Australian Economy on the mend - but what does it all mean?

[chris.barry]

The Australian economy seems to have turned. Rates are going back up (http://www.theaustralian.news.com.au/business/story/0,28124,26179443-30538,00.html) unemployment is going back down (http://www.news.com.au/business/story/0,27753,26182047-462,00.html) and the sharemarket keeps surging northwards.

What happens next?
Will interest rates hit 7% again?
Will the sharemarket keeping surging back to it's 2007 highs?
Will unemployment drop back to it's 2007 lows.
Will growth return to 3% next year?

And then what will happen in 2011 when the stimulus has all dried up and it's payback time? Will we "double-dip", or surge through on the growth wave?

[Burgo]

What happens next?
Will interest rates hit 7% again?
Will the sharemarket keeping surging back to it's 2007 highs?
Will unemployment drop back to it's 2007 lows.
Will growth return to 3% next year?

Six months ago the share market started it turn back and from what Im hearing it will be higher than the 2007 highs.

I personally would like to see interest rate go to 10% or higher

Unemployment still hasnt reached its bottom and even if it does reach 10% there will still be 90% employment, a great time to shed dead wood.

I would be surprised if growth reaches 3% next year, but it may well pass that by 2011.

Our imports will surge because of the high dollar and wewill have trouble with exports for something like the next twelve months.

The good times will come but the question is will YOU be ready for it.

But I would like to know when can we expect the recession we are supposed to have?