Kevin certainly is not inspiring confidence.$10 billion is less than 1% of GDP.It will have some short term effect but the real game is keeping people spending so they will keep their jobs.In the last recession the Keating Govt denied the reality of a recession until it was nearly over.Now our Govt threatens doom and gloom before it has even really begun to bite.Some commentators are already making predictions of 200,000 jobs being lost.Not a good confidence booster.Are they preparing us for something really nasty?

The US is running the risk of blood in the streets since they have the most armed civil population on the planet.Putting millions of people out of their homes is a recipe for civil unrest.It is better to keep people in housing paying at least something and them keeping their jobs.

Polycarp no offense meant but you showed a total lack of understanding in that post.
This believe me is a crisis, and Australian homes are more over valued than American bet on it.
Rudd knew giving the money to pensioners would do two things.
As the post above says it will be spent.
Some will have a better Christmas some may get the fridge or washing machine they need.
And in spending it the economy has a chance of not slowing too fast.
Those polls David surely you know they are not driven by handouts?
They are clearly a vote of confidence in the way he is handling this crisis.
If in doubt read articles in such as the Australian fully supporting his actions.
This is not a short Sharpe recession, this is bigger than most think, unless the world can find new ways of controlling debt and over spending we are in for bad times.

This is interesting.

R0Bert, that economist on 60 minutes was Steve Keen. The same Steve Keen that wrote an article published on OLO almost exactly one year ago. BEFORE the first downturn in November.
http://www.onlineopinion.com.au/view.asp?article=6528&page=1
Back then the article only generated 16 comments, some are highly amusing to read now.

As for runner denigrating the prophetic powers of economists, that is highly amusing. This economist got it right, because he had good data. In fact this economist has saved me at lot of money so far because I actually read the articles here (the interesting ones that have more than just opinion in them anyway) and I moved into cash last year. You would have too, runner, if you had read his article and understood the implications. Thanks OLO, you have at least helped one Australian family.

There's none so deaf as those that will not hear.
And Prof. Keen is now treated as a prophet.
I'd listen to him if I were you.

Hi Graham,

I would agree with Kevin Rudd for the financial crisis to be treated with the importance of a national security issue. While the property market might be a lesser risk, there need to be an impact assessment on three key issues:

- Exports: the fact that the US, EU and many other Aussie exports markets going into recession means there will be an impact on our exports, SME markets, jobs, etc.

- Travel and Tourism: the impact on travel and tourism to and from Australia in a global recession.

- Foreign investment: The impact on investment market to and from Australia.

While I believe the impact can be serious it could also reveal new opportunities for us.

What I find worrying is the level of Australian public debate on this issue in comparison with the US and the EU. I am overseas at the moment and whenever I check Aussie media it seems we are still covering it as something happening overseas.
Peace,

Pensioners and carers big winners in Rudd's rescue package.

Ok ,but Rudd had to deal with that
anyway and hes pretty much copied
what Howard did pre Christmass.
Then again theres nothing unusual in that.

Dont forget this is the same man
who wanted to stop carers payments
all together just a few weeks
after being elected but got caught out.


They 'forced' neighbouirs of people
on pensions to spy on them.
Do you all remember that.

Now does that sounds like a PM
who cares about pensioners
and carers I ask you.

He STILL has not addressed the
issue of single pensioners remember.

Never mind I am sure everybody
will be pleaed to know we waisted
more tax payers money in the senate
making sure the size of serving
at Parliment house canteen were ok- For God Sake at this time of national sercurity to quote him.

Rudds Minister for enviourment is the
closest thing to a National Sercuity Emergency.

On 4 corners she disclosed she had no idea
our largest water catment was purchased
by an off shore company.?

Jenny Wrong certainly got that Wong.
Not one person from the Federal
Government attended the meeting
that sold off our water supply.

We cant blame Rudd for the worlds mess. However had been concerned about National sercurity he had his chance when he was Shadow Minister at the AWB enquiry.

His duty WAS to inform people about the other activities AWB were involved in.

AWB Landmark still operate in the same manner in live exports not just wheat.




You dont talk UP a national sercuity problem putting fear into home buyers and investors if you smart. A PM job is to put peoples mind at ease not provide the last supper.



+ whos going to feeed us Ms Wong +China?

Oh, btw do you think theres any connection between the Uk company and China that purchased our water. Just asking?

There is one question I have to pose again.Since the mid 90'S with a pop of 18 million we have now virtually doubled our GDP to $1.1 trillion and yet ordinary folk are worse off than the 80's. The US has a similar scenario.They too have a shrinking middle class and a pop who have both parents working long hours just to pay the mortage.

The debt trap it seems was a snare to enable those at the top of the food chain to take the cream and run.The tax payer it seems will again pick up the bill for their excesses.

I suspect that the bailout will only prolong the agony,since the preditors will use this time to play the market and draw more tax payer funds into their web of deceipt.

Our earnings to debt ratio is far higher than the Great Depression.On the other hand,we in Australia have a lot of savings in the form of super,however much of this is invested in the banking/share market bubble.
I don't like the notion of interesting times.