Wednesday, November 07, 2007

Global Financial Tsunami

Howard responds to expected interest rate rise: "Yesterday [PM Howard] seized on the economic fallout in the United States from the subprime mortgage market meltdown as another reason people should not vote for Labor. He singled out the resignations of the Citigroup chairman, Charles Prince, and Merrill Lynch chief executive, Stan O'Neal, after their banks reported heavy losses. 'This has ramifications around the world,' Mr Howard said. 'We have a strong economy but events around the world and some domestic events are presenting new challenges.'"

Earlier Treasurer Peter Costello remarked that a "huge tsunami" could engulf world financial markets, because of the US subprime mortgage meltdown and a possible floating of the Chinese currency.

These statements dont seem to have made much impression. Perhaps with the previous lies about children overboard, Iraq war, no GST and so on and so forth nobody believes or pays attention anymore to what the Government says. But for once Costello and Howard could be right. Its more than a 'subprime' crisis, its a classic land boom-and-bust, and a big one, the biggest ever. At the same time the US dollar appears to be on a terminal slide. The 'tsunami' might just become a reality.

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