That's exactly what the US Fed claimed in 2005. "There's No Housing Bubble to Go Bust". How'd that turn out??http://www.washingtonpost.com/wp-dyn/content/article/2005/10/26/AR2005102602255.html …
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There could be trouble but many of the underlying factors are quite different to the US and/or Ireland pre-GFC.
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Please elaborate.
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The underlying factors: house prices, household debt to GDP & household debt per person are ALL HIGHER than US, Ireland & Spain pre-crash.
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Quite different = worse. A matter of scale NOT nature. We never learn re credit fuelled bubbles. Aus has highest HH debt of any CAD nation.
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The underlying factor that the US and Irish bubble was caused by demand for CDOs. We still have CDOs but they're not flavour of the month.
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The big concern would be if there's an economic shock that causes mass unemployment or causes the Reserve Bank to put up interest rates.
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There'd be big trouble if we had an economic shock of kind that would cause increased unemployment, for sure.http://www.abc.net.au/news/2017-06-26/australia-at-risk-of-high-household-debt-bis/8651044 …
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The "we'll all be rooned property bubble story is a media cliche" story is a media cliche. Where's your counterfactual on terminal risks?
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Are people believing the MSM still ...?
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