Recession

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…" »

Australia’s momentary brush with recession is over. After less than twelve months we are now leading the world out of what was meant to be the crash of the century.

For a year, we have scratched our heads at the demise of others, cowered from the collapse that never came and frolicked with hand-outs. Just as we all had our glasses out for another free drink, suddenly it’s time to clean up after the party, count the debt and pay it off.

The world’s economies move like a cycling pack; uneventful until someone takes a fall.

Continue reading "The Rudd-free account of how we dodged the downturn" »

So we know the GFC is here. Many of us have lost our jobs, we’re all watching our superannuation shrink faster than we can top it up, and all of a sudden bling is out and understated is the new black.

But what does a nearly recession actually look like? The Team at the Punch has come up with our list of the 50 ways the Global Financial Crisis (it’s officially capped, you know), has changed Australia.

Some of them have hard numbers to back them up – others are a sniff of the wind, observations about changes in language and society. We welcome your suggestions.

1. We’re cooking at home. Woolworths has noticed a bump in sales of cooking staples such as eggs and butter, as well as increased demand for value cuts of meat (we’re making casseroles), and for cheaper Home Brand products.

Continue reading "Fifty ways the GFC has changed Australia" »

As a member of ‘Generation Y’ I’ve come to grips with the various stereotypes and countless sledges that come our way.

Everyone loves to bag us. John Birmingham was even quoted to be “looking forward to seeing them get run over by the coming recession”.

So to any haters I have some bad news: the recession has had little negative impact on Generation Y at all.

In the immortal words of John Lennon, “Nothing’s gonna change my world”.

Continue reading "What GFC? We’re Gen Y and we’re recession-proof" »

What if the dire prognostications of the RBA, the IMF, the ABC, DOFA and other be-acronymed institutions were simply ignored?  What if people tuned out from depressing financial static and peddlers of economic voyeurism?

As the recent GDP figures showed, Australians are stubbornly refusing to lie down and pull the covers over their heads as the various hyperbolic chief economists that plague our media keep predicting they will.  Maybe it’s the Rudd Government’s stimulus that is keeping things going.  Whatever the reason, retailers are still retailing, baristas are still baristing, bookies are still fielding, hookers are still hooking and travel agents are writing tickets to Bali faster than they can manage.

Maybe it’s the Prime Minister’s war-cry of “keep spending” that’s keeping nannies, baby-sitters, house-cleaners, and lawn-mowers busy.  Or maybe it’s the indomitable and irreverent free spirit of Australians and the small business entrepreneurs who serve them.  Whatever the reason, the real economy is shrugging its shoulders at the broadsheets and ordering another beer.

Continue reading "What if they gave a recession and nobody came?" »

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" »