Category: Social Trends

August 2022 Mortgage Stress: First Take

We update the latest from our models and surveys, which now includes the ABS Census data from last year.

Unfortunately mortgage and rental stress continue to track higher, thanks to higher interest rates and rising costs of living.

Many household have large debt burdens. The National Debt Helpline line on 1800 007 007 is an excellent place to go to get free advice.

About Us

National Debt Helpline is a not-for-profit service that helps people tackle their debt problems. They are not a lender and they don’t ‘sell’ anything or make money from those in debt. Their professional financial counsellors offer a free, independent and confidential service. They are simply there to help you get back households on track. Beware of some of the other paid services which are found on the internet.

Go to the Walk The World Universe at https://walktheworld.com.au/

Eye Watering Energy Bills Are Coming…

The UK just announced an 80% hike in average energy bill to households, with a further rise expected in January. This is putting millions of people under financial pressure, and unable to eat and heat themselves through the winter.

Worth reflecting on the cause – the hike in gas prices, and the fact that we in Australia are exposed on those same rises in international gas prices. So prepare for more and significant rises here too. Go to the Walk The World Universe at https://walktheworld.com.au/

Robodebt Royal Commission Coming!

A Royal Commission into Robodebt was announced today. Deemed illegal in 2019, this programme “recovered” money claimed to be owed through data matching, and was proved to be faulty, leading some to take drastic steps to avoid the debt. Lessons do need to be learnt.

Go to the Walk The World Universe at https://walktheworld.com.au/

Hardship Is Now On Your Credit File…

Recent changes in the rules has led banks to start reporting hardship arrangements on customers credit files. They will remain on file for a year beyond the end of the arrangement. This may have implications for some borrowers as they seek to restructure their mortgages in the current rising rate environment.

Go to the Walk The World Universe at https://walktheworld.com.au/

FINAL REMINDER: DFA Live Q&A Robbie Barwick: The Great Super Con 8pm Sydney Tonight

Join us for a live discussion about the current state of Superannuation, and the financial system. Who is it working for? You can ask a question live.

Federal Treasurer Jim Chalmers has told the annual Superannuation Lending Roundtable that he believes that Australia’s $3.4 trillion superannuation sector should play a bigger role in building the nation. He said that with governments heavily laden with debt, energy and housing are two obvious areas that super funds should look to invest.

Former prime minister Paul Keating was also at the event, and called for super funds to look at ways of facilitating access to housing.

From The AFR:

“We see trillions of dollars in workers’ capital, we see government budgets heaving with debt, and there are obvious needs for investment, particularly in areas like housing and energy,” Dr Chalmers told the annual Superannuation Lending Roundtable…

Dr Chalmers pointed to a lack of spending in the aged care sector and said he would “contemplate what, if any, further role for super there is in that”…

“This is a society that can’t house its own children,” Mr Keating said. “If super funds just think they can go buy tech stocks in America and highways in Italy, they’re going to run into trouble. Without being heavy-handed, there is a requirement of the funds to look at social opportunities.”

https://www.macrobusiness.com.au/2022/08/superannuation-is-not-play-money-for-the-labor-party/

Robert Barwick is the Research Director – Australian Citizens Party.

Go to the Walk The World Universe at https://walktheworld.com.au/

Operation Anti Spruik In The Illawarra!

Property in the Illawarra, south of Sydney saw a significant run up in prices through COVID. However, prices are now potentially on the slide as illustrated by recent examples from the listings sites. We discuss some examples, courtesy of research by Cookie Boy, and add in data from our core models to show how mortgage stress is playing into this. We also reveal our latest scenarios at a post code level.

Go to the Walk The World Universe at https://walktheworld.com.au/

The Economy Is Broken: Long Live The Phillips Curve! With Tarric Brooker…

My latest chat with Tarric Brooker, @AvidCommentator on Twitter.

His charts are available at: https://avidcom.substack.com/p/charts-that-matter-19th-august-2022

Go to the Walk The World Universe at https://walktheworld.com.au/

Growing Mortgage Pain Has Consequences As Forced Sales Rise…

We look at the issue of forced sales, as mortgage rates, plus refinancing strategies, and risks. The number of mortgagee sales is rising, according to recent data, but is this the full story?

Go to the Walk The World Universe at https://walktheworld.com.au/

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More Employment And Wages Number Wanging

We had new data from the ABS today on employment and wages growth, the latter so far off what the RBA was projecting and to nearly be funny. But the trends are telling a very different story. Tell me again why we really need to lift inward migration?

Go to the Walk The World Universe at https://walktheworld.com.au/

Australia’s World Economic Forum Secret Agent?

What has become of our country?

We have learnt that Australia for the past two years have had a secret government behind our backs and even behind the backs of the Ministers of the Crown. Adams was beyond gobsmacked to learn that Scott Morrison had secretly appointed himself the Minister in 5 portfolios behind the backs of his ministers including the Ministry of Health; Ministry of Finance; Ministry of industry; and Ministry of Resources.

This was somehow done without the Governor-General in some cases and in other cases with the Governor-General! The Governor-General participated in a conspiracy of appointing ministers in secret without evening informing the substantive ministers or the Palace!

It is essential that Australians remember that we have a dual constitutional system: A written constitution (influence from America); and Convention (influence from Britain). Convention is an essential part of how our parliamentary system actually works.

Parliamentary practice has been developed over the course of centuries and people have literally died and gone to civil war to develop our conventions and to ensure that the rights of Parliament and the Parliamentary system remains intact.

Between the Governor-General, Morrison, Porter and some official inside the Department of the Prime Minister and Cabinet, Parliament, conventions and have been trashed.