More Household debt has Australians living in house of cards

Abstract

When it comes to household debt, Australians are world record holders.

“We’ve got household debt to income on just a touch under 200 per cent, and that in my view is a massive macro risk,” Gerard Minack, economist and principal at Minack Associates, told 7.30.

“Why are Australians so in debt? Because we went out and bought houses.

“Not built houses, went out and bought them and pushed the prices up to among the most expensive in the world.

“It is literally a house of cards.”

He has his fingers crossed that we do not head into recession in the next 10 years.