Australia: Point of no return

Australia’s economy has passed the point of no return. Housing sales are down, bank lending is slowing, the big banks are capital impaired and chock-full of garbage loans, consumers are maxed out on debt, and consumer sales are faltering.

In short, says economic analyst Mike Shedlock, Australia is past the “point of no return.”

In a blog update posted on April 22, Shedlock notes that Woolworths, one of the bluest of blue-chip stocks in Australia, just posted its worst quarter in 13 years.

It looks like the global economic crisis has finally caught up to Australia. The only question is: How bad will it get? For our answer to that question, read Ron Fraser’s article “Australia’s High-Risk Economy.” Here is a hint: The outlook isn’t good.