Debt Risks Feared to Rise?

[tom82]

Read this interesting item in Saturdays AFR 7/09/2013.
What are your thoughts on this?
How will it affect the markets / economy?
Is a recession still possible?

 

[sydboy007]

Considering in aggregate terms Aussie households have barely deleveraged and I fear we're very vulnerable to the next shock.

Factor in an Abbott Govt will have difficulty providing much stimulus, or providing it fast enough to stop the downturn getting too bad, and all I can say is stuff the paradox of thrift, I'm saving for the raininy day.

 

[tom82]

So should one hold of from investing in shares until there is a correction and then get in at discounted prices?

 

[pixel]

So should one hold of from investing in shares until there is a correction and then get in at discounted prices?

you could do that, or you could buy shares in debt collectors, money lenders, second-hand shops.
CLH and CCV come to mind as companies that MIGHT benefit from misery of the masses.

On the other hand, doom and gloom could well be overdone and shares remain quite profitable.

As an aside: I find it "interesting" that Joe Hockey wants to raise the debt ceiling after whining for six years about Labor's reckless borrowing. Does he want to do more of the same? Hypocrisy, thy name is Politician

 

[G Gekko]

you could do that, or you could buy shares in debt collectors, money lenders, second-hand shops.
CLH and CCV come to mind as companies that MIGHT benefit from misery of the masses.

On the other hand, doom and gloom could well be overdone and shares remain quite profitable.

As an aside: I find it "interesting" that Joe Hockey wants to raise the debt ceiling after whining for six years about Labor's reckless borrowing. Does he want to do more of the same? Hypocrisy, thy name is Politician

Would you recommend we default or cut to produce an overnight surplus? Would that make better sense to you, economically?