I didn't blog it at the time (stupidly) but as a capitalist Rudd's unlimited guarantee of Bank deposits in the wake of recent stock market troubles troubled me.
My problem was that he was putting the tax payer on the hook for sake of the banks, just like the Dems in the US with the housing crisis. Christ! you think they'd learn the right lesson. Nooo. it's all about Gordon Gekko's greed for (multi-millionaire) Rudd.
But my fears were too diffuse to blog. I dont think Aussie banks are going to collapse. The tax-payers exposure is hyperthetical. (and i'm on a roll with my book - no time people)
Turnbull (gotta hand it to him) put specifics to my fears on the insiders on Sunday. The littlest credit union in the land now was a safer bet for deposits than the most well-respected non-bank credit trader. This is causing in sever distortions in the market and actually risks making it harder for some businesses to get credit, the opposite of what was intended.
Rudd is meddling with the market AGAIN!!! He's trying to make it fairer, to the detriment of all.
Rudd and Swan's press conference during the week had snippets on insiders too. Swan assured us that "the world really has changed in the last few weeks". Which is of course code for "The chickens have come home to roost for you Capitalist running dogs. The time for government control of the economy is here, comrades."
Like all Socialists Swan is a LIAR.
The world did NOT change. Capitalism is here to stay. Especially in the most Capitalist nation on Earth, Australia.
Today the RBA has made sure of that.
Glenn Stevens has basically told Rudd to shove his Socialism up his arse.
RESERVE Bank governor Glenn Stevens is warning the Rudd Government its blanket guarantee of deposits is creating serious dislocation in the entire financial system and must be changed.Steven's actions have dovetailed beautifully into the ALP's economic narrative up until this point. Not any more.
Despite the Government's assurances that it is working closely with the regulators on the global financial crisis, the argument has strained relations between the RBA and Canberra.My question is: if the RBA is supposed to be independent why is there a need for the government to work with them (read: tell them what to do)? Why do they need a cordial relationship? The RBA was all but openly hostile to the previous government and went out of their way to demonstrate their "independence" by putting up interest rates during the election campaign dispite there being no economic justification for it, the credit crisis already having hit.
Now that he is taking on Rudd it seems Stevens has at last rediscovered his independence of mind.
Or has he?
He didn't say anything to the press about this until Malcolm Turnbull hammered his point home in Parliament and on the ABC.
Maybe Glenn Stevens is just backing the winning team, again.
But i should not get distracted by Joe the Plumber. I must focus on Obama ... sorry i'm coming down with with US election fever.
Rudd, Swan and the ALP are the real problem here. The are amateur socialists in charge of this great capitalist nation. They have been humiliated by Turnbull and Stevens over their clumsy and over-zealous interventionist tendencies.
Either Rudd stands his ground and looks Socialist, or introduces a limit to the deposit guarantee and looks weak and stupid. It's a lose-lose situation for Rudd, of his own making.
He can pull the wool with his Sunday night TV appearances all he wants, but the smart people in this country are moving away from Rudd. Sure, obviously the really smart ones (me and my mates) didn't vote for him in the first place, but you know what I mean.
