Excessive debt is danger says academic

Sim · 05-08-2008, 05:34 PM

AM - Excessive debt is danger says academic

Quote:

While the Reserve Bank is unlikely to cut interest rates today, some economists say it's now too late to avoid a recession. Associate Professor, Steve Keen, from the University of Western Sydney has been a long time critic of the Reserve Bank.

He publishes a regular Debtwatch newsletter, and believes it's only a matter of time before Australia is engulfed in a prolonged economic downturn driven by excessive debt.

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Insight · 11-08-2008, 02:06 AM

Excessive analysis is dangerous says wealth creator.

It's only ever been a matter of time before we have been involved in a serious downturn. How do we profit from this prof?

BV · 13-08-2008, 08:43 PM

Quote:

Originally Posted by Insight

Excessive analysis is dangerous says wealth creator.

True, but there is already evidence of reduced retail spending.

I know that the RBA wanted to slow down the economy and to make us stop borrowing but I think they've pulled the strings too much.

Will this increase unemployment?
It will but I am not holding my breath to see it in the statistics
Retail sector employees will simply get fewer shifts and they won't be 100% unemployed so they won't be eligible to register as unemployed.

The banking and construction sectors could also suffer a bit

IMHO