http://zachstocks.com/2009/10/commodities-run-as-australia-raises-rates/ Dynamic Investments for Exceptional Traders Tue, 02 Mar 2010 20:30:15 -0700 http://wordpress.org/?v=2.8.6 hourly 1 http://zachstocks.com/2009/10/commodities-run-as-australia-raises-rates/comment-page-1/#comment-8178 The Recusant Tue, 03 Nov 2009 15:26:23 +0000 http://zachstocks.com/?p=2721#comment-8178 Although it is true that the Australian economy is basically sounder than the U.S. economy at the moment, do not forget that their presumed insulation from the mortgage crisis in the U.S. is paralleled by their own real estate bubble that continues to grow. Housing prices in Australia continue to rise, encouraged by the government for the increased taxes they get, and could cause them trouble in the future. Increasing the interest rate by a quarter of a point may help alleviate the situation somewhat but they are not out of the woods yet. And the word is they plan to increase the rate further very shortly. Also, as a commodity exporter to Asia, their rising currency and prices will have a negative effect on exports at a time when everyone's economies are in a precarious balance. Although it is true that the Australian economy is basically sounder than the U.S. economy at the moment, do not forget that their presumed insulation from the mortgage crisis in the U.S. is paralleled by their own real estate bubble that continues to grow. Housing prices in Australia continue to rise, encouraged by the government for the increased taxes they get, and could cause them trouble in the future. Increasing the interest rate by a quarter of a point may help alleviate the situation somewhat but they are not out of the woods yet. And the word is they plan to increase the rate further very shortly. Also, as a commodity exporter to Asia, their rising currency and prices will have a negative effect on exports at a time when everyone’s economies are in a precarious balance.

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