Plain English Blog

House Prices in 2010

Andrew Pegler – 15 January 2010 To paraphrase Elton John in Son of Your Father circa 1970 bricks and mortar take blood and water. Indeed Elty is right. Buying a house takes a lot of work and while those galloping prices will slow a tad the trajectory for 2010 will, like Superman, continue to be up, up and away. Our collective obsession with house ownership has sent prices through the… Continue reading →

What the hell is moral hazard?

Andrew Pegler – 08 January 2010 Now that you have recovered from your annual Christmas dose of family enmity I want to chat to you about moral hazard. And, no, this is not a sermon on your behaviour over the break; it’s a finance term and it will be a big issue this year. At the height of the GFC, after the Lehman Brothers collapse froze international credit and we… Continue reading →

The year that will be

Andrew Pegler – 29 December 09 As they say get two economists in a room and you’ll get ten different answers to the same question. But what the heck, it’s the time of the year to gaze into the crystal ball, read the tea leaves and pore over the goat entrails to boldly predict what lies ahead for 2010. The recession was less disastrous than many feared but I reckon… Continue reading →

The year that was

Andrew Pegler – 29 December 09 What a difference a year makes. We started firmly astride the seven horses of the apocalypse galloping right into the belly of the beast where we sat frozen by what looked like the headlights of doom but turned out to be shards of sunlight blazing though the woods from which we are now emerging. In other words, the sky didn’t fall in; it just… Continue reading →

Stuffin’ the stockin’ with $A bounty

Andrew Pegler – 21 December 09 To parity and beyond! No this ain’t Toy Story, it’s the real world and it’s great news for the great Aussie consumer who this Christmas will be piling those cheap imports under the Christmas tree, near the new stereo on top the Playstation resting on the new European designer table. As we have covered before in this column parity refers to that moment when… Continue reading →

What the hell is an ETS anyway?

Andrew Pegler – 7 December 09 Wow, what a week eh? New faces, old faces, green faces, red faces. But let’s face it, who actually knows what an ETS is and how it will affect us? Read on for the plain English version. As Dr Seuss says “let’s begin at the beginning and start from there”. The Rudd government wants an ETS to restrict the amount of pollution that businesses… Continue reading →

Gold and shares make love not war

Andrew Pegler – 27 November 09 This GFC has made a habit of chucking accepted conventions of economics out the window (no Great Depression gags please). Black is now white, up is now down etc. The reversal of the price relationship of gold and shares is the latest. Traditionally they go in opposite directions but they’re not following the script and this presents opportunities for savvy investors. As you may… Continue reading →

How’s Ya Mandarin?

Andrew Pegler – 20 November 09 Like mine it’s probably not great but knowing how to say “can I have a job please?” will become handy pillow talk as we crawl out of bed with the US and into bed with China. It used to be that when the US sneezed we got a cold. So intertwined were our economic fortunes that, while not quite conjoined Bangladeshi twins, we were… Continue reading →

Welcome to Employment 101

Andrew Pegler – 13 November 09 With the release of October’s unemployment rate expect a deluge of jargon that’ll leave you scratching your head. Well stop scratching and join me in Employment 101. As you probably know by now the jobless rate has just increased slightly to a “seasonally adjusted” 5.8%. What is seasonally adjusted? Ever noticed there’s less building in winter, more retail jobs over Christmas and no work… Continue reading →

Congratulations on your rate rise

By Andrew Pegler 06/11/2009 Let me start by offering my hearty congratulations to the mortgage holders of Australia on the “good news” that interest rates have gone up a notch. What?!, you say. Is he mad?, you say. While my sanity has been questioned before I ask that this time you show a little faith and read on. Back in May the Budget papers told a bleak, gloomy tale, heavy… Continue reading →