January 11, 2008
So the Treasurer cannot do very much in dealing with the credit crunch in global financial markets. That much is obvious. He can just appear to be doing something.
Alan Moir
We know know that Australia's four big banks have $1 billion direct exposure to the US subprime mortgage market whilst the debt market volatility appears to be a problem for Wesfarmers, which borrowed $10 billion to buy Coles and needs to refinance around $4 billion in short term debt.
This playing off the executive of the nation-state against the global economic flows does have its conceptual limits, as indicated by this post on philosophy.com. Neverthless, Swan can do very little.
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Gary,
I wonder what the tipping point is for our market economy that would provide tolerance for Government intervention over Bank rates,petrol prices etc. After all we accept Government intervention in the car industry,and climate change will provide the push for increasing intervention in the energy market. Why shouldn't Government intervene in the money market when the community is badly effected. What the trigger for that would be I can only wonder. But bench marks are set for the Reserve Bank?