"Others say, look at the debt to income ratio that has grown. Hello, interest rates are at their lowest level for ages, did you expect the ratio to stay the same? decrease? Of courses its gone up. But look what happened last time you say? Well last time interest rates were VERY high, bit of a difference hey".
You work in a finance company and have had an extensive investment background. Then I can't believe you would make such a comment. It really frustrates me to keep on hearing the same thing with regard to interest rates now and then. It has got NOTHING to do with interest rates. It's got EVERYTHING to do with debt levels. Thay are much higher now than they were 10-15 years ago when compared to the average wage. An interest rate movement now will have a far more devestating effect than back then. Surely you are not going to disagree with that?
As I have mentioned countless times before, it's all got to do with debt and at the moment Australians are carrying too much of it.
