re: dow jones will go under 10000 pts
belmore its the level of debt thats this issue, look at it this way:
Many people have borrowed cash to buy homes, they are getting 2% return on a 5% rate. They can only tolerate so much.
The Fed prints money to pay foreign debt, this creates inflation........ rates goes up.
These home buyers are now forced to sell...... property crash.
Some don't have the money to pay back....... bad debt.
Many bad debts cause things to go backwards ....... whole economy is caught in a downturn with shit' loads of debt to pay off.
Gov can not longer print to pay debts as it cuases infalation....... US gov has bad debt etc.......
That is basic explination to one sector, I am sure you can figure out the rest.
The problem is the level of debt. With regards to AU, the gov does not have much debt in GDP terms, but the public sector does. Total debt in AU comes to 115% of GDP, slightly bellow 1930 levels and rising sharply. If they get caught in a economic storm its all over for many people and companies.
