gold, page-53643

Big problems ahead. Debt burdens rising right across the West. Gold will continue to thrive in this environment.

https://www.stuff.co.nz/business/11...ok-like-theyre-doing-well-propped-up-by-loans

Rise of fake rich: Kiwis look like they're doing well, propped up by loans
Susan Edmunds13:51, Aug 05 2019

Many high-earning households may only be "fake rich", financial advisers say.
Stuff reported this month that even households earning more than $150,000 a year say they have insufficient income to cover their costs.
But that may be because their lifestyles are heavily dependent on debt.
New Zealand's household debt has increased to 163.9 per cent of gross income, an all-time high.
Financial adviser Martin Hawes said it was common for people who appeared to be well-off to be carrying large loans.
"The large amount of debt could be because they have some rental properties or a business," he said.
"But I think there's also quite a group of people with a high income using that to service a big debt for a bigger house than might be appropriate."
The size of the average mortgage has risen at a faster pace than house price growth in recent years.
Forty per cent of new borrowers now have loans that are five times or more their annual income.
Government statistics show that 14 per cent of the highest 20 per cent of earners have household costs more than 30 per cent of their income.
More than 20 per cent of those in the second-highest income bracket were in that position.
Hawes said often the things in an expensive house would also have been purchased with hire-purchase agreements, and holidays were put on credit cards or revolving credit facilities. About 13 per cent of new cars are sold to companies that will lease them to people.
"I see a lot of people like that... it's a trap of higher incomes and being able to borrow more, people get ahead of themselves."