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Next is the household sector.
The household sector is important and is experiencing dramatic change.
The household sector debt/income ratio seems to have bottomed.
Australia's household sector has accumulated massive unconsolidated debt compared with other countries.
Unfortunately, Australia's household sector surpassed that long ago, with non-financial business debt closing in.
Debt levels in the public sector and the household sector are far too high.
There are other bad assets too, but the household sector is the big one.
They exist to channel funds from savers to borrowers, traditionally from the household sector to companies.
The simplest approach uses two sectors: a business sector and a household sector.
Yet in practice we haven't yet seen much re-leveraging of the household sector.
"These low rates are basically a subsidy to corporations by the household sector".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com