Another one bites the dust..

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Mar 6th 2012, 5:14 pm

#61

IvanM

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Re: Another one bites the dust..

Australia and Canada have something in common that meant the GFC effect was not as bad. A lot of valuable muck.

Mar 6th 2012, 5:37 pm

#62

chris955

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Re: Another one bites the dust..

That is why those particular sectors of those 2 economies avoided the effects of the GFC, unfortunately the other sectors were hit pretty hard.

Quote:

Originally Posted by IvanM

Australia and Canada have something in common that meant the GFC effect was not as bad. A lot of valuable muck.

Mar 6th 2012, 7:04 pm

#63

IvanM

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Re: Another one bites the dust..

Yep I got made redundant despite working in a related industry. Miners made a lot redundant but the royalties kept treasury happy.

Quote:

Originally Posted by chris955

That is why those particular sectors of those 2 economies avoided the effects of the GFC, unfortunately the other sectors were hit pretty hard.

Mar 6th 2012, 7:09 pm

#64

Broad Shoulders

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Re: Another one bites the dust..

Quote:

Originally Posted by roaringmouse

The most visible one in the UK was Northern Rock, but the institution lives on, and is now owned by Virgin Money. Others still exist, but the ownership changed in that the government used public money.

In Australia, RAMS was taken over by Westpac and BankWest by CBA - both direct results of the GFC. Also, didn't the banks in Australia use the country's credit rating during the GFC to get their hands on cheaper money rather than their actual rating, which have been cut since then?

Looks not too dissimilar to me.

That's all Vash could find on wikipedia on the subject of the GFC, so I doubt you'll get much response on those very good points

Mar 6th 2012, 7:28 pm

#65

IvanM

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Re: Another one bites the dust..

Allco and Babcock were the main Australian financial failures. Bankwest was supposed to have been a Dodo. Suncorp and Bendigo needed strong assistance. The banks were backed by the federal credit rating and deposits are still guaranteed by the reserve.

Right now the ECB is still using panic measures incliding providing 3 year low interest loans. British banks have been beneficiaries. Currently the British taxpayer is taking a 40 billion sterling loss on the RBS and Lloyds alone.

Britain's biggest issue is private debt. Britains net external debt is 400% GDP. US 100% GDP and Australia 90% GDP. Thats indicates a lot of mortgages to be paid off or written off in the UK. It also shows that Australia's debt level is similiar to the US and could be a shackle should the resources boom settle.

Britain has so much much public and private debt it will take a long time to get out of the poo. The US has to get realistic about its public debt but the politicians on both sides live in monkey land. Cut taxes, increase spending and it will sort itself out crap.

Quote:

Originally Posted by roaringmouse

Mar 7th 2012, 1:06 am

#66

roaringmouse

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Re: Another one bites the dust..

According to this news article, SA & Tas are in a recession, and Vic is on the brink of one. Almost all the economic growth in Australia during 2011 was from the mining states.