tag:blogger.com,1999:blog-9716997.post7965949188389904859..comments2024-03-15T23:30:38.471+11:00Comments on Lindsay's Lobes: Australian market wrapLindsay Byrneshttp://www.blogger.com/profile/11030132436987752741noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-9716997.post-52248192339594519232008-11-29T11:39:00.000+11:002008-11-29T11:39:00.000+11:00If the government in the US took the same route as...If the government in the US took the same route as the British then the banks would be truly nationalized and under the rule of a committee mandated to operate in a fair and open manner. It could mean a generally positive change.susanhttps://www.blogger.com/profile/16747450215034568033noreply@blogger.comtag:blogger.com,1999:blog-9716997.post-49437474733144658062008-11-25T17:42:00.000+11:002008-11-25T17:42:00.000+11:00excellent thoughts lindsay.american banks have alr...excellent thoughts lindsay.<BR/>american banks have already written off about $750 billion of bad mortgage assets and derivatives. the guesstimate is they have another trillion dollars to go. as they delever, they need to raise tier-one capital. the falling markets are forcing them (and other financial companies, including insurance companies) to sell their stocks and bonds to raise cash. all this selling is causing a vicious circle of additional selling. each round presents further challenges to an already difficult situation. <BR/>the <I>scary</I> part is the united states government is spending money it can ill afford to prop up the financial system. as lender of last resort, it might bankrupt us all if people lose confidence in the ability of america to repay its debts.Seraphinehttps://www.blogger.com/profile/06527934346602655741noreply@blogger.comtag:blogger.com,1999:blog-9716997.post-12953317848952979312008-11-25T16:26:00.000+11:002008-11-25T16:26:00.000+11:00Housing affordability seems to me to be part of th...Housing affordability seems to me to be part of the overall cost of living package and the perceptions of value within that. Value I this sense being what portion of income they are willing to accept as cost of a roof over their heads.<BR/>Here in Port Macquarie I’m watching both purchase and rental asking prices drift higher than pre-crisis while disposable incomes are reducing. That reduction can be put down to rapidly rising grocery and produce, fuel and other living costs. That bubble must have a bursting point.<BR/>Just as business had a role to play in creating an economic crisis it seems they are going to continue their negative role. Our Reserve bank governor asked that business stay active and positive, instead we are seeing reduction in activity and job loss, both of which deepen the crisis. <BR/>Again, from out here in the regions, I’m seeing mall businesses having contracts which meant ongoing work being cancelled. I’m seeing major businesses reducing or cutting local activity. I’m also seeing some of those major companies hurting local confidence and still living high on the hog at HQ.<BR/>The corporates must develop a real sense of community responsibility or be penalised. Cutting activity and jobs will simply drive us into a downward spiral.Cartledgehttps://www.blogger.com/profile/11929350278316125588noreply@blogger.com