News for hackers. Stuff that matters.
Re:Wall Street Banks Warn Downturn Is Coming by nopassrecover on Wednesday August 23, 2017 @11:32AM (#15082294)
Our (Australian) government at the time provided significant consumer stimulus (most taxpayers got up to $950 to spend, people on welfare and/or with children got even more) and it also invested heavily in infrastructure and construction projects (http://www.smh.com.au/articles/2009/02/04/1233423265116.html). Like other countries, our central bank also dropped interest rates.

As a consequence we now, apparently, lay claim to the longest period of uninterrupted growth in modern history.

However, we've had uncharacteristicaly flat growth since, narrowly avoided recession a couple of times, and are battling low wage growth which, in combination with rising energy and property costs, is beginning to undermine consumer demand.

This has been unhelped by the end of a mining boom, related decrease in Chinese growth and demand for commodities, structural taxation challenges (income taxes were reduced during the boom, and we struggle to tax multinational companies), and a huge speculative property bubble (fuelled by lower interest rates, favourable taxation schemes, currency flight from foreign investors, and ultimately the self-reinforcing returns). I'm sure demographics are playing a role too.

Considering most of our pension schemes ("superannuation") are invested in either property, mining, or banking (itself dependent on property), there's huge uncertainty ahead.

Re:Wall Street Banks Warn Downturn Is Coming by warrenm on Wednesday August 23, 2017 @12:05PM (#15082631)
Almost sounds like all that happened was pushing off the bust of the boom-bust cycle, instead of actually avoiding it
Re:Wall Street Banks Warn Downturn Is Coming by vram22 on Wednesday August 23, 2017 @01:16PM (#15083287)
What do you mean by "the self-reinforcing returns"?
Re:Wall Street Banks Warn Downturn Is Coming by Nacraile on Wednesday August 23, 2017 @02:14PM (#15083761)
Presumably, the classic mechanism underlying speculative bubbles: investors buying because they expect to be able to sell to other investors at a higher price, later.