rba should put a sock in its mouth, page-53

Interesting reading and most seem to have it figured right.

Credit too easy, young people buying new cars and million dollar houses etc.

Try and talk to your kids about hard times and they look at you as though you are senile.

All mechanisms are self correcting and the pendulum swings from an extreme to the other extreme.

I take no glee in bad times but it is an important lesson for all, and probably places the emphasis back on what is truely important in family life and life in general.

It may be that this is just the warning and that a brief mini boom can still save us for a year or three.

Have no doubt though that a severe bear market will happen within 5 years and since we have benefited most from the resource boom we will also suffer the worst market decline as we did in 1974.

The good news is that will set up markets for a great bull run into 2030/2 just like 1982 into 2000.

We may just have to wait till mid next decade to launch it.