mrd

If the consequences of the current financial challenges faced by the United States right now could be contained to Wall Street then there would be no debate in Congress; because there would be no bail out on the table.

Unfortunately, if allowed to run the full course, this catastrophe on the Wall Street financial markets would flow through and effect all Americans in both a seriously and significantly way.

It would not stop at the borders of the United States, but would flow around the world affecting us all.

Therefore to simply say “why should we bail out the fat cats” and oppose the bailout, demonstrates a lack of clear understanding.

While Wall St has caused this problem, it is the systemic failure of the American government over various administrations that is at the root of this problem.

They failed to:

• Reign in those excesses
• Address the corruption
• Regulating the markets
• Prevent the free market concept being subjected to extremism

The Government did not directly cause the problem, but indirectly they are guilty of contributing to it. Their failure to build the secure railway track has resulted in this runaway train wreck.

Therefore, in my opinion, the United States Government does have a moral obligation to contain the damage, rebuild the track and protect the average citizen from fallout that they probably cannot imagine right now may befall them.

The free market has delivered a problem under a regulative environment that was doomed to failure. Therefore, the Government now has an obligation to fix that regulatory environment to ensure this never happens again.

Unfortunately, like it or not, the only way confidence and strength will come back into the economy is via the free market; and that free market is currently crippled. Given the U.S. Government has been a part of the problem, they must be a part of the solution; as fair or as unfair as that may seem to the average person.

Happy Investing,

Nick Lockhart

Following the huge financial problems rocking the very foundations of the U.S. economy and the run on Northern Rock and Bradford & Bingley in the UK, uncertainty has now hit Japan hard.

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal…

RP Data – Rismark Property Value Index Release
Released 01 October 2008

The national end of month property indices report released today by RP Data & Rismark International confirms that the supply and demand imbalance currently being experienced in the Australian property market has placed a floor under housing prices, resulting in minimal value falls.

Read more…

The so called economic guru’s are very quick with their opinions and commentary on the state of economic affairs; but remember they are only expressing their opinions. While I don’t profess to offer financial advice, or to have the answers to “life, the universe & everything”, I too have opinions.

In the lead up to the end of the 06/07 tax year, when “the experts” were promoting the virtues of investing into the Howard/Costello “tax effective Superannuation offer”, I didn’t believe them. Today I hear economic guru’s peddling the fear that our property market will follow the US lead and fall by up to 20%. Guess what, I don’t believe them!

Read more…

Economic Viability

• A fundamentally broad based economy benefiting from regional industries including sugar production, mining, cattle grazing and fishing; each of which form large elements of the North Queensland regional economic base with no end in sight in particular to the boom in mining services
• Gross Regional Product (nth region) 06/07 up 7.8% to $11.8 billion
• Defence bases expanding by 2012 – 1500 soldiers and support staff moving from Holsworthy
• Business challenge: Skills shortages & increased supply costs

Read more…