Those who borrowed in the 1970s to pay for a house were fortunate. Within about 5 years the repayments on the loan would became a relatively small portion of their income. That and free tertiary education were the chief benefits bestowed on the baby boomer generation in Australia.
I can not work out if we are heading into a deflationary period or an inflationary period. Perhaps it will just be a long period during which there will be bouts of both as governments fight to keep the sinking ship afloat. That would make for a very difficult sharemarket for both traders and long term investors.
