Today, we saw this article, Household debt hits record in the mainstream media. In that article, Prime Minister John Howard was saying that the ?heavier debt burden reflected rising affluence.?
Alas, we can indeed trust politicians to say things that tickle the ears of their electorate!
Further down the article, it conveyed the idea that despite the increasing debt burden, asset prices are still rising and therefore, wealth is increasing.
Again, this is another example of the media not doing its proper job. We counsel that they read these two articles:
Myth of asset-driven growth
The myth of financial asset ?investments? as savings
