Woolworth’s & Fletcher Building Chairman, Ralph Waters is not surprised either that we have hit a bad patch. Yesterday, I expressed my view the current downturn was inevitable following a stimulus package designed to temporarily prop up an unsustainable, household-debt ridden economy.
Mr Water’s told the Australian Financial Review the Government had only delayed the pain of the GFC though stimulus spending. “I’m not saying that [the stimulus] was the wrong thing to do or what was the better thing to do. We haven’t had a recession, life hasn’t gotten too bad, so on balance, it’s pretty hard to criticise. But equally, it’s pretty hard to be surprised we are going through our dull moment,”
“Australia avoided [a recession] but you can’t do that forever and eventually we all have to have our moment. The difference in our moment is we are paying the debt and interest we tried to run up to avoid this.”
» Rate cuts not enough: Woolworths chairman – The Australian Financial Review, 5th December 2012.