The Wire

The Bank of International Settlements has warned Australia that might we might be leaving ourselves at risk in the event of another Global Financial Crisis because of high household debt. Our debt is at the same level as before the crisis – one-hundred-and-fifty percent of disposable income. They are saying we all need to stop spending so much borrowed money. Our home loans are too big, and when interests rates rise, we could suffer alongside the rest of the world. So how concerned should we be? And what should be done about it?