Australia faces worse crisis than America

[MtnBiker]

The world's financial storm has swept through Australia and New Zealand this week amid mounting signs of contagion across the Pacific region.

Many fear the economic party in Australia will end badly

Financial shares were pummelled in Sydney on Tuesday after investor flight forced National Australia Bank (NAB) to slash a £400m bond sale by two thirds.

The retreat comes days after the Melbourne lender shocked the markets by announcing a 90pc write-down on its £550m holdings of US mortgage debt, an admission that it AAA-rated securities are virtually worthless.

In New Zealand, Guardian Trust said it was suspending withdrawals from its mortgage fund owing to "liquidity difficulties in the market".

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/30/cnoz130.xml&CMP=ILC-mostviewedbox

Something to keep an eye on.

[Kathianne]

Not surprised. Seldom is the US alone in problems like this, can't think of any time they were.

[manu1959]

they beauty of a global economy........everyone gets to take a bite of the shit sandwich....

[diuretic]

The PM has told us to "brace" - http://www.theaustralian.news.com.au/story/0,25197,24115289-601,00.html

:laugh2:

But I tell you what's not funny and that's the exposure of our big banks to the sub-prime mess. It's interesting to see how much they were involved. All was quiet for a while but as we say here the chooks have turned into emus and they're kicking the dunny down. In other words - we're up shit creek in a barbed wire canoe without a bloody paddle.

manu is right on it - we're all affected when the globalised economy goes bad.

[Psychoblues]

Otherwise American financial innovations giving you some fits down under, doc? We use what is called an "Enron loophole" here and many rather reichwing CPA's call it "generally accepted accounting practises". What do you think about that? How much does Rupert Murdoch stand to lose on this financial disaster? Is he at all concerned about the poor bastard that losing his pension or his house?!?!?!?!?!??!??!??!

[diuretic]

PB things are bit different here. When it comes to pensions/superannuation it's a good example.

There is the federal (Commonwealth) government old age pension but it's pitifiul and fair dinkum how anyone can live on it is beyond me.

Back some years ago our federal government instituted compulsory individual superannuation on an industry basis. A national wage case (hard to explain in US terms, it doesn't exit) decided that x% of the next wage increase would be devoted to employee superannuation. It was originally set at 3% and now it's 9% of the wage paid. Of course the problem is that the super funds have not done well due to the international financial crisis. Me being a gummint worker it doesn't affect me that much, I'm on a defined benefit scheme but that isn't the case for everyone else of course.

As for accounting standards. I think (not sure) that we observe the UK approach of sticking to accounting principles rather than legislated requirements.

And finally, Rupert Murdoch doesn't give a shit about anyone except himself and his.

[Psychoblues]

dupe post, Sorry 'bout that, cowgirls and boys!!!!!!!!! Give me time!!!!!!! I'll figure it out or sober up, one!!!!!!!!!!!!

[Psychoblues]

Well, let's go through this one piece at a time, doc.

1. Your "government old age pension/superannuation" is probably very similar to our Social Security. Actually, without further knowledge I really can't guarantee that comparison.

2. Our Social Security system doesn't offer any actual living income. It is designed purely for supplemental uses and is depended upon by only the most destitute of our population for complete retirement, disability or otherwise, but does quite well for providing some income for the workers and families that have contributed.

3. Our Social Security system operates much the same as your percentage based system, however, we have a cap in income for which no additional contributions are made. Ironic, isn't it?

4. Our government workers were once guaranteed a pension depending on years of service and average salary. They are now under a more private pay your own way system that is far inferior to the old system. In fact, many of our government workers no longer work for the government at all. We call them "contractors". Ain't that a kick in the old national security ass?!?!!?!?!?!?!

5. We once had regulation that seemed to work well for the financial institutions. They screamed and hollered to the point that we deregulated them. Didn't you say that even your country is now feeling some of that pinch that wild scenario has brought about?

6. It's about time someone reigned Mr. Murdoch in, don't you think? He has certainly caused some grief in your country and he is now more profitably reeking damage to mine!!!!!!! I don't think I want to wait for his train to come back around. Dig it?



PB things are bit different here. When it comes to pensions/superannuation it's a good example.

There is the federal (Commonwealth) government old age pension but it's pitifiul and fair dinkum how anyone can live on it is beyond me.

Back some years ago our federal government instituted compulsory individual superannuation on an industry basis. A national wage case (hard to explain in US terms, it doesn't exit) decided that x% of the next wage increase would be devoted to employee superannuation. It was originally set at 3% and now it's 9% of the wage paid. Of course the problem is that the super funds have not done well due to the international financial crisis. Me being a gummint worker it doesn't affect me that much, I'm on a defined benefit scheme but that isn't the case for everyone else of course.

As for accounting standards. I think (not sure) that we observe the UK approach of sticking to accounting principles rather than legislated requirements.

And finally, Rupert Murdoch doesn't give a shit about anyone except himself and his.

Working stiffs like you and me don't have much of a say in all this, do we? I intend, from an American POV, to change that. We made the jerks like Murdoch, gwb, Jack Welsh, etc. and we can sure as hell find a fair and responsible way of taking their greedy asses back down, don't you think?

Meanwhile, I'm embracing the Democratic Party. Not perfect but it's the only hope I have at this time.

Hit it, Beatles, We All Live In A Yellow Submarine: :salute::cheers2::clap::laugh2::cheers2::salute: