Does anyone else have concerns about their compulsory super? I can only imagine that there are trained economists and accountants in charge of these funds (cold sweat) and that most have significant ties to the U.S

???

My guess from the beginning of the year was that Australian rate rises will be kept to a minimal during 2008 due to the social and political impacts of mortgage defaults which would occur if a heavier anti- inflation stance was taken. The other reason is the need to maintain some manufacturing export volume.

Will it be enough? Maybe not IF as Dan says, the price of iron ore is doubling in the short term.

It comes down to the tale of two cities (or should I say a few cities) , all with widely disparate economic policy support requirements. A compromise is all that can be had.

With heaps of money still circulating (at speed), I expect that Australian consumers will return to their old ways shortly (minus the gas guzzlers - can't give them away). Nominal real estate prices will remain "downwards inelastic" but inflation will whittle down real values in many areas over the next few years.