Nation of Debt: New Zealand sitting on half-trillion-dollar debt bomb

New Zealand now owes almost half a trillion dollars in debt - and a growing chunk of it belongs to ordinary households, mainly borrowing to buy property. 

Households are now carrying a debt level that is equivalent to 162 per cent of their annual disposable income - higher than the level reached before the global financial crisis.

Housing loan debt has risen 23.4 per cent to $132.83 billion. Student loans were up 22.9 per cent to $14.84 billion and consumer loans are up 16.6 per cent to $15.7 billion. 

Ranchhod said much of the rising debt on housing was down to investors, as more people jumped into the property market on the back of rising house prices.

DYI Comments:  This will not end well for New Zealander's as their debt to disposable income is now peaking or will soon peak far higher here in the states.

 Above U.S. Debt to Disposable Income
China, Australia, New Zealand, Canada, England, most central European countries are now deep in debt either public or private and some are both.  If one starts to falls and creates a domino effects this could very easily set off global recession.  In any event, this will not end well for New Zealand for once they start the path of deleveraging they will experience 12 to 15 years of recession, sub growth, and deflation especially in real estate.

DYI