Slappi, either you or the professor dont check figures. Keen said most of the $2 trillion debt is government. Come on Slappi, the federal government has no debt. the states do, but level isnt that great. A lot is company such as the BHPs, the RIOs, the banks. Worse Keen takes deposits people put in the bank as debt. Go figure that one and companies such as News corp which is just listed in Australia.
As to the growth in debt, you need to understand what the debt is being used. You need to get the 'balance sheet' to work it out. Has the debt been used to purchase or create new assets. If it has the growth in debt coupled with growth in assets isnt a bad thing. given the increasing size and influence and internationalisation of the australian economy, overseas investment has increased our debt significantly
Take me personal, my debt has grown significantly however, it has been muched by larger growth in my assets.
Keen said the houisng boom didnt build any houses or create more home owners. Keen is off the planet with this comment. While the % of onwer to renters has remained relavtively constant at the 70/30 split. The growth in the Australian population, the decreasing nos. per household have increased the over all stock significant. Keen certianly looses even more creditability with such foolish comments.
Again he is just an associate professor, who is using raw stats to justify something that aint there.
Debt is bad if it is solely consumer baseb, but the majority of debt has been used for capital growth.
Keen really needs to do his home work before releasing stats which are rubbish and meaningless.
