Sunday, September 10, 2006

Bursting bubbles

Sydneysiders are losing their homes at a record rate, forced out by crippling mortgage payments, exorbitant petrol prices and high personal debt.

The latest NSW Supreme Court figures show repossessions by financial institutions are approaching an annual total of 5000 - more than twice as many as three years ago.

At the same time the market had slumped by up to 25 per cent in some pockets of Sydney, which had added to the panic in the housing sector.

There is no discernibly pattern to those defaulting on their loans; they include families, singles, investors and retirees.

Sydney, not the state of NSW, but Sydney itself is Australia's major economic driver. PM Howard is well aware of what a downturn in that one city means nationally, which is why he is so keen to pass the blame.

But in the end it is Howard who has sold the message that the economy is good, so he will pay the price at the polls.

As a side issue, the state election in Queensland delivered an historic fourth term for Premier Beattie and third straight landslide.

As counting closed, Labor had retained its 60 seats in the 89-seat single chamber Parliament and preserved its thumping 31-seat majority.

In a swipe at Prime Minister John Howard's WorkChoices, Beattie said average Australian families did not like the laws of the jungle and did not support American-type industrial relations laws.


abi said...

I'm not sure that Americans support laws that favor employers over employees either, but somehow we've gotten stuck with them.

Cartledge said...

It is the creeping social sickness. THe cycle is cycling I hope.