Despite a barrage of negative and cynical articles, there is at least one thing that I know to be good and true. No they do not include Nicholas Bolton and his Vulture Fund but you can hardly blame him for wanting to profit from the mistakes of others. Brisconnections is/was a scam, a fraud and a rip off and anyone who bought equity in that was badly ripped off. We all know it is going to zero, the only difference between us and N.Bolton is that he decided to do something about it. If you are able to short Brisconnections at any price >$0.01, do it.
The thing that I know to be true is....drumroll, Australian inflation will rise, rise rise. St George bank is offering 8.00% term deposits for anyone who wants to put their cash away for 60 Months. What does that tell you? It tells you that the stimulus spending is having its desired effect, assuming the desired affect was to get inflation on the rise. If you spend lots of money and lend lots of money for cheap, that seems to grease the wheels. The big difference is that unlike the last time inflation rose (driven by some organic growth in the economy and a market with nearly full employment), this growth will be in an environment with rising unemployement and declining real wages...scary.