Of course there will be some flow-ons from the financial meltdown in the US. That's one of the legacies of being in a global economy.

What needs to be remembered is the Australian financial system is quite different from the US, because of our regulatory system and because of the lending policies of the Australian financial institutions. Nevertheless, we have seen the downward effect on share prices and the likelihood that any cut to the interest rate may not fully flow through to a reduction for consumers.

Those people who have just retired or are about to retire will feel the share price fall reflected in their superannuation holdings as the superannuation funds face negative growth in their investments.

The suggestion is that some people may have to put off their retirement for a few years if they wish to recoup the lost superannuation funds through a resurgence in share prices.

Most analysts are extremely confident that the share market will recover and those who are in for the long haul in shares will regain what they have lost.

That may be a worrisome proposition for some, especially the self-funded retirees, but history has shown the recovery path of shares and there is no reason to think it won't happen now.

The coming months will hopefully confirm the predictions and allow the US government's rescue package to settle the markets.

In the meantime, locals should not be making any dramatic decisions and should continue to support the local economy in the confident way they have over the last few years.