... in dangerous debt".
Australian home borrowers are so in debt they will be forced to sell their properties for a loss next year in a plummeting housing market, an American banking giant fears.
With Sydney and Melbourne house prices already in a downward spiral, Morgan Stanley predicted Australians would collectively lose $700billion if they were forced to offload their real estate.
It described Australia as the world's most 'exposed' nation to a deleveraging disaster, where borrowers with little to no savings have to sell for a big loss to pay off their mortgages.
Ominously, Morgan Stanley predicted there was an 'imminent risk' this would happen in 2019 as house prices fell and credit growth slowed.
Morgan Stanley predicted Australian house prices would plunge by 15 per cent, from their peak, which would spell the worst real estate plunge since the early 1980s.
It's all a bit exaggerated, but this sort of thing is just part and parcel of Home-Owner-Ism. This is what people want. No point wailing about it now.
Debate Magazine
