Article from the ABC about a housing crash

We have equity and interest only, same **** different smells

Equity is not free money, you just taking on more debt to pay more of the same but higher prices
deck of card, once the tides turn it amplified your loss.

Obviously use it well and it can serve you well but plenty don't and this is the crowd that brings down the market

 

Definitely, using max borrowing capacity to continue leveraging into the same asset class compounds the risk exponentially.

 

Interesting. I have not had a chance to view the program but I wonder if they talked about Australia's record levels of cash savings in conjunction with our record levels of household debt? These two matters are separate but related. I don't think it is correct to discuss one without the other or the story you tell will be unbalanced.

"Australians have also been squirrelling away a pile of liquid assets. Cash and deposits alone topped $1 trillion last quarter for the first time on record, having more than doubled over the preceding decade."​

This is significant.

Australians sitting on mountains of cash as wealth outpaces debt

 

Rebuttal of the Four Corners report:

Contributing Editor for Fairfax Michael Pascoe tweeted that it was wrong to blame household debt and mortgage stress on “banks & brokers pushing loans” because there is plenty of demand out there for those loans.

Pascoe suggests “investors take some responsibility” for their borrowing habits rather than blaming the banks and the “occasional dodgy broker”.

I have enormous respect for @4Corners but tonight's effort was shoddy, a beat-up on a number of counts. Housing debt not that simple.​

Are The Banks Really To Blame For Record Levels Of Household Debt? | Canstar

Jonathan Tepper again. Why not ask Lindsay David and Philip Soos. They're great at predicting property crashes selling books about property crashes.

 

ABC? Of course not.