Now I could be wrong on this but I get the feeling that things are going to get far worse before they get better. I’ve felt like that for a while now and my gut tells me that we maybe approaching the beginning of a further significant drop.
If you get the chance I’d highly recommend you take a look at the episode called Overdose from the Australian Four Corners program. If you hurry you can view the whole episode online by using iView here. Here’s a preview that’s on YouTube:
Overdose - http://www.youtube.com/watch?v=DGkT_S8Yt5M
What worries me is that we have created a ‘stimulus bubble’ without really changing people’s habits. I also feel that many governments have wasted tax payer dollars bailing out those that have done the wrong thing. Tell me, when is it a good thing cover the losses of someone who is reckless with money? Never I say.
I can’t give you anything definitive but I see many more businesses struggling and going under. I see unemployment rising and when people lose their jobs that is never a good sign. I am concerned that we are approaching a traditionally bad time for the markets (October) and that may spook investors. I’ve just got this feeling.
Now, I certainly hope that I’m wrong but if you look at the numbers and the amount of debt and the further amount of debt that is being thrown ineffectually at the problem, like I said I’m worried.