Petrol prices headed for $2 a litre

31 03 2011

WHAT once would have seemed “alarmist” is now a possibility as group warns of a price surge for “sitting duck” Aussie motorists.

It said the annual fuel bill of families could skyrocket by up to $2000 a vehicle, if ongoing tension in the Middle East continues to force oil prices up, The Daily Telegraph reported.

The NRMA also called on the Federal Government to develop a strategy to deal with Australia’s dependence on imported oil, saying motorists are “sitting ducks” when it comes to fuel prices.

NRMA president Wendy Machin said households should be bracing themselves.

“A couple of years ago we would have said $2 was alarmist, but in mid-2008 prices were close to $1.70 and 18 months before it was $1.10, a jump of 60c in that short time.

“At the moment $1.50 is fairly average at the bowser and we have this strong Aussie dollar well on parity or above that.

“So it is not unrealistic at all if we see continued strife in the Middle East and the dollar falls that we would be getting up to around $2 a litre.”

Click here for the rest:Petrol prices headed for $2 a litre




Shock Rise in Mortgage Default Cases

30 03 2011
  • Borrowers unable to catch up on payments
  • Migrating into 90-plus days in arrears
  • Mortgage  performance at record low

IF YOU have missed three monthly mortgage payments, expect a default notice in the mail any day now.

More people than ever are defaulting on their home loan repayments, according to credit ratings agency Fitch and the situation is expected to get even worse.

Read more:

Queensland Prices Slump, Is Sydney Next?

30 03 2011

“I never get sick of hearing about the housing bubble…I can tell you one thing, property in Sydney is over priced to the hills!  Also I’m in the construction industry in Sydney and things are slowing down right now, very very fast indeed.  The next couple of months ar going to be hard to say the least”

“Go back three years and 97 out of 100 people would say that property prices never fall.  Today you are probably down to 80 out of 100 people.  Give it until the end of the year, and you’ll be closer to 60”

“It looks like Queensland may have sneezed and Sydney is about to catch a cold…next stop Melbourne!”

Click on this link to read more:

Queensland Prices Slump, is Sydney next?

Why Australia is set to follow US path of house price doom

26 03 2011

Money Morning reader David wrote us an interesting note about the fall of house prices in the UK:

“I remember living in the UK sometime around 2006 – 2007 and house prices, like Australia now, were overvalued.  As soon as property went on the market they sold at crazy prices…

“Just as you predict here in this email house prices crashed about 18 months after their peak.

“The media blamed it [falling UK house prices] on the world financial crisis, which did have an impact but they were already on their way down.

“So many people forget a house is only worth what someone is prepared to pay for it.”

As time passes there’s always the tendency to compress events.  Looking back now, it’s easy to think all the economic problems started in September 2008… around the time Lehman Brothers collapsed.

But that’s not the case at all.

For starters, the stock market peaked in October 2007.  By the end of September 2008 – before Lehman collapsed – the Aussie stock market had already fallen 27% from the peak…

An article definitely worth reading…find the rest at this link.

Why Australia is set to follow the US path of House price doom

America on radiation alert: Japan faces world’s worst nuclear accident since Chernobyl as experts warn fallout may reach U.S.

16 03 2011

Last updated at 10:20 AM on 15th March 2011

America on Radiation Alert:

There has been a lot of conflicting information through the media regarding the nuclear reactors.  This is an in-depth report to help us understand the situation a little clearer.

Certain media in NZ and Australia are telling the public that the radiation won’t reach Australia and NZ because of the equator and so forth – but those of us that are aware of Chernobyl, will know that the wind carried the radiation around the world and affected people worldwide.

Our hearts and prayers go out to all the people in Japan who were killed and affected by this tragic event. And, unfortunately, will continue to be affected by the radiation leaks from these reactors.  I am totally blown away when I see the complete selflessness of the Japanese people shown.  The way they line up for supplies so orderly, even whilst holding children in their arms for hours on end.

They are such a disciplined people, who are always looking out for their fellow-man.  Concerned about the needs of others, before themselves. Furthermore, it was reported that there have not been any reports of loitering since the tsunami.  I only wonder whether that would be the case in some Westernised nations?

I also saw footage showing people who were staying in local school halls and how they had set up recycling bins for their rubbish. Even the mere thought of initiating something like this would be somewhat unheard of here in Western culture, I think. Everyone seems to be in such a hurry in life, in this rat race, that it’s all about me, myself and I.

These kinds of acts really make me think about how I would be, if faced with the same tragedy.

Would I practise patience, humbleness, tolerance and selflessness?  Could I give up my last piece of food to feed another person who needed it more than I?  Would I be able to care for those around me, and not just my immediate family?  Would I share my rationed supplies with a total stranger?

Times like these cause one to ponder the meaning of life…

Australian Housing Bubble – Steve Keen vs Chris Joye FEB 2011

13 03 2011

Interesting to note the body language of Mr Joye during this entire debate. Will be interesting to see whether the Government is going to introduce another scheme to entice First Home Buyers or even re-introduce the $14,000 grant.  Only time will tell..

Is Australian Housing Really Overvalued by 56.4%?

7 03 2011
Urgent Australian Property Update