Sobering facts
On the surface it appears that our economy has never been this good ...
- Lowest unemployment rates
- Lowest Interest rates
- Best Business confidence
- Growth in property and shares simultaneously
- Wage increases outstripped CPI increases by 20% over the last ten years ...
However... Australia's Looming Credit Hangover
THE SOBERING FACTS ...
The Australian economy has been fueled by a frenzy of excessive consumerism and we have borrowed the money to do it!
It has been made possible by seducing consumers with easy credit.
This has created a massive consumer credit bubble the likes of which has never been seen before in Australia. (Did you know…A similar credit bubble destroyed the Japanese economy in 1990)
This now so critical that;
If the credit bubble is not reduced in a controlled manner… the Australian economy will experience a severe recession
Did you know ...
- Despite wage increases the average Australian continues to spend 109 – 114 % of their annual income! (Reserve Bank Australia 2004)
- Home loans are refinanced every 2 years and 9 months primarily to consolidate consumer debt! (Australian Finance Group Nov 2006)
- Despite the record run of low interest rates, more weekly disposable income is being used to meet interest payments now, than when we had 17% interest rates in the early 1990’s! (Australian Financial Review Aug 2006)
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