Interest rates in Oz will always be higher than they should be, because the government currently has to flog over 1 BILLION dollars worth of bonds every WEEK to fund it's madness "stimulus" scheme.
Also, our foreign debt is now well and truly out of control, this is mainly held by the banks who have borrowed to fund - you guessed it - the great property bubble in Australia.
As money gets tighter in the scenario painted above, Australia will have to keep screwing rates higher to attract the capital needed to keep the whole Ponzi scheme going.
There WILL be a correction. There WILL be a recession.
