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The economy is like fashion, trends come and go and peaks and troughs will always occur. Confidence is the only thing that we have to be wary of, lack of it causes nasty things to happen and if its fashionable to lack confidence, guess what...
Debts have always been here and always will be, its what fuels the economy. What I fear is the lenders becoming risk adverse, ie they don't lend money resulting in companies unable to invest in growth, causing another slowdown. Profit by the way is a silly by-product of accounting and doesn't mean a great deal. (just ask Alan Bond). Debt is the key - if the tap gets turned off or squeezed too tight, the economy starts slowing.
Of course if the lender is an idiot and lends to people that can't pay or for something that is way overvalued... well the lender should be caught, drawn and hung.. This is the reason we're still in the game folks, our banks and government did something right after the 1987 crash. Pity the USA didn't... now start lending you @!%$&%... or we really will have to go buy gold bars because they'll be the only thing worth a brass razoo.
PS I believe the worst is over and I want to see Omaroo cluck like a turkey.
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