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Australia: Boom to Bust
"How much longer can the China construction boom last?"
“At the height of the Global Financial Crisis, the American banking system was too big to fail. Today, the Australian banking system is too big to save.” Australia: Boom to Bust dives deeply into the plausible collapse of the “Three Pillars” of the Australian economy: Banks, Natural Resources and Real Estate. Lindsay David provides unique commentary on the true state of the Australian economy and identifies major defects in the structures of the Three Pillars. Toxic levels of private sector debt sponsored by Australia's largest banks has managed to flood already-inflated asset classes of the Pillars on the back of a once-in-a-lifetime construction boom and property bubble in China.
Compelling data and research suggests that the Australian economy has lost touch with reality and has gambled away its banking system to propel the mining and property markets into unchartered waters. Powerful Australian property and banking pundits have successfully led Australians to believe that the unusually high cost of real estate is justified. The pundits tell us that Australia is simply “different.” Pundits love to use the word “boom,” but they rarely use the word “bust.” When a country as a whole and its cities lack density alongside a median house price that is more than six times the median household income, there is only one word that can describe the true state of the Australian property sector—bubble.
The domestic banking sector in Australia learned absolutely nothing from past economic downturns in Japan, America, Spain and Ireland. Unfortunately, it will suffer the same sad fate that its northern-hemisphere peers did, as history has a good track record of repeating itself. The warnings signs of a toxic Australian credit bubble could not be any clearer—they have simply been ignored.
“At the height of the Global Financial Crisis, the American banking system was too big to fail. Today, the Australian banking system is too big to save.” Australia: Boom to Bust dives deeply into the plausible collapse of the “Three Pillars” of the Australian economy: Banks, Natural Resources and Real Estate. Lindsay David provides unique commentary on the true state of the Australian economy and identifies major defects in the structures of the Three Pillars. Toxic levels of private sector debt sponsored by Australia's largest banks has managed to flood already-inflated asset classes of the Pillars on the back of a once-in-a-lifetime construction boom and property bubble in China.
Compelling data and research suggests that the Australian economy has lost touch with reality and has gambled away its banking system to propel the mining and property markets into unchartered waters. Powerful Australian property and banking pundits have successfully led Australians to believe that the unusually high cost of real estate is justified. The pundits tell us that Australia is simply “different.” Pundits love to use the word “boom,” but they rarely use the word “bust.” When a country as a whole and its cities lack density alongside a median house price that is more than six times the median household income, there is only one word that can describe the true state of the Australian property sector—bubble.
The domestic banking sector in Australia learned absolutely nothing from past economic downturns in Japan, America, Spain and Ireland. Unfortunately, it will suffer the same sad fate that its northern-hemisphere peers did, as history has a good track record of repeating itself. The warnings signs of a toxic Australian credit bubble could not be any clearer—they have simply been ignored.
228 pages, Paperback
First published April 17, 2014
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245 people want to read
About the author
Lindsay David
3 books8 followersLindsay David is a co-founder of clean technology company GreenRigCo and a former strategy & business development consultant. Lindsay holds an MBA from IMD Business School.
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Displaying 1 - 9 of 9 reviews
May 7, 2014
As an Aussie working in Asia, this is the scariest book I have read on Australian/Asian economics. This is a must read for anyone with any concern about the current state of the Australian & Chinese economy and where we are heading. Any economist or analyst that covers the Asia-Pacific region that does not read this book should be sacked! It's an easy read that cuts right through the difference between what we are told in the news and what the economic data tells us. It just amazes me that there are not as many authors or economists willing to write a book on the potential economic disaster the world may soon face based on incredibly false pretences. What is most compelling about this book is that it clearly shows how politicians, reserve bankers and business leaders can make serious miscalculations based on emotion. The author hits the bullseye on this. And the author does a great job mixing in his own personal experiences throughout the GFC.
The book states the facts and gives the reader a fair chance to make his/her opinion. A great read.
The book states the facts and gives the reader a fair chance to make his/her opinion. A great read.
August 31, 2015
Incredibly eye opening. Great read for someone wanting to understand economics. Won via Goodreads Giveaway.
April 12, 2021
The author predicts a complete collapse of the Australian economy because the economy is too reliant on mining and real estate. House prices are too high relative to the rest of the world. The bubble will burst soon. Also, mining will collapse when the Chinese property bubble goes bust because they are building too many houses. His arguments are very persuasive but he predicts this will all happen within 3 years and he wrote this book in 2014. Of course the Australian economy could still collapse via a property bubble bursting or a mining downturn at some point in the future so we can't totally dismiss his warnings but it does seem unlikely given that we sailed through the covid crisis.
March 6, 2019
An insightful and thought provocative review on the main three pillars of the Australian economy ie Financial services, real estate and mining. Author has done in depth research and all his opinions are backed by proper analysis and data. The book describes why Australian housing market is so over valued due to toxic lending and how it can trigger an economic crisis. However, i noticed that there were constant repetition of same facts in several chapters.
September 29, 2023
Brilliant, very eye opening to our economy
April 17, 2023
As a Chinese new to Australia, it is astonishing to read the book. It was published in 2014 and it is 2023, things are happening, right?
Chapter 1: According to Lindsay, although Australia seems to luckily escape the recession other than the other developed countries, its economy is not as strong as it looks. Its economy is highly linked to that of China, however what if China's boom suspends? Is Australia prepared for the economic shock? The answer is no.
Chapter 1: According to Lindsay, although Australia seems to luckily escape the recession other than the other developed countries, its economy is not as strong as it looks. Its economy is highly linked to that of China, however what if China's boom suspends? Is Australia prepared for the economic shock? The answer is no.
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August 11, 2014scary times ahead if just a small part of what Lindsay is suggesting comes to fruition.
May 17, 2015
Reread 17 May 2015.
July 19, 2022
A great read
Displaying 1 - 9 of 9 reviews