Friday, August 04, 2006

Howard's debt bomb

Australian household debt grew by more than $100 billion in the past year, despite a softer housing market and rising interest rates. Which means it has almost doubled since 2001.

"People borrow more when they feel safe and secure, and that is the reason why many people have gone heavily into debt", says the Prime Minister, although he also adds that "I would take the opportunity of counselling people not to go too heavily into debt." But just as the PM has sought to play down his influence over petrol prices and interest rates, he's seeking to distance himself from this debt bomb.

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