“At the height of the Global Financial Crisis, the American banking system was too big to fail. Today, the Australian banking system is too big to save.”
Sydney, Australia / ACCESSWIRE / April 10, 2014 / GreenRigCo co-founder Lindsay David has launched his scathing book that challenges the apparent strong fundamentals of the Australian economy. The former strategy consultant believes the Australian economy is “swimming in an ocean of toxic debt” with its banking system “doomed to fail just like the northern hemisphere banks that were bailed out or collapsed during the Global Financial Crisis.”
The Book titled “Australia: Boom to Bust” brings to fact the harsh realities. Lindsay’s research suggests that the “Three Pillars” of the Australian economy (Banking, Mining and Real Estate industries) will soon tumble into unchartered territory because they have bet the bank on China consuming more and more of Australia’s natural resources over the long-term.
“The pro-Australian real estate and banking pundits tell us that Australia is simply different. They tell us our banks are safe and current property valuations are justified because demand exceeds supply. But what they don’t tell us is that in Australia, real estate prices do not depend on supply and demand; they depend on the banks willingness to lend toxic sums of debt to new homebuyers. This is clearly reflected in the balance sheets of the major Australian banks. Australia has the most overpriced and overleveraged real estate markets in the Western world. Major Australian cities share no common characteristics to the small handful of foreign property markets that are famous for being expensive. But they do share incredibly similar characteristics to a large sum of property markets from the past that have overleveraged and collapsed.”
Based on in-depth macroeconomic research and forecasting, Lindsay believes that within the next 3 years, a powerful economic domino effect which originates in China’s 3rd to 6th tier cities will strike Australia and knock out the Three Pillars. The domino effect is caused by China simply building too many residential dwellings and apartment complexes that will never be utilized.
“China is the bubble to end all bubbles. At the current forecasted rate; even if China demolished all the existing residential dwellings built before 2013, it will build enough housing stock to house all its population in just 4.3 years. Even if the newly built dwellings double in average size, it will take just 7.2 years. How can that make any sense? Is this what the Australian economy has bet the bank on?” Lindsay believes the RBA, the mining and banking giants have not done the proper math to calculate how much iron ore China will require over the next 3 years. “The reality is that China has already built more than enough residential housing to accommodate its entire population and more. When reality finally kicks in it will lead to an apocalyptic drop in demand for Australian iron ore sending the spot price per metric tonne back to levels not seen since 2001.”
Lindsay David is a co-founder of Houston-based clean technology company GreenRigCo. As an Australian, Lindsay was motivated to write this book after conducting years of macroeconomic research and recently returning to his native Australia permanently after living 10 years abroad. The former strategy and business development consultant holds an MBA from IMD Business School.
Australia: Boom to Bust will be officially available for purchase April 18. Advanced copies are now available on Amazon kindle or visit http://www.australiaboomtobust.com or email [email protected].
About The Book "Australia: Boom to Bust - The Great Australian Credit:
The Book "Australia: Boom to Bust - The Great Australian Credit was written by Lindsay David. Lindsay is a co-founder of clean technology company GreenRigCo and a former strategy & business development consultant. Lindsay holds an MBA from IMD Business School.