John Adams (from Adams Economics), Martin North and Irish Financial Advisor Eddie Hobbs (who predicted the 2007-08 Irish Housing Crisis) have put forward a radical thesis that Australia may be the first country to suffer an economic crisis which may disrupt the global financial system potentially causing a global financial crisis.
This is radical because in over 200 years of economic history, every economic crisis which has inflicted Australia, the origins of the crisis always started internationally and impacted Australia through second and third round effects.
The indebtedness of Australian households in 2019 are very similar to the state of Irish households in 2006-07 just before the Irish property market and associated debt bubble imploded. With credit growth to housing in freefall and property values continuing to fall sharply, the risk of an Australian housing market crash independent of a global shock has increased drastically.
The Adams, North and Hobbs thesis even penetrated the mainstream media and as it was reported by Australia’s number 1 digital news service – news.com.au