Australia’s Political Stocks Have Never Been Lower

Reddit

Thank goodness that’s all over. Throughout the whole tiresome election sales pitch, we’ve purposefully refrained from making any comments on politics. But now that it’s all over for another three years, we’ll make a few.

Firstly, we hope we’re wrong, but we don’t remember a time when Australia’s political stocks have ever been lower. That’s not a comment on the new Coalition government; anything surely will be better than that dysfunctional group of power mongers called Labor.

Rather, it’s a comment on the choice that Australians have over who will lead the country. The thought of Tony Abbot leading his party to an easy election win would have seemed insane to both sides of politics just a few years ago.

But thanks to Labor’s complete ineptitude in running the country, that’s exactly what happened. It wasn’t so much that Abbot won the election, it was the Labor, and Rudd, lost it. Hence the strong rise in the vote of the minor parties, as many disaffected voters couldn’t bring themselves to vote Labor or Liberal.

This lack of major support for the Coalition means that the Greens and Labor will still hold the balance of power in the Senate, at least until June 30 next year.  So some of the Coalitions’ ‘repealing’ policies, like the abolition of the carbon tax, will have to wait.

We’re not surprised at the nation’s lack of enthusiasm for the major parties. We couldn’t bring ourselves to vote for anyone. For the first time ever, we walked into the polling booth, got our name ticked off, received the voting papers, then proceeded to neatly fold them up before putting them into the voting bins without making a mark on them.

We didn’t do so out of apathy. We did it out of disgust. If democracy is something to be respected, then you need to respect your vote. We didn’t know of anyone who deserved the respect for our vote.

Then again, we’re ideologically opposed to the whole process of politics. It’s an industry where people use taxpayer funds to try to impose their view of the world on everyone else. And then they borrow heavily against the future value of taxpayer funds to give things to special interest groups who supported them.

Regards,

Greg Canavan+
for The Daily Reckoning Australia

Join The Daily Reckoning on Google+

From the Archives…

Emerging Markets Walk The Tapertalk
6-09-2013 – Nick Hubble

House Prices Halve Without a Recession
5-09-2013 – Nick Hubble

A Manufacturing Industry Revolution
4-09-2013 – Nick Hubble

How the RBA is Using Low Interest Rates to Destroy Your Wealth
3-09-2013 – Nick Hubble

Is the Stock Market Predicting War?
2-09-2013 – Nick Hubble

Greg Canavan
Greg Canavan is the Managing Editor of The Daily Reckoning and is the foremost authority for retail investors on value investing in Australia. He is a former head of Australasian Research for an Australian asset-management group and has been a regular guest on CNBC, Sky Business’s The Perrett Report and Lateline Business. Greg is also the editor of Crisis & Opportunity, an investment publication designed to help investors profit from companies and stocks that are undervalued on the market. To follow Greg's financial world view more closely you can subscribe to The Daily Reckoning for free here. If you’re already a Daily Reckoning subscriber, then we recommend you also join him on Google+. It's where he shares investment research, commentary and ideas that he can't always fit into his regular Daily Reckoning emails. For more on Greg go here.
Reddit

Leave a Reply

6 Comments on "Australia’s Political Stocks Have Never Been Lower"

Notify of
avatar
Sort by:   newest | oldest | most voted
Greg
Guest

“This lack of major support for the Coalition means that the Greens and Labor will still hold the balance of power in the Senate, at least until June 30 next year”.

What?

The ALP and Greens will hold the balance of power in the Senate until July 1 2014, and this would remain the situation even if the coalition had received 100% of the votes cast on Saturday.

Ross
Guest

Abbott’s legislative agenda was clear. He is within rights to call a double dissolution if they block in the senate.

Must be terrible having emigrated from Sydney and having to walk among all those inner urban Melbourne Green voters every day.

Big news was Labor losing its VIC heartlands, and the Greens losing its Tas heartland

QLD voted for their reinvigorated agrarian socialism transplanted into a version with a new mining & tourism heart. Quick fixes, big lever schemes, and subsidies while complaining about govt burden.

shortchanged
Guest
Greg, your passing reference to democracy caused me to recall my last year at school, at which we were given a series of lessons entitled, Citizenship, duties and Responsibilities. Please note, nothing about rights, ‘uman or otherwise. Where democracy means, the greatest good for the greatest number and nothing about any other group having more sway. So in the year 1957, at the tender age of 15, we were let loose upon the world, to learn of its mysteries and splendors and that is when our education really began. The tenet of democracy holds true, but as is so often… Read more »
WDK in Texas
Guest
What has happened to political parties today? Is it that voters are more informed and news travels at the speed of the Internet in today’s world? I fell quite certain that any U.S. political party or group could be substituted for all the names referenced in this article and the news would be the same. “Representatives”, in name only, are elected and proceed to do anything BUT represent their constituents. I guess elected representatives have been bought off since the office was ever invented but I can’t get over the feeling that the disconnect between “them” and “us” has never… Read more »
slewie the pi-rat
Guest

“…without making a mark on them.”

you white-balled the whole Australian [secret] ballot?
and then exposed yourself?
very pi-ratical!
plus, you avoided using any #2 pencil-carbon, so no butterfly will die…
AarrrrGhhhRrr…!

shortchanged
Guest

Agree with you entirely WDK, it’s due to the internet or rather emails, text’s etc that persuaded our mp’s to vote no. Instant communication let them know how we felt in no uncertain terms. A vote, excuse the pun, for democracy, wouldn’t you say?

wpDiscuz
Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to letters@dailyreckoning.com.au