usd dive tonight?, page-15

Re: All4One glowing assessment of Australian economy

What is the level of private debt in Australia? 1.8 times household income vs 1.1 in the US vs 1.5 in the UK.

The only difference between us and these other countries is that their housing bubble burst and the Government had to come along and soak up the private debt. When the time comes our government will be forced to similarly absorb the private debt burden of households.

This is why the government debt debate is so stupid in Australia. No one wants to acknowledge the private debt elephant in the room. In effect all these government family tax benefits, childcare payments etc all go and inflate the housing market. There is no way a lot of people could afford to live the lives (and mortgages) they're now used to without these payments.

Australian banks making 'genuine' profits is also a fairly bold statement.