Why the meltdown happened

I have just spent an hour and a quarter watching the video below. Every single second was worth it. Peter Schiff, the man who predicted the current economic crisis explains how it happened and were it will likely lead with a clarity that no politician would dare use. A must see video:

Bonded to reality

Right, this is really useful, Mr Rudd wants Pacific Brands to pay back money the government gave them:

THE Federal Government will try to retrieve taxpayers' money given to Pacific Brands in view of the company's decision to slash 1850 jobs, Prime Minister Kevin Rudd said on Friday.

Public outrage over the sackings, to be carried out over the next 18 months, is increasing as Pacific Brands prepares to send its manufacturing operations out of Australia.

Also we have the traditional union response to job lose, boycotts and industrial action.

CFMEU national secretary John Sutton plans to propose a boycott of King Gee, Hard Yakka and Can't Tear 'Em brands when the union's national executive meets next week.

Sorry but I don't think its going to help. This is the reality:

The company is heavily into doubt and has to restructure to survive. The alternative is bankruptcy. However I do have one question ; why were they given the money in the first place?

Stocks down, inflation up

We have received phase one of Mr Rudd's economic stimulus and the results are coming in, the stock market is sinking and inflation is up:

At the 4.15pm (AEDT) close, the share market was at a five-year low, wiping $27 billion off the market, it's lowest close since December 2003. The All Ordinaries shed 93.1 points, or 2.82 per cent to 3203.8.

This morning, a measurement of price rises in recent months put the inflation rate back above the level the Reserve Bank (RBA) aims for to prevent the economy overheating. The survey blamed petrol price rises for a 0.7 per cent rise which took the yearly rate to 3.1 per cent.

With phase two starting up we have lots of exciting economic news to look forward too.