18 October 2008

Meltdown ....

So it is a bit scarey to watch the news at the moment about the big financial woes that are leading to a recession. The politicians are concerned and are trying to stimulate the economy by giving certain welfare sectors a large payment, just before Christmas. I can see the worthiness of this. Most people with children will spend it on Christmas presents and, if there is anything left, on getting ready for school next year. A boost to the retail industry will flow along the system fairly quickly - but it seems a short term solution for what is going to be a long term problem.

The second big giveaway is to double the first homeowner's grant. This is to try to stimulate the housing industry again. It may work for a while, but since much of the financial woes are credit related, sub-prime purchasers are not going to be able to raise a brass razoo for anything, let alone a house. Okay, being sub-prime, they probably shouldn't be able to raise credit for anything, let alone a house. But maybe if someone took the time to educate the sub-prime would be house buyers into becoming Prime borrowers, and stuff, that maybe it would work towards getting the problem sorted out.

I don't know that it is as big a deal here in Australia as it is over in the USA where greed got the better of many people.

Bad times don't last, and we will recover from this, but it will change the face of Politics forever.
Be interesting to see ....

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