Sorry but did you guys speed read my post? I said I wasn't comparing ratios and change with 30 yrs ago I'm comparing it with POST 2000. And a reversion back to the old normal of early to mid 2000 would give you a decent correction - not 50% correction - but enough to do some significant damage to your ego's.
“But that's the point. Lenders are supporting the current ratios so therefore they think that they are affordable longer term .They are hardly going to lend you money that you can't pay back.”
Do you think they have much of a choice? If they didn't continue to lend how would they grow there income stream (income > share price)..if due to lower interest rates they didn't lend more and let more poeple pay down debt what would happen to the banks income stream? I bet you that as soon as the shit hits the fan you may see some high level retirements and resignations. And the banks may be guessing the future just as much as you or I are guessing whats going to happen.
“Time to get used to the new normal, whatever that is.”
Sector, the BIG mistake is - believing that there is a new normal yet not know or understand fully what it is or what has underpined/driven it..and believe it is here to stay..
