Wednesday, November 19, 2008

The Governor of the Reserve Bank of Australia agrees with JimBob

This article published by the ABC in Australia highlights a question that was asked of Glen Stevens The Governor of the Reserve Bank of Australia last evening regarding Australia's ability to handle the so called Global meltdown.

Glenn Stevens has pointed out that Australia has an economic strength and is well placed to weather the current Financial Storm. He went on to say, "Given that we have that scope and given the underlying strengths of the economy, about the biggest mistake we could make would be to talk ourselves into unnecessary economic weakness."

The comments about Housing are well founded but the overpricing is not Universal in this country and those areas where this is so are seeing the adjustment that is necessary. Equally the comments about the USA Housing Markets are equally not Universal but focused on about four states including, California,Florida,Michigan and Nevada. Our commentators need to be careful as all encompassing statements are indeed the fuel of fear.

I write today to again call on the Prime Minister, Treasurer and media to take heed and change the way we are reporting this situation. It is imperative and foolish if we continue to talk ourselves down.

One fears that our Prime Minister is finding this hard to do as he was handed a pretty sound ship by former Prime Minister John Howard.

1 comment:

Anonymous said...

Too right- Australia has been quite wise with its money management compared with the Northern Hemisphere. We still have mountains of natural resources, our workers are on the whole willing to work for their current (slowly increasing) wages, we haven't become noticeably less productive, we're well-insured and the banks have never lent large amounts to homebuyers who had no prospect of repaying. Personally, I'm just as short of cash as I was 12 months ago, but that's just my niche job market and personal circumstances. A world recovery is not going to make any difference.