Australian Politics Forum - Economic Collapse ~ 200% Debt to Dollar Earned

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Economic Collapse ~ 200% Debt to Dollar Earned
Aug 21^st, 2017 at 6:13am

Mortgages and debt: How lending culture is leaving Australians vulnerable

A decade of housing price rises, low interest rates and relatively easy credit has left Australians carrying the second highest level of household debt in the world.

And despite efforts to tighten lending and to address problems in the lending culture, the ABC's Four Corners program has learnt bank staff and mortgage brokers are still required to meet tough lending targets and some staff are threatened with dismissal if they do not meet the banks' requirement to sign up more mortgages.

The problems in the lending culture were acknowledged by the banks themselves earlier this year in a review conducted by the former public service chief, Stephen Sedgwick.

Incentive payments and lending targets are still a primary motivator for bank staff.

Internal performance expectations for Westpac bank lenders, obtained by Four Corners, include targets of six-to-nine home-finance requests a week and between two and three home-loan drawdowns a week.

All the big banks have performance targets.

more :

http://www.abc.net.au/news/2017-08-21/how-lending-culture-is-leaving-australians...

A 'perfect storm' of issues

Australian banks now hold at least 60 per cent of their loan assets directly to housing.

Concern is growing among some economists and former bankers about the impact of any housing downturn on the banks and on the wider Australian economy.

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red baron

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Re: Economic Collapse ~ 200% Debt to Dollar Earned
Reply #1 - Aug 21^st, 2017 at 9:02am

No one, certainly not the Government Federal and State will acknowledge that the Chinese are directly responsible for the incredible surge in house prices in this Country

The new rich in China are coming here like locusts with money to burn and gobbling up our real estate Country wide

The average Australian worker has barely had enough rises in pay to keep up with inflation, they are no match for the Chinese when it comes to property acquisition

I am stating what is there in plain sight

Until we put heavy measures on the ownership of foreigners of property here nothing will change

The Chinese will own Australia by stealth

We will be like the native Fijiians and unless a leader emerges strong enough to nationalise ownership of Australian property for Australians we will continue into the abyss

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Gordon Gold Member Offline Australian Politics Posts: 20228 Gordon Gender:	Re: Economic Collapse ~ 200% Debt to Dollar Earned Reply #2 - Aug 21^st, 2017 at 9:04am Just vote for the PFP to ensure it
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thecuriousmail

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Re: Economic Collapse ~ 200% Debt to Dollar Earned
Reply #3 - Aug 21^st, 2017 at 6:31pm

red baron wrote on Aug 21^st, 2017 at 9:02am:

No one, certainly not the Government Federal and State will acknowledge that the Chinese are directly responsible for the incredible surge in house prices in this Country

The new rich in China are coming here like locusts with money to burn and gobbling up our real estate Country wide

The average Australian worker has barely had enough rises in pay to keep up with inflation, they are no match for the Chinese when it comes to property acquisition

I am stating what is there in plain sight

Until we put heavy measures on the ownership of foreigners of property here nothing will change

The Chinese will own Australia by stealth

We will be like the native Fijiians and unless a leader emerges strong enough to nationalise ownership of Australian property for Australians we will continue into the abyss

One in four new homes in NSW, and 16 per cent in Melbourne, are being bought by non-residents. Of these, 80 per cent are from China, said a report by Credit Suisse last month.

4/4/17, The sydney morning herald, "Beijing slaps real estate ownership restrictions on residents."

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"We cannot solve our problems with the same thinking we used when we created them." Albert Einstein

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freediver Gold Member Offline www.ozpolitic.com Posts: 47369 At my desk.	Re: Economic Collapse ~ 200% Debt to Dollar Earned Reply #4 - Aug 21^st, 2017 at 7:36pm Would you like to guess why they cut the graph off at just before 1990?
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Bobby. Gold Member Online Australian Politics Posts: 95297 Melbourne Gender:	Re: Economic Collapse ~ 200% Debt to Dollar Earned Reply #5 - Aug 21^st, 2017 at 8:19pm For every dollar of income earned Australians have nearly $2 of debt. What does that mean? Does it mean that the average Australian owes 2 years of wages on their mortgage? That sounds good - it's not much.
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Neferti

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Re: Economic Collapse ~ 200% Debt to Dollar Earned
Reply #6 - Aug 21^st, 2017 at 8:26pm

Bobby. wrote on Aug 21^st, 2017 at 8:19pm:

For every dollar of income earned Australians have nearly $2 of debt.

What does that mean?

Does it mean that the average Australian owes 2 years of wages on their mortgage?
That sounds good - it's not much.

It means that everybody thinks that they are MIDDLE CLASS because they can use the Credit Card to buy stuff that they normally would not "afford".

These people living on CREDIT will eventually come unstuck ....

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Bobby.

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Re: Economic Collapse ~ 200% Debt to Dollar Earned
Reply #7 - Aug 21^st, 2017 at 8:28pm

Neferti wrote on Aug 21^st, 2017 at 8:26pm:

Bobby. wrote on Aug 21^st, 2017 at 8:19pm:

For every dollar of income earned Australians have nearly $2 of debt.

What does that mean?

Does it mean that the average Australian owes 2 years of wages on their mortgage?
That sounds good - it's not much.

It means that everybody thinks that they are MIDDLE CLASS because they can use the Credit Card to buy stuff that they normally would not "afford".

These people living on CREDIT will eventually come unstuck ....

I was hoping the OP - Tony_Abbott could explain it.

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