Definitely interesting times we live in. The western world seems to vacillate wildly between extreme optimism and pessimism at the drop of a hat. Commodity prices are falling rapidly and recent data out of the US and China has been very bleak. Europe is a basket case. Australia has known of the possibility of this for ages yet is completely unprepared. There is nothing to pick up the slack if the mining boom collapses. Manufacturing is dead. Some much of our GDP is mining. The dollar refuses to budge because we're the pick of a very bad bunch. This is why i think interest rates could fall a fair way still. A deflationary environment could be heading our way and Aussies may have to deal with either lower wages or no rises for a long time.
I could be wrong though as housing here has proved remarkably resilient but recent data could start to hurt.
