As I said in a post back in August, Australia is slowly sliding into another GFC. Now here we are a few months later and despite all of the continuing signs such as the Australian and world share markets collapsing, the Aussie dollar tumbling and big business realizing that Australia isn’t bullet proof. Australians are merrily carrying on with their daily lives, totally oblivious to what’s going on around them.
What gets me hot under the collar is that so many people seem to think the good times will never end. Take for example, a recent study of Gen Yers (18-29 years old) showed a renewed interest in saving, (not a bad thing) but when asked why they wanted to save for, the answer was very simple: to afford bigger ticket items NOT for unexpected expenses down the road.
God help us! I am perplexed. The signs are all around us and still yet we seem to have such a ‘she’ll be right attitude – we’re the lucky country.’
Hmm… that’s what the USA and Greece thought – and now look at them.
What’s your take? Are we fine and I am overreacting, are we all too busy to see what’s going on or do you simply not care?
What do you think?
How interesting! I recently made a comment to a friend who has just bought new premises for his business warning him to beware as things were due for a major down turn. Haven’t read your blog before, so it is interesting that someone else has seen what I see.
Hi Pat
Thanks for your comments. Stay tuned because we have a lot more in store that hopefully will start a few tongues wagging!
Regards
Greg
I agree things are quietly settling down into the dust, small tradesmen are sort of doing ok, people are quietly going into cocooning mode (as Faith Pocorn puts it). I think that there will be funds available for repairs and prudent upgrades and the more aware will be paying down debt and then as that is paid and a rainy day buffer achieved will think about puchasing carefully at the right price.
Hi Ray
You are spot on.
I wrote a book on money personalities in 2002 and what you say about those who will put away a little money here and there and pay down debts first definitely have the fundamental traits of a savvy money personality. Clearly we all need to take a leaf out of what you say and aim to become a savvy money personality. Those who are spender and careful money personalities will unfortunately keep on struggling.
Regards
Greg
Hi Greg,
I always listen very closely to what you have to say as I remember you warning about the first GFC… but I wasn’t sure what you where talking about back then, and I deleted the message. How I wished I had listened more to your thoughts as when interest rates where going up back in 2008 we fixed our home loan for five years, we had a few more rate rises then bang the GFC hit and interest rates went down to a 30 year low.
It’s like you have a crystal ball for the future…I’m listening!!!!
Hi Karen
Thanks so much for your kind words.
Yes it seems that there are only a few economists like myself who go against the traditional theory that has been taught in Universities for many years. Unfortunately, the world keeps on listening to the supposed ‘classically’ trained economists (who by the way are employed in some way or another by banks! – and they are the ones that got us into the GFC in the first place!) instead of listening to economists like me.
I don’t have a crystal ball but I just read between the lines. Stay tuned as we’ve got a lot more in store for you.
Regards
Greg
PS Dont forget to join our facebook page and tell your friends.
I attended a function during Small Business Month recently, where an economist from a major bank predicted the A$ would keep getting stronger. I think he even predicted $1.20US at some stage.
A week or two later and we are down to well below $1US.
If nothing else, it proves the volitility of the world economy right now, I think.
Hi Trevor
Clearly volatility but as I mentioned before, these economists are classically trained and do not perform any lateral analysis (ie linking multiple variables) to create their predictions.
I also dare to say that they seem be ‘lemming like’ and follow one another without stepping back and taking a proper view.
Thanks for taking the time to share your thoughts.
Regards
Greg