I had lunch last week with a friend who brought along a friend who is senior management in financial services, discussing money she has zero confidence in the markets right now, sold her Malvern home to a Chinese buyer, switched her super to cash and is renting an apartment in town. She expects bank interest rates here to climb regardless of RBA and a credit squeeze on the way. Interesting view. I didn't agree, I think our household debt position is so bad that the only way to ease the pain is to keep lowering and bailout both the debt holders and lenders.
