Sub prime could be something darker. The worlds final economy will be the microchip on the right hand or forehead....Revelation 13:16-18 and 14:9-11. To get over from todays cash economy to the microchip makes me think conspiracy. Having, as a christian, been taught by the best, Pastor Barry Smith from New Zealand (books being Warning, Second Warning, Final Notice and PS) I agree with Barry that the cash will crash in a flash; and then comes the new economy. You need to check out mark of the beast on the internet. The whole thing smacks of manipulators. Demon powers pushing men to curse other men. The Holy Bible says the microchip...we are never to take.

"666" was a reference in numerology to Caesar. A few years ago preachers were claiming the Bankcard symbol was the mark of the devil. Besides not all countries have the same exposure to sub-prime as the US, whose world ranking is slipping to the EU and Japan, and, emerging China and India. Australia has an exposure of 3-5% to sub-prime. A credit squeeze, inflation and the maturity transformation of term deposits "after" the inflation phase are bigger economic concerns for we in Oz. The economic situation looks bad but perhaps for Oz not worse than c. 1974, when we were in a resources boom and the US dollar collasped, because its bullion assets fell well short of its debt.

Maybe we could begin to discuss what Henry said in his article. He says we need to tighten our belts. By we he means ordinary workers.
But hang on. Working people haven't increased the cost of oil. we haven't increased the cost of food. We haven't increased interest rates. We haven't lent dud loans and created the sub-prime loan crisi. We haven't sold down hundreds of billions of dollars worth of shares. Yet we are asked to suffer for the activities of the profit bludgers.

I have an alternative suggestion. Cut profit rates instead of workers' real wages and conditons.

The sub-prime loan crisis is perhaps an indicator that the productive sectors of the economy are suffering from a deline in the rate of profit. The sub-prime crisis might be the spark to set the economic world aflame given the unstable, unplanned and anti-democratic nature of capitalism.

Passy, You got that DEAD RIGHT.
Notice how it's always the so called EXPERTS tellin US what's good fer US, then at the end of the day, they grab all the money in the kitty and split leavin US to deal with the shite.
Some time ago was employed in the transport industry, we were told to ensure we had employment, we'd have to become more productive, so we changed our work practices and became super productive.
Know what they did ? Sold the flamin business and shafted each and every one of us.
New owners rammed IWA down our throats whether we wanted them or not, increased our working hours from 9.5 hrs to 13 hrs.
I'd love to see how many of these so called 'experts' work 13 hours daily.
What a bloody joke. On US that is.

All very basic and rational. What goes up must come down. Those few who sat out the "good times" squirelling away assets stand to reap the rewards of their self discipline. Those who scoffed at the notion of saving and joined the masses of mindless consumption will be left to pay for it. Laugh at my beat up old corolla if you like but I'll be paying cash for your home at a more reasonable price when you can't afford the interest. The real secret to long term financial self sufficiency is doing exactly the opposite of what everyone else is doing.

Experts have told us we (Aussies) have $46 billion owed on credit card debt alone.

The banks absolutely luv us all.....as it encourages interest rates to increase due to the fact that we are all "so flush with money".

Credit card debt is the worst kind of debt we can all have, just compare the interest rates. Most people don't know what their interest rate is on their card, they just keep paying the nominated amount each month and get nowhere.....they haven't worked it out yet.

Credit card debt is one of the major factors in the Reserve Bank consideration in increasing interest rates.

My message to all - clear your credit card of all debt .....don't live on your credit card. This will "decrease" spending within our enconomy and send a huge message to the banks that we are "not" flush with money and we don't need another interest rate increase.