Perhaps there is an argument here for a government owned bank. We even had one of those under previous Coalition governments.

[Remember when we had public assets like an airline, a telecommunications system, energy utilities (which in some regional areas are now owned by foreign companies). Publicly owned assets used to be an essential part of our social democracy.]

The pre-Christmas bonus was short-sighted of Rudd - millions of dollars of public funding for a short-term spending spree. Money taken away from critical infrastructure. I have no problem with pensioners and carers receiving a bonus which was long overdue but the rest of these funds would be better spent on infrastructure. Businesses don't create jobs on the basis of short-term windfalls such as over Christmas and the stimulus package did nothing for long term sustainable employment.

Only a few months before Rudd was telling us not to spend because of the risk of inflation, not two months down the track we were being told to spend. What a mad system we have designed for ourselves.

Ludwig is right. You cannot sustain our current immigration levels while at the same time ensuring job security.

I know some of you won't agree, but if times do get really tough there are plenty of jobs that could be created that are not getting done now. It would mean more government paid jobs but in the long term the only way our economy could be protected from the worst effects of the financial crisis.

Afterall the anti-government brigades were more than happy accept government funds to shore up the private sector in the way of subsidies, deposit guarantees and bank bailouts (US) so what is the difference if we utilise some of those government funds to create employment?

Sometimes I fee genuinely sorry for Mr Rudd, just the seemingly desperate need to be looked up too, then I look at some of the really stupid things he does and embarrassing guff ups he is in O/seas and I just resent him.

He needs help not a job running a country, I just wish we'd have Mr Costello around.

Peter Costello is the last person we need at the moment. He was part of the financial paradigm that got us into this mess in the first place. This to me is part of Rudd's problem. He's not making enough of a break from the old way of thinking.

I agree totally with all that Ludwig and Pelican have said. I agree with Pelican that a government-owned bank is an essential first step in keeping a check on the private banks. We also need a return to the legislation that kept the banks in line as a service provider, rather than the speculatory free-for-all they've morphed into since.

I don't see spending for the sake of it as the answer. As Ludwig points out, it has to be targeted spending that will help put us on a more sustainable footing. Untied tax cuts, bonuses and bailout money only encourage the continuance of indiscriminate, wasteful and carbon intensive spending. We have an opportunity to use this financial meltdown as the catalyst to create a new economy based on new energy sources, which as well as providing employment will help avert the looming catastrophe of climate change.

I agree with Ludwig that ecomomic growth based purely on population increase is false economy. Apart from our humanitarian obligations, immigration needs to be reduced and jobs for existing Australians made a priority.

The government also needs to ensure it exercises a strong controlling influence in the industries it assists, and is not seen purely as a milking horse to prop up failing private enterprises in hard times, only to be treated with contempt once profit levels return. Taxpayers must see a return for the largess they're providing to bail out private industry.

The numbers of people looking for security in government employment have jumped enormously. As soon as the good times are perceived to be heading their way again though, many will ditch their lifeline in favour of once again cashing in on private profit. We need some sort of loyalty contract so that the taxpayer investment in these jobs is returned in full.

What twaddle Bronwin, the financial problems are based on a US lefty government, encouraging banks to extend housing loans to people who were likely to be unable to repay those loans unless their economy kept booming along.

Our problems are the US problems, passed to us third hand, through China. We are only doing as well as we are now, because of the excellent condition of the economy passed to KRudd, & co.

I don't blame KRudd & his mates for the problems, but their response, so far, has smacked of a couple of apprentice fitters, left in charge of the engineering department. Even more frightening is that Obama is talking the same talk.

I agree we must find some way of plugging the huge pipe line, spittong tens of thousands of people into Oz. All too often, many of these people are not suitable to take a place in the Oz economy.

In the first great migration wave we had thousands of cannon fodder type jobs, requiring virtually no skills, not even english, where migrants could earn their keep, & progress to happy lives. These people had a dream, wanted it all, & worked their buts off to get it.

Well we've exported those jobs to Asia now, they no longer exist. Todays migrants have to fit into a much more sohpisticated work place, one that many of them are totally unsuited for.

Too many of todays migrants have all ready exceeded their wildest dreams with public housing, & the dole. They can't imagine being better off, & no one works for what they can't imagine

The social problems we saw at "the shire" will be childs play in 10 years time, if we don't stop this flood.

The problem is far deeper than the loans swindle in the US.Too much credit has inflated housing world wide.It starts with the Central banks of the world setting the debt trap.It is also the Corporates having too much influence in Govt.It has been corruption on an enormous scale.The money supply in the US has increased by 70% since Oct 08.If this continues then we are in for hyper-inflation and the collapse of the US $.Printing more money just amplifies the inevitable.

The the US should issue a new currency owned by the people rather than the Fed Res and back it with gold and silver.I don't think that Obama has the insight or the will to do what is necessary.

We need smaller Govt and less regulation.Laws and regulation do not stop people from being dishonest.Perhaps a Govt owned Bank would be stable influence but will be run efficiently?

We need smaller Govt and less regulation.Laws and regulation do not stop people from being dishonest.

Exactly, with fewer civil bureaucrats living off the real wealth creating sector.

As Margaret Thatcher said "The larger the slice taken by government, the smaller the cake available for everyone."

Perhaps a Govt owned Bank would be stable influence but will be run efficiently?

I think that is what we have already, although, I like separation of Powers ...