will our children live in caves?, page-59

Australian household debt has hit a record 177 per cent of annual disposable income while housing valuations are "flashing red", according to Barclay's chief economist, Kieran Davies.

"House prices now equate to 4.3 times annual income and 28 times annual rent, both within a fraction of their historic highs," Mr Davies said..

.. Using ABS data on total Australian household liabilities and incomes, including small business debts that are excluded from similar RBA metrics, Barclays found that the ratio of household debt to disposable incomes has hit a record of 177 per cent.

"This is up from a recent low of 173 per cent and exceeds the previous high of 175 per cent reached in 2010," Mr Davies noted.

In striking contrast to consumers in the US and UK, Australian families have boosted debt relative to incomes since the 2008 crisis..

Read the complete article here;

http://www.smh.com.au/business/the-economy/australias-house-prices-flashing-red-debt-to-income-ratio-at-record-levels-20140404-362bz.html


So even after the warning of the worst global debt crisis in a generation, Australians have just taken on the most debt in history!

Those who fail to learn from history are doomed to repeat it.