Crockpot: Australia's banking system at risk from property

Tim Farrelly | farrelly's | 30 March 2011

This one has been around for a while now. We have seen how the sub-prime lending crisis brought the US and European banking systems to their knees. The story goes that the Australian banking system is also a time bomb waiting to happen – our residential property prices are higher than were US prices at their peak, the amount of household debt is higher than was the case in the US and, the Aussie banks’ foreign lenders will not roll over the debt in a crisis. In other words, a disaster just wait...