Mad prices, risky loans
Naughty, naughty, New Zealand households, you have borrowed far, far too much money.
The International Monetary Fund thinks households here should be worried by how big their debts are.
New Zealanders were late arrivers at the global debt party, but we made up for lost time when we got there.
Back in the 1980s, banks the world over waved their magic money wands, and household debt as a proportion of GDP rose globally from 70 per cent (1980) to 128 per cent (2015).
New Zealand is on course to reach an Ireland-like 168 per cent by 2022.
Big debts = heightened chance of financial crisis, spiking unemployment, and mortgagee sales in the IMF’s books.
Of course telling households off is pointless.
Apart from having done a poor job of electing councillors and MPs who gave a fig about rising house prices, none of this is really