Our loss, Australia`s gain: McCaw

Our loss, Australia`s gain: McCaw	31.05.2008

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05/31/2008		Sordo soars, Loeb breaks down
SEBASTIEN Loeb lost control of the Acropolis Rally on Saturday as his Citroen teammate Dani Sordo took the race lead following the opening three specials of the second day

05/31/2008		Lions leapfrog plucky Kangaroos
JONATHAN Brown dined on a feast of drama before finally delivering the killer blow to a die-hard North Melbourne for a 31-point Brisbane Lions win at the Gabba

05/31/2008		Pies annihilate Eagles
IT is a mark of Collingwood`s rich recent vein of form that coach Mick Malthouse justifiably rated the 100-point whipping of West Coast as a drop in their performance level

05/31/2008		Cats steamroll Blues
GEELONG gained redemption of sorts through a second-half scoring blitz to earn a 56-point win over Carlton at the Telstra Dome

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Have Your Say

Latest Comments:

Lemmings, Lemmings and more Lemmings..so we all sell on "fears" of a recession and then within a week, we have one.I am a shareholder in a few companies, I am enjoying not caring about this..I havent had my leg blown off..so drink up and shut up,it will come good.If you borrowed money to buy your shares and cant take the heat, then perhaps buy a two bedroomed unit and live longer...
Posted by: Lee Robert Taylor 5:14pm today

Herb, that comment was spot on.I only hope that when Costello delivers them from fiscal hell he does it quickly and painlessly so that the rest of us workers can get back on with the job of building up this nation from the rotting Labor carcass.
Posted by: Bruce 5:11pm today

"US has TRILLIONS of dollars of national debt. At least ours is minimal (or is it all payed off now?) So we are somewhat insulated but will still feel effects of a recession in America" Simply Not True!Firstly On a Personal level Australians owe to the banks 650 Billion Dollars, About 30000 from every man woman and child! Secondly, Our current account deficit is on par per GDP with American debt levels at about 6% of GDP,The current account comprises the Trade Account and the Net Income Account, The Deficit for the Current account is around 16 Billion dollars.We are in the middle of a boom and still run a trade deficit, We are still importing more than we export which is a big problem The Trade deficit is at 3.7 Billion. Even bigger is our Net Income Account which has a deficit of just over 12 Billion dollars, Which means we owe more to foreign investors than they owe to us! Now with the rise of Chinese and Indian economies (Our sources of Cheap labour which keep the costs of goods low) Inflation is going to skyrocket, This will bring higher Interest Rates. Just think for a second what rising interest rates will have on our current account.
Posted by: Dion Zorino of Perth 5:06pm today

I'm curious to know where the posters on this forum got the idea that Australia no longer has foreign debt. A little research can be very enlightening.
Posted by: StevenC of Young 5:05pm today

To Em of Melbourne(4:40pm)yes but it does buy very nice cars, boat, and a life to enjoy. after all only 1 life.. someone has to lose someone has to win.. so life with it.. pfft!! do ur homework and u mite be one of the winners!
Posted by: Dave of Perth 5:03pm today

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Bloodbath on markets continues
Is this when it all comes crashing down?
Live prices: See how your shares are doing

THE Australian share market has made a grim start to the year.

The market continued to haemorrhage this morning, plunging 2.65 per cent in the first 15 minutes of trading amid growing fears of a US recession.

Were the US to slide into a recession it would trigger a global downturn that would affect worldwide markets and interest rates, including Australia`s.

Is this where it all starts crashing down? Are you tightening your belt? Share your thoughts through the comments box below.

The slide has been spurred on by the banks` years of lending easy money coming back to haunt them, combined with a steady stream of economic data all pointing to a gathering storm.

Australia`s share market is now in its tenth consecutive day of negative trading. It comes on the heels of another horror session in Wall Street overnight.

The Bush administration is preparing a massive stimulus package worth up to US$150 billion to help resuscitate the flagging economy, signalling that it now perceives a real threat to the economy.

Even the traditional safe haven of gold, which investors scrambled to over the holiday period, has been volatile with prices beginning to slide after its recent record highs.

At close today the benchmark S&P/ASX200 index had fallen 0.84 per cent, the broader All Ordinaries had shed 0.98 per cent. (Full share market report)

Overnight, the Dow Jones Industrial Average sank 2.46 per cent, the tech-heavy Nasdaq lost 1.86 per cent and the Standard & Poor`s 500 fell 2.83 per cent.

The US outlook is bleak after the country’s major banks have reported multi-billion dollar losses following the sub-prime mortgage crisis.

The US Federal Reserve chairman Ben Bernanke further unsettled investors overnight with talk of pumping up to $US150 billion ($170 billion) into the US economy in a bid to stimulate growth.

"Ben Bernanke`s comments on a potential economic stimulus package from Congress did little to instill confidence among traders," said Joseph Hargett at Schaeffer`s Investment Research.

Al Goldman, at AG Edwards, said the prospect of recession was still the main fear for Wall Street.

"Concerns about a possible recession and its impact on corporate earnings remain the major problems overhanging investor emotions," he said.

"A recession, which we continue to believe is the most likely economic scenario, will have a big negative impact on corporate earnings."

Think first, sell later

CommSec equities analyst Juliana Roadley said the Australian sharemarket remained a good vehicle for retail investors and the the environment would also present some bargains.

"Everyone is in a panic mode ... they`re not looking at the fundamentals,`` she said.

"The book value and the face value of (a lot) of companies listed on our exchange at the moment are well above the value of what they`re being traded at.

"So the share price values are way below where they should be.``

Ms Roadley said that rather than panic, investors should look to ride out the troughs.

"Don`t get panicked, don`t sell out - you might have some really good assets there.

"OK, you`re going to see a bit of a fall, you might lose six months worth of growth, or in some cases eight months worth of growth, but then you`ve got to buy back in.

"You`ve got to sell out and pay brokerage, then you`ve got to buy back into the market at a lower level.``

One bright spot for Australian consumers could be a stay in interest rate hikes.

The RBA has to keep inflation growth beneath 3 per cent - uncertain financial markets could dampen spending and ease inflationary pressures.

Official inflation data comes out next week.

AMP Capital chief economist Shane Oliver told The Australian a 25 basis point move by the RBA coupled with the average 15 basis point increase in variable home loan rates by banks recently would be too much for consumers.

"I think they (the RBA) will stay on hold,`` Dr Oliver said.

"The global economy is more of a factor than the RBA thought it was going to be last year. The downturn will have an impact on the Australian economy and it will dampen global inflation pressures,`` Dr Oliver said.

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