my prediction 26/5/2011, page-31

I think the GFC is a result of the worst combination of regulatory intervention (the Fed keeping interest rates artificially low for too long) and unscrupulous capitalism (investment banks and mispricing of risk).

I wouldn't argue the first stimulus in 2008 was necessary. However they kept spending like drunken sailors in the years following. Entirely unnecessary and means we have little to fall back on should a second wave of the GFC hit us.

Unexplainable how we face a $50bn deficit this year with best terms of trade in our history. The mind boggles as to what the budget will do should terms of trade go against us!