How Australian households became the most indebted in the world -
see
http://www.theguardian.com/business/2016/jan/15/how-australian-households-became-the-most-indebted-in-the-world
The results are in: Australian households have more debt compared to the size of the country’s economy than any other in the world.
The future for investors and new homeowners is not good. Subdued capital price growth in the secondary capital cities, rental price growth at record lows, significant dwelling construction and a falling population growth rate leading to further oversupply all spell danger. The problems are compounded by the Reserve bank having little room for interest rate cuts, by weak macroprudential controls, minimal savings, low household income growth and anaemic GDP growth.
Captured by neoliberal ideology and the FIRE sector, government has no interest in stopping this immensely profitable yet dangerous gravy train, having enriched the already wealthy beyond avarice through privatisation of unearned economic rents rather than productive activity.
