Rudd's response to the financial crisis was a knee-jerk one, typical of Queensland politicians. In respect of the "frozen fortunes" issue (where investment funds have blocked withdrawals for fear of an unsustainable run): fund managers and investors made choices amongst a spectrum of risk-reward options. Overnight, the Government drastically changed the balance of risk and reward by offering unlimited risk-free investments in certain institutions, inevitably precipitating a run from non-guaranteed deposits unless withdrawals were frozen. Rudd's ill-thought knee-jerk action was directly responsible. Expect no better on other issues, Rudd plans to proceed with his economy-damaging emissions trading scheme before ascertaining whether China et al will play. Leaving aside arguments on global warming, a unilateral Australian scheme is all cost and no gain.

Rudd's 'Tin Tin' economics scare the bejesus out of me.
We run a small business, and I am terrified that his antics over the past few weeks have caused a much, much larger problem than existed before.
Perhaps the comments on this article will be enlightening.
Is the falling of the dollar (driving the cost of our raw materials through the roof!) connected to his guarantee? Have foreign investors pulled out of Australian funds en masse?
Also, Many of our largest consumers are self-funded retirees.
When the freeze ends for these institutions, how functional will they be?
What will happen to my own superannuation, (even though I will not be cashing out for many years)?

When I say 'consumers', I mean 'consumers of our products and services; our clients'.

To me the crucks of the matter is the relivence or irelivance of truth . in our society truth has been replaced by popular opinion and facts and sudo science where everybodys opinion is relevent and Truth no longer has a place at the table . I believe without truth we revert to a belief in fate and accidents being the catalist for change much like a ship without a rudder subject to every whim of the sea . My observations have led me to believe that without vision plans and managment we acomplish very little . I do not believe that the left wing socalists practice what they preach as they are in love with a culture of death , survival of the fittest ,abortion ,Human rights , athiesm , rebelion , preocupation with witchcraft ,euthanasia and the like as I believe Labor has a plan for this country and it is no accident but the results are disasterous . Faith is the substance things hoped for. What is the hope of most australians . I do not believe it is poverty , starvation , and dependance on the new world order for our existance . When truth goes annachy rules.

I have just finished reading the Treasury documents at http://www.treasury.gov.au/lowpollutionfuture/ on the modelling that Treasury has done on greenhouse emissions. As this is something I know something about I am quite concerned that our officials are doing the same sort of job with areas that are not in the public gaze. We have reason to be worried.

These modellers, who have so much influence on policy, seem to lack judgement on what is important. For example it appears that 90% of the costs associated with generating renewable energy are financial costs. These financial costs are made up of interest rates (that vary widely throughout the world), factors to take into account stability of governments (guesses at best), taxation rates that depend on profitability and are subject to political whim. However, all the modelling assumes that price of energy (about 10% of the influence on investment) is the important factor to vary so we have invented this idea of emissions permits to increase the cost of production of fossil buring fuel. This is peripheral to the decision to invest as it only influences 10% of the problem and so is unlikely to work whereas if we tackle the problem of influencing the 90% of the costs then we are likely to make a difference.

The modelling is not an investment approach which tackles the cost of capital but is a cost accountant approach which looks at the cost of production.

I am afraid that all our economic advisers suffer the same problem. If we thought investment rather than consumption as our measure of progress then most of our problems go away. I think we will be OK because the Chinese think long term and with a bit of luck we can tag along - but we would do better if we also concentrated on investment.