Exactly, the loss will be smaller hence the cash injection (any form) by the government will be less ( didn't think I needed to state the obvious about our island nation), but believe me the government will not let the market crash to the extent of the US, they have to look after the "working families...........?"
Both sides of the government will pull out all the stops to prevent this, when you live in a country where the main revenue stream is minining employing 300,000 people ( generates 10% of GDP), the government has little option. While the manufacturing and retail sectors slow 2012/2013, the government and RBA will fall back on the emergency plan, reduce interest rates, increase grants (I just got one for $50K settting up a new plant, linked to employing 2 extra staff) and stimulate the economy with smaller incentives.
So as you can see the goverment will not let it happen.
One main issue is productivity, hope the government has a solution for that, highly unlikely! To change culture you need to change the enviroment and this will never happen.
Who will be right and who will be wrong in 2012/2013........
