The Reserve Bank and Treasury have a little known plan which has...

The Reserve Bank and Treasury have a little known plan which has been in existence sine world war 2 and used sparingly. Once in the wake of the Poseidon madness, the other time when the Campbell Report driven freeing of Autralia's dollar was threatening to undermine reserves as a result of floating the dollar.

Today most of the up market investment banks and trading banks (4 pillars) at the direction of the Reserve will buy at support rates the index if the impact of the Lehmans fallout is likely to do too much damage to our markets.

They will allow the dogs to die a natural death in the stampede of the chaos out of the market but preserve the larger ones. BHP won't go down. The Chinese will now wipe up the floor with their money in toto with Tamasek of Singapore thend etermine their positions vis a vis BHP and Rio Tinot. Did I not make that forecast before along with oil dropping back to $80 then rebounding. It will happen.

Whats more interesting though is how the two ex premiers of Victoria and Queensland may have passed on poison chalices to their successors.

Lest see ho much more Babock and Brown can fall beofre they admit to being insolvent and calling in a receiver who they have already talked to in ordse that the spoils may be evenly spread amongst 'friends'.

As for the rest of them, "let them eat cake".