XJO 0.35% 8,266.2 s&p/asx 200

Definitely agree Jarl. even though companies are making good...

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    Definitely agree Jarl.

    even though companies are making good profits the economy is not in good shape.
    And the big issue is the huge amount of debt people are taking. They are forced to take massive debt to afford a property and to be able to make profits to feed this debt they take margin loans to better their profits in shares.
    And people also use their houses as ATM's to invest futher.

    All this is good as long as assets go up, but that's when bubbles form. And when these bubbles pop the economy goes down very fast.

    More and more people in the USA are already defaulting on their loans. Wage are too low. In the whole world wages are too low so people cannot afford assets without running to a bank who are now even providing no-deposit loans.
 
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