gold_medal wrote on Jan 3^rd, 2013 at 7:00pm:



Longweekend is right.

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Sure Bobby. If you don't know whether the mortgage is $10k and they are borrowing another $10k against the house to invest, or if it is $300k and steadily rising, or whether they are on $40k or $200k a year, then you know absolutely nothing at all about their situation, despite knowing that the mortgage is going up. I am not sure how many different ways I can say this. Likewise, you know absolutely nothing about Australia's debt situation if you cannot put the numbers in perspective. Merely pointing out that it is going up says nothing at all.

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Sure, dryness is always relative.

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Not all individuals. Very few in fact. Cutting costs is not going to get you enough to buy a house, or even a car.

Bobby. wrote on Jan 3^rd, 2013 at 7:28pm:


and yet I would bet that were you at said party you would have no problem partaking of any beer.

freediver wrote on Jan 3^rd, 2013 at 5:00pm:



FD,
I agree!

Debt is part of the Economic cycle and has been for quite some time, although it has seen some very substantial increases, particularly in some countries and particularly after the early 1980's, when the Baby Boomer Economic Boom really got under way. 

Providing it (Debt) is kept controlled & doesn't wind up with a "tail wagging the dog situation", THEN IT IS NOT A PROBLEM & most Economists will also agree on that! 

Bobby,
It seems you are clearly concerned, perhaps due to the Global situation AND correctly so, BUT providing OZ keeps Debt under the 35% or so, I would suggest we will still be better placed than a lot of other countries, although we will still take a hammering, over the period ahead.

gold_medal wrote on Jan 3^rd, 2013 at 7:02pm:


As I said, clearly you have no idea!

Debt is part of the Economic cycle and has been for quite some time!

Providing OZ keeps Debt to GDP ratio under the 35% or so, THEN we will still be better placed than a lot of other countries & most Economists will agree on that.

Providing it (Debt) is kept controlled, THEN IT IS NOT A PROBLEM & most Economists will also agree on that.

Bobby. wrote on Jan 3^rd, 2013 at 8:26pm:


I agree!

AND, I have made that point many times, including in posts on this thread -
http://www.ozpolitic.com/forum/YaBB.pl?num=1357043638/all

However, at this point we do not have anything like a runaway train, in OZ.

That said, WE will need to be very careful with what we do, particularly over the next few years, although that does not mean, we should simply make cuts across the board!

gold_medal wrote on Jan 3^rd, 2013 at 6:56pm:


give it time arsehole. You said they would only go up but it turns out they have gone down so you were wrong of course. And everyone except you knows that Keens predictions didn't factor in labors first vendors boost which just bought more time for the housing bubble to suck people into debt they can't possibly service !!

if you watch the video Keen predicts a slump in retail spending as a consequence of the debt fueled housing bubble You never predicted that did you ?

keen was right on the money in 2008

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gold_medal wrote on Jan 3^rd, 2013 at 6:52pm:


it's funny how you don't think the same about the average mortgage holder that has paid to much for junk property and racked up 1.3 trillion in housing debt for something that creates nothing but debt !!