Overnight press in Australia, quoting a study from PIMCO
"Households are exhibiting irrational exuberance because they are placing little weight on broader fundamentals like unemployment that may be more representative of future incomes or asset price returns, increasing the likelihood of asset price bubbles"
PIMCO's study compared Australian borrowers to those in other countries
- They found Australians' decision to borrow is driven by falling interest rates and rising house prices - not economic fundamentals that reflect the health of the economy like employment
