Browsing the latest charts from the RBA.
Despite record low 10-year bond yields…..
Credit growth is subdued and likely to remain so for some time.
After a massive credit bubble lasting more than a decade.
Households are saving close to 10 percent of Disposable Income in anticipation of a contraction.
While banks are reluctant to lend when their margins are being squeezed.
Borrowing offshore is not an option. That is how we got into such a fix in the first place.
Makes me believe we are unlikely to see another housing boom for some time.
There are two possible outcomes: a soft landing and a hard landing.
It all depends on whether Wayne Swan and the RBA know their jobs.