Comments on: Collapse of US Economy Will Have Indirect Impact on Australia

By: etch

etch — Sun, 30 Aug 2009 01:38:26 +0000

the reason for collapsing the uSA economy is to reduce emmissions …………. its only way to do that in an ASAP way

By: Oleg

Oleg — Thu, 27 Aug 2009 05:37:07 +0000

What the hell is Ciao talking about?

By: Adrian

Adrian — Thu, 27 Aug 2009 02:28:45 +0000

The following statement “As can be seen from the chart, Australian house prices have never fallen and going forward we believe there will be no reason that they will.” from this mornings Morning Money.

What a wonderful statement. Now as someone who works in finance, we often hear and use the old adage “past performance is not a strong indicator of future returns”. The irony that a financial institution in ANZ has now thrown this adage out the window and is basically saying past performance is now a strong indicator of future returns. Using ANZ’s approach, maybe we should all invest in Poseidon Nickel as it went through the roof quite a number of years back!!

By: Ciao

Ciao — Thu, 27 Aug 2009 02:12:48 +0000

The first effect upon us will be the withdrawal of much of the 30% of the listed Australian equities owned by foreigners. That mainly being merchant banker levered debt generated hot money. Internal alarm bells have generated the Australian government response, they have morphed Austrade from being a trade promotion based organisation and given it a higher priority mission to find real sticky capital investment and to sell off the farm to fill the gaping capital account hole that is coming. That hole will have their (US) merchant bankers pulling back the hot money and our merchant bankers getting their overseas invested capital marked to market and evaporated.

But the short term hot money plays as coordinated by Goldman come first and they are pump priming the insolvent major US banking stocks. Equity trades in the US are the thinnest in recent history and 40% of all NYSE trades are in just 4 dinosaur banks. Look at their prices and our 4 pillar prices and get to see the light. Never mind that high speed index trading is behind the gains and that it doesn’t create liquidity and ranks among the greatest of the front running and sucker inducing pump and dump wall street scams .

By: James Z.

James Z. — Wed, 26 Aug 2009 09:25:45 +0000

Great write! You should send this to GetUp Australia and get it heard by the politicians. They need to hear this stuff.

By: k

Wed, 26 Aug 2009 06:58:18 +0000

Interesting. Don’t forget the disgruntled car owners who traded in just before this was announced and missed out completely.
They will think twice before any more purchases, thus delaying that money

By: GN

GN — Wed, 26 Aug 2009 06:06:01 +0000

Perhaps the unsaid aim of ‘Cash-for-clunkers’ was to move the inventory that’s been sitting on dealer-floors and in the factories for over a year, not really for stimulating further production i.e. it was a government sponsored fire-sale.