Reserve Bank Cuts Rates By 100 points (1%)

[The Man from Bomberland]

There's no doubt about the Lib/Conservative Governments, they certainly know when NOT to be in power. They seem to have a sixth sense about it. Leaving Labor to carry the can for the country during the rough times in our history.
You can go right back to WW2. Menzies couldn't get out fast enough when the Japs came knocking at our door.

Yep, they're great at governing when times are good but when it starts getting a bit hot they can't get out of the kitchen fast enough.

lolz

so now the Liberal Party wanted to lose last years election? hah keep them coming mate

[jimmyc1985]

I have a strange feeling that, despite the spin, the Australian economy is in signficantly more trouble than the politicans and banks would have you believe...

Yes, absolutely. There are a number of sick canaries in the mineshaft that i've notice cropping up in the last couple weeks:
- A number of pretty high profile Queensland property developers have gone belly up recently, including another one today. Fire sales of their stock will take place once administrators get going. Look for a Queensland property slump.
- A mid-tier iron ore miner came out today with an announcement that its customers in China have requested that it delay shipment of some of the previously contracted iron ore. Reason? Chinese steel mills have slowed production, inventories of raw materials (the stuff we ship to them) are building up, and they're having some financing difficulties. These Chinese steel mills are already slowing production, and they're currently filling orders that were placed by the US and Europe 3-6 months ago. Europe and US are much, much worse now than they were 6 months ago. Our two biggest exports are coal and iron ore, which are both used intensively in steel production. Look for a slump in export earnings when the contracted price of coal and iron ore comes up for renegotiation over the next 6 months.
- Mate of mine works for Bankwest, which was recently sold by its distressed London parent to Commonwealth at less than book value, which of itself implies Commonwealth are expecting impairments on the loan book. Commonwealth are winding back Bankwest's eastern seaboard operations rapidly. My mate is an agricultural banker, i.e. writes loans to farmers, and they've been told to start calling in quite a few of the loans that were underperforming. Banks are losing patience with tardy borrowers. Look for a steady increase in all sorts of consumer-related credit defaults starting about now.
- Job ads fell to a 7 year low, and the employment market is softening. Look for a steady rise in unemployment.

We'll be hard-pressed to avoid a recession.

[The Man from Bomberland]

That Queensland property slump your eferred to is already on. Auction rates in Queensland recently were the lowest in the country. Some tough times ahead. Time to save that extra cash.

[BenDoolan]

I agree that there are some extremely tough economic times ahead JC - no doubt. But I just couldn't resist the barb

You could even go a step further and suggest that Rudd will go down as the greatest PM ever if petrol prices, food stuffs, interest rates and house prices fall off a cliff . Only downside would be a thumping recession would probably accompany those 4 things.

Interest rates tumbling, fuel prices tumbling.......

Hmmmm