The bad and badder news
Top of Form Bottom of Form Are you sitting comfortably? Got a nice cup of tea? I am about to put forward, if not the worst-case economic scenario, a pretty bloody bad scenario for Australia and the world. So, you might want to stop reading now and just enjoy the tea Not to say any of this written in the stars, history is littered with people who made bad predictions. Where the hell are our proper hoverboards ? But here are some worrying signs and patterns I see emerging. Ever since the 9/11 attacks the world has been awash with cheap money. The Fed dropped interest rates to the bottom and then dug a little deeper to keep the already ailing US economy from going into shock after the atrocity. Cheap money burns a hole in investors’ pockets. It can be used for productive investments, which tend to take a while to pay off, or you can try to make a relatively quick buck on shares or other financial instruments or housing ....