Deleveraging and Australian Property Prices

A few weeks ago, I had a preliminary look at Australian property prices. That post focused on rental yields and argued that the fact that property prices have consisently outpaced inflation over the last 10-15 years can be associated with a steady decline in rental yields which has been matched by a decline in real […]

Unfounded liability

Today a tweet from “Australia’s most idiosyncratic economist” Christopher Joye caught my eye. I followed the link and found a scaremongering article trying to whip up concerns about Australia’s levels of government debt. A key part of Joye’s argument is to accuse the government of creative accounting by including Future Fund assets in the calculation […]

Wall of Liquidity

Once again a misconception is gaining currency. There is increased talk of a build up of cash just waiting to be converted into equities or other assets. I wrote about this years ago in cash on the sidelines, but apparently the financial commentariat did not read the post, so it is time to revisit the […]

NBN in more than 140 characters

migNow that Labor has scraped their way back into power, it looks very likely that the National Broadband Network will go ahead in some form or another. Debates on the merits of the scheme continue apace, not least on Twitter, conveniently labelled with the #nbn hashtag. One frequent twitter on this topic, @pfh007, is also […]

Infrastructure Bonds

With Australia’s Federal election looming, the opposition has today proudly announced a new policy to fund infrastructure without actually increasing Government debt! What are we to make of this? It’s hard to determine the details from a media announcement, but based on the text posted by Peter Martin on his blog, it would seem that […]