Comments by "Tony Wilson" (@tonywilson4713) on "Patrick Boyle"
channel.
-
96
-
21
-
11
-
8
-
7
-
6
-
6
-
4
-
3
-
3
-
3
-
2
-
2
-
2
-
2
-
2
-
2
-
2
-
2
-
@Dor Dor Great information.
All those people who claim that real estate property always goes up over the long term totally ignore historical FACTS and how it unfolds.
I'm Australian and In the aftermath of 2008 a documentary that HAD WARNED 2008 was going to happed was re-aired. In it was a German economist who had housing data for various European cities going back 400-600 years. He pointed out that every 80 (or so) years housing markets collapse almost back to zero. Irrespective of economic system people invariably put money into property it increases in value until it causes a system collapse. 2008 should have reset the Western Economic system and instead we bailed out the banks who then doubled down. Crazier the Chinese followed what the West has done with a real estate boom.
In Australia (my country) the main markets of Sydney and Melbourne are now so overpriced that they cannot do anything but collapse. Houses that only 20-30 years ago cost $300,000 are now costing $1.2 million and they are impossible to pay off. Our banks are addicted to the profits from home loans and because interest rates are so low, they have to loan out more money to make the same profits.
Its incredibly simple math.
The interest on $300,000 at 8% is the same as the interest on $1,200,000 at 2%.
This is also why 0.5% interest rate increase is so harmful.
Going from 8% to 8.5% on $300,000 is $1,500.
Going from 2% to 2.5% on $1,200,000 is $6,000.
Its staggering how much people don't understand the practical nature of this symbol -> %
Add into that increases in power & water and household spending collapses, WHICH WE ARE SEEING. Our retail market has been under stress for 20+ years. Their incomes are falling as their rents go up because of the higher energy prices. THAT'S EASY MATH.
What might save Australia is that we're a massive exporter of raw materials, energy and FOOD.
BUT that only works if other countries can pay us.
2
-
2
-
1
-
1
-
1
-
1
-
1
-
1
-
1
-
We are at the end of the neoliberal era.
It should have ended after 2008, but found a way to hang on and we (all 7.8 billion of us) have been in a precarious position ever since. Instead of admitting that the neoliberal economic model where "privatise everything" became a religious dogma that nobody was allowed to question, we moved to an even riskier model because the risk takers that brought the 2008 GFC were simply bailed out without any consequences.
After the Stagflation of the 1970s the unions who were blamed for that were ruthlessly persecuted, but NOT ONE Wall St CEO or board members was held accountable after the 2008 GFC. In fact for many they still got their bonuses.
Mark Blyth the political Economist at Brown in November 2016 (as part of the explanation behind the protest vote that handed Donald Trump the White House) said "In 2015, Wall Street bonuses, not regular compensation, bonuses, 7 years after they were bailed out with the public purse, totalled...$28.4 billion. Total compensation paid to every single person in this country who earns a minimum wage, $14 billion."
What Britain, Australia (where I am), France, Italy, Germany America and other countries are trying to deal with RIGHT NOW is that NONE of our governments did the right thing in the aftermath of 2008. They bailed out the culprits who went straight back to work as if nothing happened.
1
-
1
-
1
-
1
-
1
-
1
-
1
-
@David Rosenberg Do you watch any of Mark Blyth the Political Economist at Brown U? He was one of the very few who got both Brexit & Trump right.
He just wrote a book called Angrynomics. This is his 4 minute primer on it -> https://www.youtube.com/watch?v=MXJD5rE4omY
There's a for longer talks on it as well. Recently he mentioned a Rand report that said the top 1% of America have made of with over $47,000,000,000,000 since 1975. Here's the Time article on it and the link to the actual Rand report.
https://time.com/5888024/50-trillion-income-inequality-america/
https://www.rand.org/pubs/working_papers/WRA516-1.html
If you can't get your head around what 47 Trillion looks like try this. There used to be a game show called "who wants to be millionaire and on it the had a box with $1,000,000 in cash in it. That box was just over 1 cubic foot. A standard 20 ft container has just over 1,100, which means a 20ft container could be filled with a billion dollars. The 20ft container is the actual standard the measure ships with - TEU (twenty foot equivalent). The Ship that was caught in the Suez canal recently is the largest container chip ever built. The previous generation where 11,000 TEU and the current generation is 24,000 TEU.
So basically the top 1% of America have made of with 2 boatloads of cash. Its only 2 boatloads because the current generation of container ships is twice as large as the previous generation. If you try and use smaller vessels you need a fleet. 🤷♂️🤷♀️
1
-
1
-
1
-
1
-
1