Aussie Economic Situation - Boom to Bust - Australian Federal Treasurer Peter Costello

Submitted by Craig Strzelecki on 16 February, 2006 - 21:19

Like all booms - they all must come to an end. And the Australian Federal Treasurer Peter Costello has warned that the boom will not last. "This won't last forever; it never does," Mr Costello told ABC radio. Australia's economy has recently been riding on high worldwide oil, mineral and commodity prices.

Australia's economy has had fourteen years of continuous economic growth. Peter Costello predicts that, "What will happen is that demand will turn down or more likely around the world supply will turn up, prices will normalise." And continues - a dire warning, especially for those of us trading the markets: "And you don't want to kid yourself that all-time record price will last forever. They won't and we have to take that into account when we are making our decisions." Of course as traders, we would now be waiting to pounce on shorting opportunities.