The Bailout

[Beren Son Of Barahi]

I really doubt that was true. There was a lot of rationing of stuff like meat and oil to supply the war effort. However, living standards did rise dramatically after the war.

edit: btw, how much is kiwiland being affected by all this?

Considering he is from Sydney like me(not kiwiland/ New Zealand); i thought i would chip in. Australia is limited in its major exposure due to tight regulations on the banking and investment sectors. As such despite some bad overseas investments most of our banks are still well afloat. There has been a dramatic slow down in the economy. There is a certain amount of flex in our economy due to our massive resources supplies. Public works in other countries will likely help Australia by maintaining demand for coal/iron and other raw minerals.

I think the Australian Government has guaranteed all bank deposits for a set timetable as well as the Reserve bank has had some room to drop interest rates (from 8.0% or so) down to around 4.5% at the moment. up until mid this year interest rates were climbing to fight off inflation. I think a major reason why Australia can deal with such problems easier then other countries is a good balance between responsible interest rate management and balanced tax/spending enabling for being able to respond when needed without making huge dept or other such long term problems.

I can't help but to think all these problems are linked. More economic cars would enable people to spend more money on other things, it would make the cars more popular in other countries, it would make them cheaper to make. less public money would be needed to buy out expensive car operations. Better control of banking systems and spending would enable a more resilient economy. These are just examples but i think it helps to start joing dots when trying to understand something as massive as a global economic meltdown.



id like to hear others take on it.