http://www.crikey.com.au/2009/07/17/park-the-debt-truck-household-debt-reaches-100-of-gdp/ now with extra source Sun, 12 Feb 2012 07:37:47 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.crikey.com.au/2009/07/17/park-the-debt-truck-household-debt-reaches-100-of-gdp/#comment-32307 Sean Carmody Sat, 25 Jul 2009 05:05:21 +0000 http://www.crikey.com.au/2009/07/17/park-the-debt-truck-household-debt-reaches-100-of-gdp/#comment-32307 That post on property I promised is <a href="http://www.stubbornmule.net/2009/07/deleveraging-and-property/" rel="nofollow">now online</a>. That post on property I promised is now online.

]]> http://www.crikey.com.au/2009/07/17/park-the-debt-truck-household-debt-reaches-100-of-gdp/#comment-31557 Sean Carmody Fri, 17 Jul 2009 05:26:50 +0000 http://www.crikey.com.au/2009/07/17/park-the-debt-truck-household-debt-reaches-100-of-gdp/#comment-31557 Thanks Euan! We can take some small comfort we can take in the fact that most of the household debt is in mortgages is that it is long-dated, interest rates are low and the banks cannot make margin calls if property prices fall. The experiences of people buying shares on margin or companies relying heavily on short-dated debt (including RAMS and Centro) or debt with covenants linked to their equity prices (such as ABC Learning or Babcock and Brown) show how important the structure of debt can be. Home owners with steady incomes should be able to struggle along. Of course, if unemployment rises too far, then it's a different story! Thanks Euan! We can take some small comfort we can take in the fact that most of the household debt is in mortgages is that it is long-dated, interest rates are low and the banks cannot make margin calls if property prices fall. The experiences of people buying shares on margin or companies relying heavily on short-dated debt (including RAMS and Centro) or debt with covenants linked to their equity prices (such as ABC Learning or Babcock and Brown) show how important the structure of debt can be. Home owners with steady incomes should be able to struggle along. Of course, if unemployment rises too far, then it’s a different story!

]]> http://www.crikey.com.au/2009/07/17/park-the-debt-truck-household-debt-reaches-100-of-gdp/#comment-31548 Euan J Thomas Fri, 17 Jul 2009 04:50:20 +0000 http://www.crikey.com.au/2009/07/17/park-the-debt-truck-household-debt-reaches-100-of-gdp/#comment-31548 Dear Stubborn Mule What an excellent piece of writing and research you have managed to put together. Lets hope the Liberal and of course the ALP read this article as it is terrifying that Australian households have managed to get themselves into so much debt. Good help this country if the creditors decide its time to call in the loans. Dear Stubborn Mule
What an excellent piece of writing and research you have managed to put together. Lets hope the Liberal and of course the ALP read this article as it is terrifying that Australian households have managed to get themselves into so much debt. Good help this country if the creditors decide its time to call in the loans.

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