Good times over?

Looks like its going to be tougher from now on but we can amuse ourselves by watching Mr Rudd trying to blame everyone but himself for our problems:

KEVIN Rudd has warned Australians to brace for tough economic conditions as he refused to rule out a recession driven by what he described as the most uncertain global financial conditions in three decades.

The Prime Minister blamed global factors and the Howard government for the turmoil, insisting his economic policies and $22 billion budget surplus had given Australia greater insulation against the worsening global situation than most other nations, The Australian reports.

Mr Rudd's admission the economic outlook was bleak and would hit family budgets came as Brendan Nelson demanded he "stop talking Ruddish" and accept responsibility for economic mismanagement.

The Prime Minister's gloomy forecast follows a string of bad economic figures, including continuing high inflation, a 1 per cent fall in retail turnover in June and the lowest level of bank lending in 25 years.

Sooner or latter blaming problems on the previous government is going to wear thin. What precisely did the Howard government do to cause any recession , tax cuts? low unemployment? lower interest rates? What Mr Rudd?

But there is one silver lining, interest rates may come down:

The slowdown has triggered predictions the Reserve Bank board, which meets next week, will cut official interest rates from their 12-year high of 7.25 per cent by October.