The easy money has gone and the family income has been redirected to paying interest on credit cards, house loans and increased food and fuel costs.
There is no top up available from increases in house prices or the next credit card.
Discretionary spending has ended. Now it's necessities only.
As a result, coffee shops and the like are standing down staff. Boat sales have ended.(thousands of unsold boats are on the market) Car sales are next.
Already people in these industries are being stood down.
Those who lived beyond their means on borrowed money are screwed. That's how it should be.
It was never possible to live an affluent lifestyle on the assumption that the house equity and the credit card would fund holidays and waste.
The only thing that amazed me was that it lasted so long.
Those who lived in debt will now drown in debt. They can't pay for their debt or their house with no job.
Add to that the Rudd changes in industrial relations which will cause small business to cease employing new staff.
House prices in Australia are some of the highest in the world and they are on the edge of a major fall. There will be one turning point event to set this off and there will be no looking back.
The clock is ticking and there are only minutes to go.
