kingy, just read keens article (thanks for posting)he posted yesterday. In short and from what i understood, the lowering of interest rates as of late has encouraged Australians to take on even more mortgage debt. More mortgage debt = increase of house prices. Keen wrote that the lowering of interest rates in the future will encourage even more mortgage debt.
The only problem is the Rba are at historic lows in regards to interest rates and running out of room fast. Unfortunately this is going to end in tears.
