xjo weekend zoomba lounge, page-109

crimpy

That is an interesting 40 year chart.

The period from early 1980s (say from the 1983 elections to 2007) my be reflective of a time when a high level of credit expansion was possible due to the baby boomer (BB) bulge and people not yet carrying excessive debt. Can the past credit expansion be replicated in the near term given that the BB generation is retiring and debt to income levels are now much higher? BB benefited from cheap housing and the 1970s high inflation which meant that their borrowings for housing soon became a relatively insignificant burden to purchase consumption goods.

One present saving grace for our market, if one can see it as that, is that there is more overseas interest in our market than in the 1970s/80s. My broker says its the overseas buyers that have pushed up our market in the last few months in their search for yield.

loki