{"id":28454,"date":"2017-12-01T06:44:10","date_gmt":"2017-12-01T11:44:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=28454"},"modified":"2017-12-01T06:44:10","modified_gmt":"2017-12-01T11:44:10","slug":"australian-banks-first-the-housing-bubble-bursts-now-a-public-inquiry","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=28454","title":{"rendered":"Australian Banks – First The Housing Bubble Bursts, Now A Public Inquiry"},"content":{"rendered":"

Australian Banks – First The Housing Bubble Bursts, Now A Public Inquiry<\/a><\/h3>\n
<\/section>\n
\n
\n
\n
<\/div>\n<\/div>\n<\/div>\n
\n

We keep returning to the subject of Australia and the growing signs that its bubble economy is bursting. Earlier this month, we discussed<\/a>how the world\u2019s longest-running bull market \u2013 55 years \u2013 in Australian house prices appears to have come to an end. We followed this up with \u201cWhy Australia\u2019s Economy Is A House Of Cards\u201d<\/a> in which Matt Barrie and Craig Tindale described how Australia\u2019s three decades long economic expansion had mostly been the result of \u201cdumb luck\u201d.<\/p>\n

As a whole, the Australian economy has grown through a property bubble inflating on top of a mining bubble, built on top of a commodities bubble, driven by a China bubble.<\/strong><\/p><\/blockquote>\n

Last week, in “The Party’s Over For Australia’s $5.6 Trillion Housing Market Frenzy”<\/a>, we highlighted some scary metrics for Australia\u2019s housing bubble – notably how the value of Australian housing is more than four times gross domestic product \u2013 higher than other nations with housing bubbles, e.g. New Zealand, the UK and Canada. Two days ago, we noted<\/a> the number of Australians optimistic about the year ahead had plunged to a record low.<\/p>\n

Moving on to the nation\u2019s banks, while Australian households are the second most indebted in the world, its banks are the most exposed to housing debt\u2026<\/p>\n

\"\"<\/a><\/p>\n

\u2026which doesn\u2019t augur well if, as we expect, the housing bubble deflates. We pointed out that an additional risk for Australia\u2019s banking sector, which certainly wouldn\u2019t help the property market either, was the growing demand for a public inquiry. This follows a series of scandals relating to misleading financial advice, attempted rate-rigging, fee gouging and alleged breaches of anti-money laundering laws. According to Australia\u2019s ABC News.<\/a><\/p>\n

\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Australian Banks – First The Housing Bubble Bursts, Now A Public Inquiry We keep returning to the subject of Australia and the growing signs that its bubble economy is bursting. Earlier this month, we discussedhow the world\u2019s longest-running bull market \u2013 55 years \u2013 in Australian house prices appears to have come to an end. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[41,17289,195,406,2340,4318],"class_list":["post-28454","post","type-post","status-publish","format-standard","hentry","category-economics","tag-australia","tag-australian-banks","tag-debt","tag-housing-bubble","tag-housing-market","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28454"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28454\/revisions"}],"predecessor-version":[{"id":28455,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28454\/revisions\/28455"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}