The party is not over in Australia
Mike Shedlock has declared the party to be over in Australia for about the fifth time.
He is dead right that the Australian economy is a party and that it will end.
He is wrong that it is over now. The property market is more illiquid than usual. It has got illiquid a few times (and essentially flat) and every time it has I have thought that we were in Wile-E-Coyote country. (You know the type - the Coyote has run off the cliff - but he has not looked down - and only when he looks he starts to fall.) It just never fell.
The beaches are crowded and people are still buying lots of $6 ice-cream cones. You still meet plenty of people who are purchasing houses for more than can afford whilst driving his-and-hers BMWs.
I have thought the party was going to end for a while. (Like Mike Shedlock I am wanting to run fast from this bubble.) But early is wrong.
I have done very nicely with my offshore money. I have managed to keep up with the Australian dollar and then some. For that I am thankful. It would have course been easier to just buy Aussie bonds.
Oh well...