household debt

Expect Things to Change

You would be surprised how many people invest based on recent past performance, projecting the present into the future. Economists even have a name for it: extrapolation bias.

Move in Now, Pay Later

This ‘Afterpay for real estate’ scheme is the latest initiative from sellers to try and breathe life into a deflating property market. Lenders and developers are getting creative with incentives as the property market slows…

Overheard in a Wall Street Bar…

Households are borrowing 90 cents for every incremental dollar they spend, up from 40 cents four years ago. Household debt service costs are expected to increase by $75 billion this year — almost completely offsetting…

No Taming the Debt Beast

Wages not growing and property prices at record highs mean that household debt is reaching record highs. And household debt is already becoming a burden that could restrict growth. Australian household debt is at one…

Blaming Everything but the Household Debt

Have you read any mainstream commentary identifying our world record household debt as the root cause of our economic miracle? I haven’t. Instead we’re dazzled with the brilliance of ‘adept management’ and ‘flexible inflation targets’.

Markets & Money