pictures tell a story

GDP is falling.



Income is on a downtrend which is bad in an environment with rapidly rising asset prices.



So how can people afford all these expensive assets? Debt of course and it is a very high percentage of household income.



It is no wonder the savings rate has been on a downtrend for ages. People don't save. So how can they afford the huge deposits they need to buy property? More debt.



Some people still say housing is good value yet affordability is at an all time low.



This will all end in tears for alot of people who think we are in a 'new economy' but people are happy to drive up property prices. Exponential charts = bubble