We've had economists over here (Adams, North) calling it an impending Armageddon and they've been trying to warn the policy makers in office for about two years but they won't change the way they manage the debt, quite the opposite actually they keep playing the same game that caused the problems to start with.

There are many parallels to the sub prime crisis a decade ago and in some ways it's even worse here now. We're already seeing an unprecedented rise in negative equity and because of the amount of investment properties and they way debt and exposure are assessed the figures have been obscured to conceal the problems.

I'd say the interest rate cuts will indeed keep things afloat for a while but when you see the AUD starting drop, the house of cards could be starting to tumble and could go into free fall. So shorting could be a good option if you can time it correctly.