As has been widely reported – it appears the Rock Star has returned. Strong GDP growth figures for the June quarter – recorded at a per annum 3.6% – reinforce New Zealand’s position at the head of the OECD pack. But there is a nagging feeling that is difficult to shake for many. So, are the nagging concerns justified? Or, are we set to live the life of a truly envious rock star life? Bluntly, the elephant in the room remains our debt imbalances. Together with international instability and volatility, the presence of an asset price bubble of this magnitude is not only unwelcome – it is potentially toxic.