Day: Tuesday, June 30, 2009

So much and so little

Posted by Chief Blogger – 30 June, 2009

Never in living memory has a PM and a government promised so much but delivered so little. Add to the list the following item. Rudd said on May 25th 2009 in relation to May NSW floods:

Today the Minister for Families, Housing, Community Services and Indigenous Affairs also activated the Australian Government Disaster Recovery Payment to provide further assistance to help those in northern New South Wales affected by the flood disaster…I have also today authorised this assistance for people affected by the earlier floods in New South Wales in late March (emphasis added).

However the day after, as pointed out by Akerman, Rudd’s office advised the local member that:

…contrary to what the PM had said on Monday, the victims of the March 31 flood would not be eligible for the one-off cash payment, only those affected by the May event.

So March now means May? Don’t tell me Rudd misled Parliament. What about his integrity? Clearly none of the flood victims own a Ford car dealership.

It’s called having runs on the board

Posted by Chief Blogger – 30 June, 2009

In Australia:

There are now only eight AA-rated banks in the world, and the Australian domestic brand names of CBA, NAB, ANZ and Westpac account for half.

Before the financial crisis engulfed the world there were 20 AA-banks.

The robust state of Australia’s banking system has been applauded globally and used as a benchmark for regulatory reform.

In China:

China’s banks are veering out of control. The half-reformed economy of the People’s Republic cannot absorb the $1,000bn (£600bn) blitz of new lending issued since December.

Money is leaking instead into Shanghai’s stock casino, or being used to keep bankrupt builders on life support. It is doing very little to help lift the world economy out of slump.

China’s resort to speculation, protectionism, quasi-price controls and depreciation of its currency are hardly signs of a competitive economy. More like a fairly desperate attempt to avoid market and political reforms.