"A 40 per cent fall in Australian house prices is an "extreme...

  1. 10,759 Posts.
    lightbulb Created with Sketch. 8
    "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.

    Last edited by Menta: 15/09/20
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.