Tough Times Ahead

[BroadyFord]

Re GMH, the front page of the weekend AFR has a very grim article regarding the fact that Stefan Jacoby snubbed Ian Macfarlane after the latter requested a meeting to discuss Holden's future.

The article essentially implied that Jacoby was here to ensure everything is in order prior to Devereux's move to China and the subsequent closure announcement, all of which has been caused by the government's (as yet) private decision to let the industry go (as confirmed by "insiders familiar with the situation").

I am still maintaining a closure announcement will be made within the next 3-4 weeks.

[stevz]

Originally Posted by wildrider

I worry about the future of Australia a fair bit. I blame most of it on greed

It's definitely greed. We have sold ourselves out to the Asians for a quick buck, without any consideration of the detrimental effects this will cause to future generations and the prosperity of this country.
Chinese investors with deep pockets are buying up our residential property therefore driving up the prices and putting it out of reach of the average person. Our agricultural land is being sold to foreigners. Our manufacturing industry is being killed by cheap Asian imports. In a few years time when Australia has nothing to its name but a few empty holes in the ground, what will we do then? It's a pity that Australians are too short sighted to see what is going on under our noses. As long as they can go and buy a cheap Hyundai, who cares about anything else?

[zilo]

Australian standard of living is still better than anywhere else.

[LG17]

There's never just one reason why things get tough.
Sometimes there's that one extra thing that breaks the camel's back but in many cases it comes back to lack of planning on everyone's part.

I've just bought a new property - I was lucky in a way as it had been on the market for a while apparently while the couple bickered and bitched as their marriage crumbled. They'd overpriced it in the first place but instead of concentrating on their asset they put in in the background with a "she'll be right" attitude. Well it wasn't right for them and I made them an offer they couldn't refuse because they failed to manage their situation.

The property needs some work - I've approached 6 different solar companies about solar power - three couldn't even be bothered replying, one did and said "give us a call when you're ready" (I'm only 5 weeks away!), another directed me to their website. Only one company has given me their time, answered my questions and generally been helpful. They have given me options one of which we have come to an agreement on.

I need to build a decent shed - I got five quotes and only two of those followed up their quote. I have ordered one from one of those two companies. Obviously the other three don't give a rats.

I need a removalist - most of the ones I contacted didn't bother replying.
I could go on but I'm sure you get the picture - a hell of a lot of failures and difficulties are caused by the attitude of the owner/s and their influence on the staff.

Customer service and attention to detail is paramount to survival - if you do it right during the good times it should stand you in good stead during the not so good times.

[zilo]

Originally Posted by Syndrome

Why did the government pump money into the RBA and also lift out debt ceiling? What are they preparing for?

they are getting ready to start printing money, thereby lowering the worth of the aussie dollar against other currencies.

[stevz]

Originally Posted by zilo

Australian standard of living is still better than anywhere else.

That can all change and will change the way it's going.

[Syndrome]

Originally Posted by zilo

they are getting ready to start printing money, thereby lowering the worth of the aussie dollar against other currencies.

Another step in the global currency wars. Which means people who have saved money would be hurt the most by inflation. Have people forgotten the lessons from the Weimar Republic?

[mechanic]

Last time I checked our wage/house price ratio was the worst in the world. Maybe that has to be corrected before we can get back on track.

[csv8]

http://conspiracywiki.com/articles/n.../club-of-rome/

[superyob]

Originally Posted by Syndrome

Another step in the global currency wars. Which means people who have saved money would be hurt the most by inflation. Have people forgotten the lessons from the Weimar Republic?

Do you think we will need to take a wheel barrow to work to collect our pay? I wonder what the digital equivalent of this scenario would look like...

[roberts]

Originally Posted by superyob

Do you think we will need to take a wheel barrow to work to collect our pay? I wonder what the digital equivalent of this scenario would look like...

zimbabwe, starving people with million dollar bank notes.

[buggerlugs]

Reminds me of an old Australian Crawl song http://www.youtube.com/watch?v=ygajUPSRTFM
Live now Pay later ...........That's what today's society seems to be like. Best thing my old man drummed into me, "If you can't afford it, save for it".............

[roberts]

Originally Posted by zilo

Australian standard of living is still better than anywhere else.

to save face and keep up with the jones it all goes on the credit card, kick the can down the road.
Thats what happened when we had the GFC $900 for everyone, no wonder on paper we "survived the recession" now we are meeting up with the can again. Just look at how much more debt people have taken on since the GFC. Where other countries got to feel the GFC and make life changes we hid from it.

[Syndrome]

Originally Posted by buggerlugs

Reminds me of an old Australian Crawl song http://www.youtube.com/watch?v=ygajUPSRTFM
Live now Pay later ...........That's what today's society seems to be like.....

Keynesian economic theory at it's 'finest'

[XR Martin]

Originally Posted by zilo

Australian standard of living is still better than anywhere else.

Thats part of the problem...
We just cant afford the standard we expect.

[GASWAGON]

Originally Posted by stevz

I think our ridiculously overcooked property market is to blame for a lot of this. When people need to mortgage themselves up to the tune of $600,000 for an average suburban home, it's obvious that there isn't going to be much disposable income left after servicing the mortgage payments.
Yet here we have again all the headlines screaming 'property boom' and people falling over themselves to pay ridiculously inflated prices - can people really be that stupid?
I personally believe that this country is headed for one hell of a major recession and with it will collapse the property market. There will be a lot of people in negative equity when this happens and only then will they start to see what pain really is. It's only a matter of when, not if...mark my words.

Without going into the nitty gritty's of it......This IS the main problem....The previous governments and banks allowed this RE bubble to happen and now everyone else is paying for it.

I REALLY feel sorry for gen y's trying to get into the market...Its just not feasable at present prices......A major correction is due!

[danzvtil]

Originally Posted by Rodge

That bit stood out like a sore thumb. A reasonable percentage of small business owners indulge their passion(s) more than is sometimes in their best interests.
I know of one small local panelbeating business where the owner spends over $60,000 per annum racing rally cars, then complains that times are tight and gives his few staff Jack Shyte in the way of a Christmas bonus. Some of the inefficiencies I see as an accountant with small business's really amaze me. People making $150,000 per annum and claim they're flat broke and can't afford to pay their tax More often than people would imagine, a business owner can be really good at what it is they do for a business and completly hopeless managing their finances.

I wonder how many of these business owners are sucking out large monthly drawings to pay for their jumbo house mortgages ?

I am a wholesaler to garden centres and hardware stores, there are several factors at play here. The reality of running a business today is simply how much all your costs have increased, penalty rates, workcover water,rent,rates,super contribution.
Add to this the fact that imported stock has become soo cheap over the last few years, that businesses are selling ever higher volume to make less and less profit.
All of this favours large businesses who have deep pockets, are able to vertically integrate their supply (ie- they go direct overseas to source) and the ability to change if required. The old family businesses which are still partying like its 1999 are failing to adjust, and whinging that they are not viable.Some though ARE adjusting, focussing on their strengths, ridding their business of excess fat and are pulling thru.
It never ceases to amaze me when failing business owners blame the Guvmint/weather/Bunnings for their demise when they have what appears to be excess staff, 29 cars on lease for the whole family and wonder why the bank is banging on the door.
The overwhelming feeling across all wholesale and retail stores is the fact that we are now working HARDER than ever before for what little business is available.

[stevz]

Originally Posted by EF_6

Without going into the nitty gritty's of it......This IS the main problem....The previous governments and banks allowed this RE bubble to happen and now everyone else is paying for it.

I REALLY feel sorry for gen y's trying to get into the market...Its just not feasable at present prices......A major correction is due!

Agreed. What we need at the very minimum is the abolition of negative gearing and a ban on non-citizens purchasing property.
Housing is a basic necessity and should not be used as a vehicle for greedy investors. That's what the share market is for.

[BHDOGS]

come on baby let the good times roll

[Wretched]

Originally Posted by buggerlugs

Reminds me of an old Australian Crawl song http://www.youtube.com/watch?v=ygajUPSRTFM
Live now Pay later ...........That's what today's society seems to be like. Best thing my old man drummed into me, "If you can't afford it, save for it".............

People can't seem to live within their means.
They see old Jones next door with a new car and think "Damn him, I want that too."
Not realising the hours at work Jones has put in over the years that has given him that promotion with the pay rise that allowed him to afford a new car.

Like you said if you can't afford it save for it. With a house only get something that you can afford to pay off including all the utilities, shopping, etc.

Australia is heading for a recession and as bad as it sounds it may be the thing we need, an equaliser to bring everything back down to reality.

[mechanic]

Just to make us all feel better.
Everybody knows that $900 cheques were sent to backpackers as late as this year as they qualified under the terms of the stimulus of course.

They qualified as they were taxpayers when the scheme was announced.

I didn't qualify as I'm a retired pensioner, [ paid tax all my life ] but felt really pleased that young rich people from overseas got some Australian taxpayer funds that won't be spent in this country.
[ Sarcasm is the lowest form of wit I know and I shouldn't be so cynical. ]

[XRLENC]

Not to point fingers or be a critic, but we are all to blame.
How many of us buy something online (eBay etc.), instead of spending a few extra dollars to buy it locally?
We need to circulate our money within Australia not send it overseas

[FormulaFG]

Originally Posted by Wretched

Australia is heading for a recession and as bad as it sounds it may be the thing we need, an equaliser to bring everything back down to reality.

Unfortunately, this is dead right. Its been a generation since the 1987 recession and many young people today (myself included) have only ever known booming good times.

Although it will hurt a lot of people a recession would be a good dose of reality and change a lot of peoples attitudes for the better.

[VICFPV]

Its all greed.
This brought the GFC and now it will sink Australia.
Corporations greed to increase profits by outsourcing jobs to low cost nations as the labour cost in this country skyrockets due to cost of living and a housing market boom.
This has had a flow on effect and will crash our economy very soon.
If there is no jobs then they will be no spending therefore certain industries are doing it tough and about to close.
At present anything to do with housing in NSW is going through a boom due to inflated prices. But it will come inline when the bubble pops.
2 speed economy in full effect.
As a consumer I am forced to look for cheaper things as I am no longer earning what I used too. Therefore cheap imports gets my business or the tradie that qoutes the less.
Sad times indeed and there will be no light at the end of this tunnel for a long time.

[saber]

Maybe this question is aimed at the younger folks on here...but anyone considered going overseas for work?

In the industry I'm currently working in (engineering), we've had plenty of Irish/Poms come over on a skilled visa arrangement...might be time to do the same???

[Wretched]

Originally Posted by saber

Maybe this question is aimed at the younger folks on here...but anyone considered going overseas for work?

In the industry I'm currently working in (engineering), we've had plenty of Irish/Poms come over on a skilled visa arrangement...might be time to do the same???

I have been considering moving to the US, our company has just established another office there and was thinking of relocating for a couple of years.
Not sure yet though, the office is in Dallas so will need to do a trip over there to see what it's like.

[GCRXR6]

Danzvtil, penalty rates are not a new impost on a business. I've been in the workforce for near 50 years, and penalty rates applied then as they do now. There are many reasons why some businesses are finding the going tough and it's not just wages.

That panel beater to which the OP refered .. what is the REAL reason for his plight. Not enought work? (Quality problem or not enough accidents any more, knocking back work?) Insurance companies screwing him down (cant blame that on wages, that's a mater for the gov to look at) Poor accounting (spending more than he makes)

I see a crash in the solar industry... Solar companies are everywhere at present ... when the market is saturated and sales dry up to a trickle, we will see that industry crash.

Electrical / electronis repair industry is a poor performer as devices are cheaper t replace than repair.

These trusty computers that we are using tonight were a device that we used to upgrade with more powerful parts and software. Nowdays, we toss them out and buy a new kit. Component supply stores are closing. Lost 3 in Rockhampton in recent times.

I invited a builder to give me a quote on a pergola I wanted constructed. He started by crying about the council charges and the need to submit lans for approval and the cost of materials. All negative crap that I already was aware of. I'm still waiting for his quote 3 years later. I have since had a large company from a nearby city do the job.
Unbelievably, I've heard this guy complain of no work!

But yeah, I could go on into the wee hours writing and boring you all with examples. Mainly though it often is simply due to poor management...not changing with the times, not providing GOOD customer service or product, or heaven forbid...not wanting to actually work etc.... etc..et..e..

[fte50]

Ok I have a question

We unanimously agree on all of the previous sentiments but I would like to quote a post from stevs coz this constantly ponders on my mind.

"It's definitely greed. We have sold ourselves out to the Asians for a quick buck, without any consideration of the detrimental effects this will cause to future generations and the prosperity of this country.
Chinese investors with deep pockets are buying up our residential property therefore driving up the prices and putting it out of reach of the average person. Our agricultural land is being sold to foreigners. Our manufacturing industry is being killed by cheap Asian imports. In a few years time when Australia has nothing to its name but a few empty holes in the ground, what will we do then?"
Given we can all relate to and appreciate the above statements, why is it that govco have allowed this to happen, its an engineered/designed chain of circumstances negatively impacting Australians and our very fabric of life.
If we can see it, why cant govco, or if they see it, what is their agenda ?
Im interested in peoples views !

[Crazy Dazz]

Originally Posted by Rodge

Some of the inefficiencies I see as an accountant with small business's really amaze me. People making $150,000 per annum and claim they're flat broke and can't afford to pay their tax More often than people would imagine, a business owner can be really good at what it is they do for a business and completly hopeless managing their finances.

It’s a sad fact that MOST small businesses in Australia Fail. I did small business Accounting & Tax for over a decade, and it was a universal problem. A person can be a brilliant <insert trade here>, but a poor manager and often a hopeless Commercial Manager. So many have absolutely no clue about profit margins and marketing, they just open their doors and expect to make money.
Panel beaters face an especially tough time. Their income is dominated by insurance work, and that means doing a job for the cheapest possible price, which is hard if you have any ethics or pride.

I'm climbing on my same old soap box here, but WA is still mostly going along fine. If anything the disparity in the 2-speed economy is growing. The Mining & carbon tax has stalled a lot of projects, but I expect that to improve next year. Keeping in mind that if the AUD continues to slide against the greenback, that is GOOD news for exporters. I don’t think it would still be technically called a mining boom, but there is still sustained demand for commodities. The government needs to reduce our reliance on imports and boost manufacturing in NSW & Victoria. That would be a win-win for everyone. It really ***** me to tears to work on massive projects where thousands of tonnes of (****, poor quality) steel is being shipped in from China, when it could have been more easily milled in SA or NSW. The WA government doesn’t give a crap, cos we haven’t had a steel mill for yonks, but the Feds should do something to limit the imports.
They also need to do something to stop the wholesale rorting of the 457 visas. Again, I worked on a massive project where the owners had been allowed to bring in thousands of Chinese workers. If they were any indication, China won’t be ruling the world any time soon. Slow, lazy, incompetent, dishonest, and with trade “qualifications” that they probably bought on the internet. But hey, they were CHEAP. The union that should have been protecting Australian workers got bought off. The company paid for all its Chinese workers to be fully paid up members, thereby buying the union’s silence.

[fte50]

Originally Posted by Crazy Dazz

The union that should have been protecting Australian workers got bought off. The company paid for all its Chinese workers to be fully paid up members, thereby buying the union’s silence.

That is pathetically sad - the union should've taken a moral stance and rejected the payments/memberships.
Again goes back to what this thread is somewhat about - greed..... makes me sick to be a unionist at times.