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35,472 Posts.

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14/08/19

18:32

Post #: 39993936
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Originally posted by Menta: ↑

Actually I've been publicly warning of a debt crisis since 2007 - prior to the GFC. But just like then, none of the perma-bulls want to hear it now either. The major difference between then and now is that the level of outstanding debt globally has almost doubled and central banks have already cut rates to the bone while major governments are fiscally restricted to stem an inevitable and more severe financial crisis.

Likewise in Australia household debt to both income and gdp still levitates at historical levels, despite record low rates. Those who believe that the housing deflation in Australia is over and that our banks are safe and secure are living in a bubble themselves. On a personal level, I'm not one to publicly brag about the wealth I've accumulated, or my investments or give financial advice other than to warn of the dangers of excessive debt. And they've never been more excessive than today. So a simple question: Does the larger a debt bubble grow make the resultant asset bubbles more or less precarious?

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Perma Bulls LOL, that's a good one.

is that opposite to Perma Wrong?
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