an economic callapse has many reasons as straws on a camels back...

an economic callapse has many reasons as straws on a camels back these straws are nothing in there individuel form but add them together and {crack}

australias economy boomed because of borrowed money
12% in 95 to 5% in2003 the peak in the asx from this time is astounding and as people borrowed on there holmes as they had equity because rates started to go down holmes went up, its amazing how{for example} a person has a small deposit of 10,000, and buys a house for 120000 in 95 say, as you can keep scaling it up the years, but then the interest rates go down from 12to 9 the house is valued at 180000 and is able to borrow 60000 on his equity then he buys another home as this is used as its own equity and the spiral effect as the interest goes down is braud throughout the holmes as more money is borrowed, the fact is that this person only started with 10000 dollars and now he says he owns 3 holmes, this madnes is contages as greed now kicks inn, then the interest rate hits the bottom and ,starts to go up , no one has equity any more and the money that drove an economy was all borrowed , the side effect of this is lack of skilled labourers as most companies expanded and borrowed money to rake more inn, same with the stock markets people borrowed on there equity and when the rates go up 1 more percent then look out we will have a lot of presure in holmes and markets to liquidate assets to pay morgages, not to mention job losses as companies over expanded thinking it would never end ,and then we have not forgotten the overseas labour to help with our demand, these people add to the desimation of an economy by joining the fight to cut prices down to the bare bones, whilst shops try to realise why 50% of trade disappered , and why unemployment is rampent, add americas 7 trillion 750 billion debt rising 2.4 billion a day then we have great futre ,not to mention our states are allready fighting