The drop in prices can be attributed to cutting supplier and dealer margins, Automation in manufacturing and general streamlining of processes. Basically, cost cutting coupled with a stronger A$. Also a sign of the times....
The Aussie economy is coming under pressure with the ASX down more than 20% firmly in Bear Market territory, awaiting a likely EU breakup which would put an end to the Euro (currency). Contrary to what the mainstream media tells you, the world economy is on the precipice. The Aussie property market with the median house costing around 8.1 the annual average income making Aussie property prices among the most expensive in the world and firmly in bubble land will most likely pop.
And then there is China, a bigger bubble which will have a major flow on effect for the Aussie economy.
The DAX (German stock market) recently hit a low of 5000, down from 7500 (-33%)
The CAC (French stock market is down from a high of 4150 to 2950 (- 29%)
Greece, Itally, Spain, Ireland and Portugal (PIIGS) are basket cases.
The USA is more the $14 Trillion in debt with it’s citizens loosing their homes, no jobs and having their cars repo’d . 45 million of it’s citizens are living off food stamps. The situation is desperate for the average person, with Wall Street and the Bansters getting bailouts.
And China who is supposed to save the rest of the world won’t be able to save itself...
House, car and other assets are going to get a lot cheaper. imho
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