/biz/ - Business & Finance

>>50546275
wrong

>>50544514
You may have heard it said before but we're a first world nation with a 3rd world economy.
We dig rock out of the ground, we don't process it or manufacture anything with it. We mine and ship it.
We farm beef and grain and ship it.
Housing, housing related finance and development all together makes up something like 30% of our total economy.
As a result Australia is the single most indebted country per capita for just about any developed nation. We have the highest debt-to-gdp ratio of any country. Highest debt-to-income ratio and highest debt-to-asset ratio. If we're not first in these categories we're always second.

In order to keep that housing ponzi scheme going with such a massively indebted populous we import more and more migrants who act as empty debt vessels. Our immigration policy has nothing to do with filling jobs or suppressing wages, it's about filling home loans. Newly imported 3rd world goys who came from over-populated shitholes and think living in these new sardine can developments is a dream and gladly take on massively loans for poorly built, off-the-plan cookie cutter homes.

Banks also do shit here like count "unrealised capital gains" towards borrowing power. So if the bank thinks the property you want to buy will increase 10% over the next year or two, they count that equity you already have to use towards a new loan. Thats how you get stories like
>"how 28 year old train driver became multi-millionaire property investor"
Yeah, cause the portfolio is a massive house of cards assuming infinite growth with now slowdown.