Quote:
Originally Posted by Sprintey
Economic cycles go down as well as up even though ours has gone up for 30 years now. China shuttering factories, Hyundai has shut theirs too. We are about to see how much resilience is built into the global JIT form of industry. So many macro indicators have been slowing globally (including the repo madness), the CV is the coup de grace. 50 to 100Mn people quarantined, that's something unprecedented. Less car sales when all are imported = less funds going offshore. Less coal demand = less income, less tourism = less income. More time for veggie garden and to smell the roses or fire up the old 302.
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While we've never been in recession for 30 years, recovery since the global financial recession
has been much slower than America, our All Ordinaries index is only just getting back to pre-GFC
levels while the US Dow Jones index is now double it's pre-GFC level. So this is why our politicians
bragging about such a long run of growth are not telling us whole truth, just a version that suits their
economic policy and not necessarily for the good of the broader market. We have missed out on a
lot of growth that has happened elsewhere since the GFC and now we're basically stagnant.