News is that up to $50 billion will be pulled out of superfunds. More bad news for share prices.
I think you are right, a lot of the problems already existed, there is large debt in the market as rates are so cheap, it means companies and individuals will find it hard to access cash, as they are already geared. In the past the RBA could drop interest rates a couple of a %, which allows the banks to issue more debt as it takes pressure off repayments. This can't happen this time, the Government has already fired it's shots, and interest rates will not go lower, banks are also gun shy due to the Royal Commission. I think they will use quantitative easing, no other option.
