ABC’s 7:30 did a segment on housing risks, and the implications should the bubble burst. They discussed the risks if interest rates were to rise, against the context of high household debt. SATYAJIT DAS, FINANCIAL ANALYST said “Australians have been playing this Ponzi game of housing where I buy a house and the value goes up and what happens is then I make money by selling it to somebody else and the whole game depends on the buyer always being able to borrow ever larger sums of money and that all depends on incomes and employment, and that side of the economy, the real economy, is looking extremely weak”.
They also flagged the potential for the RBA to cut the cash rate, in response to banks lifting their mortgage rates.
