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However, we unfortunatly are talking about the survival of our

Bank guarantee a disaster

canada goose clearance sale As soon as the Prime Canada Goose sale Minister stated that some deposits were backed by a government guarantee, people understood immediately that deposits in other institutions were not. canada goose clearance sale

There were different classes of deposits those in institutions under the guarantee thus protected and “safe” and those without the guarantee and not protected and therefore not canada goose factory sale “safe”.

canada goose clearance It was no surprise that people with deposits in banks excluded under the Canada Goose Online announcement, foreign bank branches, fled to institutions within the guarantee. canada goose clearance

canada goose It should have come as no surprise that people with money in other institutions would be concerned about the safety of their money held by others in mortgage funds, property trusts, cash management accounts, solicitors’ trust accounts and the like. canada goose

buy canada goose jacket cheap There have been reports of billions of canada goose clearance sale dollars being transferred from these institutions to the guaranteed cheap canada goose uk institutions. buy canada goose jacket cheap

A number of funds took action to prevent runs and froze redemption payments to cheap Canada Goose protect the integrity of the funds.

People have been unable to access their money and considerable damage canada goose black friday sale and hardship has been caused to many individuals.

Canada Goose online The Rudd Government eventually responded, far too late, but it has compounded its error and made the situation worse. Canada Goose online

Canada Goose sale First, the Treasurer told people whose funds were frozen to go to Canada Goose Parka Centrelink and ask for welfare assistance an extraordinarily insensitive and callous response! Canada Goose sale

canada goose coats on sale Then the government hinted it would impose a threshold on the unlimited guarantee with a fee applying above that threshold. canada goose coats on sale

cheap Canada Goose In Question Time, the Treasurer made it clear it would Canada Goose Jackets be a compulsory fee paid on all deposits and banks within the guarantee, in other words, a deposit tax. cheap Canada Goose

buy canada goose jacket Two days later the Treasurer announced there would be a $1 million threshold for the free government guarantee above which a voluntary fee, not a tax, could be paid to gain the benefit of the guarantee. buy canada goose jacket

The fee varies depending upon the rating of the institution.

All deposits under $1 million are treated equally and have the free government guarantee, while deposits of more than $1 million are not treated equally in different institutions covered by the government canada goose coats guarantee.

canada goose black friday sale The government then came up with a bizarre plan to “fast track” the conversion of investment funds into banks and provided the regulators with additional funding to support that process. canada goose black friday sale

This “solution” simply added to the frustration as it became obvious that even if a fund were to go down that path it would take months, if not years, to “convert” a fund into a bank.

Canada Goose Jackets To top off the three weeks canada goose uk black friday of chaos and confusion in the now dislocated financial sector, late last Friday it was announced that the securities Canada Goose Outlet and investment regulator, ASIC, will somehow intervene in the management of the frozen mortgage funds and allow people to access some of their money if they can demonstrate hardship. How this will work is anyone’s canada goose clearance guess. Canada Goose Jackets

Canada Goose Parka The distinguished American sociologist Professor Robert K Merton is said to have coined the phrases “self fulfilling prophecy and “unintended consequences”. In a paper published in 1936 in American Sociological Review titled “The Unanticipated Consequences of Purposive Social Action” important link canada goose outlet he listed a number of possible causes of unintended consequences including ignorance, error through incorrect analysis of a problem or immediate interests overriding longer term interests. Canada Goose Parka

Australia for a long time under both Labor and Liberal Governments have been borrowing from the rest of the world at an rate that far outstrips our gains in income.

Our net foreign canadian goose jacket liabilities, despite the biggest bull market in commodities in a century has continued to balloon.

And what have Australian’s spent the proceeds of these foreign borrowings on, every increasing house prices and going to the shops.

Not enough of this money has been canada goose uk outlet spent on increasing Australia’s productuctivy capacity.

Our infrastrucute is dated and our manufacturing has continued to hollow out to the point of almost non existance.

Canada Goose Outlet Now the international credit taps that only 18 months ago flused our economy with money have been firmly tightened. Canada Goose Outlet

canadian goose jacket Our banks as a result has become under funded, and the Rudd Governement took the appropriate steps to attempt to make good part of the funding shortfalls that will face our banking system into the foreseeable future. canadian goose jacket

Yes it is an unfortunate side effect uk canada goose that people have had their money frozen by some fund managers, in some less liquid products. However, we unfortunatly are talking about the survival of our fragile banking system and thus our economic survival.

canada goose store As a nation this is a serious situation that we canada goose store are faced with and Mr Rudd, had the guts to make a call for the greater good of the nation rather then a decision based on short term politic gain, as you appear all to happy to exploit. canada goose store

I voted canada goose coats on sale Liberal at the last election, but what I am seeing from the shadow front bench, on these critical matters, has certainly changed my vote canada goose uk shop next buy canada goose jacket time round.

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