Australia's investment industry has effectively been brought to its knees by the ridiculous 'unlimited' bank guarantee policies recently released by the government.
We are seeing a MASSIVE flight from managed investments to cash...mortgage funds are getting frozen...and guess what happens now (and is happening)...people cant redeem from mortgage funds so they start redeeming from their equity funds...and so forth and so forth. Superannuation pension payments dont stop just because a market is screwed - but where they gonna come from if cash accoutns are wound down - managed fund selling of course). And these redemptions are causing equities to get liquidated independent of the credit crisis!
How frigging shortsighted can a government be. I think we just found out.
