Will the next financial crisis be as bad as the last one?

Yeah. I know the report, it's not worth the 16k treasury got charged for it I.e it's not written by treasury. They, treasury, ended up ripping it to shreds. If I were you I'd stop referencing it because no one of any merit considers it even remotely accurate....

 

If it wasn't for those brakes, things would have gotten out of control and enter bubble territory. Crash landings are always better than crash and burn.

Desperate times call for desperate measures and the government of the day will be expected to bring in stimulus with the intent that the economy will turn around - when that doesn't happen - they've essentially stimulated themselves into a corner with not many cards left to play.

When a market can't even handle a 20% correction, what does that tell us?

 

Thanks for you help posting that.

I actually am unimpressed by that article. The first 2 points are relevant to incorrect measurement - though the second one shows young people owe more money - which makes sense because that’s how loans work...

The other 5 odd points are real but are somewhat irrelevant to the premise of the article.

Our net debt is much lower than our gross. Much of this probably due to offset accounts and other savings.

His other points are valid - but they are risks that could impact the result of the debt on the economy, they don’t disprove that it’s smaller than the gross number.

Average effort conflating multiple points.

 

It's a terrible article but it's typical MacroBusiness / Business Insider fare. The only value in the article is the graph and the concept that a high level of debt doesn't mean it's all bad and a reasonable level of net debt doesn't mean it's all good. The truth is somewhere in between those two positions.

I have not been bothered looking lately but last time I checked, households had over 1 trillion in savings including funds in offset accounts. I have raised this many times on the forum and the reactions have ranged from bizarre to ridiculous.

It's interesting.

 

I am wondering if anyone actually taking stocks of where our property markets are especially
for Syd & Melb since the 60-minute episode was aired last year which met with much rebukes
and denials all around.

Are we close to the predicted worst case scenario level yet for both cities?

Thanks,
FXD

 

No. The worst case was a 50% drop in the median house price. 60 minutes quoted Martin North and even he said 50% is unlikely