""Jobs growth is more important for consumer spending than housing prices and the jobs indicators are still strong," he said."
Really, perhaps you should understand that without consumer spending there is no economy. Consumers buy everything that is sold, perhaps a lot of products are indirectly bought but if the consumer does not spend the economy collapses. Whether it is a steel product which keeps BHP and the likes mining or clothing which keeps the cotton farmers farming it is the consumer driving the economy.
Jobs growth does not determine the existing economy.
Retail sales fall for a reason, house prices fall for a reason.
There is only one economy which is the consumer, there is no other economy. Without the consumer spending all companies will fall.
Wages growth has been stagnant and in real terms falling for years and the government opposes every wage rise so the spending will and is falling, it takes time for people to burn through their savings and there is a lag here.
Property sprukers were saying property will fall maybe 5% then they changed it to 10% now a lot of them have changed it to they are not sure but it will be short lived. I call BS, it will take a few years to hit bottom and then prices will bump along the bottom for years. Typically it can take ten to 15 years for house prices to recover.
Nothing keeps going up forever, have people not learnt this from the GFC, continual expansion and growth is just a myth.
The RBA is talking interest rates going down because the economy is faultering. All the RBA can do is to lower the overnight cash rate which has no real affect on mortgage rates, the banks set mortgage rates to reflect their costs of borrowing money.
