The Great Australian Dream Is Just a Facade

The Great Australian Dream Is Just a Facade — this is a quote from the Sixty Minute Australia report on the real estate collapse in Australia. The 13 min report is very sad. Lives are destroyed. Countries collapse. All this due to the greed that has taken over the entire population and the credit bubble that has been propelled by easy money and credit...

Unfortunately, the law of cause and consequence is ineluctable.

Below are a few quotes from a Bloomberg report released today:

(Bloomberg) Aug 8, 2011 — Australian home-loan approvals unexpectedly stagnated in June as buyers sought fewer properties for investment.

[...] That compares with the median estimate for approvals to rise 0.8 percent in a Bloomberg News survey of 18 economists.
[...]
The total value of loans fell 1.4 percent to A$20.2 billion ($20.3 billion) in June, today’s report showed.

The value of lending to owner-occupiers was unchanged, the report showed. The value of loans to investors who plan to rent or resell homes dropped 4.4 percent.

First-home buyers accounted for 15.2 percent of dwellings that were financed in June, down from 15.4 percent in May and lower than 16.2 percent a year earlier, the report showed today.

Australia’s labor market lost 5,400 jobs in the April-June period, the weakest quarter since 2001. Sales of newly built dwellings fell 8.7 percent in June, the biggest decline in five years, a private report showed Aug. 1.

A day later, a government report showed house prices fell 1 percent in Perth and dropped 1.6 percent in Darwin from the previous quarter, while they advanced 0.4 percent in Sydney and gained 1.1 percent in Canberra. In Melbourne, prices slipped 0.1 percent.