I remember those Cain/Kirner days well. Before Pyramid collapsed it was actually paying out higher interest rates on deposits than it was charging on loans. This was because it had no liquidity and was in the midst of a bank run. It's collapse was obvious. Jolly stupidly went on the telly telling everyone that Pyramid was 'safe'. Fact was, no business was safe in Victoria in those times.
Don't forget too that the Victorian State Bank also collapsed along with it's investment arm Tricontinental. Keating had to bail Victoria out by purchasing the State Bank and putting it into the CBA.
History repeating now.................
"In 1990, Victoria's Pyramid Building Society collapsed with debts in excess of $2 billion. With Victoria deeply in debt, Labor Premier John Cain resigned and Joan Kirner was elevated to the post of Premier of Victoria. Melbourne businessman Christopher Skase's business empire crashed spectacularly and he fled to Majorca in Spain. The Liberal-National Coalition, led by Jeff Kennett was swept into office in a 1992 landslide victory and commenced a wide-ranging program of expenditure cuts, privatisation of public assets, and economic reform to reduce government debt and rejuvenate the economy".
