What a long way we have come since our bullish Friday.
Johnaus - tell me where I've got it wrong!!
* Suppose less businesses go broke for the quarter.
* The Reserve craps their dacks and either raises interest rates or threatens it.
* Our dollar rises
* Investment in commercial projects flows out of the country becasue we are too expensive.
* Overseas Cash comes into the banks to earn high interest. ie - Google holding roughly 32 billion in cash in Australian banks. Highest bank rates in the WEST.- MAXI
*Australians pay high interest to banks who pay it to overseas depositors.
* We have less discetionary to spend and because of this, those commercial sectors are in recession.
Question - Wouldn't you rather just have a bit of over heating!!
What really annoys me is when I listen to some clueless radio announcer - saying - 'Be quick and book your U.S. holidays, we won't have it this good forever'.
It's on a par with half wit journo's showing 'giant cooling towers' with water vapour drifting out the top and captioning it with 'polluting industrys'. It's not a chimney ya ignorant twits.
HOW TO FIX OUR CRAPPY ECONOMY AND STOCK MARKET.
No Carbon tax!
They say the big polluters pay. Stupid what people believe. We pay of course. We ALWAYS pay. I have had over 30 CEO's through my business in the last few months and have chatted privately with them all.
Mostly conscientious professional leaders who have families and hold a genuine hope for the welfare and prosperity of this country. I asked each one for the bottom line on this tax - it was...
'We will export wealth and jobs overseas - simple.'
What about the carbon dioxide?
Nuclear on the most stable continent in the world is fine by me. No carbon. No carbon tax. NEXT!
No mining tax!
Miners already pay employee salary tax, fringe benefits, company tax, funds millions of bucks worth of welfare programmes in the outback AND brings jobs into communities that just don't have work available. Hugely contributes to the balance of payments since we don't have anything else to sell, and, is entirley funded by private capital.
Incidentally, two out of three people walking in my shop door are mining employees. We need miners and lots of them!
Without even getting political, the removal of those two dark and miserable spectres suffocating any optimism and confidence in our economy, would be enough to give a good and sustainable benefit to investors and industry.
The filter down into other sectors can be IMMEDIATE. Don't beleive it? Each time these taxes were threatened, our incoming calls to our discretionary business halved - the same day! An isolated case? My friendly competitors have commented on the same effect.
We need a reason to have confidence and having your bum taxed off kills the investment not to mention the work libido.
Sorry about the Bigg Daddy dark side this morning but I feel our chickens are coming home to roost because of lousy policies that do not consider the wealth producers and the businesses that supply those industries.
Now a few words from our sponsors..
'Hooray .... if they raise the debt ceiling this old hen is going to sell her coop and put all her eggs back into equities ......NOT' PENNY B DREADFUL
''The dreamer in me says we now have a protracred period of worrying about everything which is going to break viciously to the upside before too long. That's also the realist in me, I'm convinced of it ( that's the reckless gambler kicking in ),but I've already laid down the bets'PISCES
''Looking like the low is in there now - long as John Holmes' CHRIS FORD
'Blue, thanks for your measured hand you do a great job' PISCES (couldn't resist that one after CHRI'S post!)
''What a mess. I am exhausted and just cannot concentrate through lack of any clue as to what is going on. It seems wherever we look we are held to ransom. Climbing dollar, sinking US, Europe.... it just goes on and on. It seems that everytime I go short it climbs and every stock I long goes down.' JGUNTER99
Pauley sums up all of our hopes...
''Don't give on us baby.' PAULEY
My Crappy Portfolio - end of trade Wednesday July 27th
(20min delay)