Mamma Mia – here we go again!

Mamma Mia – here we go again!

How come Italians don’t like Jehovah witnesses? They don’t like any witnesses!

Well they have plenty of witnesses now with Italy at breaking point, Greece in chaos prompting another global financial meltdown as Australian stocks plunge on Italy gloom. Again Ringing The Bell best summed it up when Charlie Aitken wrote “Italian equities intraday reversed sharply, while Italian bonds also came down in yield on well sourced stories about Italian Prime Minister Berlusconi stepping down in the near future. Berlusconi’s resignation would be the single best development that could happen to risk assets globally (and the single worst thing that could happen to 18yr old Italian women), with the fear that Italian default (third highest bond market in the world) being the only fear holding back equities globally from what could be a stellar Christmas rally. The Bunga Bunga rally”.

Here in Australia, we constantly hear and read about illegal arrivals on our shores so I was gobsmacked when I read Migrants blamed amid Greek debt crisis “Imagine an Australia where one in every 12 people on the streets was an asylum seeker or undocumented migrant. Some 6,879 people landed on our shores last year, but how would Australia border protection forces cope if 128,000 appeared over the horizon. This is precisely the situation now facing Greece. With an official population of just over 11 million (half that of Australia), Greece now hosts a staggering 1 million illegal immigrants and asylum seekers.”

So it would come as little surprise that IMF warns world economy at risk when European leaders called on China, which has the world’s largest foreign exchange reserves at $US3.2 trillion ($A3.09 trillion), to invest in the fund. Time will tell if China comes to that party!

One of your best Mr Mooney – shot yesterday afternoon The Lakes GC in all its glory and it looks absolutely sensational too!

BUY PRINT

Given Asia’s pace of growth slows, says RBA’s Lowe which should not come as a great surprise (unless you are in mining) that businesses should be bracing for a slowdown. In Australia, it is most evident today how corporate strategies for a slowing economy are now a very simple fact of life.

The attention in Australia has now shifted to the Reserve Bank of Australia (RBA) as our financial lifeguard in these stormy and turbulent waters. The cash rate was dropped on November 2 to 4.50 per cent so will the RBA match the February 4, 2009 rate of 3.00 per cent?


More rate cuts needed following lacklustre mortgage lending figures: HIA given the Westpac/Melbourne Institute Index of Consumer Sentiment increased by 6.3 per cent in November from 97.2 in October to 103.4 in November. So I was interested to note one rate cut not enough to help economy, but watch employment data: Macquarie the employment data sent a succinct message Australia’s jobless rate down to 5.2 per cent in October this showed a stark contrast to employment outlook in other countries.

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Home loans continue to rise which represents the number of home loans having risen for six straight months. This should come as no great surprise given these days we appear to focus more on the negative sentiment which more often than not, clouds judgement. A classic example is strong dollar not chasing foreigners away so let’s look at the Australian Bureau of Statistics (ABS) data.

  • Sept 01 – 403,600
  • Sept 02 – 405,100
  • Sept 03 – 425,000
  • Sept 04 – 439.500
  • Sept 05 – 458,900
  • Sept 06 – 462,500
  • Sept 07 – 471,700
  • Sept 08 – 454,700
  • Sept 09 – 466,300
  • Sept 10 – 500,200
  • Sept 11 – 500,600

In September the $AUD dollar dropped to $US 0.94 and in 2001, it was $US0.48. Today, in Australia, it is more a case of the basic fundamentals of our economy remaining strong – for most obvious reasons.

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You will note that our rate cut and unemployment data point to housing recovery. This is evident with data this week revealing that for the first time in 2011, our home owners have finally come out to play. The number of houses on offer in Mosman jumped this week from 147 to 168 (the highest number recorded in 2011) and up over 100 per cent from the July 13, 2011 number of 80 houses.

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Apartments are also up significantly which would be based on the furphy that the NSW government will abolish the First Home Buyers Grant from January 1, 2012 – no legislation has been passed so it won’t happen!

MOSMAN – 2088

• Number of houses on the market last week – 147
• Number of houses on the market this week – 168
• Number of apartments on the market last week – 110
• Number of apartments on the market this week – 138

CREMORNE – 2090

• Number of houses on the market last week – 16
• Number of houses on the market this week – 21
• Number of apartments on the market last week – 35
• Number of apartments on the market this week – 44

NEUTRAL BAY – 2089

• Number of houses on the market last week – 18
• Number of houses on the market this week – 21
• Number of apartments on the market last week – 98
• Number of apartments on the market this week – 136

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

So back to Mamma Mia – the volume is turned up and to Greece and Italy the lyrics say “I’ve been cheated by you since I don’t know when. So I made up my mind, it must come to an end”.

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Look at me now – and I’m not talking about the Bunga Bunga parties either!

By the way, we also had the carbon tax passes the Senate this week so Socialism is alive and well in Australia. Just imagine the promises at the next election: no income tax payable and the national anthem will be Mamma Mia.

Cheers ^__^

3 Responses to “Mamma Mia – here we go again!”

  • Ann says:

    Great shot of the Golf, well done.

    We get a new carbon tax that will make Australia uncompetitive, while other countries are winding back their carbon ‘initiatives’. Just gobsmacking

    Let We Forget.

  • Gordon says:

    The housing loan figures are interesting, and continue to suggest that we are looking at a holding pattern rather than the sharp decline that a number of people were predicting some time ago.

    So assuming no major and currently unforeseen disasters for Australia, the pattern suggests that housing will remain restrained until public sentiment starts to significantly lift, when the deferred demand could see some interesting increases being posted.

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