Rudd and the stockmarket

[Smurf1976]

The unions are good as a counterbalance to the opposite side of politics and big business.

Always good to have some balance, even if you totally disagree with what they're saying.

Anything that goes totally unopposed eventually goes too far and usually ends up with a spectacular collapse. Absolute power...

 

[Kimosabi]

Interesting question, who was in power during the Great Depression?

Unfortunately, I think this may be one the last elections Labor will win for a very long time.

The reason I say this, is that we are probably going to see everything go Bust big-time while we have all Federal and State Goverments running under Labor.

I wouldn't be surprised if the Liberals know this and will deliberately loose the next Federal Election, banking on the fact that they will probably stay in power for another 20 - 30 years after Rudd and Labor get left carrying the can and then get wiped out in the subsequent election...

 

[constable]

Interesting question, who was in power during the Great Depression?

Unfortunately, I think this may be one the last elections Labor will win for a very long time.

The reason I say this, is that we are probably going to see everything go Bust big-time while we have all Federal and State Goverments running under Labor.

I wouldn't be surprised if the Liberals know this and will deliberately loose the next Federal Election, banking on the fact that they will probably stay in power for another 20 - 30 years after Rudd and Labor get left carrying the can and then get wiped out in the subsequent election...

That's sure easy to subscribe to Kimo, but good golly it's cynical!!

 

[YELNATS]

Always good to have some balance, even if you totally disagree with what they're saying.

Anything that goes totally unopposed eventually goes too far and usually ends up with a spectacular collapse. Absolute power...

... corrupts absolutely. I completely concur.

Although a died-in-the-wool capitalist, I would like to see the ALP given a go. The Libs are in denial over climate change and the electorate knows it. I nearly voted Labour last time, but realised at the last moment that Latham was lurching out of control. Rudd and his team bring a much-needed breath of fresh air. I don't think the markets have anything to fear from change.

regards YN.

 

[mime]

... corrupts absolutely. I completely concur.

Although a died-in-the-wool capitalist, I would like to see the ALP given a go. The Libs are in denial over climate change and the electorate knows it. I nearly voted Labour last time, but realised at the last moment that Latham was lurching out of control. Rudd and his team bring a much-needed breath of fresh air. I don't think the markets have anything to fear from change.

regards YN.

Even with the unions controlling wages?

 

[wayneL]

Ha.. I seem to remember standing on the flight deck of HMAS DARWIN way, way back for the first deployment of Desert Storm (called Op Damask).. And it was Bob Hawke that was giving us the farewell gee up.. Now he is certainly not one of the current incumbents..

I'm tipping it don't matter one way or the other, we'll always be 'Uncle Sam's byatch'..

Regards,

Buster

Yer,

But we should at least play hard to get

 

[wayneL]

Is the UK uncle Sams bitch too or a partner?

Yup, byatch too. But the populace aren't. American is deeply unpopular in the UK and Tony bLIAR is paying the price now for being Bush's poodle.

 

[YELNATS]

Even with the unions controlling wages?

But I don't see that happening. Unions are a but weedy version of the force they were in bygone decades. Observe their decline in membership and political clout.

 

[nizar]

I just really don't think Oz should be Uncle Sam's byatch.

Agree wholly, my friend
Thats the way i see things as well.

 

[wavepicker]

Is anyone else concerned about what effects Kevin Rudds union friendly IR policy will have on company profits and the stock market? I personally want the good times to roll on.

it's interesting how people like to keep the status quo in terms of governments after the markets have been doing well.

The forces of the market are internal, dynamic and feed upon themselves, the market will do what it wants irrespective of whoever is in power and if anything are more subject to the movements of the global economy market as whole.

This secular bull market really took off in the early to mid eighties(just like the US amrkets did). We have had 3 changes of government in that period

Cheers

 

[Julia]

Only one person has referred to the concern of having both Federal and all State Governments as Labor. The idea horrifies me almost as much as the fear of hearing Julia Gillard's voice even more than I do now.

 

[Spaghetti]

I cannot see how Howard has done a great job with the economy.

It reminds me a bit of dutch syndrome. We are too heavily reliant on the resource boom which has increased the value of our dollar and hurt other industries in the process.

The bite will not hit until the resource boom ends big time but in the meanwhile it has already bit for those not directly benefiting from it, hence the two speed economy we have. The unethical issue here is that the resources we are digging out of the ground do actually belong to all Australians. We tend to forget that when we bet on our next big stock lol.

The trouble with low interest rates plus a resource boom is that debt has gone out of control. When interest rates were high people did not accumulate such high degree of debt so when bad times hit it wasn't so critical as it will be in a future downturn.

Also on the union note. the unions did get a bit out of control and did need restraining. However they did build the workplace culture in Australia that defined us an a egalitarian nation. It was an Australian trait that we used to be proud of. I did prefer it that way in all honesty, compared to today ...plus back then people were allowed to have a personality, now our businesses are becoming populated with workplace culture clones rather than real people. Defined by technical savvy robotics rather than lazzie-faire thinking.

Plus the war, really the only reason required to rid ourselves of Howard. Huge humanatarian disaster.

 

[Uncle Festivus]

Another thing overlooked is the fact that if Labor does win won't the Senate still be controlled by the Liberals? Will that be a constitutional nightmare? Is that correct?

 

[mime]

But I don't see that happening. Unions are a but weedy version of the force they were in bygone decades. Observe their decline in membership and political clout.

No. Labor wants to introduce collective bargaining and the unions are likely to negotiate the terms. This is fine for big business but when small and medium sized business come against the resources of the union they don't stand a chance.

I've read numerous stories of unions bullying companies and the companies can't do anything because the unions are protect by statue law.

Doesn't anyone else think that the millions of dollars donated to the Labor party and the other millions of dollars spend on anti lib/nat advertising will not go unrewarded??

 

[Nick Radge]

the market will do what it wants irrespective of whoever is in power and if anything are more subject to the movements of the global economy market as whole.

The cycle is also clear in the US as well - in fact more so. The US Presedential Cycle is very strong. Over the last 100-years the annual return under Republican power has been 6.6% verse Democrat at 13.3%. The same skew is shown in Australia. There is also emperical evidence to suggest that it's not aligned to the global economy. I refer to the following paper:

Investment Returns Under Right- and Left-Wing Governments in Australasia
Hamish D. Anderson , Christopher B. Malone and Ben R. Marshall
Massey University - Department of Finance, Banking and Property Studies

Also suggest the correlation between the US$ and US political parties. Its been extremely clear since 1980 that the US$ weakens under Republicans and strengthens under Democrats.

That said, over the last 100-years, the US$ has been devalued substantially more under Democrats, value = $0.12 verse $0.33 under Republicans.

 

[wayneL]

No. Labor wants to introduce collective bargaining and the unions are likely to negotiate the terms. This is fine for big business but when small and medium sized business come against the resources of the union they don't stand a chance.

I've read numerous stories of unions bullying companies and the companies can't do anything because the unions are protect by statue law.

Doesn't anyone else think that the millions of dollars donated to the Labor party and the other millions of dollars spend on anti lib/nat advertising will not go unrewarded??

I have a feeling this issue may spook the swingers come election time. Maybe a lot of folks don't like the current system, but it sounds like Kevin cRudd and Julia Dullard ( I have names for all of them lol) want to take things too far the other way again.

Julia,

Good point re state/federal Labour duopoly (should the ALP win) More reason to think the pendulum could swing to far the other way.

(groan) the dilemma!

 

[marklar]

Another thing overlooked is the fact that if Labor does win won't the Senate still be controlled by the Liberals? Will that be a constitutional nightmare? Is that correct?

Not at all. The two houses being controlled by different parties will make it more difficult to get legislation through, but still possible. If bills are bounced a couple of times the incumbent PM can go see the GG and get BOTH houses dissolved. Read your history on the Australia Card in the mid 80's.

m.

 

[mime]

Reading the newspapers Costello has accused Rudd of being a socialist. I wish it wern't true. Finger crossed for the Libs/nats. If they won the election on the basis of the introduction of the GST then their is hope.

 

[happytown]

...

I've read numerous stories of unions bullying companies and the companies can't do anything because the unions are protect by statue law.

...

statue law?

what, so they are going after pigeons now!

could you elaborate on the statute law in aust that protects the unions in the way you claim, ie provide the name/s of the act/s and/or regulation/s and their relevant sections and/or regulations as I find your assertion as to 'numerous stories' of 'companies [that] can't do anything because the unions are protect by statue law' intriguing

cheers

 

[mime]

Read about the case where three miners died in a NSW mine because of bad infomation provided by the NSW govt department. The mine was found liable for damages for their deaths even though they died by a mistake by the govt because of a statue written up by the Carr govt that protected the govt for negligence. I'm sure Carr is still happy now working at the Mac bank.

Under the old system unions could call a strike when ever they wanted and not be liable for the damages they inccured on the business because of statues written in by Labor govt to protect them. They could also fine companies and collect half of it. I read a story where they demanded 50000 documents from a medium sized business and the business had to pay for the copies.

This stuff doesn't really happen anymore because of changes made but it may come back if Labor wins power.