There is no doubt that the U.S. auto industry will receive some form of government assistance, however the real story is not the about the bailout itself, but rather what the bailout tells us about the U.S. economy in general. After all, how can U.S. car makers be struggling so badly when they are sitting in the middle of biggest market in the world for auto-mobiles?
Entries Categorised as 'Opinion'
A stock market rout and probable recession: it could be worse.
December 5th, 2008 · No Comments
There is not a lot of good economic news in circulation at the moment. Today for example I read that the Dubai real estate market is heading for a big fall, and so it seems one of the last pockets economic optimism is about to get that gloomy feeling. I guess this might mean the end of man made islands shaped like continents, so perhaps it is not all bad news.
Economic Groupthink: a dangerous trend.
November 28th, 2008 · No Comments
One of the worrying trends that has emerged in Australia during 2008 is the way the government has created an atmosphere that is conducive to groupthink (group think) behaviour. Views that are not aligned with “Rudd’s World” are attacked as reckless or irresponsible by the government, and the mainstream media appear willing to slap down any dissenting opinions.
Why the global economy will recover.
November 27th, 2008 · No Comments
It is hard to remain optimistic at the moment and the attention grabbing headlines churned out by the media do not help people sleep at night. I have lost count how many times I have seen the current economic mess compared to the Great Depression or labelled “The biggest economic crisis in our lifetimes”. (I guess you need to factor in how old you are for that tag to work) The fact is we are in a very nasty economic correction but eventually things will settle down and the global economy will do as it has done for hundreds of years…..grow.
Politicians: we get what we deserve.
November 23rd, 2008 · No Comments
There is nothing like a global crisis to showcase the shortcomings of elected representatives all around the world. In the U.S. we have seen lawmakers grilling bankers for a crisis that was largely caused by the actions of Congress and the Clinton Administration whereas in Australia we have seen the government make a number of economic blunders.
The car industry, six billion dollars and another blunder.
November 12th, 2008 · No Comments
Well done Kevin Rudd, just weeks after causing chaos in the financial markets with his bank deposit guarantee, he has been able to pull another blunder out of his magic hat and found a way to potentially waste six billion dollars of Australian taxpayers money. Let’s be totally clear from the start here, the bailout package for the Australian car manufacturing sector is a political stunt aimed at shoring up support with the unions and Australians who seem to think we have a car manufacturing industry.
Government economic blunders of 2008. (so far)
October 28th, 2008 · No Comments
When we look back at the economic crisis this year, (and I am hoping at some point we are looking backwards) any reasonable appraisal of how events unfolded should include a scathing attack on the economic blunders made by the Australian government and in particular by the Prime Minister Kevin Rudd and the Treasurer, Wayne Swan.
The Reserve Bank, Rudd, Swan and a Hobbit.
October 16th, 2008 · No Comments
As readers of this blog will know, I am not a great fan of the actions of the RBA (Reserve Bank of Australia) or the current government when it comes to dealing with the events of this year. First of all we had the RBA raise rates too far (as I mentioned earlier this year) and then we had Rudd and Swan talking down the economy, then talking it up and now they are talking it down sort of, while about to pump money into it to stop growth from slowing.
The Cold War is over…right?
August 17th, 2008 · No Comments
According to the prevailing wisdom, the Cold War between the Soviet Union and the West was suppose to have ended in the 1990′s, but it appears the U.S misses the excitement and is trying to stir things up again. You would think a global war on terror would keep the Americans occupied and that keeping as many countries as possible on friendly terms would be the smart thing to do.
The Olympics: are they a waste of resources?
August 12th, 2008 · No Comments
I do enjoy watching the Olympics from time to time, but I cannot help but think of all the money and resources that are needed to host the games in the modern era and question if these should have been directed elsewhere.
Does Japan have a population problem?
July 28th, 2008 · 4 Comments
Often one of the major problems facing Japan is said to be that is has a declining population. All sorts of scary statistics are used to paint an almost doomsday scenario where at some point there will be few young people left, the country will be composed mainly by the elderly and the economy will collapse.
Global warming: do your own research!
July 22nd, 2008 · 4 Comments
I have to admit that I am a bit of a skeptic when it comes to the theory that human activity is the primary reason for the apparent rise in global temperatures. My main reason for being a skeptic is the fact that the link between global warming and human activity is only one (of many) scientific “theories” that attempt to explain the reason why the earth “appears” to be getting warmer.
Those annoying market bears.
June 5th, 2008 · No Comments
Investing in the stock market recently has not been a lot of fun. Many people would be holding some stocks in their portfolio’s that have been savaged with quite a few stocks 40-60% lower than they were just 6 months ago. It is not just the small caps that have been hit either, even the usually reliable banks have been hit hard and it can all make one feel a little depressed at times.
The Fluffy Duck and Teflon Man Budget.
May 26th, 2008 · No Comments
Wayne “Fluffy Duck” Swan and Kevin “Teflon Man” Rudd have delivered their first budget and so I will share my thoughts on a few areas in the budget and my impression of the budget overall.
Can we prevent further turmoil in the market?
April 16th, 2008 · 1 Comment
As the casualty list from the stock market fall grows, the call for tougher regulation becomes louder. But will tougher laws and regulation really help? Can we prevent investors losing money via financial scams and corporate failures?
Why are governments not accountable?
April 7th, 2008 · 3 Comments
Did you hear about the former NSW Health Minister recently in court charged with gross negligence….no? Well neither did I. In fact do you recall any Minister State or Federal, being held account in the courts for negligence or any senior public servants for that matter? Probably not.
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