http://tools.goldcoast.com.au/stories/32711621.php - the negative data continues to reveal that the GFC is far from over. Personal debt levels are still far too high, people cannot afford the debt they have accumulated to accrue the assets they aquired in recent years! So much wealth was 'created' in the last decade, but much of it created on speculative demand fueled by cheap debt - whilst the initial crisis have occured there will be continued effects for some time as many households and businesses have managed to avoid failure so far, but surviving the slowing demand conditions, potential unemployment and higher interest rates will cause more pain for lenders and borrowers in coming months and years.
This sentiment needs to be understood alongside summaries such as this http://tools.goldcoast.com.au/stories/32928221.php where the Tresury Secretary emphasises the need to continued government intervention in driving economic growth as domestic demand would otherwise have us in recession right now.
Do these two articles get you thinking about the appropriate role of government in markets and managing aggregate demand?
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