TOPIC:

I reckon this bloody corona virus will trigger another financial crisis. GFC MkII?

There is a news report from today that suggests that is likely. Remember we haven't fully recovered from the financial crisis of twenty 08, so I hope the report is incorrect. If the Reserve Bank has lost control, it's looking rather bleak. Obviously simply decreasing the official interest rate is not working. If interest rates is the only thing the RB has, well the cupboard is very bare. What started out as a bad health issue, has now been turned into a full blown financial crisis. Going by what the guy from the reserve bank was saying, they are obviously struggling. I'm afraid there are some scary times just around the corner.

The message was out there abt a recession before the virus hit so the government should have been on the front foot way before 4 weeks ago but well they weren't and it ain't gunna get any better for a lot of folk.

Having said that I am not sure what Scott Marketing could have done apart from accept that the fabled surplus was just another one Aesops efforts. We are at the mercy of so many other factors.

As for the RB they have little teeth to do much chewing on the economy any more, most of what is required now comes from government and those who control our economy - banks!

it already has

And having low interest rates for a long time is also not good.

Covid or no covid, the bears have been prowling around the market for a fair time now.

Or is it a plan by the Chinese to buy into the world’s oil, gas and mineral producers at bottom dollar?

As my Dad used to say “don’t worry about politicians or the media just follow the money”.