Australians’ private debt soars to 187 per cent of their income.

[midas]

Australians’ private debt has soared to 187 per cent of their income. Debt is up from about 70 per cent in the early 1990s.

The jobless rate rose for the second straight month in December to 5.8 per cent, and underemployment, the number of workers wanting more hours, is near an all-time high. Wage growth is the lowest on record.

Australia has one of the world’s biggest property bubbles. In some sections of the country, prices are already under severe price pressure and the entire country will soon face that problem.

 

There’s $1 trillion of Australian Mortgages and Some Now Worry of What’s Next
 

Quote

 

The Reserve Bank of Australia frequently seeks feedback on the health of the economy. It might want to call the debt counsellors soon.

 

Homeowners, consumers and property investors around Australia are making more calls to financial helplines as three warning signs back up the spike in demand: mortgage arrears are creeping up, lenders’ bad debt provisions have increased and personal insolvencies are near an all-time high.

 

“It’s steadily out of control — I don’t know of too many financial counselling services where demand doesn’t exceed supply,” said Fiona Guthrie, chief executive officer of Financial Counselling Australia, who says the biggest increase in calls is from people suffering mortgage stress. “There are more people who have got mortgages that they can’t afford to pay.”

 

Australia’s households are among the world’s most-indebted after bingeing on more than $1 trillion of mortgages amid a housing boom that’s fizzled out in parts of the country, but still roaring in Sydney and Melbourne.

RBA governor Philip Lowe places financial stability at the forefront of monetary policy.

 

The concerns are understandable. Australians’ private debt has soared to 187 per cent of their income, from about 70 per cent in the early 1990s, encouraged by low interest rates. In a November speech, Lowe said that while most households are managing these levels of debt, many feel they are closer to their borrowing capacity than they once were.

 

 

http://www.afr.com/markets/debt-markets/theres-1-trillion-of-australian-mortgages-and-some-now-worry-of-whats-next-20170207-gu7ray

[Cinderella Man]

And not just private debt - https://debtclock.tv/world/australia/

[midas]

45 minutes ago, Cinderella Man said:

And not just private debt - https://debtclock.tv/world/australia/

also on that page you provided I noticed the following statement

 

" In 2013 & 2014 Australians were the world’s richest – every person was worth an average of $A258,000 – mostly thanks to the overpriced properties "  

 

Steve Keen one of Australia's brightest economists (in my opinion) has an interesting perspective on debt beginning at 12 minutes in the following BBC interview from last year

 

 

 

[lannarebirth]

Maybe Australia should do what Canada did and sell off all it's assets to China. That worked...  for a while.

[midas]

5 hours ago, lannarebirth said:

Maybe Australia should do what Canada did and sell off all it's assets to China. That worked...  for a while.

 

 

That  wouldn't even get past the first hurdle because of the foreign investment review board 

 

https://firb.gov.au/

[theguyfromanotherforum]

Maybe Australia should do what Canada did and sell off all it's assets to China. That worked...  for a while.

What did we sell to China? Worthless oil? What else?