Interesting reading from Bernard Hickey in The Herald on Sunday:
Bernard Hickey: Shopping our way into debt
…Treasury published a paper on the rise in New Zealand’s household debt to record high levels relative to income. …
It showed household debt fell relative to incomes for a couple of years after the Global Financial Crisis of 2008 as we pulled our heads in and saved after a shock – but we got back on the spending horse in earnest from 2014 onwards.
Our household debt to income ratio of 165 per cent is now about 5 per cent above those previous highs of 2008 and rising quickly as debt rises around twice as fast as incomes.
That speed of growing indebtedness is not much worse than the bad old days of 2002-07 when New Zealand went on its biggest ever debt-funded spending spree. …
Another crash is coming.