Posted: July 9th, 2009 | Author: M.Aaron Silverman | Filed under: Bailout, Business News | Tags: Banking Crisis, Business, Finance, gfc, Global Financial Crisis | Comments Off
An Entrepreneur once shared some solid financial advice with me ” Bean counters should not be allowed to decide how you make or spend your money, they should be restricted to counting it” This in mind, perhaps if bean counters focused a little harder on their task, the media would be less filled with words like recession or global downturn.Specifics are what is required in times of financial woe, presently we seem to be far off the mark on all predictions of where economies are headed. In Australia, China and even the USA, all numbers are pointing up. Does all this imply that Governments getting us into debt was mislead, or did it stop the ship from sinking? The world Financial Crisis retitled might have had a more positive flavour for punters.
Global Banking Crisis has a less bitter sound to most consumers. Housing, Employment and Retail – including consumer confidence – have been less than slightly effected by the crisis. Banks on the other hand are now suffering a lack of capital, though ask ANZ and they’d stoutly disagree, as well as extremely low interest rates. Not that we’ve had profit downgrades from any of the big four? The share market, though down is still making buckets of money for those intent on looking at the specifics of why one investment is superior to another?
The down side of all this is the tight times for business, commercial loans & commercial property values have taken a proper battering. This may add about to inflict a financial crisis after all. Without sufficient operating capital, manufacturing will need to start rationalising. The price of finished goods will rise, unemployment will start to lift etc…
I guess the point is that whacking a dog with a big stick does not have the same effect as spending time working out why it won’t listen to you?