http://digitaljournal.com/article/284509#tab=comments&sc=0&contribute=&local=
obviously a bit hyperbolic, if we experience a crash of that magnitude banks won't sell the properties as that would actually realise the loss, like what is happening in the US. It's a pretty big IF as well
Would like to see some sources for the figures, thought I thought the description of the possible knock on effects was interesting.
“Once a jolly banker/Couldn’t get their numbers right”…. The old folk song is so true. Australia’s Reserve Bank changed roles from Roadrunner to Wile. E. Coyote with ease. Australians now owe $56000 per head, compared to $44,000 for Americans.
It's a pretty hideous story. Our “recovery” and “growth” turn out to be debt based. Like one of the cartoons where the coyote keeps running for a while over going over the cliff, Australia’s debt is now more than GDP. 90 per cent of that debt is tied up in mortgages. The rest is various forms of personal debt.
obviously a bit hyperbolic, if we experience a crash of that magnitude banks won't sell the properties as that would actually realise the loss, like what is happening in the US. It's a pretty big IF as well
Would like to see some sources for the figures, thought I thought the description of the possible knock on effects was interesting.
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