Point of No Return
My friend "Brisbane Bear" from down under says ...
Hey Mish,
I think we are well past the point of no return.
Woolworth's, one of our biggest retailer/supermarket companies, just had their worst quarter in 13 years. Woolworth's is about as bullet proof a company as you can get in Australia. It is the bluest of blue chip companies.
The banks aren't lending and will pay one hell of a price when the economy implodes.
Regards
Brisbane Bear
"No One Is Borrowing"
Brisbane Bear passed along this article on The Age by Ian Vettender: Banks playing risky game with rates
Put yourself into the shoes of thousands of Australians who own small businesses across the country right now.
You're faced with a serious drop in demand for your product, and you need to get turnover moving quick smart, to start shifting that product off the shelves.
What do you do? You don't need to be versed in the subtleties of economic theory to work it out. The answer is simple. You cut your price, or at the very least offer a better, more competitive service.
That is exactly what is happening across Australia and throughout the developed world.
Our retail malls, once proudly displaying two discounted sales a year, now are permanently emblazoned with discount banners, promising 30 per cent, 50 per cent or even more off
http://globaleconomicanalysis.blogspot.com/2012/04/point-of-no-return-australia-is-screwed.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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