Josh Sigurdson talks with author and economic analyst John Sneisen about the crash of Australian housing markets across the board, from Sydney to Melbourne.
AMP Capital had recently predicted a 15% crash, however they have now updated that to a 20% crash by 2020. Housing prices fell in Sydney and Melbourne for the 12th month straight after years of us at WAM warning of the inevitable bubble burst.
Sydney has now fallen 6.2% and Melbourne 4.4%.
As we see the return of collateralized debt obligations, mortgage backed securities, credit default swaps, subprime lending, reverse mortgages and all the insane derivative madness that we saw pre-2007, it’s time to start looking at similar events around the world and learn from history. History rhymes and when we see the exact same policies repeat on an even more vast scale as all of the major banks face bankruptcy, perhaps it’s time that individuals educate themselves, take responsibility and become far more financially stable and self sufficient.
This will not end well for Australians if they are not prepared, so the solution is simple. Be overly prepared rather than under prepared. You can’t lose!
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