politics and interest rates

Tonight there was a 7.30 report item discussing how Labor may finally be getting traction vs Coalition over the interest rates issue.....now 28% of household income servicing mortgage cf 26% when interest rates were 18% under Keating (or some such statistic Shadow Treasurer spouted)...because nowadays households are loaded to the gills with debt.

However I suspect that this will actually work in Howard's favour...the fact that households are so indebted means they will be even more fearful to roll the dice and gamble on a change of government...better the devil you know.

Regardless of govt, think bad debts will start spiralling over the coming months. Too much easy money available from banks and then spent on holidays, plasma TVs you name it, none of which services debt.