please don't suggest overseas banks offer more competition.
Some of the mortgages being offered to get mugs away from the major
banks are being funded by foreign currenciy, i.e. yen,euro, etc being
converted to aussie dollars then lent at ever decreasing rates in
competition to aussie dollar loans. These loans are usually only
given to higher equity borrowers, these lenders are smart!
But the problem is eventually the downward pressure on the
aussie dollar and our interest rates causes the madness of negative
rates and screwed up economies. The so called system is not
sustainable, its the equivalent of what happened in 1929. people
thinking they can continually profit from cheap loans to buy
assets. In 1929 it was shares, now its property, but it will end
exactly the same way. The borrowed money will be called.
The dodgy lenders will panic when the aussie dollar crumbles,
then they call in all the cheap loans, read the fine print especially
on fixed rate/ fixed term loans.
boofta, while most of your post is correct...negative interest rates are a product of a currency war most people do not know is going on, a race to the bottom...because of deflationary pressure. All central banks want inflation to reduce apparent government debt and increase the elites asset values.
Inflation is essentially a tax on the people.
But study your history. The 1929 crash was a fueled by a speculative land led Madness as per normal. The RESULT was the market crash, the cause ...
LAND.
banks will manage just fine with mid cycle recessions (eg think about the dot com crash)... Its when the credit lent against mortgage backed securities is worth more than the land. Then they are in big trouble...this precedes a crash well before....a year or two. Has done for 300 years in any private enclosure of land by a government enforced license.
Understand the land issue, the banks relationship with this and it all makes sense. clever of the elite to lump land into 'capital' and take any mention of the absurdity of this from all teaching material. Land is NOT CAPITAL.
...and if you've studied any economics.. Throw it away, their models are useless. Hence why we keep having crashes and the world economy is where it is at. But don't worry, they elite know exactly what they are doing.
Banks serve a very important function in a socpiety and the economy so never forget that. Grease the credit wheels of commerce.
But it's the speculative lending of money for the limited supply of land that causes all mayhem in the end. But the smart money is always well out by then and well, the banks will get bailed out by the elite through their government puppets they control
Why am I even bothering to tell you this? Because like a lot of uninformed mum and dad investors I was left holding the proverbial GFC can while the very players who are meant to know and control what's going on we're bailed out with our tax dollars. After a period of some pretty stark darkness I vowed to find out why. And I have. Luckily someone else plus a few (who you will never hear in the mainstream) already has done his homework.
We are about to see (after a mid cycle recession) one of the biggest booms in history as the exponential age kicks into gear. Watch for 2026 for a 1929 style crash followed by what could be a 30s like depression. It's gonna wipe out a lot of people. Ordinary people like you and me.
So do your homework and prepare or laugh at me. If it's the latter then save this post and read it again in 2026.
Eppo seems to believe he has the inside information which not many of us are party to. in his last line, he/she went as far as urging us to save his post as it will come true in 1926. The respected Professor of economic Steve Keene claimed that the housing bubble will burst, and took a bet with Rory Robertson that, if he is wrong, he will walk up Mount Kosciuszko, a 225 KM trip. For your information, he did make the trip !
I believe your claim about the 1929 depression was caused by "land speculation" is wrong. It may be one of the many causes, and experts still are arguing about it. However, most agreed that one of the outstandiing causes are stock market speculation. The others were unemployment and over production. Don't take my words for it. Check it up on Google. With the stock market, folks believed that shares will keep on pilling up on values. So they borrowed way beyond their capacity to repay. The banks were eqaully happy to lend believing that the good time will only gets better.
Economy has a lot to do with confidence and perception. As soon as someone gets a sniff of weakness in the market, everyone runs for cover.
Remember the days when Alan Bond was The King? Banks figuratively speaking kicked his door down to lend him money, believing that he was the genius who can turn $1 into $100. As soon as that perception was pricked, confidence went. Alan Bond was mud !
The mining boom in WA is a classic one. New mines opened up rapidly believing that China has a whooping great hole to swallow as much iron ore as we can dig out. Iron ore was priced at more than $US200 a tonne in March 2008 during the commodities boom. Now? You are lucky to get $60. What happens to those new, small mines? They went bust ! Do you know how much losses BHP made recently? Shedload ! In Billions.
One thing will always keep you out of a spot of bother...don't be greedy !
Google...bahahahahahaha ha....yeh check it up on google folks. You think they want us to know what's going on Through mainstream channels. Don't be so naive.
There's a saying, "what everybody knows, isn't worth knowing'.
Of course the stock market crash was due to speculation on stocks and shares ...as is in all peaks in the market.
But what created the free flow of easy credit for speculation?
and what turns off this tap...markets could go upwards to infinity if the markets were kept liquid.
Study land history Jupiter, then get back to me.
Or keep searching google...bahahahahahahahahhahahj
ps thats why even the leading economic think tanks with al their Ph.D. Driven models of claptrap BS and all the crony central banks don't see the crash coming. Until it's too late.
eppo seems to believe he does have crucial insider information. Conspiracy theorist? Not another one again !
You come acrosss as someone who has contempts for anyone who disagreed with you. I supposed experts, those "slef proclaimed" ones, always do that because they believe they are always right.
So information from Google search is too mainstream for you? You do have some obscured bits none of us poor uninformed folks knew about? Land History? Please do tell us more. No good keeping us in the dark forever.
2026 ? The year when evrything crashes down ? Those religious nuts had forecasted the world is going to end, many times, and yet we are still here. By all means show your contempt, but come up with the facts to back it up, and don't just shoot from the hips, for goodness sake !
By the way, you do agree that ...share market speculation caused the depression now ? Or you still maintain it was all to do with land ?
I believe he has told you all you need to know.
We all know that the GFC was a whitewash. Eppo got caught up in it, did not accept the explanations and went out and did his own research. He has recommended that you read a book which he read. One which, funnily enough, does not get promoted on the Google Affiliates.
You are making the mistake of attacking the messenger. Sure he is adamant that the information which he read is accurate but you cannot tell that until you have read the same book.
Bit like trying to get through to Aus111. I recommended a book, Confessions of An Economic Hitman and he simply wrote it off as a fabrication.
Not bright!
Yeh no conspiracy and hand on heart trying to help. The study of land and the monetising of private land ownership has a long history.
You will also see the start of the US dollar as the base of the international monetary system just as the Stirling did.
This will be highly inflationary for us as the SDR steps in.
The book mentioned above By japie....brilliant, a must read For you as well.
my information is not based on one book, but it's a great and detailed start.
Im just offering an olive branch dudes. Take or leave it. Be prepared or don't. Start learning or keep buying into the claptrap us slaves, yes slaves in the true sense, buy into.
Once you have poured through every boom and crash over 200 years from a real estate and banking perspective (and of course the resulting stock market crashes) you get a sense of real freedom, mixed with fear, mixed with utter sadness that the world is manipulated at the expense of people like you and us. I suppose that is just human nature.
Land and the speculation of land which drives ultimately credit expansion through banks is the cause of the resulting stock market crashes.
its like a picture that you stare at because you are told there is a cat in it...Once you see the cat that's all you can see. Then it's obvious.
you will understand the true economy, how it works and why the gap between the rich and poor is really increasing.
you will also get a much better perspective of the stock markets short and medium term up and downs.
The cause, the cause, the cause...not the effect. Understand this.
...or keep using Google...lol, sorry but that jUst cracks me up.
According to the history of tractors in the Ukraine.
It was the heavy speculation of the futures market on the crops &the over use of tractors in mid west that when massive winds blow away all the top soil resulting in crop failure &the crash of the futures market that triggered the 1929 depression
To conclude...
There are always major stock market corrections, some very severe.
These are always driven by heavy speculation as credit becomes cheap and easily accesible...and of course the human emotion of greed which drives the market far further than it should go on the value of the companies underpinning the share price.
Credit is essentially delivered through banks based on the banks asset balance sheet. A mortgage sits on the banks asset side. Fractional reserve
lending of course multiplies the credit created through this mortgage but I won't go into that.
Now heres is the important point to get...
major corrections...even when the mainstream media spells out doom and gloom (think Asian crisis 1997, dot com boom 2000)...as long as property prices remain intact, the economy can recover relatively quickly even though at the time the 'worlds economy is going to end".., etc etc. companies can get taken over, split up, money moved around, governments can get the fed to buy more bonds (creating money through debt)...
becuase the banks are intact...the engine room of credit and liquidity is still ticking over.
but if this credit multiple moves into property speculation across all sectors...and then the price of land peaks then drops below the mortgage which the multiplies of credit have used to speculate on the market...etc etc...then BANKS are in serious trouble.
If BANKS are in trouble...then the engine room of credit is in trouble...then we have the 1987, 2007..type crashes (just using the most recent two could go back 200 years...). If the engine room of credit stalls, then the worlds economy is in serious trouble. Bank runs, bank collapses, fraud...Yu name it is Involved. Not many people know we were days if not hours even in the 2007 GfC (but we were sheltered by a mining boom) to having our own bank controlled restrictions. Enter the central banks, governetments and bank bailouts. but they are just kicking the can down the road.
Have you you ever wondered why the very organisations that created conditions for the bust are the first to receive tax payer bail outs? Now Yu know why...
And heres the second important point...the RECOVERY takes much Longer as banks have to repair their balance sheets, to get the mortgages which are liabilities now off their balance sheet. This takes a lot longer than if it is just a major correction without property involved.
...and remember the money banks borrow around the globe come from other banks...around the globe. It's all interconnected.
and what can a bank do with land? Can't be taken over like a company. Can't be moved offshore for a better tax deal. Can, restructure to bring down costs....sounds like capital doesn't it...that's becuase land is NOT CAPITAL...and yet banks lend against it like it is...becuase it makes the rentier class very rich indeed.
Conspiracy no, smart yes!!!
Next time around (it is cyclic)...we have so much debt now...companies are already so overvalued on the stock market already so early in the cycle....add in a currency war...bank bailouts may not even be a possibility. Nor are we sheltered by a mining boom. (Think what we did with that money )...
understand nd banks and the mortgages on their asset sheets are the key...the rest revolves around this...
Cause, cause cause....
OUT.
Largely agree with your last post, eppo.
You are obviously a very clever amigo. However, how come then you became one of the victims of the GFC? With your brilliance and sharp observations, plus the world-class prediction of a 2026 crash, surely you could see that train coming at you? Perhaps the old saying such as "Mechanics drive crap cars" rings true ? You don't listen to your own advice ?
By the way, between now and 2016, would there be some small crashes ? It saves me having to look up Google 
Select to expand quoteJupiter said..
Largely agree with your last post, eppo.
You are obviously a very clever amigo. However, how come then you became one of the victims of the GFC? With your brilliance and sharp observations, plus the world-class prediction of a 2026 crash, surely you could see that train coming at you? Perhaps the old saying such as "Mechanics drive crap cars" rings true ? You don't listen to your own advice ?
By the way, between now and 2016, would there be some small crashes ? It saves me having to look up Google
Man I am not clever, far from it. And read my posts....the GFC debacle is WHY I investigated into this, not before... I was in a very dark place for a while my man...
...and would not wish that on anyone.
Again I'm not clever, this is not my information, this has been put together from far more astute people. I'm just saying where to start looking, that's all.
...look out for a mid cycle recession 2019/2020. But if you go through every cycle for 200 years it never plays out the same. Similar timing, but the conditions are always very different...that's why the new generation never sees it coming.
There will always be corrections...but the one you should be worried about always involves bank collapses...that's when sh1t really hits the fan and recovery can take years...in some cases decades...think 1880's crash, even in australia (although the government did a very clever thing with the commonwealth bank...read about it, it's fascinating stuff.
