Guys, it is very simple to make comparisions between the current situation and the great deprresion. However, one thing that we need to understand is that Australia today is far better placed than it was in those days or past reccessions. Rudd government, has through good past government planning has no debt, so it can borrow money to fund projects, we have been running huge surplses so we can go into deficiet through increased social security funding, it is bringing forward infrastructure projects, so australia has a lot more abilities to generate activity in this country. As to housing, yes it will fall, however, there is an equilbrium that will occur. people will decide whether to rent or buy which will determine a floor price.
Also China and india are not able to stop their growth with major social upheavels. China can direct activity to internal projects to sure up its economy and its growth. Rember it is growing at 10% or more per year, and there is no reason for this to stop.
To say people will be wondering the streets etc is absolutely ridiculous. There needs to be some balance. The US is stuffed due to a number of things that are not replicated in Australia. I am glad i am in australia.
