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Saturday, 22 November 2008

Battered Aussie investors look to US

10/10/2008 6:26:00 PM.  | 

Australian investors are hoping this weekend's meeting of the world's richest nations will come up with concrete measures to restore global confidence after the sharemarket dropped off a cliff.

The All Ordinaries share index slumped 8.2 per cent on Friday, its second largest fall on record, wiping some $87 billion off share prices, and a total of $188 billion over the week.

This followed falls of around seven per cent on Wall Street overnight.

The extended plunge comes despite the trillions of dollars being thrown at banking systems around the world and a coordinated round of interest rate cuts by central banks to try and restore normality.

But Prime Minister Kevin Rudd described the global response to the crisis as "uncoordinated" and hopes the emergency G20 group of leading economies in Washington will address regulatory challenges.

Closer to home, federal Opposition Leader Malcolm Turnbull said the government must take immediate steps to salvage the economy by delaying the start for carbon emissions trading, expand a proposed deposit guarantee scheme and invest more heavily in mortgage securities than planned.

Mr Rudd, however, said restoring global confidence was the key challenge.

"There has been a series of, at best, uncoordinated actions by various national governments on this and this has not created an overall image of international government consistency on these questions," Mr Rudd told ABC Radio.

"Overall, what we face is a broader problem of a lack of a demonstration of global and coordinated political will to deal with some of the big regulatory challenges that we now face.

"And that, I believe, is a key part of the confidence equation and that must be addressed as the finance ministers meet in Washington this weekend."

Federal Treasurer Wayne Swan said coordinated action across a range of areas was needed, not just interest rates.

Mr Swan is in the United States for the G20 gathering as well as the annual meetings of the International Monetary Fund (IMF) and World Bank.

"To date, the global solution has been in the hands of the G7 and the G7 does not necessarily include any of the developing countries around the world that are very important to the future of the world economy", he told ABC Radio.

"So, broadening out this discussion to the G20 is really important because the G20, I think, working with the IMF, can help put in place the architecture that is essential to ensure that these events don't happen again."

Mr Swan is using his trip to press Australia's proposals to reform regulatory systems and meet financial market participants from major Wall Street institutions.

"As I've met with people from the banking sector this morning and other people involved with this crisis, the lack of confidence is not encouraging people to lend," he said.

"What that is doing is putting a real credit crunch in place which is stopping activity, or restricting activity, in the real economy."

Mr Turnbull, meanwhile, laid out a three-point plan to salvage the Australian economy.

He said the government must drop the 2010 starting date for the carbon emissions trading scheme and wait until after next year's global climate change conference in Copenhagen before designing the plan.

It should also expand a proposed government-backed deposit guarantee scheme to cover savings of up to at least $100,000 per depositor - up from the planned amount of $20,000.

He also wants investment in AAA-rated Residential Mortgage Backed Securities to be raised to at least $10 billion, more than double the government's proposed $4 billion investment, to boost confidence in the local housing market.

"We are dealing with great economic changes, and they call for leadership and they call for action and they call for decisions," Mr Turnbull said.

COMMENTS

Friday, 10 October 2008

US crashing, Russia similar, and i do not think the poor countries of Africa have been the recipients of the money. So where has all the money gone? i believe it went on afganIraqwars in the last few years, meanwhile not enough looking after problems at home or renewable energy. US thought they would appropriate afgans gas line etc adn recoup costs. Just found out they have spent billions, killed innocent, left their onw soldiers in hospitals many unable to ever work again. Penny dropped.

Posted by: Jasmine Star, Melbourne

Friday, 10 October 2008

It hasnt gone anywhere/ It's just NOT being given up to the banks to loan back out. This means the banks need to find their own Collateral to fund their costs. Sadly the Collateral they had was bet out at 40x more than they had. Now they'll keep asking the Taxpayer to pick up its mess. If creditors HAD to pay, they'd be forced to wear HUGE losses. Watch the play in the EU. they dont want anything of the uSA bailout, a plan to get the union to back their Gamble, paying out billions to the uSA.

Posted by: Nick Again, Maryborough

 

Friday, 10 October 2008

Australian investors are hoping this weekend's meeting.....wishful thinking and on ..... despite the trillions of dollars being thrown at banking systems, one must start to wonder if this is mere words pandered in hoping for a confidence return for though it is known that even the US money bill was not going to see GWB walking a barrow about, is the trillions more about processes that take time and will even billions be there if government revenues dry up?, the next step?

Posted by: Neville Simms, Sydney

 

Friday, 10 October 2008

cont'd. if government revenues dry up?, the next step?....are the major clientele of the stockmarkets so called equity funds, super funds, management funds etc. all of whom may have had loans from the financial institutions so far affected or even have made loans to them or bought up some of thses "prime" mortgages and if so, one way or another they no longer have funding for share market investments, major banks not lending, but where is all the super 9% here in Oz being stashed?

Posted by: Neville Simms, Sydney

 

Saturday, 11 October 2008

Now there Nick, "Sadly the Collateral they had was bet out at 40x more than they had. Now they'll keep asking the Taxpayer to pick up its mess." are you saying the banks have been to a gambling den chasing odds of 40 to 1? and then as far as "Watch the play in the EU.", sure the EU has been looking at the situation but can't agree and UK is going down nationalise path - http://business.theage.com.au/business/uk-plan-triumphs-over-us-bailout-20081009-4x5g.html .......cont'd.

Posted by: Neville Simms, Sydney

Saturday, 11 October 2008

Neville, ALL, i sid was they arent Following the USA "bailout" policy. to do so would create as large funnel back to the USA to help repair their Mess. Started in the USA, through long yrs of plans. yes, i said PLANS. Are you being silly? talking about "gambling dens, cause if you dont what Im refering to, time to hop off, isnt it. Perhaps Nev, instead of sniping because it doesnt fit your pict., maybe ask to clarify, or stay on the path you believe is correct. http://www.globalresearch.ca/index.php?context=latestNews

Posted by: Nick Again, Maryborough

Saturday, 11 October 2008

The link sent Neville will give you much to ponder. ALL articles in this site are by reputable persons, most with PHD's, in political science and many economists as well. Your link was dead. perhaps expired. Krudd and swann have no hope on Fathoming how we'll end up because.1.}Krudd hasnt a clue on economics.2} Swann doesnt seem to want to know.3.) this has been setup to decide where the GLOBAL bank will originate from. Too deep for our little country,Sadly we'll be detroyed for it though.

Posted by: Nick Again, Maryborough

 

Saturday, 11 October 2008

cont'd... and UK natinalisation really only being a different means to same end, and then for a realistic assessment, do read Moultons account - http://www.telegraph.co.uk/finance/comment/3160463/Financial-Crisis-UK-bail-out-plan-is-too-little-too-late.html and you might even see some familiarity with Oz regulator, Reserve and government and meanwhile Rudd, Swann and Co. are trying to fathom out just how far we are away from being a similar basket case.

Posted by: Neville Simms, Sydney

Saturday, 11 October 2008

Refinance the mortgagees, they in turn start to repay the banks, the banks then have the $ to start repaying their creditors, solvency issues would drop. Gee, Just like they did in the Great depression. Nooooo, we have to go down the bail out path, which is designed to crush other nations finances and help the American's out of a HUGE hole. This is a play, designed by purpose. The purpose is transfer as much wealth into the top eschalon of the usa financial elite.

Posted by: Nick Again, Maryborough

Saturday, 11 October 2008

The explanation of the Great Depression was not known until the 1960s when Milton Friedman and Anna Schwartz published their Monetary History of the United States. Given the stupidity of our leadership and the stupidity of so many of our economists, we may learn what happened to us this year in 2038, three decades from now. Quote from "Paul Craig Roberts". Thought you may like this Neville. the whoe article http://www.globalresearch.ca/index.php?context=va&aid=10519 I recommend this read.

Posted by: Nick Again, Maryborough

 
 

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