Nailed it although I strongly suspect there are other areas of the economy where the same applies.High power prices are killing consumers and businesses and are making us one of the most un-competitive nations on earth.
Nailed it although I strongly suspect there are other areas of the economy where the same applies.
Anyone know how competitive we are with internet, freight movement (land, sea, air) or water for example?
What is a recession going to do? Everybody keeps calling for a recession across a lot of discussion groups.
Why do we need a recession? How will that benefit the public, world etc?
I don't think it's so much a case of wanting it as such but rather of seeing it as inevitable and thinking that a modest recession now is better than delaying it and ending up with full blown depression.What is a recession going to do? Everybody keeps calling for a recession across a lot of discussion groups.
Why do we need a recession? How will that benefit the public, world etc?
Did a few years of that in the past. 12 hours a day. 7 days a week just about every week.How 12hr days, day after day passes a risk assessment is beyond me.
What is a recession going to do? Everybody keeps calling for a recession across a lot of discussion groups.
Why do we need a recession? How will that benefit the public, world etc?
We have a layer in Society that thinks while ever Oz can borrow money we should continue to virtual signal to the world how wonderful we are.
I think I read recently, we are now just behind South Korea, with mobile speed. U.S.A and Switzerland are faster apparently.No. 50 on overall connection speed, 6 for mobile speed.
https://en.wikipedia.org/wiki/List_of_countries_by_Internet_connection_speeds
Add to that, the media nearly every day is sprouting another cause the Government should be increasing spending on, if it isn't drought relief, welfare payments, infrastructure, basic wage, education, health, it is on mitigating climate change.Hi,
I am not suggesting that a recession is good but to borrow money to artificially keep the party going is wrong. We had good times then the world slowed so we should have adjusted our expectations and lifestyle accordingly.
Like a lot on here, I have children and now grandchildren and I really do not believe that we should have borrowed money to have a jolly good time and then expect coming generations to repay our "drinks bill"
All the debt created does have to be paid back sometime and that bugs me.
We have a layer in Society that thinks while ever Oz can borrow money we should continue to virtual signal to the world how wonderful we are.
The way the western world is heading with all this VS BS we will be at the mercy of China and the International banks and the future generations will struggle because of the debts they have to repay.
You are right Basilio but companies as people do what the government want them to do, except in the us, here in europe end japan, we go toward negative interest ratesIt's interesting to hear people talk about individuals being responsible for the huge indebtedness weighing down our economy.
It seems that, in fcat, it is companies which have the greatest exposure to a recession and if things go south many corporations will be vulnerable.
Of course that means all their employees will also be on the block as well as shareholders, banks and ex employees with company pensions
Global economy faces $19tn corporate debt timebomb, warns IMF
Update on markets lists eight leading countries, including US, China and UK, as vulnerable
Low interest rates are encouraging companies to take on a level of debt that risks becoming a $19tn (£15tn) timebomb in the event of another global recession, the International Monetary Fund has said.
In its half-yearly update on the state of the world’s financial markets, the IMF said that almost 40% of the corporate debt in eight leading countries – the US, China, Japan, Germany, Britain, France, Italy and Spain – would be impossible to service if there was a downturn half as serious as that of a decade ago.
The IMF noted that the stimulus provided by central banks in both developed and developing countries had the side-effect of encouraging firms to borrow more, even though many would have trouble paying it back.
IMF haunted by fears that history might be about to repeat itself
Read more
Officials at the Washington-based organisation fear that the buildup of debt makes the global financial system highly vulnerable and are telling member states not to repeat the mistake of the early 2000s, when warning signs of a possible market meltdown were ignored.
The IMF said share prices in the US and Japan appeared to be overvalued, while the credit spreads in bond markets – the compensation demanded by investors against risk – seemed to be too low, given the state of the global economy.
Tobias Adrian and Fabio Natalucci, two senior IMF officials responsible for the Global Financial Stability Report, said: “A sharp, sudden tightening in financial conditions could unmask these vulnerabilities and put pressures on asset price valuations.”
In a blogpost published alongside the GFSR, Adrian and Natalucci noted: “Corporations in eight major economies are taking on more debt and their ability to service it is weakening.
“We look at the potential impact of a material economic slowdown – one that is half as severe as the global financial crisis of 2007-08. Our conclusion is sobering: debt owed by firms unable to cover interest expenses with earnings, which we call corporate debt at risk, could rise to $19tn. That is almost 40% of total corporate debt in the economies we studied.”
https://www.theguardian.com/busines...-faces-19tn-corporate-debt-timebomb-warns-imf
I can't wait to see who is going to be responsible for this evolving problem, not the spender of course, probably those who lent them the money.It's interesting to hear people talk about individuals being responsible for the huge indebtedness weighing down our economy.
f
(I am concerned at the way these things are defined and measured as I think we now "hide" a large amount of both un- and under-employment.)
I suspect there's rather a lot of economic things which exist but which are hidden by various means either intentional or unintentional.They may not be a problem for the government at the moment because they are hidden
Well a mate I was talking to on the weekend, used to be a graphic artist, but chucked it in to drive uber.I suspect there's rather a lot of economic things which exist but which are hidden by various means either intentional or unintentional.
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