AUSTRALIA is in the middle of one of the biggest credit and property bubbles in modern Western history, says author Lindsay David.
"These bubbles are supported by the largest credit bubble in human history, the one that has been brewing in China," said Mr David, 34, of Lilli Pilli.
These are views outlined in his book Australia: Boom to Bust. The former strategy consultant said our banks were not as healthy as people believed them to be.
"Two of Australia's big four banks have less cash than Lehman Brothers had 15 months before it crashed in 2008," he said.
Mr David gained his MBA from the Institute for Management Development in Switzerland, living there and then in Britain for 10 years before moving back to Sutherland Shire and getting married recently.
At present he is working as a co-founder of GreenRigCo which deals with clean technology solutions. The company is based in Houston, Texas.
He said Australia had been saved from a worse economic future because China had agreed to buy massive amounts of iron ore from this country, but in turn China was building too much infrastructure.
Australians were paying too much for real estate, with the average home loan being seven to eight times the median household income.
"This has the word 'bubble' written all over it," he said.
"The banking system is lending at a toxic rate to new property purchasers fuelling a bubble market.
"This will come back to haunt Australia in the near future."
About Australia: Boom to Bust is in e-book format on Amazon for $17 or Amazon Kindle for $10.99.
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