High Australian house prices have made our economy "vulnerable" to overseas events
Future Fund Chair, David Murray made some interesting comments yesterday at a Sky News panel which have been picked up in various papers today.
http://www.theaustralian.com.au/business/house-prices-seen-as-vulnerable-says-future-fund-chairman/story-e6frg8zx-1226022788109
Murray said that a rise in global interest rates would prompt Australian commodity prices to fall (cutting the income flowing into Australia) and would leave our economy exposed with high house prices. He hoped: "that won't happen and we can work it through," however, he observed: "But, by any normal set of measures, house prices in Australia are high."
