Global Financial Crisis
Over the past week, the word Grexit has been thrown about. It’s a term coined to describe a Greece exit from the euro. But will it actually happen?
Only last week German Chancellor Angela Merkel said that Germany wants the country to remain in the bloc. But recently, financial leaders from the European Central Bank (ECB), International Monetary Fund (IMF) and various Heads of State have broken their silence, and publicly commented on such a move. It’s something they avoided for fear of an overreaction on global share markets.
But investors are certainly pricing in the possibility, as they sell out of risky assets like the Australian dollar which fell to below parity with the greenback. The Australian share market lost more than $100 billion dollars last week.
Continue reading "No drachmas for Greece, unless there’s a tragedy" »
Are you comfortable with the idea of Australia’s banks being taxed a tiny amount to generate billions to support health and education and tackle poverty both in Australia and abroad?
After endless headlines about the big banks raising interest rates and at least one of them slashing jobs, you would be hard pushed to find many who didn’t support the idea.
But you don’t have to look too far. Up till now, Australian politicians of both parties have outright rejected the idea of a Financial Transaction Tax (FTT).
Continue reading "Taking from the rich and giving to the poor" »
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Jolly says:
Taxing the big financial institutions? What a laugh. They’ll pass it on to consumers. So who gets whacked again? The consumer. Then there is this concept of taxing the rich. Bull dust!! The very rich get away with murder. The Packers, the Foxes, the Murdochs, etc. have special accountants to… Read more »
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Will says:
The people that should be taxed are those that do not work for the money and hand outs they get, the food and roof over their heads, the gas, water, electricity, health care, education. I have worked for 60 years providing all of this for myself and my family and… Read more »
In 2008, one of the biggest financial disasters in history took place. When investment bank Lehman Brothers collapsed, the global financial crisis announced its unwanted presence to the world. Four years later, the European debt crisis has again left the global financial system teetering on the edge of the abyss.
Make no mistake. This is the Cuban Missile Crisis of economics. Christine Lagarde, managing director of the IMF, has warned of a 1930s style Great Depression. Former prime minister Paul Keating has called it the “worst crisis of his lifetime.” Legendary speculator George Soros, in a chilling interview with Newsweek, had this to say:
“We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse. The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system.”
Continue reading "What happens to us if we collide with GFC 2.0?" »
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J.S. Mill's Ghost says:
“The problem is that economies need to grow, and to grow you need to spend.” FALSE. Economies grow through [value-added] production. Production is sustained by savings and expanded through investment. Consumer expenditure literally consumes and thus destroys wealth - investment helps production grow and begets more income and more consumer… Read more »
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Anne71 says:
St Michael, I must say that I’m really enjoying reading your responses - informed opinions devoid of political rhetoric are always welcome. Thank you! Read more »
Contemplating the US debt is akin to contemplating the infinite universe. It’s awesome (in the proper sense), mind blowing, and rather difficult to properly understand. US President Barack Obama has pleaded with Congress today to raise the debt ceilling to stop the economy unravelling.
Here at The Punch we were trying to get our heads around what it all means. There’s an entertaining and slightly frightening piece over here at news.com.au, on the ten things you need to know about why the debt ceiling matters.
It mentions the intriguing idea that Treasury could make a $1 trillion coin and deposit it. And somehow that would help. Or not.
Continue reading "So we understand the US has a slight cash flow problem…" »
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St. Michael says:
Normally I don’t like to say “I told you so”, but this once, I will. Read more »
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Poorer by the day says:
Also is killing tourism as people put off coming here and Aussies head overseas as cheaper. Also on a personal level, I am paid in USD. Doh Read more »
“Okay it’s time to go now - they have started throwing stones.”
The words were calm but it was hard to miss the rising panic in the voice of my Greek host Danai as stones pummelled into the building behind us as we watched the latest episode in the demonstrations that have been rocking Athens for the past month now.
Yesterday the tension was palpable.
Continue reading "The wheels have been Greeced for too long" »
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John says:
The way i looked at it. 1. EU zone only benefit the Germany and France as they out compete the smaller EU nations, this results in smaller EU nations that can’t compete to be out of jobs. 2. The smaller nations who have no job’s, then borrow from the international… Read more »
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John says:
I don’t blame the Greek people, blame their western financial system that runs printing press’s at five times the rate the country produces. Look around every country is debt to international banking cartel. It’s time every western country cut ties with IMF, World Bank and FED. US dollar’s should be… Read more »
WELL, that’s a blow. The worst global financial crisis for two generations and Australia can’t even muster a decent recession.
This morning’s numbers, showing the economy grew - grew! - in the March quarter, provide disappointment for households that have traded down from Leconfield to Lindemans and for companies that have appeared a little too eager to wave the pink slips.
Were their budgetry sacrifices in vain?
Continue reading "What recession? It’s a pity we went and sacked everyone" »
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Vicgal says:
To Wendy, you will find you are wrong in your ‘astrological prediction’ here, get your head out of the sand lol..You will find by 2011 not 2012 that things will be rolling ahead again… for now the Rudd Government have averted the worst of the recession from Australia and I… Read more »
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Alec Watson says:
Companies have taken advantage of the downturn to flick all their dead wood, pay cuts and reduced hours. I often wonder if these action alone caused most of the perceptions we have about the recession. Read more »
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