Australia Is Earthed Into The Mushroom Factor

Australia Is Earthed Into The Mushroom Factor

I was reading an economics blog this week when one bloggers comment resonated in my mind – “politicians treat us like mushrooms, they keep us in the dark and feed us bulls&)$.” Since the global financial crisis (GFC) we have learnt how badly the Rudd/Gillard governments manage other people’s monies. The greatest problem for the Gillard government has been the botched Treasury estimations on company tax revenues. Finance department figures estimated that the 2011 – 12 budget deficits would be $37.100 billion now this figure is blowing out to about $40.000 billion.

You don’t have to be Einstein (unless you are a public servant living in Canberra) to see that businesses not related to mining are contracting. Governments perform very well when economies are swimming along the river of economic growth – otherwise known as the hope factor. This is now looking hopelessly impossible given in the budget last year Wayne “the world’s greatest treasurer” Swan expected company profits would rise from $57.300 billion to $74.600 billion. Today, they are factoring in $70.000 billion although I would suggest it would be closer to $60.000 billion or less. The Mushroom Factor of economic management is alive and well.

Somewhat confusing that the IMF warns resource prices on the way down yet then announce that Australia has the strongest economy in the developed world where it is expected to outperform all other countries for the next two years. The mushrooms are blooming given company tax receipts will be significantly down. The result of this force feeding mushroom diet is that politicians are hoping they turn into magic mushrooms and Australians enter an economic hallucination.

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The big problem in the lucky mushroom country is faced by the polls where it’s a matter of trust for Julia Gillard as Labor support flatlines in Newspoll. The lack of confidence by Australia’s little button mushrooms plays a major part with property market price machinations. This was evidenced this week when Julia Gillard established her Labor election campaign committee based on the wipe – out and destruction of Queensland Labor. At the next federal election it is almost guaranteed that the Greens might possibly be the number two party in Australia. I don’t concur with that given leader Bob Brown deserted the ship given he well knows his carbon tax (oops it’s called carbon price now) will be an electoral Armageddon.

Over to the real estate market where Title Deeds published the 2012 Top 20 house sales and Mosman was a star performer.

Mosman grabbed positions 2, 3, 4 and 14 which is a first where Mosman has posted three of the top five sales. No doubt the Eastern Suburbs agents will be choking on their cucumber sandwiches. The present property market is as tough as the markets in the early 1990’s – the “recession we had to have.” So it came as a shock that Australian Prime Minister politicises the RBA – again: Christopher Joye. The Australian Financial Review reported yesterday “Prime Minister Julia Gillard will aggressively link her budget – surplus goal directly to lower interest rates, saying that the Reserve Bank of Australia has “plenty of room” to cut its 4.25% cash rate … Even more interesting that Julia Gillard can instruct the RBA on independent monetary policy yet she could not instruct Fair Work Australia over the Craig Thomson matter – magic mushrooms?

Again the property offerings in Mosman are holding steady where I expect these volumes will range from 100 to 125 listings over the next five months – it will be almost guaranteed a case of slim pickings.

    .MOSMAN – 2088

    • Number of houses on the market last week– 98
    • Number of houses on the market this week – 101
    • Number of apartments on the market last week – 105
    • Number of apartments on the market this week – 103

    CREMORNE – 2090

    • Number of houses on the market last week– 11
    • Number of houses on the market this week – 11
    • Number of apartments on the market last week – 30
    • Number of apartments on the market this week – 32

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 14
    • Number of houses on the market this week – 12
    • Number of apartments on the market last week – 51
    • Number of apartments on the market this week – 59

Source: Domain Property Monitors

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate

• Click Here

For this week’s open for inspections –

• Click Here

Whilst the property markets meander the punters will be mindful of picking the troughs and positioning for the boom which would in my opinion be some time off given the present environment. When the anecdotal evidence (if not already) that the Gillard government will be decimated at the next election we will start to see property prices spiking given the market has bottomed. Real estate markets (these days) perform much better under Conservative government economic policy.

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The government is focussed on ‘much room’ for improvement whilst the public are tiring of mushroom politics. Two and half months until the introduction of the carbon tax aka carbon price and that would be the final nail in the coffin.

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Finally Sydney has something to be excited about $1 billion makeover: Sydney Entertainment Centre to be knocked down as apartments, shops and restaurants to be built in a new Darling Harbour plan.I will make a prediction that Darling Harbour will become the next Mosman in terms of popularity given it provides a walk to everything – which is exactly how the new world want to live.

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Cheers ^__^

4 Responses to “Australia Is Earthed Into The Mushroom Factor”

  • Ann says:

    Thanks Robert,

    The snatch and grab to get back to surplus, given plunging revenue will be an interesting event with smoke and mirrors and lots of references to ‘forward estimates’ which have been proven to be very flakey to say the least.

  • Ann says:

    Scratching my head as to how Slipper could allegedly do what he did when be had a high paid $350k salary? All he had to do was keep his nose clean for 18 more months…

  • Ann says:

    Lest We Forget

  • Ann says:

    Did you see the Slipper Tweets. His wife must have banished him to his room and he is tweeting away on his bed. She should have taken his phone, IPod, Laptop and other devices, the naughty boy he is.

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