The special sauce of the Oz economy: “Household Debt” breaks through to the mainstream.

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First it was Mr Gittin’s noting hints from the RBA that monetary policy may be out of gas, now Mr Kohler, star of Business Spectator and the ABC is giving some attention to the issue of Australia’s amazing mountain of household debt.

While it is great that FINALLY the issue of the explosion in Australian household debt over the last 17 years is getting some coverage by the elder generation, it is not exactly new news.

The Australian economic model since the late 1990s has had two components. Continue reading

RBA cuts in February and everyone is a joker!

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Just imagine the smiles at Coca Cola if Joe Hockey announced that the Dept of Food was going to require all citizens to contribute to a fund that Coca Cola could use to cut the retail price of coke.

That’s why the bank employees are looking jolly.

The RBA have just cut the price of the stuff they sell and they know that helps get punters through the doors.

Subject to the inevitable limits due to the CAD.

Along with


You should take the afternoon off and have nice long nap dreaming about the wealth effect elf and his side kick the confidence fairy dancing through the suburbs turning 50 year old 3 bedders into gold!.

You don’t want to waste these good times!

Along with

“…..Credit growth picked up to moderate rates in 2014, with stronger growth in lending to investors in housing assets. Dwelling prices have continued to rise strongly in Sydney, though trends have been more varied in a number of other cities over recent months… ‘

That is what they call in finance circles ‘The Money Shot’.

Fluffers may return to the tea room.

‘….The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market……”

Some people getting it working a plough….. others from talking about it.

Along with


MP and ZIRP is like swimming at a nude beach in a tissue paper wet suit.

When you dive in your feel dressed for success.

But anyway who really believes that the RBA or APRA are going to try to hose down the one group who actually give a rats bum about a lower interest rate and are likely to give the Debt Machine going.