SYDNEY, AUSTRALIA / ACCESSWIRE / April 14th, 2014 / In his book "Australia: Boom to Bust," Lindsay David lays his argument that the Australian banking system may not be as healthy as Australian society believes it to be.
Backed by compelling research, Mr David claims that the largest financial institutions in Australia have bet the bank on a real estate market that has formed a very well-defined bubble. "If our banking system is a safe as we are told; then why are there major banks in Australia with balance sheets near identical to Lehman Brothers balance sheet fifteen months before it went bust? And why is the average new home loan in New South Wales ($507,000) exceeding seven times the median household income? This has the word bubble written all over it."
On the back of a mining boom, Mr David believes the Reserve Bank of Australia and politicians have been “asleep at the wheel for quite some time. This has allowed the banking system to lend at a toxic rate to new property purchasers fuelling a bubble market. This will come back to haunt Australia in the very near future. Australians assume that the Chinese economy will continue to expand for years to come. Unless China is 100% committed to building a new residential apartment for every man, woman and child in China by 2021, it is mathematically impossible for the Chinese economy to maintain its current growth trend over the next 36 months.”
Advanced copies of Australia: Boom to Bust are now available in e-book format on Amazon. Paperback version will be available from April 23.
About Australia: Boom to Bust.
After almost 10 years living abroad, former strategy consultant and GreenRigCo co-founder Lindsay David returns to his native Australia. His years of macroeconomic research suggests that Australia is in the midst of one of the biggest credit and property bubbles in modern Western history—bubbles that are supported by the largest credit bubble in human history, the one that has been brewing in China. Mr David holds an MBA from IMD Business School.
For more information please visit http://www.australiaboomtobust.com/.
SOURCE: Australia: Boom to Bust