http://www.dailyreckoning.com.au/calling-it-a-credit-crunch/2008/09/02/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 http://www.dailyreckoning.com.au/calling-it-a-credit-crunch/2008/09/02/comment-page-1/#comment-39068 Guy Wed, 03 Sep 2008 07:31:22 +0000 http://www.dailyreckoning.com.au/?p=3585#comment-39068 Christina, thank you for that lovely analogy. I'm going to keep it. Christina, thank you for that lovely analogy. I'm going to keep it.

]]> http://www.dailyreckoning.com.au/calling-it-a-credit-crunch/2008/09/02/comment-page-1/#comment-38906 christina Tue, 02 Sep 2008 13:39:07 +0000 http://www.dailyreckoning.com.au/?p=3585#comment-38906 An economist told me once that if you put 4 economists in a room, you will get 5 different opinions. Apparantly, even they argue amongst themselves :-) An economist told me once that if you put 4 economists in a room, you will get 5 different opinions. Apparantly, even they argue amongst themselves

]]> http://www.dailyreckoning.com.au/calling-it-a-credit-crunch/2008/09/02/comment-page-1/#comment-38888 Ross Tue, 02 Sep 2008 12:28:14 +0000 http://www.dailyreckoning.com.au/?p=3585#comment-38888 In Australia in the late 80's we had high interest rates and high asset price inflation (stocks and real estate, both commercial and residential). We were supposed to have a "J curve" the debt had risen, the dollar was to go down and we were to get an export led recovery (we are still waiting for that one - USD priced commodities surge is the only export recovery we have had in the 20 subsequent years. But then again Mr J curve was the same "world's greatest treasurer" that labelled us a "banana republic" while on the phone from his mum's house on breakfast radio. So what we had was debt ... if you can maintain debt you can inflate the hell out of everything... that is what we taught Greenspan and he and his mates like Rubin grabbed it and ran with it! In Australia in the late 80's we had high interest rates and high asset price inflation (stocks and real estate, both commercial and residential). We were supposed to have a "J curve" the debt had risen, the dollar was to go down and we were to get an export led recovery (we are still waiting for that one - USD priced commodities surge is the only export recovery we have had in the 20 subsequent years. But then again Mr J curve was the same "world's greatest treasurer" that labelled us a "banana republic" while on the phone from his mum's house on breakfast radio. So what we had was debt ... if you can maintain debt you can inflate the hell out of everything... that is what we taught Greenspan and he and his mates like Rubin grabbed it and ran with it!

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