"A 40 per cent fall in Australian house prices is an "extreme but plausible"' scenario, according to a Reserve Bank of Australia discussion paper on household debt.
But the paper says "banks appear resilient to a severe downturn" and that most household debt is held by those who can afford it.."
Most Australian's wealth is tied up in property and shares (most super funds are also heavily invested in shares).
So what if house prices fall 40% and share prices fall 80% over the next few years?
They haven't even considered this potential threat to the banking system and the economy in their modelling.
- Forums
- Property
- RBA - 40% house price fall
"A 40 per cent fall in Australian house prices is an "extreme...
- There are more pages in this discussion • 150 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
BGD
BARTON GOLD HOLDINGS LIMITED
Alex Scanlon, Managing Director & CEO
Alex Scanlon
Managing Director & CEO
SPONSORED BY The Market Online