“Because of the seriousness and gravity of the financial crisis the Prime Minister has to act fast, other wise it will be too late for any bail-out.”

Foxy, this is what we are being told. But how true is it?

Making sure that the expenditure is directed in the best manner possible is vastly more important than getting it happening tomorrow instead of two weeks or a month down the track.

“His advisers are not just a small band of people - I believe they include economists from the International Monetary Fund and The Reserve Bank.”

He surely should be getting advice from across the whole spectrum of concerns and not advice that is apparently strongly biased towards the interests of big business or continuous-growth economics. And he needs to be seen by the whole populace to be doing this. This could indeed be conducted very quickly.

We are really at a major point in our national history, where it is of the utmost importance that we work out how to modify the flawed system that has landed us in this mess and spend the money accordingly.

Runner I have never agreed with anything you post on any subject.
And if I could understand your latest post I would be unlikely to agree with it.
I however got the bit that saw you ask why Rudd did not mention the bail out before the election, before the crisis?
I note no one spoke about the budget being in deficit without the bail out, or compared our spending with Americas.
No one highlighted IMF and world banks support for this type of help not tax breaks.
This IS a crisis, we do not yet know where it will take us, forget being isolated, if America suffers we do too.
Every dollar in so called hand outs , like every other one spent has a ripple effect, it go,s from hand to hand.
And some of those who get it may buy the new fridge they have needed or washing machine.
Some with a few kids could at last have enough for a holiday.
For sure the economy will be the benefactor , much of the money being a life raft for small businesses.
Foxy good thread, it will bring many posts many ideas but we are governed well and Turnbull is skating on thin ice.
His party may dump him, not a wise move but more than a chance they will.
I have no doubt, none, that opposition in this country should have remembered it was policy's like this that lost them an election not won one.

This has got to be a first; Ludwig supports Turnbull !! !! (:>\

http://www.youtube.com/user/MalcolmTurnbullMP

This evening on the 6pm news, Wayne Swan gave me the impression that he doesn’t really know what is happening with this enormous expenditure.

Someone suggested that he spend some of it on improving bikeways, in lieu of rising fuel costs and the end of the oil era.

He said that he would look at it, with a tone and expression indicating that he hadn’t even thought of the idea.

Well, this is exactly the sort of input that Rudd & co should be seeking from experts, and perhaps the general public across the country, before they commit to particular huge expenditures and projects. And again, with a concerted effort this could be undertaken very quickly.

I don’t have lot of confidence that Swan, or Rudd, really know what they are doing.

Does anyone here on OLO have a high degree of confidence in them?

I think the idea from the Libs is (and I may be wrong) is that the debt it would cause is to big when it most likely won't work anyway (as the previous one didn't)...

I am not sure I haven't been near a tv for a few days, but the other option that Mr Rudd and Mr Obama are not fans off is tax breaks... There are other ways of thinking but for this stim pack stuff...

Mr Turnbull said he knew the Libs would cop a bashing for in opinion polls etc for it...

Ludwig,

I have zero confidence in them, and that's not cuz I am a Liberal voter... It's cuz Wayne Swan has no experience and Mr Rudd just seems so lost.

Foxy I suspect that in the short term it will hurt Turnbull and the Libs in the polls. I'm not convinced that the handout component is a good strategy.

If they want to simulate individual consumption without giving income tax breaks then maybe they could significantly reduce the GST for a set period (say 2 years). I can see the benefit in big infrastructure spends at the moment, projects that would create jobs in Australia rather than improve electronic retailers profits. Projects that would put us in a better position for the future.

R0bert