turnbull shows true colours

Turnbull wants ordinary taxpayers to look after his big business mates just like Bush is doing....

By Online parliamentary correspondent Emma Rodgers
Prime Minister Kevin Rudd has labelled Opposition Leader Malcolm Turnbull's suggestion that more liquidity should be put into the country's financial markets as irresponsible.

Yesterday Mr Turnbull said the Government should consider US-style measures of putting more cash back into the markets to shore up financial institutions.

However, Mr Rudd has told Chris Uhlmann on ABC Radio's AM program the problems facing US and Australian markets are vastly different.

"There is a mountain of difference between the need in the US for a $700 billion bailout of bad debt on the one hand against the systems which prevail in Australia," he said.

"[They] have quite different levels of exposure to subprime, different levels of arrears when it comes to the repayment of mortgages and a different state of the balance sheet of financial institutions."

Mr Rudd has says the Reserve Bank of Australia has been monitoring liquidity over the past year.

"The circumstances in the two markets are different," he said.

"I think it's therefore very important that all responsible public commentary on this reinforces those differences rather than try and say we have exactly the same set of circumstances as the Americans."

Mr Rudd will leave for the US later today where he will hold meetings with the chairman of the New York Federal Reserve.

He will also be pushing for a seat on the United Nations Security Council.

The Opposition has attacked Mr Rudd as a "prime tourist" for the amount of time he spends out of the country but Mr Rudd says the trip is necessary.

"When you have an opportunity as the leaders of the world gather in New York for just three days to engage on what is the greatest financial crisis that we have seen for a long, long time ... it's important that in the national interest Australia is there rather than simply hoping someone sorts it out on our behalf," he said.