Will be interesting to see how this pans out as I think, as one poster says, this will be a long term problem - think Japan. Our little darlings are getting their heads filled with ideologies that dont align with the realities of their future while systemic failure is happening beneath their feet. I have no doubt more of them will be moving back in with mum and dad soon.
The breakdown of the inflation figures suggests people are really tightening their belt. The things we need like food, power etc are still around 2-3% but discretionary spending has collapsed. This with credit card debt at an all time high would suggest the everyday punter is tapped out.
A side anecdote which i think will come into play in the near term. I was staying with a mate a few years ago on the bayside in Melbourne and he had a average house but with no debt and retired. He was telling me that literally everyone on his street was borrowing against their house to fund the discretionary spending. Most were hocking their house to send the troops to schools like Mentone Grammar. This can work for a time while the price of housing marches northward but, in times like the present, I would think that this source of funding is going to come to a grinding halt. I dont wish this but helicopter money is not going to save this.
