There seems to be no consensus about where the Australian economy is headed. The US economy seems to have slipped into recession, but according to recent commentary in Australia, the chief executives of large companies are optimistic about Australia’s immediate economic future despite the fact that we have just finished the worst quarter for the share market in 20 years, while a majority of Australia’s small business leaders believe that a recession is about to occur here.
On the whole, company profits seem to be buoyant, but signs of cracks in the prosperity picture are appearing, with some companies already having gone under. Whilst we do not have the same type of sub-prime mortgage crisis as has occurred in the US, there must be large numbers of individuals and businesses struggling with the unexpected burden of interest rates which are so much higher now at 7.25% than they were a few years ago.
I don’t know whether we are headed for recession now or not. What I do know is that bad times happen. Bad things happen in life, and there’s nothing you can do to stop that happening. All you can do is be ready for the bad times when they come. As Ecclesiastes 7:14 says, “When times are good, be happy; but when times are bad, consider: God has made the one as well as the other. Therefore, a man cannot discover anything about his future.” (NIV)