Mr.Sheen, still love it.Good article JD, and pretty much...

Mr.Sheen, still love it.

Good article JD, and pretty much agreeing with the article and Mr.Sheen.

I think in general, the working nation has had a better cash flow this year, than in previous years, but that is not saying it will be the same next year.

Having lower interest rates and lower fuel costs should leave the average person with more cash in their back pockets, at the end of the week.

Problem with this is, people are habitual. What are people doing with the extra dollar at the end of the week? Are they using it to repay extra mortgage costs? Are they using it to pay off their credit cards, 0% for 12 months? Or are they taking advantage of Air Asia, $260 return from Melbourne to Kuala Lumpur??

This is where it is for the average person. Distinguishing between what is an asset and what is an expense. I have never seen being in "debt" as a dirty word. As long as you have positive cash flow and it is used for an Asset. Allow a buffer for variable rates to change and it shouldn't be a problem, with money management. But how many people are educated in this field or exercise their knowledge, not meaning any disrespect to anyone. This year i have had continuous letters from various institutions offering me all sorts of deals on Credit Card increases, balance transfers, personal loans etc, there is no shortage of cash atm to stimulate the economy.

What are the consequences? Are we still repaying the 42 inch LCD from Harvey Norman 5 years from now, that is worth nothing? Or have we declared bankruptcy because the cost of living has increased. If the ETS goes through it will have an impact on everyone. That is how i read the article, be prepared for the squeeze. This could have an impact in the future on the xjo and compliment many thoughts for a down turn on the xjo in the future years. Happy to be wrong on this one.

Earth