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Couldn't swallow another cent: Australians at debt capacity: Commonwealth Bank Well, alright, maybe just a wee waffier.

Figure 43 Japan was the last major economy to experience a debt deflation. Though I do not think the debt data here is comparable to that shown for the USA and Australia (which is sourced from their respective Central Banks), the role of debt in bringing the economy to a standstill is obvious...

Something should be said about the ratio of debt to assets: The Composition and Distribution of Household Assets and Liabilities: Evidence from the 2002 HILDA Survey1 The reason for focusing on debt is that those having it will respond most strongly to interest rate increases and those...

You might refer to RBA Table D02 (as per first post this thread): Credit, of which:>Other personal>(incl securitisations)>nsa http://www.rba.gov.au/Statistics/Bulletin/D02hist.xls Column N The notes state: ‘Other personal (incl securitisations)’ includes personal loans outstanding on the...

New word: "debt is starting to look decidedly démodé" Blair's legacy is a nation engulfed by debt By Jeff Randall Last Updated: 12:01am BST 06/07/2007 "Watching many British consumers en route to a debt crisis has been like observing drivers of cars with faulty brakes, heading...

My personal income consists of a little interest and some dividends from my company, my largest personal expense is a self-employed contribution to super. I expect to recieve a tax refund of $35,000 on a taxable income of $24,999. So negative tax on a positive income. No debt...

I think there is much unneccessarily complicimicated nonsense talked about fractional reserve banking - mostly confusion about deposits and other loans to banks and the banks reserve deposits with their central bank. There are no reserve deposits in Aus because the Commonwealth deposits its...

Good points - care to expand on them? Many fund portfolios are internally leveraged. So extreme leverage is not only possible but can be expected to occur. Apart from borrowed money, futures and options being another example. The complexity of that seems to have every one stonkered. I...

That goes under Other_Outlays (column S).

Disposable income is defined here: http://www.rba.gov.au/statistics/bulletin/G12HIST.XLS column T Disposable_Income (column T) = Total_Household_Income (column Q) - Income_Tax_Payable (column R) - Other_Outlays (column S)

An earlier use of the phrase "Peak Debt" Peak Debt!

Living way below my means and ignoring the siren songs of marketeers mostly.

The tram then car both made sub-urb-s and co-urban-ization viable. Telecomunications has made non-ubr-an, non-agricultural living viable. It remains to be see if a significant portion of people take the opportunity to live non-urb-an lives. Perhaps sufficient choosing a lower non-urb-an...

You are right - I was just making the obvious point in a round about manner that a ratio has a numerator and a denominator - the ratio decreases if you decrease the numerator (debt) or if you increase the denominator (income). Experience in recent decades, particularly, is that the wealthier...

Incorrect links I've just noticed that the Sydney Morning Herald link in the first post is abdridged and therefore wrong - sorry. Here are working links: Brakes fail on housing stress Michael McNamara July 3, 2007 "Australia is fast approaching peak debt. By 2016 we will spend so much...

Agree with your reasoning except (you knew it, right?): Increases in income will tend to decrease the debt to income ratio. It is the dynamic evolution of the debt to income ratio that interests me because it affects affordability and wealth and the distribution of wealth. Regarding the...

Ta. I saw that last night. What is the debt to income ratio of Thailand and / or Thais then and now?

I agree that "our current system inflation and wage growth are no longer so clearly aligned." Even so, I have difficulty visualize our economy where debts are not 1 to 2 times annual income but 10 to 20 times. I do not say it is impossible to get to that situation - just that to me it seems...

Who will lend the money? I think you may mean that debt "can keep on going up forever" and I agree. I disagree that the ratio of debt to income "can keep on going up forever" - unless real interest rates fall to zero or less and principal is never paid back - highly unlikely unless we have...

Only if interest rates were zero and principal was never to be paid back could debt to income ratio keep increasing forever.