London’s Rental Crisis Is Barking Mad…

The property crisis we see in Australia is being replicated in other places too, including the UK, where again the rental sector is in the centre of the storm. So we look at a recent article from the AFR, which highlights the pressures on the system, with large rental increases, massive demand for accommodation, whilst supply is reducing due to policy changes. Once again it is an object lesson in market failure.

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Mortgage Stress Continues To Grind Higher In March…

The latest results from our surveys and modelling to end March 2023 reveals that more financial stress is piling on households, thanks to higher rates, bigger loans, and rising costs of living. Income growth is not keeping pace.

So in this show we walk through the results, by post code. And we also make some general observations about how households can deal with the pressures.

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The New Zealand Hawk Stands Alone…

A significant gulf has opened up between New Zealand and Australia in terms of monetary policy, after RBNZ lifted another 50 basis points, while Australia held. Underlying this are a series of conflicting assumptions about how the economies will fare – but the risk of recession in New Zealand is now highly likely – some would say certain; while in Australia, the protection of the housing market appears to be front of mind, with the RBA willing to let inflation burn hotter for longer. Both cannot be right!

Signs That US Credit Growth Is Turning To The Deep Freeze

A recent survey of Texas bankers provides a significant indication of the potential economic slow-down which is underway in the USA. While it is possible Texas may be an outlier, it does chime with other recent data, as household savings balances are being substituted for personal credit, lending standards are being tightened, and commercial credit is throttled back. Combined this is another significant indicator of a potential recession ahead.

The RBA Pauses, For Now…

We discuss the Tuesday RBA decision, which was more about waiting to assess the impact of their past decisions, and the broader economic dynamics, than a “pivot”, yet many with vested interests are pushing that line. Worth considering the fixed rate cliff, and also the likely rise in unemployment. But the damage has been done, with significantly higher mortgage repayments locked and loaded now.

To The Other Side Of The World

A travel log of our relocation from the Illawarra, Australia, to Bath in the UK. In the past week, we settled the purchase of the new DFA HQ in the UK, flew for more than 24 hours from Sydney to Heathrow, packed the dogs off to the airport for their separate travel itinerary, and also swapped out our Australian car, for a similar model in the UK. In the days ahead, we will begin to get back to making regular shows, but meantime this is a short show in acknowledgement of the thousands of kind comments we received from the community. You are a great bunch, and your appreciation of our work is truly amazing, thanks.

All Is Calm – But Is It The Calm Before The Storm?

In my final show from Australia, I consider the latest outlook for the financial system, ahead of decisions from the FED and Bank of England as markets try to navigate the uncertain signals coming to the surface. It may be calmer for now, but the question is, is this the calm before the storm?

And I will be back from the other side of the world in a few days as things progress with more shows on property and finance.

http://www.martinnorth.com/

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

Banking Crisis – What Banking Crisis? With Damien Klassen

My final chat with Damien Klassen from Nucleus Wealth before I fly out focussed on the current banking crisis and how this might play out ahead.

Things could get very interesting.

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