westpac bubble busting roadshow, page-2

ok lets just say everything they say is true.

what they are forecasting is the average person will be forced to take on debts levels that are unserviceable in the face of an economic shock, whereas overseas people were doing it voluntarily - they had the freedom to walk away from their debts.

So here the banks can "get their money back". How is that going to happen if its unemployment that is causing the problem?

The longer this country remains at high levels of employment the more indebted the country will become, because house prices wont drop to reflect fair value and people will bite the bullet and purchase.

In the past waiting to buy meant you could build a substantial deposit and have significant equity when you purchased. Thats not the case so much anymore. We may not be anywhere near a bubble bursting and it may never happen in the near future, but the vulnerability of our economy to household debt just keeps growing, I dont ever see the risk diminishing just escalating until the inevitable. I don't see much evidence of debt being paid down enough to make a difference , that ship has sailed