savanna454

Interestingly 50% of the $3 billion raised last month by the NAB is to be sent to the UK and pumped into subsidiary Clydesdale Bank.

The idea being that it can then raise money under the UK Government's scheme to bail out its troubled banking sector

MTPockets

No worries – I mean it. I agree that everybody needs to go on doing their thing, although I fairly certain there will be a recession. Not trying to be negative or aussie-bashing, just pragmatic in that I think we all have a simple choice.

Either the country (and the world) accept that the extent of leverage and debt is way to high to sustain a happy functioning society that works to the benefit of the majority, and we take the hit – now – regardless of how much that notion might scare us.

Or we over-borrow, increase the money supply, promote negative real rates that punish savers and reward those in debt, re-inflate and put off the day of reckoning. That’s what the current course of action is doing. It’s simply taking money from all the successful, prudent people and business (of which there are still loads), giving it to those who aren’t and allowing them to compete on the same grounds, when in reality they are insolvent and should be allowed to fail. It’s completely contradictory with our own notions of the free market.

Personally, I’d rather we dealt with it today than passing the buck onto another generation – like my kids (one day). I think that's both unfair and non-sensical.

tictac

That's right. We can either dig in and knuckle down and get on with life, or we can curl up under a bush and die.

It would be wrong to put your life on hold until this 'mess' is sorted out.

jimbo_d

WA will not be ok in the slightest, I beleive after the auto making states it will be the hardest hit due to the massive slowdown in mining. A few months ago on here there were certain posters arguing how the mining boom would never end, it ended in just 1 week in November. The future outlay for capital works has just about stopped, Rio Tinto set to axe 14000 jobs worldwide, they employ about 90000, 15000 in WA. This along with all the other smaller miners going to the wall - Perth is going to be hammered next year and housing falls will accelerate

DrWho

No surprise there... When I was back in the UK in 2006 I was offered a deal by Clydesdale whereby they lent 90% against property redevelopment for a low interest rate, but a share of the action... Fair amount of those deals are sure to have gone wrong...

TiddlyPom

I think Catch was being tongue in cheek

jimbo_d

so he was....

savanna454

Think Catch was joking but agree with your comments

Wonder where all those mining optimists are?

BHP iron ore shipments have fallen to a 9 month low and Merrill Lynch are predicting they will need to cut output by 25% in 2009

Shan Shanghua secretary to the China Iron and Steel Association has told Bloomberg that Chinese steelmakers will be seeking an 82% price cut in iron ore 'contract' prices as steel prices hit a 14 year low

[I thought 'contract' = agreed price?]

Bluescope Steel shares were suspended yesterday as it tries to raise $300 million..........

To think that Rio now $33 was around $160/share at the height of the BHP bid - how the mighty have fallen!

And so it goes on..........