Now the Australian economy becomes somewhat technical.

Now the Australian economy becomes somewhat technical.

For many, the new economic lingo has become rather disheartening. GD2 means Great Depression 2 and this week technical recession raced to number one spot on the economic chart with a bullet. It can’t be dodged nor can we hide from it and no need to look for the “smoking gun”. All eyes will now be taking aim at Fort Fumble (Federal government). After all Kevin Rudd and Wayne Swan keep telling us that they will lead Australia out of ‘technical recession’.

Australia’s gross domestic product (GDP) fell 0.5 per cent in the December quarter so the term, technical recession, comes as no great surprise. We are already in “Club Recession” with record memberships. Australia’s first negative quarter in eight years so now we have to wait another three months to confirm what we already know – we are in a recession – technically speaking.

First, Fort Fumble delivered its December “cash splash” which most believe was designed to buy votes for an early election. The ugly side of all recessions is unemployment where again all eyes will be on Fort Fumble to see what business splash initiatives they employ (no pun intended). It is well documented that I believe Pay Roll tax consistently kills both business and employment growth.

Over to Fort Crumble (NSW government) where NSW opposition leader Barry O’Farrell called on a NSW business stimulus package where Pay Roll Tax should be cut by 15 per cent (it needs to be much greater than that Bazza.) Premier of Fort Fumble Nathan Rees responded “We’ll do it in a fiscally responsible way, not a lazy way, not in an ill-disciplined way.” WOW – Australia’s most incompetent government quotes the words “responsible”, “lazy” and “ill-disciplined” in the one sentence! Moral dilemma? Absolutely not – Fort Fumble has its finger prints all over this week’s GDP figures and although they dominate, they are not alone.

I read this week “Wall Street Banking Explained”.

“Young Chuck moved to Texas and bought a donkey from a farmer for $100.00 and the farmer agreed to deliver the donkey the next day. The next day the farmer drove up and said, ‘Sorry Chuck, but I have some bad news, the donkey died.’

Chuck replied, “Well, then give me my money back.” The farmer said, ‘Can’t do that. I went and spent it already.’ Chuck said, ‘OK then just bring me the dead donkey.’ The farmer asked, ‘What ya gonna do with a dead donkey? Chuck said, ‘I’m going to raffle him off.’ The farmer said, ‘You can’t raffle a dead donkey!’

Chuck said, ‘Sure I can. Watch me. I just won’t tell anybody that he’s dead.’
A month later, the farmer met up with Chuck and asked. ‘What happened with the dead donkey?’ Chuck said, ‘I raffled him off. I sold 500 tickets at $2.00 each and made a profit of $898.00.’ The farmer said, ‘Didn’t anyone complain?’

Chuck said, ‘Just the guy who won. So I gave him his two dollars back.’

Michael West wrote this week on an article titled “Vultures go hungry” (think of the donkey).

“Pacific Brands is a classic of the golden era of private equity.

Bought out of the floundering conglomerate Pacific Dunlop for $730 million in 2001, its new private equity owner ripped out $100 million in cash, geared it up with mountains of debt and sold it back to the stock market in early 2004. They banked $1 billion from the public float.

It was a slick operation all round. The privateers from CVC Asia Pacific and Catalyst Investment Managers, and their investment bankers from Macquarie Bank, who teed – up the float, slapped together an impressive board of directors. Fat with other peoples’ money to spend, the big super funds bought it with ears pinned back, even though it was loaded with debt to the tune of 3.5 times its earnings (before interest, tax and so on).

The success of the deal was not down to paper shuffling alone. The privateers had turned the manufacturer around. They fixed the supply side. They breathed new life into the brands. Blue collar marquees such as Chesty Bonds and King Gee turned bogan to chic.” The article goes on and well worth reading on the SMH website so search Vultures go hungry

To the Mosman real estate market where we are happy to report that over the last five (very difficult) months Richardson & Wrench Mosman & Neutral Bay (RWM) has successfully sold just over $80,000,000 worth of houses (that’s one house sold every seven days). A clue is that our subscriber sales to ‘Virtual Realty News’ have jumped to $827,158,019. According to Domain Property Data this is the highest recorded volume of sales recorded by any Mosman agency.

Congratulations to Mosman’s most popular property portal that this week released a very savvy new look with a much more advanced search criteria. A brilliant new interface – combined with excellent search functionality. Great to see an online business actually investing in and developing greater client online experiences for property market voyeurs. This week we acquired from Fairfax Digital the property gallery for Balmoral so we now exclusively own Mosman and Balmoral property galleries – for the benefit of our vendors.

Today, websites are graded. Go to to see how they are graded on marketing effectiveness. The score incorporates website traffic, search engine optimisation, social popularity and other technical factors. Compare websites – I have and the only website that beat us was (that being in the real estate category).

Judge yourself – RWM scored 87/100 which has a lot to do with our recession sales results.

Oops – I’m being technical again! However we are in a technical recession! A technicality that will identify Kevin Rudd, Wayne Swan and Julia Gillard as fake or famous. Now they will have to ‘walk the walk’ not talk the talk’. At the last Federal election they boasted best practice abilities so after this week’s announcements they now have to prove it – Australia is now in recession!

Yesterday’s release from the Australian Bureau of Statistics identified that in January, new building approvals fell 3.7 per cent – the Rudd/Swan cash stimulus (cash splash) failed.

Over to you Kevin – you told us that you are the man to lead this great country. History will now judge you and your elected government as being either fake or famous.

For this week’s recorded Mosman real estate, Cremorne real estate, Neutral Bay real estate and Cammeray real estate sales

Cheers ^__^

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