Australia, Canada, Sweden, Norway Most Vulnerable To Financial Meltdown

[Economy 53,090]

https://www.google.ca/amp/s/business.financialpost.com/news/economy/australian-household-debt-flashes-red-in-morgan-stanley-report/amp

 

In a study done by Morgan Stanley, Australia ranked as the Nation at most risk of a downturn from financial deleveraging followed by Canada, Sweden and Norway

 

Other major banks and studies have come up with similar rankings of the 4 Nations suggesting a consensus these 4 Countries are at high risk due to extremely high consumer debt

 

Australia has a faltering housing market with falling prices after years of unsustainable growth and tax changes could make it worse

 

Canada is the only Nation in the developed world (besides the US) with a strong enough economy that the Central Bank has been steadily rising rates with the bank signaling more to come which will test indebted consumers and whether wage hikes are enough to offset higher interest rates

 

Norway and Sweden are not facing an immediate test but nevertheless have very high consumer debt as well

[DiscoHeaven23 35,007]

 

 

I guess Australia is going down under 

[Economy 53,090]

4 minutes ago, DiscoHeaven23 said:

 

 

I guess Australia is going down under 

Well it's at high risk. It doesn't mean a huge downturn is guaranteed to happen... It may or may not

 

They been saying Canada's housing bubble is due to pop for 10 years now and nothing has happened (lately a gradual cooling with rising rates and new stress test rules suggests a soft landing not a crash), and turns out new detailed data shows vacancy rates are very low and there's actually a housing shortage so the high prices weren't just speculation but there's fundamental supply and demand at work as well

 

So now there's less talk about a housing collapse and now the bigger worry is just the high debt consumers have and whether they can tolerate rising rates

 

When economists sound the alarm about dangers sometimes the worst case scenario doesn't end up materializing so we will see

 

Here in Canada the economy hasn't been this strong in 40 years and so rates have to rise to prevent overheating, but the danger is that the debt imbalances could crush on itself with rising rates and the very strength of the economy could trigger it's downfall especially if wage gains don't fully offset higher rate payments

 

We will have to see

 

@Luc Opinions on the economic impact of consumer debt and rising rates

[LG10 14,141]

What number is UK?

[Economy 53,090]

1 hour ago, L A D Y G A G said:

What number is UK?

The article only mentioned these 4 it didn't make a full ranking

 

It just said Australia was the most vulnerable, Canada and Sweden tied at #2 and then Norway at #4