"Consumer sentiment can't improve unless there is sufficient disposable income to fund a recovery."
1. A credible report today says that there are bank term deposits in Australia of $614 billion, of which most is on a term of one year or less. So its not accurate to say there is a cash shortage. That's an awful lot of cash not invested, but just waiting for the right opportunity. Or return of confidence.
2. Comparisons of any kind between the US economy and ours are a stretch. Its a totally different system. I've just spent two months there, - my nineteenth such trip, - and you can quote stats till the cows come home. But while there might be a lot unemployed there, there is a hum in the towns and cities that we just don't have. Breakfast lunch and dinner, restaurants are full and have waiting queues. Motel occupancy is high and prices have risen a lot since my last visit (twice in 2012).
3. Zimbabwe. We think that's a sad joke. Well, I was there in 1999 and one A$ bought 425 Zimbabwe dollars. Now of course, $A1 will buy millions and millions of $Z. So don't think that bad things can't happen. They can, and do with poor management and excess.
