|Australian Dollar Plunges as Home Loans Dive; Australia Insolvencies Hit Record; Worst is Yet to Come|
|Mish's Global Economic Trend Analysis, Mike Shedlock, 10/06/2013 (traduire en Français )|
Curve Watchers Anonymous has its eye on the Australian dollar. As expected, it has taken a big dive in conjunction with a housing bust and a slowdown in China that impacts the demand for commodities.
The only thing surprising to me about this plunge is how long it took, but here we are.
Aussie Falls to Lowest in More Than Two Years
Bloomberg reports Aussie Falls to Lowest in More Than Two Years as Home Loans Slow
Australian Insolvencies Hit Record
Why anyone would think housing would make up for a downturn in mining is certainly a mystery given Australian insolvencies hit record for month of April.
A new April record has been set for Australian companies becoming insolvent. Some 941 firms were put under administration, marking the highest tally for that month since records were first made public in 1999.
Worst Yet to Come
For Australia, the worst is yet to come. Australia escaped a big economic bust in 2008 because of high demand for housing and commodity demand from China, but both sectors are in the tank now, and will stay there.
China is slowing and will continue to slow, Australia labor costs are ridiculous, the Australian housing bubble has burst, and commercial real estate has only one way to go: down.