TDA The figure would depend on the individual and averages can...

TDA

The figure would depend on the individual and averages can skew the picture. I had a fantastic graph from Fujitsu Research confirming the average has increased from 17% to 45% average. Im sure someone else will post it. If you have 5 houses would you be looking at this with a modicum of objectiveness? I'm trying to see both sides, hence the gold argument, which is essentially money printing. Perhaps prices wont go down as the gov will bailout everyone. But those dollars will be worth 1/2 what they are now.

Have you been to California lately? I go there a few times a year with work. Same arguments i heard in 2006 at the high there. USA, UK, Ireland, Spain, most of EU, NZ, but definitely not here in Australia hey.

The point being, like a Ponzi, the system requires new players in ever increasing debt to keep it going. That eventually pops. The high level of debt for younger generations will result in a lower standard of living than our gen due to larger % of income being proportioned to repayments.

Stupid government policy like the FHOG that make new home unaffordable for young people. Give 15K people will leverage it (due to fractional banking) to 100K, which means young people need to borrow that much more. Just dumb.

Dumb RBA which doesn't look at bubbles, only core inflation. Than when it blows up they do look and lower rates to idiotic levels which force people to speculate as cash and savings give no return. Thats what going on now.

This will all end in tears and is a buying panic mania.

Have a read of this article
http://www.dailytelegraph.com.au/news/sunday-telegraph/credit-binge-sets-new-debt-record/story-e6frewt0-1225813804691

""Stressed" households will be paying 41 per cent and a "severely stressed" household around 43 per cent on debt repayments."