You've totally not understood my first point. I was referring to poor lending pratices and standards in the USA that are not present in Australia. Please re-read and as a hint NINJA loans
Regarding economic cycles, if you look at the historic records and charts periods of economic boom are followed by economic bust and then back to boom - there is no exact time period between the cycles, it can vary but the cycles are consistent historically.
We've just been through 5 years of a major global economic contraction. So I see a period of global economic expansion on the horizon and Australia as a globally linked economy with strength in natural resources will be swept up with the tide and so will most parts of the economy. There will be another bust period - could be 10 years from now, 15 or more, the exact number of years between cycles varies but the cycles themselves are pretty consistent.
At the end of the day we all have our own opinions and I'm happy to agree to disagree only time will tell.
