Ash
Michael Lynagh (62)
rsea; no, you are completely wrong that sub prime was in total melt down by end of '07. Actually, at the end of '07, most economists were (very incorrectly) saying that the subprime problem was just a small blip.
The global effects of the GFC were most noticeably caused by credit markets stumbling, which were triggered (not caused, it was always coming after the deregulation and proliferation of easy credit) largely by two things:
1. Collapse of Bear Stearns, and ultimate bail out (to JP Morgan Chase in March 2008) - this temporarily solved the liquidity crisis, but only delayed the inevitible until the...
2. Bankruptcy of Lehman Brothers in Sept 2008, and resultant liquidity crisis that undid AIG and resulted in the bail out of AIG, and the federal take overs of Fannie Mae and Freddie Mac. It was not until now that the full force of the subprime meltdown was felt.
Rudd was still cutting billions in early '08 because most of the government economists around the world was still under the crazy illusion that debt based growth and consumerism can continue forever. If the Liberal government was still in power, don't expect that they would've done anything then, either.
Your statement that the liquidity crisis really kicked in prior to Sept 2008 is incorrect, and is maybe revisionism. I may not be a fan of Rudd, but I remember what happened and followed the GFC VERY closely.
Out of interest (no offence), are you a Liberal voter?
Scotty; I was pissed at the Ballymore grant being cut by Rudd, but didn't have much of an opinion on most of it. A lot of spending was obvious pork barrelling by Howard, and a lot more was not required. Admittedly the razor gang did skip some that ended up being pork barrelling for Labor, but overall wasn't too bad.
Agree on plenty of the stimulour measures, though. While effective, they could've been better. Would it have been better if they sat and waited and controlled it better? Who knows.
I know this sounds bad, but for me personally, I would've preferred practically no stimulus measures. Get the pain, and go through it. For my financial situation, it would've been better (like house prices at sane levels, for instance).
The global effects of the GFC were most noticeably caused by credit markets stumbling, which were triggered (not caused, it was always coming after the deregulation and proliferation of easy credit) largely by two things:
1. Collapse of Bear Stearns, and ultimate bail out (to JP Morgan Chase in March 2008) - this temporarily solved the liquidity crisis, but only delayed the inevitible until the...
2. Bankruptcy of Lehman Brothers in Sept 2008, and resultant liquidity crisis that undid AIG and resulted in the bail out of AIG, and the federal take overs of Fannie Mae and Freddie Mac. It was not until now that the full force of the subprime meltdown was felt.
Rudd was still cutting billions in early '08 because most of the government economists around the world was still under the crazy illusion that debt based growth and consumerism can continue forever. If the Liberal government was still in power, don't expect that they would've done anything then, either.
Your statement that the liquidity crisis really kicked in prior to Sept 2008 is incorrect, and is maybe revisionism. I may not be a fan of Rudd, but I remember what happened and followed the GFC VERY closely.
Out of interest (no offence), are you a Liberal voter?
Scotty; I was pissed at the Ballymore grant being cut by Rudd, but didn't have much of an opinion on most of it. A lot of spending was obvious pork barrelling by Howard, and a lot more was not required. Admittedly the razor gang did skip some that ended up being pork barrelling for Labor, but overall wasn't too bad.
Agree on plenty of the stimulour measures, though. While effective, they could've been better. Would it have been better if they sat and waited and controlled it better? Who knows.
I know this sounds bad, but for me personally, I would've preferred practically no stimulus measures. Get the pain, and go through it. For my financial situation, it would've been better (like house prices at sane levels, for instance).