We had the mining bubble, the dot.com bubble, the real estate bubble and according to the other baby boomer in the Koltai household, we’re about to have the Bandaid bubble.
Although in
My partner is a wise owl. (Can’t call her old – she’s younger than I.)
I showed her the EC Economic Sentiment Indicator and she said – “Ahhh, but that little spike is just the eye of the storm.
“It has to get a little better but only until the bandaids wear off.”
“Kevin’s bandaids - like - lets let the kids buy a house and we'll give them a nice Christmas present. It's called an interest rise - because it's the only thing that will be everyone's stockings this year.”
Wow! That’s pretty negative from the person in my life who is usually the reason for the smile on my face.
The Demographic.
My partner is 45, has run her own business successfully for a number of years and usually votes conservatively. She pays her bills on time, files her tax returns and is a responsible member of the community.
In other words, my partner is reasonably representative of the NSW last of the baby-boomer population trend.
Why is she so down on the economy?
She regularly shops at a small local IGA. This one has just been purchased by Cambodian people from the previous Italian owners. The Deli section has a fine selection of the usual cur meats, sausages, olives et al. The family is rather fond of these deli treats and we probably consume more than the average Italian family.
Recently, the Italian lady that has manned the Deli for the last eight years, was let go “Because it’s so quiet”.
The Cambodian family may be just “trimming the fat”, but I doubt it. The Italian lady was the third to be let go in the last three months.
My partner doesn’t shop there any more. She has decided to boycott the shop for replacing a familiar face who was competent with the meat and cheese slicer with someone that always seem to get it wrong.
So what has that got to do with the economy?
Well, the Italian lady that used to be there is about 45. My partner doesn’t believe she will be able to find another job easily. All she can do is slice meats and serve in a deli.
And, if her business sense is anything to go by, (and my experience is that it usually is) jobs are getting scarcer, not more plentiful.
Economists tell us that the world is recovering.
Tomorrow – I will explain why that isn’t yet possible – in
“Who owns the
References:
http://ec.europa.eu/economy_finance/db_indicators/db_indicators8650_en.htm
