The FT have a piece up on, well the headline says it all. While this is certainly not new news I'm noting it 'cause its in the FT
- the worst housing downturn in Australia for 35 years
Morgan Stanley …
- "We think the steep downturn in house prices exposes Australia to the risk of recession, particularly in the context of an exogenous shock such as slowdown in Chinese growth"
- "Our models show that Australian households are most exposed of any G10 country to a housing slump and face a period of deleveraging, leaving growth heavily reliant on public spending on health, education and infrastructure."
MS have been saying similar for a long, long time. Their timing has sucked for years. Getting the stopped clock benefit now though. Just goes to show.
Link above, FT is gated.