Peter Jonson of Henry Thornton on Recessions we have to have

Peter Jonson of Henry Thornton discusses the implications of the Reserve Bank of Australia's (RBA) tightening cycle and whether it can engineer a soft landing for the Australian economy - or whether we'll end up in another "Recession we have to have" - as immortalised by the former Treasurer, Paul Keating.

Category:

News & Politics

Tags:

• commentary
• analysis
• news
• henry
• thornton
• pd
• jonson
• global
• inflation
• federal
• reserve
• rba
• fed
• recession
• australia
• dangers

[fox20012]

There is one thing that i don't understand. Soft and Hard landings both have the result of realestate prices coming back down to earth?

Either Soft or Hard, people with mortgages will end up negative equity.

So how can that be a soft landing.

Could some one explain a soft and hard landing. I'm a bit new to all of this.

[HenryThorntonOnline]

Fox20012, most specifically, a soft landing is when a neighbour loses his job; a hard landing is when you lose your job.

More generally ...

US is having a hard landing. House prices are way down, many people are losing jobs.

Australia is having a soft landing, house prices are slightly down and a few people are losing jobs.

[electricityfan]

Both of you dont seem to see that the federal reserve is a private bank and has nothing federal about it, they are the ones responsible for the whole mess we are in right now WAKE UP WORLD!

[fox20012]

Housing slightly down isn't a soft landing its the signs of recession. Economists calculate that Real Estate appreciates at 1% per annum. Any thing above that is called a bubble forced upon the market by the fraudulent act of printing dollars out of thin air. The fact is the bigger the bubble gets the more it hurts people when it bursts. Australia had a recession in the late 80's and will have another one. I understand now there is no soft landing just the fluctuating economy on its way up.