The implosion in Australian housing is now in full swing as Eighty-five building and construction firms go under in a month. According to this article
“The building and construction industry seems to be bearing the brunt of the brittle Australian economy, with more than 85 companies either entering administration, liquidation or being hit by a winding up notice over the past month in Victoria and New South Wales alone.
Over the past fortnight, Safi Brothers Constructions, Port Melbourne Building Supplies, Coastline Bricklaying and Blue Hills Bricklaying have entered administration. Others to have collapsed of late include plumbers, plasterers and landscape gardeners.”

Why does it matter for Brazil-bugs? Because Australia has similarities with Brazil: China-dependent-economy, commodity-driven exports, real estate bubble, strong currency, etc. Watch out Brazil… the Bovespa index (down 25% ytd) and the inverted yield curves are already showing signs of trouble ahead.

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