I've just read that according to reports out today, the Australian federal Treasurer Scott Morrison MP has admitted that we can look forward to a recession. He fears that if we do not face a recession then the implications are worse.
What a relief, a Treasurer willing to let us go backwards temporarily and wipe out the debt bubble. Hopefully things will get worse and then much better for the community as a whole.
Refreshing to have a Treasurer with courage, willing to displease a few, for the good of the many. Let's hope he moves onto abolishing negative gearing next. As far as I can see real estate values are going down every where any way. In Tasmania, Sorell and Kingston are fairly stable at around $300 000 per house, but sales volume is reducing. Sales and prices seem to be going down nearly every where else.
Deceased estates are hitting the market, as are houses sold for nursing home deposits. Then there are the landlords going broke needing to sell. And land lords unable to rent out their "investment". Not much of an investment if you can not rent it, or sell it. Interesting times.
Correction 26th August - it would seem that the reporting on the Treasurer's comments today and yesterday lack the ring of truth. Scott Morrison's transcipt for the Bloomberg address can be found here: