Where is the Aussie bubble tipping point?

Advertisement

Parliament tried to find it yesterday:

Treasury secretary John Fraser declined to indicate what level of household debt would represent a grave threat to the nation’s economy, saying his department’s priority was to monitor the problem.

During more than three hours of Senate estimates testimony Mr Fraser repeatedly warned that the use of debt was “all fine until it ain’t” but refused to clarify what level of borrowing would no longer be consistent with a healthy economy.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.