No Money – No honey. But no economical jack – knife

No Money – No honey. But no economical jack – knife

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I can offer the Reserve Bank of Australia (RBA) just three words – out of touch!

A classic case of economic tautology where on the one hand the RBA acknowledges that growth is “somewhat below trend” yet they remarkably decide to leave the cash rate on hold at 4.25 percent. Remarkably the RBA holds rate, but points to May cut so four months into 2012 we have not seen the cash rate adjusted since December 2011?

So why a cash rate cut in May and not April – we will have to wait another 26 days to find out. Not many clues were left in the Statement by Glenn Stevens, Governor: Monetary Policy Decision aside from the fact that the cash rate is too high. It was more a meeting of “wait there’s more“ (without the steak knives being thrown in.)

Like a lull before a classic storm Alan Kohler wrote Business panic in government calm. “There’s an air of growing panic among Australia’s business people. Company directors are calling for a budget deficit, retailers feel like they are peering over a cliff and everybody’s worried sick about the carbon tax and the high currency.”

BUY PRINT

Labor’s dire poll result from a one – off – its problem with voters is entrenched hello – a Tarago has more seats than Queensland Labor following last month’s election massacre. So it came with little surprise that Gillard rejects carbon tax review when dumped cabinet minister Robert McClelland stated that the carbon tax was a “burning issue” that needed to be resolved, and the broken election promise went to the “legitimacy of government decision – making”. If last year’s NSW state election and the recent Queensland election leave any clues – destroying a government is a new blood – sport.

Here is why.

The RBA would be closely monitoring the Australian housing market which has produced anecdotal evidence of price softening. Within the Mosman market this contagion is actually more about job security than anything else where it is most obvious that households are more affixed to maintaining job security over increasing mortgage exposure.

The RBA would be closely monitoring the Australian housing market which has produced anecdotal evidence of price softening. Within the Mosman market this contagion is actually more about job security than anything else where it is most obvious that households are more affixed to maintaining job security over increasing mortgage exposure.

What needs to be addressed is that within Mosman the primary concern is not about house prices falling rather job security. Habitual “property fool” Steve Keen declared this week Australian housing market still facing Japan – or US – style downturn due to deleveraging: Steve Keen. The more reports I read by Mr Keen the more I see that the man is delusional and severely suffering from an identity crisis.

.Each week I watch the Mosman, Cremorne and Neutral Bay stock levels and they are purring along very well. Mosman house volumes for sale are dropping in proportion to the peak selling periods which tells us that the markets are engaging very effectively – thank you. It should also be noted that the number of houses in Cremorne is at the lowest number (11) since we started recording this data.

We expect the volume of houses within Mosman to sit within 2 to 3 percent of total number throughout the rest of 2012. When a suburb hits north of 5 to 10 percent then you have a serious problem.

    MOSMAN – 2088

    • Number of houses on the market last week– 126
    • Number of houses on the market this week – 114
    • Number of apartments on the market last week – 104
    • Number of apartments on the market this week – 103

    CREMORNE – 2090

    • Number of houses on the market last week– 15
    • Number of houses on the market this week – 11
    • Number of apartments on the market last week – 26
    • Number of apartments on the market this week – 26

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 16
    • Number of houses on the market this week – 13
    • Number of apartments on the market last week – 53
    • Number of apartments on the market this week – 50

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
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For this week’s open for inspections –
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There are two big factors that need analysing – will house prices be decimated or will the Gillard government capitulate on policies. I think the latter – polls are like kryptonite to politicians given the vast majority are unemployable. PM unmoved as ACTU cuts ties with union which is quite hilarious given the ALP is the home for union members – they cited “the union movement has zero tolerance for corruption”.

Throw in NBN labelled a waste to set Labor back years “it may be popular now, but Labor’s $36 billion national broadband network is shaping up to be a financial disaster that will set Labor’s image back decades, rebranding it the party of waste and extravagance. That’s the view of Percy Allan, president of the Australian Institute of Public Administration and a former head of NSW Treasury under premiers, Wran, Greiner and Fahey. Releasing a report card on “public policy drift”, he told the Herald that Kevin Rudd came to office in 2007 promising “evidence based” decision – making, but never spelled out what the term meant. “True evidence – based decision making requires consultation. Kevin’s style was to lock himself in a cave and put in all the evidence and then emerge as Moses from the mountain with the tablets to tell the people what they would get.” The broadband network is a case in point.”

Markets are already factoring in that the cash rate will be at 3.25 percent within twelve months time. The government is praying that its approval rating will not be following suit.

Have a great Easter, and may the bunny be respectful of our waistlines.

Cheers ^__^

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