2 speed economy
#46
Re: 2 speed economy
Did you know that a significant reason for the underperformance of many domestic sectors of the economy is that Australians are deleveraging and refuse to pump spending into the economy despite the relatively higher household income compared to pre-GFC levels?
Australian savings rate is at multi-decade highs and Australians have learned from the Europeans and Americans that debt-binge spending and living beyond your means is a recipe for disaster. The big banks are desperately trying to grow their loan books, and they are competing for the level of saving deposits that have not been seen for many years.
Many domestic sectors (more significantly retail and domestic travel and services) are obviously affected by this deleveraging process, but I tend to think this is a painful but necessary process to avoid future debt blow-outs and liquidity problems.
Those who refuse to adapt by increasing productivity, by differentiating, etc are bound to lose.
Australian savings rate is at multi-decade highs and Australians have learned from the Europeans and Americans that debt-binge spending and living beyond your means is a recipe for disaster. The big banks are desperately trying to grow their loan books, and they are competing for the level of saving deposits that have not been seen for many years.
Many domestic sectors (more significantly retail and domestic travel and services) are obviously affected by this deleveraging process, but I tend to think this is a painful but necessary process to avoid future debt blow-outs and liquidity problems.
Those who refuse to adapt by increasing productivity, by differentiating, etc are bound to lose.
Last edited by commonwealth; Mar 13th 2012 at 12:35 am.
#49
BE Enthusiast
Joined: Sep 2004
Location: London - but only until I can afford to move back to Sydney
Posts: 938
#50
Re: 2 speed economy
After watching this: http://www.abc.net.au/4corners/stori...08/3448633.htm
I cannot overemphasize the importance of relatively high interest rates and household deleveraging and saving.
I cannot overemphasize the importance of relatively high interest rates and household deleveraging and saving.
#51
Re: 2 speed economy
Melbourne and Victoria are starting to suffer now. Thats only the 3rd time it's happened in my time here. Not at 1987 levels yet, but it could get that way. Pretty sure it will get that way actually.
Melbourne is usually the last Aus city to suffer these recession woes. Definitely time to pull out the major infrastructure genie down here.
Melbourne is usually the last Aus city to suffer these recession woes. Definitely time to pull out the major infrastructure genie down here.
#52
Re: 2 speed economy
Melbourne and Victoria are starting to suffer now. Thats only the 3rd time it's happened in my time here. Not at 1987 levels yet, but it could get that way. Pretty sure it will get that way actually.
Melbourne is usually the last Aus city to suffer these recession woes. Definitely time to pull out the major infrastructure genie down here.
Melbourne is usually the last Aus city to suffer these recession woes. Definitely time to pull out the major infrastructure genie down here.
#56
Re: 2 speed economy
If it gets to 1987 people will know all about it.... 1/4 of the shops along Sydney Rd shut down.
Time to build the Domain tunnel and the Rail Link to the Airport methinks. They'll have to do both of those sooner or later. So may as well start now.
#57
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: 2 speed economy
I don't think you will find China following such a chaotic system as 'free'market capitalism. For a start nothing is free.....
#58
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: 2 speed economy
Rightly so as well. Spend for what on what? Over priced and over inflated goo? Save and move it abroad when terms dictate. We are in control of our own destiny not some ridiculous, out of date economic theory.
#59
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: 2 speed economy
I for one think universal healthcare should be abolished and private medical schemes should be made to flourish. If you want good healthcare you should pay for it by working hard to earn it or by taking care of your health through sensible diet and exercise etc. Why should we pay medicare if we all try to be healthy?
#60
Re: 2 speed economy
Yehp very fast turn around... Was booming in October/November. I'm getting plenty of reports of people that could easily find work having trouble myself now.
If it gets to 1987 people will know all about it.... 1/4 of the shops along Sydney Rd shut down.
Time to build the Domain tunnel and the Rail Link to the Airport methinks. They'll have to do both of those sooner or later. So may as well start now.
If it gets to 1987 people will know all about it.... 1/4 of the shops along Sydney Rd shut down.
Time to build the Domain tunnel and the Rail Link to the Airport methinks. They'll have to do both of those sooner or later. So may as well start now.
The books have to be balanced...........