I promised you that I would update you on Australia in greater detail given my prediction that the Australian housing bubble would pop. Last week we carried two posts on the bubble (see here and here). It is clear that Australia will be caught up in the global growth slowdown and that the collapsed credit growth from the deflating housing bubble in Australia is a harbinger of reduced economic growth. I wrote last:
Question: how long will the government compensate with deficit spending? If Australia turns to austerity, you don’t even need to know your financial sector balances to realise Australia would be a serious risk-off bet. This day is coming soon.
Indeed it is because Australian Prime Minister Julia Gillard clearly doesn't understand any of this. Nor does understand the f...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.