60 Minutes. What a crock. Do people still watch this infotainment?
They had some dude on predicting an Australian house price crash of 30 to 50%.
They didn't add that morons have been making similar predictions, wrongly, for the past 200-odd years. So I better, I suppose.
AMP Capital chief economist Shane Oliver is much more sensible:
- "Unless we have a very severe recession or interest rates go sky high causing people to default, it's not going to happen
- "They often make the claim that [Australia has] the highest household debt to income ratio, but if the figure is adjusted for the amount kept in offset accounts and for businesses ... it's at the same level as it was in 2007/2008
- "As we can see at the moment, the banks are telling us households aren't having problems servicing their debt
- "If we had unemployment at much higher levels than 6 per cent, if we had mortgage rates at more than 10 per cent I would be much more worried
- "But I've seen all these claims before ..."
The best the doomers can say in response is usually Oliver "would say that, wouldn't he?" Ad hominem in the place of anything substantive will have to do for them. Still, if you really want to base your outlook on schlock from 60 Minutes, by all means be my guest. Trade some FX while you're at it. Donations are always welcome.
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ps. I posted this a few weeks ago:
- 78% of home loan customers are ahead in repayments
- By 29 months on average (includes offset facilities)
Yeah ... really stressed. LOL.
