Property developers are going bankrupt world wide

 Hi Readers

We are seeing the slow bleed out from the property market in China.

I say that because, Chinese developer are happy to pay local bond investors and refuse to pay all overseas bond holders. This is extremely dangerous as all hedge funds, pension funds, investment banks, crypto coins that hold these bonds will have to expose these losses in the second half of the year.

We have seen small builders in Queensland go belly up from rising material costs. 

Now we have the Elephant of home builders in serious financial trouble.Yes Metricon Homes is in talks to receive an injection of cash to keep operating. They won't be able to pay there trades people or the materials which they have charged there customers. Prices have increased and at fixed prices homes is simply not possible. If they do go belly up over 4100 uncompleted homes nations wide in Australia will sit idle.

We are in recession people whether you can see the writing on the wall or not.

By the time we get into an official recession it will be far to late. The economy is like a giant container ship, once it in reverse it does take a while before it can turn around and move forward.

Recession's are not bad, they clean out unwanted waste out of economies, all excess parts of the economy get cleaned out. All zombie company go bankrupt, which allows new companies who are more leaner  to flourish.

Just a quick note as this was being typed UK inflation came in at 9%, last month it was at 7%.

Just remember that interest rates need to be 1% over the rate of inflation to bring inflation down.

So with that in mind what does that tell you about central banks fighting inflation. They intend to keep pushing it higher on the public so get used to it.