Quote:
Originally Posted by casstony
With our tremendous private debt we're in a very fragile state and both sides of govt worked with banks to create that problem. If China slows significantly and our housing bubble pops and the banking system becomes unstable we won't look much better than a lot of other countries.
I feel sorry for all the poor buggers conned into taking out massive house loans over the last two decades. We might keep chugging along or everything could suddenly collapse, only time will tell.
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Last I saw, in sharp contrast to the Gillard and Rudd governments, average Australians did the opposite and took the opportunity to pay off a very large amount of household debt. It still hasn't recovered to the level pre GFC.
And given the very real concerns which you cite, I suspect they'll be wary of splurging big on debt for quite a while yet.
Regards,
Renato