Credit expansion retires with baby boomers

Sixty years of credit expansion (and it's close accomplice inflation) - driven by the post war baby boomers- is now retiring with them. From now on credit contraction (and it's accomplice deflation) will be the zeitgeist.

Conspicuous consumer consumption is giving way to a more spartan way of living as the 40 somethings take control of society.

Soon debt will be a dirty word and taking credit to live beyond your income will be as popular as smoking in public. As job security diminishes, taking long term loans for houses etc. will disappear.

Prices will fall ...but more on that in a later blog on energy and houses.

What does all this mean for Interim Management and business, well, only businesses that supply 'needs' will prosper, those supplying 'wants' watch out. The latter should now be ridding themselves of permanent employees and taking on Interim Managers, who are much more flexible as these businesses decline and can be exited with ease when the time comes.

By the way - anyone still believe the green shoots story (ridiculed in an earlier blog)?

Even the Office for National Statistics now says talk of recovery is missplaced, but no doubt those with a vested interest will still see these shoots ie, central bankers, government ministers, estate agents, etc.....believe them at your peril!!