• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Macro Australian Economy

Could This Unleash the Biggest Credit Bubble in History?

Like 0

By Shae Russell, Thursday, 07 May 2020

Sometimes to know what’s going on, you’ve got to ditch the papers and talk to the people in the industry.

Back in the first week of April — a time that feels like another decade ago — I reckon I spent about 40 hours on the phone talking to people in the gold mining sector.

The geos that know where to find it, the folks who dig it up, the people who refine it, and the analysts and stockbrokers who are telling you to invest in it.

Given gold and gold stocks are kind of my jam, I needed insider knowledge and to find out what was happening before it hit headlines.

Learn why a recession in Australia is coming and three steps to ‘recession-proof’ your wealth. Click here to download your free report.

Fresh from that the following week, I started hunting around the construction sector.

Putting a call out for anyone in a trade across commercial, residential, or industrial trade to get in touch.

What I learned from these hours I logged was fascinating. And the majority of what I learned never appeared in the papers.

So why I am digging around in these sectors? Why all that effort talking on the phone when I could just read some charts and data?

Well, part of the problem with sticking to charts and data, is that you miss the smaller parts of the story. Hear some tales enough and they begin to build a bigger picture.

More to the point, there’s a reason I follow construction and mining so closely.

Want to know how the exports sector is holding up? Talk to miners. Want to get an idea of employment and consumption? Talk to people in construction.

[conversion type=”in_post”]

You need to talk to people in property

However, there is a third sector all Aussies should pay attention to. And that’s because it’s where most of us keep our wealth.

If you want to know the financial health of Aussies, you need to talk to people in property.

Which is why you’ve been hearing from my digital desk buddy Callum Newman, editor of Profit Watch, for the past couple of days.

As you’ve probably noticed, he isn’t just regurgitating a couple of headlines from the papers. He doesn’t see doom and gloom, rather he keeps talking about the opportunities. ‘Cheapest you’ll see it in your lifetime’, he told me recently about Aussie house prices.

For most of the week, Callum and his co-editor Catherine Cashmore have been writing to you about the ‘housing-finance’ complex.

That is, how access to credit and house price growth has consistently left wage growth in the dust…

…and how what’s happening to properties and stocks today isn’t an anomaly, rather it’s part of a cycle that’s been running for hundreds of years.

So how is it all going to play out?

According to Callum and Catherine, their cycle pinpoints the year things will get really bad (hint, it’s not for a few more years yet).

However, before the cycle comes to an end and we get a proper property bust, there’s one crucial component that will take us there: credit.

Which just so happens to be what Jim talks about today. Credit, money printing, and ensuring that cheap money flows through the financial system.

As Jim points out below, there is a dangerous economic theory gaining traction…and if more economists start backing it, it will unleash the biggest credit bubble in history.

Read on for more.

Until next time,

Shae Russell Signature

Shae Russell,
Editor, The Daily Reckoning Australia

PS: Market expert Shae Russell predicts five knock-on effects of the recent market crash that could be even bigger threats to the average investor’s wealth than the crash itself. Click here to learn more.

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments
Shae Russell

Shae’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • 2025: Halfway through the Blockbuster Decade
    By James Cooper

    Given we’re halfway through the decade, James Cooper reflects on the 2020s, and explains why volatility will continue to drive commodity prices higher for the remainder of the decade.]

  • The Curious Case of CBA Demystified
    By Callum Newman

    There’s a massive tech hedge fund called Coatue with US$84 billion under management. When they put a bet on, it’s a big one. They’re placing their bets now. Your money and your lifestyle could look a lot different if they’re right or wrong. So will mine.

  • Nvidia’s Comeback Signals AI’s Next Chapter
    By Charlie Ormond

    The future is here, it's just unevenly distributed.

Primary Sidebar

Latest Articles

  • 2025: Halfway through the Blockbuster Decade
  • The Curious Case of CBA Demystified
  • Nvidia’s Comeback Signals AI’s Next Chapter
  • Commodities Fly as Dollar Plummets
  • The Coming Space Race: And the One Commodity to Own

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988