NOBODY absolutely KNOWS, in advance, what will or will not work. Only time will tell. Whether the authorities do one thing, or the opposite thing, or do nothing, there will be critics sitting in front of their computers proclaiming to anyone who's unfortunate enough to read their typing, that they know the real cause and know the real solution.

Almost every opinionated amateur sideline critic believes he/she is an EXPERT on the Wall St mess.

jw your heated comment would have to include your self would it not?
Just sit and re read your post, if you do not laugh you have no idea of humor.
rofl~!

JW,

Nothing in life is a certainty. Yet, we do know protectionism had a multiplier effect after the 1929 crash of Wall Street, we know that with a term deposit maturity transformation demonstrating a shift from high rates to low rates, that bank margins are squeezed, if they do pass on central bank indicator rates (if they don't lending & business activity declines), we know that central banks and corporates will act to protect the USD and FDI respectively. The latter would likely be protected because, say you are Toyota, if your USD assets decline, your Yen globally consolidated balance shee suffers.

Finallly, we know the difference between State Capital and Market Capitalism.

O.

JW,

Nothing in life is a certainty. Yet, we do know protectionism had a multiplier effect after the 1929 crash of Wall Street, we know that with a term deposit maturity transformation demonstrating a shift from high rates to low rates, that bank margins are squeezed, if they do pass on central bank indicator rates (if they don't lending & business activity declines), we know that central banks and corporates will act to protect the USD and FDI respectively. The latter would likely be protected because, say you are Toyota, if your USD assets decline, your Yen globally consolidated balance shee suffers.

Finally, we know the difference between State Capital and Market Capitalism.

O.

Belly, please read my post properly. The entire point of it was that nobody absolutely knows the wall Street solution. Whether you realise it or not the word "nobody" means JUST THAT. "Nobody"!

Solutions need to be attempted, but "nobody" can guarantee, least of all the lay people on this site, in advance, what absolutely will work.

Only time will tell.

JW I agree with you.

the idea that armchair economists, motivated by sentimental issues of so called "fairness" and "equality" have a clue is laughable.

Personally I posted earlier on this thread and still believe we are better off to leave the thing to sort itself out.

Alot of the problem was caused by governments encouraging Banks to lend to the economically irresponsible, More fool the bankers for going along with here-today-gone-tomorrow politicians.

When Banks go bust some folk lose out, usually the greedy buggers who get sucked in by abnormally high promises of returns (viz Geelong and Pyramid)

However, when governments meddle, it is not the few but all of us (the prudent included) who lose out.

Scarce Tax payers monies squandered on headline political aggrandizement.

Treasurer Swan is looking well out of his depth (must be up to Economics for dummies volume 97) and looking more like a dead duck.

Well it looks like the rabble have got what they wanted, a recession.

The specter of Keating and his “Recession we had to have” will haunt this socialist government of Krudd and Co

This ”one-term” government looking more “one-term” by the day.

And the liberals are right, the banks can afford to hand over the entire 100 base points, despite Sqan swallowing the banks line, hook and sinker to boot, displaying the gullibility of a fool (reminds me of State Treasurer Jolly, whose got dragged down with Pyramid).