Australia has an unfortunate commonality with Orange County,a mortgage crisis that’s left borrowers and homeowners squeezed.
Aussie homeowners are seeing foreclosures with some walking away from mortgages,and houses,they can no longer afford. Like here, adjustable-rate mortgages are part of the problem.
The Reserve Bank of Australia hasn’t helped matters, upping interest rates four times since August to 7.25% to ward off inflation.
Rising interest rates, spurred by the subprime mortgage meltdown in the U.S., have pushed housing affordability Down Under to its worst level in 24 years.
In the U.S., the Federal Reserve has taken the opposite tack, cutting its rate seven times since September to 2%.
But enough of the bad news.
A more pleasant similarity between those in OC and the Aussies is a reverence for home-grown surf culture.
Here, Huntington Beach-based Quiksilver Inc., which got its start in Australia, is the top seller of surf- and skate-inspired clothes, shoes and accessories. Irvine-based Billabong USA, whose parent company is based in Australia, is a clear No. 2.
But in Australia, the edge seems to go to Billabong.
A few other observations from my recent trip to Sydney and Melbourne:
– Kangaroos are edible. Australia is the only country in the world where it’s perfectly legal to eat its national animals. (Don’t forget the emu, a cousin of the ostrich). You’ll find kangaroo jerky in a corner store or see it as a pizza topping.
– You’ll find all the same pop culture in Australia as you will here, including “American Idol” (well, “Australian Idol”), and obsession with trashy celebrity tabloids. Still, there’s a decidedly British bent, including an unhealthy preoccupation with the royal family and soccer player David Beckham’s physique.
– Australians are into beer, but not so much the Foster’s brand that’s hawked stateside. Foster’s isn’t “Australian for beer.” It’s more like the equivalent of Bud Light with Aussies going for more unique brews. Drinking is the focus of social life, second to “footy,” or Australian-rules soccer.
,Sarah Tolkoff
