[EconProf]

Fair comparisons would not show their base incomes to be lower, on average. That is a shibboleth pushed by the public employee unions.
The best evidence is the voluntary turnover rate in private vs. public employment. How many teachers, police & fire personnel, prison guards & secretaries quit to join the private sector? Not many, because the package of pay, security, fringe benefits, and retirement are now relatively attractive.

[EconProf]

Fair comparisons would not show their base incomes to be lower, on average. That is a shibboleth pushed by the public employee unions.
The best evidence is the voluntary turnover rate in private vs. public employment. How many teachers, police & fire personnel, prison guards & secretaries quit to join the private sector? Not many, because the package of pay, security, fringe benefits, and retirement are now relatively attractive.

[EconProf]

Fair comparisons would not show their base incomes to be lower, on average. That is a shibboleth pushed by the public employee unions.
The best evidence is the voluntary turnover rate in private vs. public employment. How many teachers, police & fire personnel, prison guards & secretaries quit to join the private sector? Not many, because the package of pay, security, fringe benefits, and retirement are now relatively attractive.

[EconProf]

Fair comparisons would not show their base incomes to be lower, on average. That is a shibboleth pushed by the public employee unions.
The best evidence is the voluntary turnover rate in private vs. public employment. How many teachers, police & fire personnel, prison guards & secretaries quit to join the private sector? Not many, because the package of pay, security, fringe benefits, and retirement are now relatively attractive.

[EconProf]

PatientRenter: Yes, there was a common thread to all the bubble housing markets in different countries, and that was the sheer, unreasoning buying mentality that marks a runup and eventually a top. As prices become unconnected to incomes and rents and buyers look only to recent price trends to justify their purchase, the tipping point is reached and the collapse commences.

Different factors can fuel the upsurge. For Australia it was clearly their mineral resources (& proximity to Asian buyers thereof), trusted capitalistic government, tourism, etc. For Britain & Ireland it may have been immigration, land shortages, and a high-cost-to-build environment, among other factors. For all countries, it was the carry-trade and resulting cheap borrowing atmosphere.

[EconProf]

PatientRenter: Yes, there was a common thread to all the bubble housing markets in different countries, and that was the sheer, unreasoning buying mentality that marks a runup and eventually a top. As prices become unconnected to incomes and rents and buyers look only to recent price trends to justify their purchase, the tipping point is reached and the collapse commences.

Different factors can fuel the upsurge. For Australia it was clearly their mineral resources (& proximity to Asian buyers thereof), trusted capitalistic government, tourism, etc. For Britain & Ireland it may have been immigration, land shortages, and a high-cost-to-build environment, among other factors. For all countries, it was the carry-trade and resulting cheap borrowing atmosphere.

[EconProf]

PatientRenter: Yes, there was a common thread to all the bubble housing markets in different countries, and that was the sheer, unreasoning buying mentality that marks a runup and eventually a top. As prices become unconnected to incomes and rents and buyers look only to recent price trends to justify their purchase, the tipping point is reached and the collapse commences.

Different factors can fuel the upsurge. For Australia it was clearly their mineral resources (& proximity to Asian buyers thereof), trusted capitalistic government, tourism, etc. For Britain & Ireland it may have been immigration, land shortages, and a high-cost-to-build environment, among other factors. For all countries, it was the carry-trade and resulting cheap borrowing atmosphere.

[EconProf]

PatientRenter: Yes, there was a common thread to all the bubble housing markets in different countries, and that was the sheer, unreasoning buying mentality that marks a runup and eventually a top. As prices become unconnected to incomes and rents and buyers look only to recent price trends to justify their purchase, the tipping point is reached and the collapse commences.

Different factors can fuel the upsurge. For Australia it was clearly their mineral resources (& proximity to Asian buyers thereof), trusted capitalistic government, tourism, etc. For Britain & Ireland it may have been immigration, land shortages, and a high-cost-to-build environment, among other factors. For all countries, it was the carry-trade and resulting cheap borrowing atmosphere.

[EconProf]

PatientRenter: Yes, there was a common thread to all the bubble housing markets in different countries, and that was the sheer, unreasoning buying mentality that marks a runup and eventually a top. As prices become unconnected to incomes and rents and buyers look only to recent price trends to justify their purchase, the tipping point is reached and the collapse commences.

Different factors can fuel the upsurge. For Australia it was clearly their mineral resources (& proximity to Asian buyers thereof), trusted capitalistic government, tourism, etc. For Britain & Ireland it may have been immigration, land shortages, and a high-cost-to-build environment, among other factors. For all countries, it was the carry-trade and resulting cheap borrowing atmosphere.

[EconProf]

The hoarding of currency is a very real possibility. Besides some people being unable to use credit cards because they’ve ruined their credit, if enough people expect a switch to survival mode, everyday transactions cannot easily be handled by barter or precious metals.
While I don’t expect any such doomsday scenario, what counts is people’s expectations, and it would take only a small % of the population to have such an expectation and to act on it to deplete our currency supplies.

[EconProf]

The hoarding of currency is a very real possibility. Besides some people being unable to use credit cards because they’ve ruined their credit, if enough people expect a switch to survival mode, everyday transactions cannot easily be handled by barter or precious metals.
While I don’t expect any such doomsday scenario, what counts is people’s expectations, and it would take only a small % of the population to have such an expectation and to act on it to deplete our currency supplies.

[EconProf]

The hoarding of currency is a very real possibility. Besides some people being unable to use credit cards because they’ve ruined their credit, if enough people expect a switch to survival mode, everyday transactions cannot easily be handled by barter or precious metals.
While I don’t expect any such doomsday scenario, what counts is people’s expectations, and it would take only a small % of the population to have such an expectation and to act on it to deplete our currency supplies.

[EconProf]

The hoarding of currency is a very real possibility. Besides some people being unable to use credit cards because they’ve ruined their credit, if enough people expect a switch to survival mode, everyday transactions cannot easily be handled by barter or precious metals.
While I don’t expect any such doomsday scenario, what counts is people’s expectations, and it would take only a small % of the population to have such an expectation and to act on it to deplete our currency supplies.

[EconProf]

The hoarding of currency is a very real possibility. Besides some people being unable to use credit cards because they’ve ruined their credit, if enough people expect a switch to survival mode, everyday transactions cannot easily be handled by barter or precious metals.
While I don’t expect any such doomsday scenario, what counts is people’s expectations, and it would take only a small % of the population to have such an expectation and to act on it to deplete our currency supplies.

[EconProf]

Syndey RE prices are currently falling fast, for at least three reasons that will continue to operate for some time: falling commodity prices (of which Aust. is a big supplier), falling tourism, and a strengthening dollar. Time is on your side…just wait a while.

[Author]

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