i think in inflation adjusted terms the market will tread water for some time more than 1-2 years
the government has borrowed a shedload of money and spent it and i have a feeling it will continue, now they are off the hook as far as budgets are concerned (and our economy slows)
its like for every household the government has paid for peoples mortgages by borrowing money overseas. 250 billion goes a long way to giving everyone about 10-20k yearly pay rise/support. a large reason why all these mining projects are being shelved - wages too high
we have a long way before this country is broke, but if the socialists (green/labour) keep going strong in the big states (NSW & VIC) I would say it would take them at least 4-6 years to completely bankrupt this country, just as retirees create a crushing burden on the state
at that point a 50% fall is on the cards - with several debt ratings downgrades and unserviceable government debt load and a currency trading at 70-80c with all the inflation that goes with reduced purchasing power
