Comments on: What was the RBA advice on guaranteeing deposits? http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/ now with extra source Tue, 24 Nov 2009 09:21:38 +1100 http://wordpress.org/?v=2.8.6 hourly 1 By: John Molloy http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13570 John Molloy Thu, 01 Jan 1970 10:00:00 +0000 #comment-13570 Bernard, I agree that government intervention of whatever kind disadvantages someone. Look at England. Ireland guaranteed bank deposits.Result?a flood of money to Ireland. The UK Government guaranteed £ 35 000 of deposits. Result? depositors withdrew amounts over £35 000 and put it in other banks. I think there would have been a "flight to quality" anyway, and the amount it was worsened by the Rudd guarantee is unquantifiable. As to a flow of money out of equities, looked at the All Ords lately? Bernard, I agree that government intervention of whatever kind disadvantages someone. Look at England. Ireland guaranteed bank deposits.Result?a flood of money to Ireland. The UK Government guaranteed £ 35 000 of deposits. Result? depositors withdrew amounts over £35 000 and put it in other banks. I think there would have been a “flight to quality” anyway, and the amount it was worsened by the Rudd guarantee is unquantifiable. As to a flow of money out of equities, looked at the All Ords lately?

]]> By: Keith Bedford http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13571 Keith Bedford Thu, 01 Jan 1970 10:00:00 +0000 #comment-13571 To me the whole thing smells of 1929. I read JK Galbraith's history of 1929 events a few years ago and this one looks like that so quick early action to halt panick was the right action. I do not see any quick recovery. Money will remain tight and the gamblers will all go to the wall and when it does recover then we will return to putting all our funds in dodgy US instruments and the merigoround will all start again. Unfortunately people never learn from their history. The unfortunate thing is the naysayers will prevent action against climate change at a proper level and this is what will eventually deal with the problem for good. To me the whole thing smells of 1929. I read JK Galbraith’s history of 1929 events a few years ago and this one looks like that so quick early action to halt panick was the right action. I do not see any quick recovery. Money will remain tight and the gamblers will all go to the wall and when it does recover then we will return to putting all our funds in dodgy US instruments and the merigoround will all start again. Unfortunately people never learn from their history. The unfortunate thing is the naysayers will prevent action against climate change at a proper level and this is what will eventually deal with the problem for good.

]]> By: David http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13572 David Thu, 01 Jan 1970 10:00:00 +0000 #comment-13572 The Reserve Bank Gov said this morning he "agreed ' with the Gvernment intervention!!! Whats the problem? Just because moaning Malcolm and the ice maiden boring Bishop demand they see papers they do not have a God given right to see, why would the Govt do so? Memory tells me Labor put up with 12 years of the very same "no". Whats good for the goose huh? I think Bernardo you are jost looking for a decent stouch, doubt you will get one from Mal and Jules. They dont have it in them. Doubt the PM is shaking in his shoes. The Reserve Bank Gov said this morning he “agreed ’ with the Gvernment intervention!!! Whats the problem? Just because moaning Malcolm and the ice maiden boring Bishop demand they see papers they do not have a God given right to see, why would the Govt do so? Memory tells me Labor put up with 12 years of the very same “no”. Whats good for the goose huh? I think Bernardo you are jost looking for a decent stouch, doubt you will get one from Mal and Jules. They dont have it in them. Doubt the PM is shaking in his shoes.

]]> By: Dr Harvey M Tarvydas http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13573 Dr Harvey M Tarvydas Thu, 01 Jan 1970 10:00:00 +0000 #comment-13573 None of the 10.4 Billion is wasted.<br />The opposition was differentiating itself previously as being for pension increases and seriously chastising the Govt for not being of similar mind but ignored with the media the lump sums in the May budget which added up to just such pension increases.<br />Well these new recent lump sums are about the increases being caught up and futured to a lesser extent so the tears for pensioners were clearly not genuine then.<br />We have a financial crisis when the gurus who would have us believe they were the experts missed the main event because they were busy talking there nuts off about nothing. Now we have ‘fix it’ experts who make out they could fix anything talking their nuts off. <br />Action is worth our attention not expert talk therapy for nuts. <br /> None of the 10.4 Billion is wasted.
The opposition was differentiating itself previously as being for pension increases and seriously chastising the Govt for not being of similar mind but ignored with the media the lump sums in the May budget which added up to just such pension increases.
Well these new recent lump sums are about the increases being caught up and futured to a lesser extent so the tears for pensioners were clearly not genuine then.
We have a financial crisis when the gurus who would have us believe they were the experts missed the main event because they were busy talking there nuts off about nothing. Now we have ‘fix it’ experts who make out they could fix anything talking their nuts off.
Action is worth our attention not expert talk therapy for nuts.

]]> By: Dennis http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13574 Dennis Thu, 01 Jan 1970 10:00:00 +0000 #comment-13574 What irks me is the blatant attempt by turnbull, bishop and hockey to assert the Govt acted without consultation with the Reserve or the Treasury. That was put to bed this morning by the Reserve governor who clearly and regardless of the pontificating by the Murdoch rag the Australian, totally supported the Governments decision to guarantee loans and deposits . What is getting under the Oppositions skin is simply the Government not having a bar of the attempt by Turnbull to appear bipartisan when in reality he is playing cheap, politics. It is very noteworthy since he took over the leaders position, the mood has gone from ineffective (Nelson) to greasy and cheap. Turnbull has a lot to learn and he is currently showing all the signs of an upstart, know it all. He doesn't, and his problem and the Coalitions is he doesn't listen to anyone but Malcolm. All the ingredients of a toffee nosed I am. Lets talk honymoons, Turnbulls. How long before those who didnt support his leadership start murmering?<br />Incidently Bernard, you indicated you just may be talking rubbish, no maybe about it pal you are correct. What irks me is the blatant attempt by turnbull, bishop and hockey to assert the Govt acted without consultation with the Reserve or the Treasury. That was put to bed this morning by the Reserve governor who clearly and regardless of the pontificating by the Murdoch rag the Australian, totally supported the Governments decision to guarantee loans and deposits . What is getting under the Oppositions skin is simply the Government not having a bar of the attempt by Turnbull to appear bipartisan when in reality he is playing cheap, politics. It is very noteworthy since he took over the leaders position, the mood has gone from ineffective (Nelson) to greasy and cheap. Turnbull has a lot to learn and he is currently showing all the signs of an upstart, know it all. He doesn’t, and his problem and the Coalitions is he doesn’t listen to anyone but Malcolm. All the ingredients of a toffee nosed I am. Lets talk honymoons, Turnbulls. How long before those who didnt support his leadership start murmering?
Incidently Bernard, you indicated you just may be talking rubbish, no maybe about it pal you are correct.

]]> By: Dr Harvey M Tarvydas http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13575 Dr Harvey M Tarvydas Thu, 01 Jan 1970 10:00:00 +0000 #comment-13575 Denis, JamesK is a very special and different person providing special stimulus. Look on him as you would a sexy pole dancer prepared to go to extremes to stimulate and excite us so we should show that special respect and courtesy.<br />Frank Birchall is onto how serious things really are.<br />WW1 broke the world and the 20's depression was our ignorance of the consequences.<br />The Bush wars are bringing on the same crap in a world pretending till now to be that ignorant. Wisdom is breaking through and things may just be better if in time. Notice that as wisdom is breaking though the Bush influence is so sidelined its almost a joke Psychopaths feigning cretinism once again took over the world. John Howard should give us some insights if he resepcts his fellow Australian. <br /><br /><br /><br /> Denis, JamesK is a very special and different person providing special stimulus. Look on him as you would a sexy pole dancer prepared to go to extremes to stimulate and excite us so we should show that special respect and courtesy.
Frank Birchall is onto how serious things really are.
WW1 broke the world and the 20’s depression was our ignorance of the consequences.
The Bush wars are bringing on the same crap in a world pretending till now to be that ignorant. Wisdom is breaking through and things may just be better if in time. Notice that as wisdom is breaking though the Bush influence is so sidelined its almost a joke Psychopaths feigning cretinism once again took over the world. John Howard should give us some insights if he resepcts his fellow Australian.

]]> By: JamesK http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13576 JamesK Thu, 01 Jan 1970 10:00:00 +0000 #comment-13576 Dennis you nasty little dingbat. First of all Business Spectator could hardly be called a "right wing rag". <br /><br />Governor Stevens did not I repeat DID NOT say that he advised the Rudd government to guarantee bank deposits without limit. He pointedly talked in generalities of the appropriateness of guaranteeing deposits. He specifically made the point that adjustments would likely be made. He is not a politician and was not questioned by the media to clarify as far I can ascertain.<br /><br />Arrogance and rank stupidity is so very characteristic of leftist knob commentators on this board such as you.<br /><br />If Governor Stevens did recommend that (and that is NOT clear from his statements thus far) then he should resign because it is stupid and NEEDS to change (and indeed that he desires imminent change is implied by his remarks today) .<br /><br />If he did not then Swan is (like you apparently) a COMPLETE DILL and worse may have mislead parliament.<br /><br />I note Terry McCrann (Is he anti Kev too Dennis?) opens his column today with:<br /><br />"KEVIN Rudd has created a major mess with his flamboyant - top-of-the-head - unlimited guarantee of bank deposits. The only way to fix it is to set an upper limit. Preferably around $250,000.<br /><br />This though could prove a major political embarrassment. Worse, it could undermine the very confidence in the banking system that Rudd sought to achieve."<br /><br />Why don't you desist peddling your Rudd-love-in crap Dennis?<br /><br /> Dennis you nasty little dingbat. First of all Business Spectator could hardly be called a “right wing rag”.

Governor Stevens did not I repeat DID NOT say that he advised the Rudd government to guarantee bank deposits without limit. He pointedly talked in generalities of the appropriateness of guaranteeing deposits. He specifically made the point that adjustments would likely be made. He is not a politician and was not questioned by the media to clarify as far I can ascertain.

Arrogance and rank stupidity is so very characteristic of leftist knob commentators on this board such as you.

If Governor Stevens did recommend that (and that is NOT clear from his statements thus far) then he should resign because it is stupid and NEEDS to change (and indeed that he desires imminent change is implied by his remarks today) .

If he did not then Swan is (like you apparently) a COMPLETE DILL and worse may have mislead parliament.

I note Terry McCrann (Is he anti Kev too Dennis?) opens his column today with:

“KEVIN Rudd has created a major mess with his flamboyant - top-of-the-head - unlimited guarantee of bank deposits. The only way to fix it is to set an upper limit. Preferably around $250,000.

This though could prove a major political embarrassment. Worse, it could undermine the very confidence in the banking system that Rudd sought to achieve.”

Why don’t you desist peddling your Rudd-love-in crap Dennis?

]]> By: kerry http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13577 kerry Thu, 01 Jan 1970 10:00:00 +0000 #comment-13577 Are you suggesting John, the Government should have done nothing? or more to the point damned if they do and damned if they dont. I havent seen any Government come up with a 'perfect solution' so the steps the PM and Swanee did take have as David has correctly pointed out, met with the approval of the Reserve Bank Governor. I doubt whatever they did do, it wouldn't have been approved in total by the Opposition, thats not how the game is played. Are you suggesting John, the Government should have done nothing? or more to the point damned if they do and damned if they dont. I havent seen any Government come up with a ‘perfect solution’ so the steps the PM and Swanee did take have as David has correctly pointed out, met with the approval of the Reserve Bank Governor. I doubt whatever they did do, it wouldn’t have been approved in total by the Opposition, thats not how the game is played.

]]> By: JamesK http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13578 JamesK Thu, 01 Jan 1970 10:00:00 +0000 #comment-13578 What "irks" Dennis "is the blatant attempt by turnbull, bishop and hockey to assert the Govt acted without consultation with the Reserve or the Treasury". <br /><br />Why?<br /><br />From today's Business Spectator:<br /><br />"Reserve Bank governor Glenn Stevens is warning the federal government its guarantee of bank deposits must be changed.<br /><br />The government ignored the RBA's concerns about the impact of an unlimited guarantee scheme for all Australian deposit-taking institutions from October 12."<br /><br />Seems a clear cut case of a Swan f-ck up. If the RBA did indeed give him that advice then Stevens needs to resign. If Swan and Rudd are 'misleading' Parliament then they would need to resign.<br /><br />Appropriate stuff for an opposition to chase. What “irks” Dennis “is the blatant attempt by turnbull, bishop and hockey to assert the Govt acted without consultation with the Reserve or the Treasury”.

Why?

From today’s Business Spectator:

“Reserve Bank governor Glenn Stevens is warning the federal government its guarantee of bank deposits must be changed.

The government ignored the RBA’s concerns about the impact of an unlimited guarantee scheme for all Australian deposit-taking institutions from October 12.”

Seems a clear cut case of a Swan f-ck up. If the RBA did indeed give him that advice then Stevens needs to resign. If Swan and Rudd are ‘misleading’ Parliament then they would need to resign.

Appropriate stuff for an opposition to chase.

]]> By: Frank Birchall http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13579 Frank Birchall Thu, 01 Jan 1970 10:00:00 +0000 #comment-13579 "Full credit to the Opposition" for what exactly? The same tired, unoriginal attempts to score political points via one-liners, door stops and tabloid sniping. Sadly, Turnbull's elevation to the Opposition leadership has changed absolutely nothing. Does anyone imagine that this confected blather would have been any different under Brendan Nelson? So much for bipartisanship at times of crisis! “Full credit to the Opposition” for what exactly? The same tired, unoriginal attempts to score political points via one-liners, door stops and tabloid sniping. Sadly, Turnbull’s elevation to the Opposition leadership has changed absolutely nothing. Does anyone imagine that this confected blather would have been any different under Brendan Nelson? So much for bipartisanship at times of crisis!

]]> By: Dennis http://www.crikey.com.au/2008/10/21/what-was-the-rba-advice-on-guaranteeing-deposits/#comment-13580 Dennis Thu, 01 Jan 1970 10:00:00 +0000 #comment-13580 James K read the transcript of the Governors speech today to the business community. He said it loudly and clearly so even your dense head could take it in, he agree with the govt, thats AGREES, with the action taken. I prefer to believe what he says directly rather than an article from a right wing rag and you. I repeat again in case you are that stupid, the Governor agreed with the Labor Govts action to guarantee loans and deposits. Peddle your Liberal crap elsewhere. James K read the transcript of the Governors speech today to the business community. He said it loudly and clearly so even your dense head could take it in, he agree with the govt, thats AGREES, with the action taken. I prefer to believe what he says directly rather than an article from a right wing rag and you. I repeat again in case you are that stupid, the Governor agreed with the Labor Govts action to guarantee loans and deposits. Peddle your Liberal crap elsewhere.

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