From the AFR:
OECD deputy director Adrian Blundell-Wignall has warned that Australia is vulnerable to a rise in unemployment and further fall in house prices, if Europe doesn’t fix its banks and China maintains an artificially low currency.
…“The world is so globalised and interconnected that if it goes down, things will get much worse for Australia,” Dr Blundell-Wignall said on the sidelines of The Economist magazine’s The Bellwether Series conference in Sydney.
“The biggest problem for Australia that worries me personally is house prices.
“The first time unemployment starts to rise, house prices are going to be falling.”
There is also a brilliant video of Blundell-Wignall, who is pretty much the smartest guy in the room, discussing what is wrong in Europe. I thoroughly recommend a trip over to view it.
Twitter: David Llewellyn-Smith. He is the Editor of Macro Investor, Australia’s independent investment newsletter covering trades, stocks, property and yield. Click for a free 21 day trial.
