Why do world traders believe that Australian banks are headed for a calamity?
Australian house price-to-income ratio is still at its highest level in history and has surged over the past two years on the back of low interest rates. This, of course, caused Sydney and Melbourne house prices to boom to levels that make our dwellings among the most expensive in the world. The traders believe that the fall in commodities will extend the current Australian income recession and, even though interest rates may fall further, we have an unsustainable housing bubble and that because the bank balance sheets are over leveraged to housing, bad debts are set to rise.
Link: Originally reported by the Business Spectator
Date: March 24 at 9:58 AM
Reporter: Robert Gottliebsen
Published by: Business Spectator
Category: Australia Real Estate