Australia has long been considered to be ‘the lucky country’.
For a very long time, Australia has enjoyed the seemingly endless urban-land property boom and we’ve gone for more than 25 years now without a recession.
However a new book warns that our luck may about to run out. Australia’s increasing levels of household debt, foreign debt and low foreign-exchange reserves, mean we may be heading towards what is called a ‘Code Red’ zone.
This could mean a severe or prolonged recession or at worst an economic catastrophe.
Peter Brain is the Former Head of The Econometric Forecasting Project at Melbourne University the author of ‘Credit Code Red’. Hear his thoughts in the podcast.