2 thoughts on “ENJOYABLE ROUND TABLE DISCUSSION ON 3CR”
Yep, but only up to a point, IMO. The property market has to burst before a major recession or depression will occur. The property market burst in the mid 1920s in the USA (first in Florida then in other places), helping direct more investors into the stock market. Then, the jig was up once the stock market burst in October 1929, and real estate went with it again at the outset of the 1930s. On the other hand, when October 1987 happened, investors got out and into the commercial/industrial bubble, which then collapsed in October 1989. So, either before or after the stock market, real estate is key, IMO. However as you say, Michael, superannuation funds will certainly compound this one when it happens – as will the fantasy derivatives market.
Regarding the 1987 stock market crash having little effect on the Australian economy was probably because most Australians had no exposure to the Stockmarket as superannuation wasn’t compulsory.
Today, all Australians are connected to the Stockmarket via superannuation and many, if not all, are totally dependant on this windfall payout as their only chance in life to get out of debt.
A Stockmarket crash today would wipe out the aspirations of many Australians who wish for a debt free retirement. 30 years ago a stock market crash only effected the 1%.
Yep, but only up to a point, IMO. The property market has to burst before a major recession or depression will occur. The property market burst in the mid 1920s in the USA (first in Florida then in other places), helping direct more investors into the stock market. Then, the jig was up once the stock market burst in October 1929, and real estate went with it again at the outset of the 1930s. On the other hand, when October 1987 happened, investors got out and into the commercial/industrial bubble, which then collapsed in October 1989. So, either before or after the stock market, real estate is key, IMO. However as you say, Michael, superannuation funds will certainly compound this one when it happens – as will the fantasy derivatives market.
Regarding the 1987 stock market crash having little effect on the Australian economy was probably because most Australians had no exposure to the Stockmarket as superannuation wasn’t compulsory.
Today, all Australians are connected to the Stockmarket via superannuation and many, if not all, are totally dependant on this windfall payout as their only chance in life to get out of debt.
A Stockmarket crash today would wipe out the aspirations of many Australians who wish for a debt free retirement. 30 years ago a stock market crash only effected the 1%.