Alan Kohler: the market's four key threats - ASX - Australian Securities Exchange

Another important point from Kohler's analysis:

Housing bubble

But isn't Australia's housing market in a bubble that is destined to collapse, bringing the whole Oz of Cards down? In late June, US investment legend Jereny Grantham, co-founder of GMO, said: "You cannot possibly miss it. The price of housing typically trades about 3.5 times family income and in a bubble it goes to 6 or … 7.5 (times). Australia is having one now. You are at near 7.5 times family income … which suggests you are twice the size that you should be."

Alan Kohler: the market's four key threats - ASX - Australian Securities Exchange