Pyramid flop’s silver lining for Geelong in crisis

The Pyramid Building Society crash could have a silver lining for Geelong during new economic turmoil sweeping the globe, according to a national debt collection agency.
Prushka boss Roger Mendelson said lower debt levels meant Geelong was in a better position than other cities including Melbourne to ride out the financial crisis.
Mr Mendelson pinned the lower debts in Geelong to Pyramid.
“Geelong householders and businesses have been more debt-averse since the collapse of Pyramid in the 1990s,” he said.
“This has kept house prices lower in Geelong, resulting in lower average mortgages when compared with other parts of Australia.”
Mr Mendelson said Geelong’s “relatively healthy” finances also produced higher consumer and business confidence in the face of the financial crisis.
“There are obviously some pockets in Geelong where people are experiencing greater levels of financial stress due to higher interest rates and rising costs of food and petrol but overall the Geelong economy is less vulnerable,” he said.
“Geelong’s economic diversity and the fact house prices have not been artificially inflated due to excessive borrowing have put Geelong in a good economic position.”