Germany to Face Worst Recession in Its History: Research Group

[dcraig]

Quote from kiwi_trader:

Actually, given the tendency to follow USanian management practices, youth culture, consumer culture, etc you probably are the root of their problems.

Sure the Europeans and Aussies have done it to themselves (Aus is still in denial but the truth is coming to a town near me) but they did it by following US trends. That's the joy of global consumerism for you - frugality is the new black!

I think you're right about Aus and also about the denial bit. I came across a survey of real estate prices in about 225 areas in US, Canada, UK, Ireland and Australia. Nationally Australia topped the lot as least affordable as defined as property price divided by average income.

Here, the Gold Coast ranked 13 (with an 8 times multiple) - same as Sydney and behind Sunshine Coast and Perth. Most of the other high fliers were in Southern California.

When you consider that the old rule of thumb used to be three times for a mortgage, it's hard to see these prices being maintained. Actually I reckon prices are probably off 10% on the Gold Coast already.