Australia Big Trouble
When demographia came out with their 4th annual affordability study I couldn't help but notice Australia. I am highly of the opinion that the US is in big trouble because the average affordability index for the country got up to 3.9 in 2005, and it is currently at 3.6.
Well, as big trouble as that is, it is nothing compared to Australia's affordablilty index, a whopping 6.3. Add to that the super easy lending standards, which make the US look absolutely draconian, I jest a little here. A quick search of Australia brought up mortgage web sites offering to finance as much as 106%.
Yesterday Mish had a post that listed credit news from around the world, and one was about Australia. Today there is another story about Australia. They are having a financial crisis.
It says something about banks hoarding cash.
They are handling things differently in that their bank rate is at a 12 year high to control inflation.