Silver Stackers

It could NEVER happen here ...

1. Our government is too clever and it knows how to steal money from its working citizens and use some of those stolen funds to prop up the property industry. Propping up the property industry - and the associated misallocation of funds which is occurring because of this - is in the best interests of the coercive government as it can then use the bloated/inflated property prices as a basis for stealing even more money from citizens via property taxes and the like.
What's more - Australians are such goodie citizens when it comes to accepting blindly what the thieving government does - so they will never rebel against a government which has overstepped it's function and mandate by leaps and bounds ... because... 

ummm... the government knows what's best!

2. Our banks are regulated much better than those of any other country, and so we could never have the problems the US has had for example with subprime mortgages.

I could go on, but i have to go throw up now...

It's interesting from 48 min. Showing that most housing booms around the globe end with a price crash. So if Australia has a "soft landing" it will be extremely rare.

Here's the URL to watch the "Soft Landing" section:
http://www.youtube.com/watch?v=CB2SluAUWJA#t=48m1s

"I could name you 30 maybe 40 hard landings ... I cannot name you one instance of a soft landing"
http://www.youtube.com/watch?v=CB2SluAUWJA#t=49m31s

Last edited by willrocks (2012-08-16 20:52:32)

Thanks very much for posting this - it's a great video. metalzzz above has it right

David McWilliams really schools everyone in Ireland... common sense forecasts that were ignored completely.

Some of the highlights for me personally:

15:47 - ireland property tax -> Bacon report. They increased tax for owners of multiple properties, and then took it away again.

16:58 - The Irish PM mocked property skeptics, said "i don't know why they don't commit suicide". That's the PM!

53:30 - Asked a guy why house prices will go flat, rather than fall. His answer "faith" (it's a bit out of context, watch what he really says is still funny)

56:51 - David McWilliams (2003): "...the great irish land swindle is impoverishing our young workers, the very people that are supposed to be the future of the country"

59:10 - Irish youth leaving the country, upset with the whole situation (for some reason this reminds me of Japans ageing population? even though it might not be the same thing)

109:10 onwards - About tax payers taking on the debt. A few chats with Swanny, how embarassing. He says the "The Govt would intervene and resolve it"... and how do you resolve a debt problem Swanny? Guess what the Irish Govt did - bailed them out.

1:12:40 - Interesting comments from young home buyers in 2003. They heard McWilliams and even agree with him, but they still want to buy, and they can't see anything bad happening in the future. Interviewer "well I hope it all goes well for the three of you". Yeah, it didnt.

VRS - I haven't had your experience with building overseas but if one objectively follows the evidence and it's implications the conclusions are exactly as you state.
I can't understand why people couldn't find it in themselves to be a little patient and wait out the coming devaluation and (especially if they stack PM's) purchase more for their buck afterwards.
I've had the same debate with several individuals of late but got laughed off-but they weren't interested in PM's either.

Agreed... apart from GWB... he did not have a clue what was going on lol

I've held of from buying RE for 8 yrs knowing all this was coming...... Bubblepedia.com.au has helped me through very frustarting times.......When the U.S.D finally crashes all the RE in Oz will crash accordingly and it aint goin to be pretty..... Thank god for the internets!

and to think many Aussies still believe the tripe about what a "high" standard of living we have...

investing in rental properties may still be a good idea tho... especially if demand for rental properties is going up, yield should be pretty good too...

You've done all you can it appears he is his worst enemy. It's going to take a LOT before he realizes he has screwed up. I hope he isn't the type to give you the cold shoulder when it finally sinks in for him.

Last edited by Ernster (2012-09-26 00:18:19)

I have a friend whose parents conned him into the neg. gearing, leverage to the hilt, pay off nothing game of property collecting. He's dirt poor paying the overhang from the mortgage minus rent on his properties. I told him everything, nicely, and he wouldn't listen.

So I know how you feel.

I think it's best not to say "i told you so" though... he'll know it anyway. Besides, it only makes one person feel good at the expense of another.

^ True, but I look at it as a time of lessons.

Our grandparents, or rather their parents knew these lessons, but they've been lost over time. So, we've got to re-learn them.

From the right perspective you can turn most negatives into positives. For example, at least they'll learn the lesson whilst they still have plenty of life to live - it's not like they're 70 with ten years to go and suffering.

The way I see it - sometimes life is about finding the myriad of ways of how not to do something. And the lessons learnt are valuable (assuming they're learnt).

I don't like Edison, because of the Tesla stuff, but I like this quote:

I wish I was a bit older to have gone through a few boom and busts. This is really the first real cycle I've experienced where I have half a clue what's going on.

Even my old man has said a few times last year when we were having the wild swings in the stock market "geez haven't seen this before".

For me the last few years have been sailing into new waters for many things financially. Exciting times, I hope I will be telling my grandkids about a couple of great decisions that got me through. I have a feeling we may be in with first step in the right direction as stackers. It's what we do after this which will be the fate changer.

Last edited by metalzzz (2012-09-26 01:44:08)