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In South Africa, a Consumer Debt Bubble Forms
The Wall Street Journal ^
| December 26, 2012
| PATRICK MCGROARTY
Posted on 12/27/2012 10:04:23 AM PST by MinorityRepublican
Edited on 12/27/2012 10:05:39 AM PST by Admin Moderator.
Gerald Mopelong, leaving his house on a recent workday, says a third of his $1,750 monthly salary as an insurance salesman goes to repay debt.
PRETORIA, South Africa—Gerald Mopelong earns 15,000 rand, about $1,750, each month as an insurance salesman. But up to a third of his salary goes to repay debts he has racked up to pay for basics like gas and food as well as relative luxuries like new clothes for his two teenage children.
(Excerpt) Read more at online.wsj.com ...
TOPICS: News/Current Events
KEYWORDS: southafricabubble; southafricacrisis
It’s not going to end well in South Africa.
This may well be a problem
but it isn't a "bubble" unless government central bank policies have encouraged the lending. All "bubbles" are caused by government-sponsored central banks artificially lowering the rates of interest.
South Africa's may well have, but the WSJ is silent on that.
posted on 12/27/2012 4:49:30 PM PST
(Workers and consumers are, of course, identical.)
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