Well, it had to come to an end at some stage. Clearly it was not sustainable.
The Sydney Morning Herald writes :
Reserve Bank governor Glenn Stevens says there is a good chance the massive run-up of household debt of recent years could be coming to an end, perhaps to be replaced by an expansion of government borrowing.
Bloomberg says :
Sept. 17 (Bloomberg) — Australian households, which have more than tripled their debt-to-income levels since the early 1990s, are set to become “more conservative” about borrowing and will boost savings, said central bank Governor Glenn Stevens.
“It is possible that we are witnessing the early part of a new phase where the household spending and borrowing dynamic is different from the past decade and a half,” Stevens said in a speech to business leaders in Sydney today.
» Household debt boom may be over: RBA – The Sydney Morning Herald, 17th September 2008.
» RBA’s Stevens Says Australians Set to Cut Borrowing – Bloomberg, 17th September 2008.