade balance is constantly running at a large deficit..

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in the past 6yrs the nations debt has increased 3 fold to $400 billion while the ever increasing deficit sits at $35 billion
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.. now throw into the mix a banking fraud investigation, the collapsing housing market, the rapid decline in resources and commodities prices.. you start understanding why people are shorting the banks... It feels like we're about to be hit by a tidal wave!

Unfortunately, most dont know and/or dont care

This type of news is happening worldwide these days. Seems like we are all (most) destined to be "economic slaves" in the future by national and personal debt.

a reply to: Agit8dChop

Well, as an Aussie living outside the fortress for 19 years, i'm not fluent with the day to day running of the country. But "heresay" tells me to enjoy life as i am, and continue to enjoy my pension from the govt. that i have justly earned.

a reply to: tommo39

if you deserve it enjoy it!

It feels like we're doing exactly what the US consumers did before 2008.. spend the credit just because we can get it.

Now the banks look to be massaging credit applications. Yet, the people around me still go and get $30k loans for cars when their companies making lay offs because of the commodities crash!

As a kiwi who moved here 10 years ago, I'd say Australia is about 20 years behind where New Zealand is financially. Which is sold out to China, no hope of owning your own home on the lousy money they pay and no hope of a good paying job any more.

Global trade is evil. We should only ever trade in raw materials, no fully made up products - they should ALWAYS be made in the country they are bought in.

originally posted by: markosity1973
As a kiwi who moved here 10 years ago, I'd say Australia is about 20 years behind where New Zealand is financially. Which is sold out to China, no hope of owning your own home on the lousy money they pay and no hope of a good paying job any more.

Global trade is evil. We should only ever trade in raw materials, no fully made up products - they should ALWAYS be made in the country they are bought in.

Global trade is "war".

a reply to: Agit8dChop

now throw into the mix a banking fraud investigation, the collapsing housing market, the rapid decline in resources and commodities prices.. you start understanding why people are shorting the banks... It feels like we're about to be hit by a tidal wave!

The Big Banks are untouchable. Look at Bank of America. They had the judgement for 1.2 billion against them over turned, because there was no proof of wrongdoing. No proof? You have got to be kidding.

www.wsj.com...

Bank of America Penalty Thrown Out in Crisis-Era ‘Hustle’ Case Appeals court says government didn’t prove case, bank doesn’t have to pay $1.27 billion

a reply to: Agit8dChop

If the liberals get in power they will be lapdogs to foreign investors. Capitalism will take Australia away from the aussies.

They are OK...they make great beer and the Germans will help bail them out!
Yea I know...beam me up Scotty.
Cheers