Governments are driving up the costs, as simple as that. They're the one who increase all charges which then have to be passed on down the line. The moment some outfit does well the Govt & Labor in particular, pounces onto them & hits them with increased charges.
It is this money grab with prevents us from getting ahead & making progress. Loosen up Govt & you'll have the benefit of a good country.

Well it depends on which way you look at it. It was a lack of regulation in the financial markets in the U.S. (in particular) that led to the 2008 GFC. If you take a peek at the present situation with the Dow and European markets, you'll note that exactly the same gyrations are happening again. The same volatility where on a weekly basis the markets take a dive for a few days before rebounding....make no mistake, this is precisely what occurred before the 2008 crisis.

And we've learned nothing! People are still encouraged to turn to credit to get what they want - unending growth is still the mantra, blah, blah. blah....

Interestingly, the Euro is at risk in this latest round of unrest, with quite a few market gurus predicting its demise. Stay tuned folks - it's not over yet.

Rudd, in all his ill advised wisdom, decided it would be a good thing to increase the first home owners grant to 21K as yet aother failed ploy to stimulate te economy.

So, here we are some tree years latter, and many of these victims are once again fighting off bankrupsy, the difference being they now owe S- loads.

Irrisponsible fools ( government) and their loyal followers have a lot to be ashamed about for many years/generations to come.

The biggest mistake they made, if we can choose one of the many, was to make employing people harder during the toughest times in decades.

But, you were all warned.

*And we've learned nothing!*

Actually not so, Poirot, if you look at the stats, Australians
are actually saving more then for a long long time, something like
10% of income, up from 1% or so.

So people have learned something and are trying to pay down their
debts, much to the disgust of Gerry Harvey and other retailers.

The 2008 was indeed a problem of some in the financial markets
cutting loose, after Bush removed financial regulations. Sheesh,
if we removed police from the streets, no doubt the crime rate
would rise too.

The present debacle is in fact much greater, as for years Govts have
simply solved their fiscal problems by ever more debts, year after
year. Luckily for us, we had Costello for years, who took us in the
opposite direction.

The point has come where European Govts in particular owe so much,
that markets started to question their ability to service or repay
these debts. European banks are the ones who have been doing the
lending, but the sums are so huge, that if countries like Greece
should default, they will drag large parts of the European banking
system down with them.

IMHO they will possibly try and print their way out of the mess,
which is why gold is at such a high price.

So the problem really is a political one, reflected in economics and
not the other way around.

The GFC is still around and I don't believe will ever see pre 2006
times again. The housing bubble must burst or collapse, it just seems
to be waiting for something to prick it.

Consider this; the world, everywhere except China & India, is having
problems with growth. China's growth rate is around 9 or 10 %.
That means China's economy will double in 7 years !
Do you really believe that there are enough energy & other resources
available in the world to enable that to happen ?

This implies that China will either have a crash or steep slide to
what maybe a fairly severe landing. What will happen to our economy if
China reduces its iron ore and coal purchases to say 20% of current ?
China has been developing its own mines in Africa, they could chop us
out altogether.

"Western" economies are suffering low growth problems.
The reason is that oil & coal prices have eaten up most of the GDP
that otherwise would have been available. Oil has settled at around
$115 for Brent and $120 for Tapis which we buy.
Interest and principal is repaid from the GDP and that points up why
European banks are in so much trouble.
It shows why businesses here are having such a difficult time and the
general public is paying so much for electricity etc.
The lack of GDP echoes through the whole economy.

I agree with Poirot the GFC is not over, we head for great pain great change.
But here in our country we as a nation have far less debt,BUT private debt while being paid down,housing debt, is not under control.
The wise grand parents who told us of the dangers of credit, then the understanding we could buy a home or car faster by using it, has blinded us.
First lets look, do we want 10% or 20% living in tents?
Do we want Socialism then.
Is that fair, or is the the American banking system again? privatize the profits Socialize the debt?
Is a government intrusion big enough to reduce rentals good?
It would stop investors/building/speculation would it not less homes .
I do think we are in a mess, but it will get far worse.
Will we become like America? still the richest country in the world, but with so many street people.
Those ww1 and before workmen's cottages in Paddington and redfern Sydney, too small to swing a cat in, once slums, sell for over a million dollars!
Yet we could, out side the city's [cheaper land] build them today for little, some surely need help but every one?
We ask too much from governments blame them for too much then degrade the people running them because the tax bin is not endless .
Who after a financial crash will say we did not need two cars the big TV and lifestyle on top of house payments? few.
But those in trouble may be many.