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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (30270)	4/28/2005 6:46:02 AM
From: Robohogs	Read Replies (2) \| Respond to of 306849

I have some friends in Australia and for various reasons they seem to pig out on margin debt given its deductibility vs. various things. Isn't this in combination with Aussie tax rates an issue? Thanks. Note: this is also driven by the nice strong move in Aussie stocks over last few years - probably almost best in class. Jon

To: Elroy Jetson who wrote (30270)	4/28/2005 10:53:38 AM
From: GraceZ	Read Replies (1) \| Respond to of 306849

Well after looking at the data from the Reserve Bank of Australia I can understand why they want to reel in borrowing considering that the growth of personal debt and home mortgage debt growth dwarfs that of the US. In the last 28 years (their data series starts in 1976) the amount of consumer credit has grown 2491% and home mortgage debt has grown 5,908%. This contrasts with the US, where consumer debt has grown 940% and residential mortgage debt has grown 1574%, over the same time period. It's amazing the difference a "responsible" Fed can make.