Hi Everyone,
This is not good news!
Bernanke brings bad news to Congress - ABC News (Australian Broadcasting Corporation)
The thing that happened in the US is that at least they used the money to build new houses where here in Australia, the money was used to buy existing houses. What does this mean to us Aussies?
It means we have a housing shortage in our most populated cities where renters are paying extremely high rents all because houses are scarce. W didn't use the money wisely! It was a case of those who could afford investment properties bought them and now the credit squeeze is on, they expect their tenants to pay these extra high interest rates so they can keep their investment properties.
On my last visit to Sydney I took a Taxi from Lidcombe to Westmead and had a good talk to the driver. He was a new Australian with 4 kids and his English was very good. He told me how his wife worked 2 jobs, he worked 12-14 hour days and most of their money went on just paying rent on a 3-bedroom home. Without the help of his mother-in-law, basically they would have been out on the street.
I'm sure he's not "Robinson Crusoe" and there are many in a similiar predicament. The real question that should be asked here is "Where is this going to end?"
I sure hope I'm wrong~
Regards,
Jan
Thursday, February 28, 2008
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