Mining boom from another perspective..
This Bloomberg article is trying to suggest that Australia is feeling the pain of the mining boom. I thought Australia was having some of the best economic conditions in the world?
I would think that the pain of not having the mining boom is going to be significantly greater at some stage in the future.
I am fairly confident that the current prices for houses in mining towns and cities are not sustainable and that when the tide goes out, this will cause pain to those who have borrowed or lent heavily into this area.
My rough estimate is that approximately 15-20% of Australia’s housing is related to mining and the flow on effects of mining. This is likely to make a dent to the banks profits and equity when we are no longer experiencing such lofty conditions.