Steve Keen, University of Western Sydney economist (and someone I worked with for a few years back in the day), believes it matters very much according to a paper he released in a media blitz earlier this week
Australians have an unsustainable debt addiction, which will be hard to
kick, and painful to recover from. A new report by CPD fellow Steve Keen
has found that in just 18 months time we may be spending as much of the
national income on interest payments as we were in 1990 - when interest
rates were at 17 per cent.
Australia's level of irresponsible lending isn’t as high as that which
brought on the US subprime crisis, but because our debt to GDP ratio is
growing so much faster the impact of any slowdown will be more severe
here – and the pain will be much more widely spread.
Not sure I share the angst but its a good read.
He also has a blog; Steve Keen’s Oz Debtwatch.
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