I have wanted to get this written all day as I want to document this seeming shift towards recession speak. We had the treasurer talking recession and it is something that seems to be gripping the papers and news since the GDP quarter numbers came out at a weak 0.3% versus forecast 0.7%.
It has been 24 years since the last recession in Australia, there is so much bloated bureaucracy in government and business, let alone the mindset of home owners. From the wonderful present the commodities boom provided this lucky country, there are now large cracks being exposed and the one that is always extremely important to keep an eye on is wage growth.
In essence capital has not been wisely spent on productive resources rather a windfall has come via the sale of resources. We need to start working harder and more productively. I hate to say it a recession is just what the doctor ordered.