Mad prices, risky loans

Auckland City Harbour News - - YOUR PAPER, YOUR PLACE - ROB STOCK

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

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