Slappi, i think the associate professor is on to something 'cancelling all debt'. Im voting for him now.
agree that debt needs to be managed better and not the willy nilly way it was in the US.
But lets look at this stats again to see if he make sense.
$2 trillion in debt. so based on 20m people in australia, every single man, women, child has some $100,000 debt each. He is trying to convince us that everyone want to harvey norman and used the money on consumer goods only.
I dont even think that the total of austrlaia's share market is even worth that much.
But wait, he adds the debt of all the companies listed, unlisted etc to get this figure. So based on his logic BHP, RIO, CBA etc all who have debt need to pay it off to get better. But wait, most businesses operate using debt. So the associate professor wants us to revert to a cash based society. so we cant buy a house until we save up for it. But wait isnt that some pre war concept.
got me with the 'cancelling all debt' but not with his raw stats to impress the easily impressed and ignorant.
So i assume he considers himself and one of the winner, cash up and secure job. But what about the 90% still employed and the 70% owning homes. It seems that his logic is that renters will always rent because they cant buy because debt is bad and should be discouraged and wont be avaiable.
And now he is an expert on the depression as well. My understanding was that was to do with protectism, concentrated and immature market, reduced govt spending, no stimili packages.
glad people we have in power take a more positive view.
Come on slappi, do you really think this associate professor really deserves the continuing 15 minutes he is getting. I even preferred keating to him. at least he made sense.
and as to the good old Japan example. japan was a problem due to it not being fixed in time and the japanese govt let it fester for to long. and negative population growth over the period Their share market had average PE in 50s, australia's is in the 10s.
