THE VIRUS & Real Estate - Event Date: 09 May 2020

New world Bob.        More than They think , won't re open or arrange alternatives.   Be hard to get many of the lower paid to get off the Gov. Payments --Center-link.
Seasonal Workers will be in short supply.

    Too many Oz bred, didn't like work before the virus. terrible work ethics will be worse.

   I'm becoming negative , aye.

Twitter has sent an email to all employees telling them they can work from home forever. Facebook and Google had extended work at home till the middle of next year. 

As far as govt debt goes we are still in pretty good shape compared to anyone else with just under 50% debt to GDP, about 120th in the world pre-virus. The predicted loss for us over the next 2 years with about $150 billion debt/year or another 25% of GDP approx.

Huge sums poured into govt long term bonds, at very low interest, must say something.

It tells you the economy isn't travelling well.

   More a question for Rusty , Doc Max, Pt etc,... Than Dummies like me.

Macca 

I see reports of people drawing their money out of the banks, fearing that they may get in trouble, and people not entirely trusting the govt deposit guarantee. Certainly interest rates these days do not encourage leaving money in the bank.

Passing Through wrote: I dont think cafes and restaurants will return to their already struggling numbers of a couple of months ago until well after a vaccine is available, and probably not even then. People are being conditioned to be safety aware. Who will confidently walk into a crowded venue?

Please PT..        > Tell me the grounds you use, to think a vaccine will be forthcoming.     Blind Freddy Knows That's not a remote possibility.

Yes . the Medical Brains of the World are working on it.

Those same brains worked on Sars1 , Mers , Ebola, Influenza's +A- Malaria
   Hong Kong Flu,Swine Flu, Measles, Dengue and a hundred others.

You’re right Max , high real estate prices primarily increases the debt for the middle class and reduces the amount of discretionary spend they have . This has the knock on effect of funnelling the countries wealth into an ever diminishing channels (banks) .

With lower house prices and a wealthier middle class , the discretionary spend is spread further and wider in the economy ,and this creates many many more jobs than would otherwise be there .

I can see the queues at Maccas & KFC already. 😃

maccamax wrote: Hopefully your right Shrunk.   Who would be game to face the accrued Rents & other overheads waiting for them. Many won't return to that sort of struggle. Ruined & Bankrupt.

Hopefully your right Shrunk.   Who would be game to face the accrued Rents & other overheads waiting for them.
Many won't return to that sort of struggle. Ruined & Bankrupt.

I should have added ,when you owe the bank $1,000 your in trouble , when you owe them $ Billions the bank is in trouble .
Particularly when the bank holds large investments from areas north of Germany .

Mr Prospector wrote: Passing Through wrote: This week's Planet Money from NPR explains the function of the FED and particularly the part it has played in stabilizing market confidence in this COVID pandemic..  https://podcasts.google.com/?feed=aHR0cHM6Ly93d3cubnByLm9yZy9yc3MvcG9kY2FzdC5waHA_aWQ9NTEwMjg5&episode=ZTQ4NjliMTctNmFiYS00YmNkLWI0NTMtYmVhNzQzZGE1NmNi&hl=en-AU&ved=2ahUKEwiaisHdrabpAhUNILcAHQprChYQieUEegQIBRAE&ep=6 Those podcasts are always a good listen . The fed has been buying uncollateralised junk during this crisis , and that has some economists shaking their heads . The supposed greatest investor Warren Buffett from Berkshire Hathaway had the AGM recently and he and his offsider Charlie Munger (who I think is 94 , hope for us all) are both saying they have no idea where this is going . In 2008 they opened the purse strings and bought banks and large companies at bargain prices . So far this time , Berkshire Hathaway who has a huge cash reserve has done nothing and believe they may need to prop up their current investments rather than reinvest . The message they are sending is they are worried .