Fears of Australia’s economy going into recession as a result of the US housing price collapse may be unfounded.
According to the International Monetary Fund (IMF), banks are not in danger of going belly-up, with Australian house prices only “moderately” overvalued.
As the IMF says “The results do not produce evidence of a significant over evaluation of house prices”.
Australians can sigh a breathe of relief over the news that puts our economy in relative safety, given the current global credit crisis.