Last night’s Four Corners, titled ‘Betting on the House‘, focused on debt and its likely impact on home prices in Australia.
Quite simply, at an individual level, debt is like a mouse wheel: it keeps going round and round, so long as the mouse is able to keep running. As it spins faster, it helps make the economy grow. When it spins slower, economic growth falls as the debt needs to be repaid. And when the mouse can’t run anymore, it’s a risk to the lender it borrowed money from, the shareholders of that lender (including superfunds), and of course a risk…
Read the full article at: http://www.huffingtonpost.com.au/robert-snell/theres-a-simple-fix-to-housing-affordability-but-the-government-isnt-interested_a_23156537/