As much as the finance-housing complex like to keep telling people that there is nothing to fear because disposable income and employment are holding up, that debt albatross is starting to develop a nasty odour.
Even if they are meeting their debt payments people are no longer so sanguine about their debt as a multiple of their income.
It is one thing to say higher debt makes people more sensitive to interest rates movements.
I think it is more accurate to say it just makes them more sensitive generally whether or not interest rates actually move.
All these international gyrations is inducing a lot of twitchy behaviour among the heavily indebted even while they keep their jobs and interest rates remain stable
Yes about as stable as one hand one finger typing!
I should have put inverted comma’s around keep and stable but typing on an ipad on a speeding Parra-City express standing in the vestibule area is a challenge.
I completely agree that going forward international gyrations may be the least of the things producing twitchy behaviour in those carrying debt many multiplies of their disposable income (Note: not the Joye measure).