I agree with everything Janet said about the US mortgage situation. But I have to poke back at her gloating about how much better things are in Australia.
Before drawing any conclusions about the wonderful Aussie mortgage / home business, I’d like to see Aussie statistics comparable to the Case-Shiller indexes, showing historical home prices over the last 20-25 years, versus income. And then I’d like to see the proportion of homes in Australia purchased mostly with other people’s money.
My guess is that Australia is also in a bubble, but one that has a different popping time.
