tag:blogger.com,1999:blog-37269118.post5857582521247584636..comments2023-08-01T23:59:52.499+10:00Comments on Management Perspectives: Australia guarantees all domestic bank depositsJim Belshawhttp://www.blogger.com/profile/10075614280789984767noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-37269118.post-28649569230436705732008-10-13T20:10:00.000+11:002008-10-13T20:10:00.000+11:00Amoranthus, I wonder if you are not mixing togethe...Amoranthus, I wonder if you are not mixing together two things here.<BR/><BR/>The first is the financial crisis itself. This focuses especially on financial insitutions lending to each other and then to customers.<BR/><BR/>The second is the real economy. Here Australia has a balance of payments deficit, funded by overseas borrowings by the OZ banks.<BR/><BR/>Sorting out one still leaves two.Jim Belshawhttps://www.blogger.com/profile/10075614280789984767noreply@blogger.comtag:blogger.com,1999:blog-37269118.post-34461778242149500242008-10-13T19:09:00.000+11:002008-10-13T19:09:00.000+11:00Appearances are everything, they say.I doubt this ...Appearances are everything, they say.<BR/>I doubt this move will take Australia out of the direct effects of the global financial crisis for many reasons.<BR/>First, there is an interesting correllation of a couple of numbers. The Australian GNP is about $650b per year. Two-thirds of that figure is consumer spending. (The resources and mining sector is supposed to support the aussie economy but it only comprises about 15% of the aussie GNP. And it's being hit hard by the global crisis.<BR/>The correllating figure is the amount is the $400b+ Australia borrows from the US each year. That's approximately .. 2/3rds of the aussie GNP.<BR/><BR/>For Mr Rudd, the guarantees are just being clever. The Australian government could never pay them if things go south.<BR/>Without consumer spending based on US loans, there's no economy.Anonymoushttps://www.blogger.com/profile/02030306382801319097noreply@blogger.com