2 speed economy
Mar 13th 2012, 12:36 pm
#61
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: 2 speed economy
The markets only interest is profit, it is the governments task in a civilised nation to look after those with disabilities or somehow infirm and the aged etc. If anything the ability of the market in any shape or form to be expected to anyhow impact on people's lives remotely positively has been well and truely put to rest.
Let's get away from markets and get back to the human condition.
Mar 13th 2012, 12:43 pm
#63
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: 2 speed economy
Issues of management incompetence meanwhile remain unresolved.
Mar 13th 2012, 12:51 pm
#64
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: 2 speed economy
fools are those that DONT make use of the boom to rake in the cash. if the prices come down later, none of the ores and fuels will be of much use then. so letting. and appreciating currency bad? come on mate. it greatly increases consumer wealth. and what is the goal of an economy again? thats right, to increase consumer wealth.
Global examples look at Nauru, once the richest republic in the world. Now living in close to poverty wanting an Aussie funded detention centre to make ends meet.
Mar 13th 2012, 12:53 pm
#65
Daffyd Duck
Joined: Jul 2008
Location: Paradise
Posts: 5,636
Re: 2 speed economy
nauru . . . what a nice comparison. 
Mar 13th 2012, 1:00 pm
#66
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: 2 speed economy
Did you know that a significant reason for the underperformance of many domestic sectors of the economy is that Australians are deleveraging and refuse to pump spending into the economy despite the relatively higher household income compared to pre-GFC levels?
Australian savings rate is at multi-decade highs and Australians have learned from the Europeans and Americans that debt-binge spending and living beyond your means is a recipe for disaster. The big banks are desperately trying to grow their loan books, and they are competing for the level of saving deposits that have not been seen for many years.
Many domestic sectors (more significantly retail and domestic travel and services) are obviously affected by this deleveraging process, but I tend to think this is a painful but necessary process to avoid future debt blow-outs and liquidity problems.
Those who refuse to adapt by increasing productivity, by differentiating, etc are bound to lose.
Australian savings rate is at multi-decade highs and Australians have learned from the Europeans and Americans that debt-binge spending and living beyond your means is a recipe for disaster. The big banks are desperately trying to grow their loan books, and they are competing for the level of saving deposits that have not been seen for many years.
Many domestic sectors (more significantly retail and domestic travel and services) are obviously affected by this deleveraging process, but I tend to think this is a painful but necessary process to avoid future debt blow-outs and liquidity problems.
Those who refuse to adapt by increasing productivity, by differentiating, etc are bound to lose.
Mar 13th 2012, 1:14 pm
#69
Daffyd Duck
Joined: Jul 2008
Location: Paradise
Posts: 5,636
Re: 2 speed economy
Australians are finally starting to wake uo and save for good reason. Boom times don't last in the so called 'boom states'worse thing that happened to WA in my view, but never the less, other states such as Victoria and NSW are not part of this so called'boom' and rightly conserve capital for the rough times ahead.
