Should we be more worried about the sharemarket, or housing?

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Is the housing sector so pumped full of credit it is about to explode? Or is the business sector so credit starved it is about to die?

Data sourced from today’s RBA financial aggregates.

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Thomas the Think Engine is the blog of a trained economist. It comes to you from Melbourne Australia.

3 thoughts on “Should we be more worried about the sharemarket, or housing?”

  1. Of course it’s a combination of both, but if I had to pick a score I’d say, 60:40 businesses are starved more than the housing sector is inflated. Housing in mining regions seems to be immune to all of the help builders are getting. It’s not a good time to sell in Central and North Queensland. I imagine a market correction showing the bubble bursting in urban metropolitan cities, but this being somewhat smoothed out by gains in regional housing as service sectors increase.

    Meanwhile, as the dollar continues to drop coupled with declines in commodity prices and the like, businesses will continue to tightrope walk over leveraged lines to compete.

    Liked by 1 person

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