#5 We'll check out the figures and write an article in CIJ for that.

#4 So is money in australia still expanding? Sure the reserve's 'printing' money as fast as it can, but is this just to offset the foreign money leaving our shores?

#3 NAB's term deposit and iSaver is still lower than ING Direct. Which of the Big 4 bank were you referring?

#2 (ING is a Dutch bank)

#1 I noticed that my ING account was offering a savings rate 1% lower than that of the Australian big 4 (and SGB) for the first time in 2 years. I figured it is probably something to do with the exchange rate, etc.

#4 Good point that. Although I wouldn't be surprised to see some X's a leaning a bit towards Libs too

#2 It's craziness, I know. Just like that other article you posted earlier from Steven Roach who mentioned that everything he steps into Australia and mentions a prolonged decrease in commodity prices he is directed back to the airport (i'm sure it's a figure of speech). It appears that some of us really dont want to hear the truth. Just as you said in your CIJ article, these 'investors' are trying to invest in what they WANT to happen, not what WILL happen.

#3 Once Kevin Rudd put the tax reform on the agenda for the next term's policy (and assuming that the Lib will not support tax reform), the 2010 Federal election could see Baby Boomers flocking towards Lib and Gen X/Y flocking towards Labor.

#2 The bright light of the 1930s Great Depression is that people were still willing to share despite the poverty. As those old wise heads aren't so sure about that for today's people.

#2 Good point. And if Lib's come back into power, I guess we can assume that they won't want to change things... (I am a bit biased there)

#1 These people are still "talking up" the economy. It's amazing to see those 'experts' not facing reality. Maybe we should have a Hall of Fame for those 'experts' prediction?

#1 Australia's tax system is too complicated. A simplication is long over due. It will have implications on negative gearing and CGT. The only gripe we have is that a report on that tax revolution will only come in 2010 (election year). That means, any change will be after 2010.

#1 Wow

I too wonder if generation Y (or even X?) can survive in times like those....

It occurs to me that it is definitely a generational thing. Generations born without anything to worry about start taking more and more risks (debt) because they haven't seen what it's like to have nothing at all.

A bit like the old saying: "It takes two generations to build wealth...and only one to completely destroy it".
That's because that 3rd generation doesn't understand the hardship and work that real wealth requires. They have a foundation of wealth, and that is all they have ever known.

#1 haha, love it

#1 One of the current issues in the FX market is lack of liquidity....ie there is currently only a very 'thin' bid in the AUD/XXX market. I do not think the RBA is defending any particular level, they are simply providing liquidity so that transactions may occur without excessive price movement. It is often seen as trying to support the currency but I do not believe that is their intention. No central banker likes to see excessive and rapid exchange rate movement.

#1 Haha, typical reporter saying that Nigeria is risky due to its 'email scams'. Ha.
Interesting that we are quite vulnerable to capital flight. I guess that shouldn't be a surprise. I wonder how long Australian investors will keep holding on before they realise their losses

#3 Yes, and they were poor quality back then. But since then things have improved. When China changes focus from pure 'growth' at any expense, which might happen as a result of the sudden drop in world-wide demand for cheap 'stuff', then maybe things will change.

I blame the general poor quality of goods mostly on a world which in recent years has obsessively demanded low cost 'stuff'. China has obliged - good for them in the short term but it comes with a reputation. When the boom eventually busts in China in the next year or two they will have an opportunity to consolidate and improve things on the quality side.

#1 I am a recent student of Benjamin Graham

#2 A little note about China's poor quality:

No doubt, there is a perception of poor quality of manufactured Chinese goods. Japan also went through that phase in the 1950s and 1960s. Japanese goods were also perceived to be of poor quality back then.

#1 My thoughts are that China benefits from the world economy being strong - not the other way around as the Australian government would like you to believe. China simply makes 'stuff' for the rest of the world...poor quality at that. This package will just delay the inevitable and when it all goes bad it will go really bad.....

"The consensus view is that China’s economy needs to grow at a minimum of eight per cent a year to manage the mass migrations from its rural areas to its cities without undue social dislocation or political stress."