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If you assume 'ordinary' people don't use structures to hold their investments, which is probably true. I wonder, then, does the Total Household Income figures include negative gearing? I mean, if you looked at my tax return for the last couple of years, my income to debt ratio would be...

Surely given fractional reserve banking there is no practical limit to lending and hence borrowing. i.e. in a pure banking system there is no theoretical limit on how much money can be lent and borrowed. The only limits are those imposed by the human participants. i.e. willingness to take...

Incidentally, I actually expect a recession soon which will hurt property prices, but I also believe that long term, with economic and population growth, property prices CAN increase faster than average wages. So I'm certainly not saying you're wrong, Nullagine, but there is another side. I...

I would argue in our current system inflation and wage growth are no longer so clearly aligned. However, inflation WOULD devalue the currency (and debt as well) so that nominal prices can keep rising. Of course, in practice the RBA would never let inflation go that far, and would risk blowing...

Just read the article in detail. As usual (and when did the Herald swing this far to the left?) they keep harping on about how property is growing faster than wages which cannot continue. Why not? It has so far, and there are good (not necessarily fair) reasons: 1) Population growth. Outer...

I haven't read the actual mathematics of it, but I disagree that there is a peak debt. Peak oil assumes that oil is finite. Personally I don't agree that we've hit peak oil because I think there are still untapped reserves elsewhere. As for peak debt, surely it's dependent on interest rates...