Australian Housing Bubble - Moody's Bank Downgrade

[contemplate]

Over the weekend, I wrote the following article:

https://steemit.com/teamaustralia/@contemplate/australia-housing-market-bubble

As a follow up, here are some articles relating to this article:

https://www.bloomberg.com/news/articles/2017-06-19/australian-big-four-banks-ratings-cut-by-moody-s-on-housing-risk

http://www.smh.com.au/business/banking-and-finance/moodys-downgrades-australian-banks-credit-rating-20170619-gwuafj.html

http://www.theaustralian.com.au/business/news/moodys-downgrades-credit-ratings-of-australian-banks-citing-household-sector-risks/news-story/e4cd17d4aba37774c47a4b258367de41

A few thoughts/questions here:

1. What lessons learned from the busting of the US housing bubble from '07/'08 would be helpful here?
2. What role should the government play if there is a correction? Do they have a vested interest?
3. If there is a bailout similar to the US, what would be the economic and social effects and repercussions?
4. If there is not a bailout similar to the US, what would be the economic and social effects and repercussions?
5. How do the different generations (Boomers, Gen-X, Millenials, etc.) view this differently?

Thoughts?

Comments

[nolnocluap]

A few thoughts on top of my existing "Australian Housing Crisis" series of posts. The latest of which can be found here.

• Property is a religion in this country and hence requires a suspension of dispassionate evaluation
• Property is the only thing supporting this economy so there is strong pressure to keep blowing the bubble
• Debt slavery is actively sought out here, choosing not to buy is taboo
• The Boomer demographic is a big deal in terms of how it will impact supply & demand as they retire. See Mike Maloney's work and to a lesser extent that of Harry Dent.

[contemplate]

Excellent points. I just read 2 of your posts and after a quick skim of some of your other posts, I am looking forward to reading more of them. Your posts are a beautiful blend media based articles and personal experience, its adds to your arguments. Your first 3 points are insightful. I have studied Maloney and Dent and appreciate their views.

[nolnocluap]

Thanks for the kind words @contemplate. Yes I try to mix in on-the-ground observations with the broader macro trends to not only make things easier to digest but provide a more rounded article.

Hopefully some of my content you'll find good enough for the odd resteem 😉

Thanks again, your feedback is much appreciated. 👍

[contemplate]

Sorry, just noticed that you are the author of the recent Amazon article you posted which I appreciated...I am having a hard time keeping up :) I am still learning the ropes of Steemit.

[nolnocluap]

Ah yes that was me. Very glad to hear that my work is of benefit to people... makes the 5am blogging worth it! Thanks again 😆