Federal Finance minister Lindsay Tanner’s now repeated claim the “worst is over” will either make him a prophet or a fool. Either way, he’s pretty brave to make that statement.
What makes his courage even more impressive is his belief is based on IMF, Treasury and Reserve Bank advice.
These three groups, along with almost the entire economic world, failed to see this crisis coming and have consistently understated the effects since it arrived.
For Australian business owners, more worrying should be policy responses of our politicians.
While China’s stimulus package includes funding for building railways, roads and hospitals, Canberra’s response is to repeat the mistakes of the previous government by ramping the property market.
To compound the problem, the Federal government seems obsessed with keeping Australia in the 1950s. While the Chinese government is encouraging investment in the IT industries, we’re pouring our resources into propping up a vehicle manufacturing industry.
Even worse is the NSW Government’s blind faith in the ratings agencies. It’s a shame Nathan Rees won’t show Lindsay Tanner’s courage in telling these corrupt and incompent fools where to stick their phoney triple A ratings.
Instead he chooses to further reduce our investments on infrastructure and the state’s future.
The lesson to business owners is clear; you’re on your own and you cannot expect any help from the state or Federal governments.