Meltdown Monday

Colly18

Well-Known Member
"Meltdown Monday" Oooch! That hurt! And the pain will get worse, I'm sure.
In response to the coronavirus, I'm interested to see what our P.M. and his buddies come up with today to stimulate the economy and secure jobs. One thing I'm pretty confident of is that any $ handouts will see self-funded retirees missing out, as usual. :(
I see, via the media, we are already getting the message about how the USA will save our bacon by allowing us access to their reserve oil stocks in the event of a global crisis. How nice of them!
To get away from all of this, I think I really need an extended trip bush this year! (No tele, no internet and only turn the radio on for AFL). And I better take my one rabbit trap I salvaged from disposal many years ago (a memento of a past life). I might need it?
 

typhoeus

Well-Known Member
Well you better make a move while you can. . . If it gets bad, they will impose semi martial law and prevent population movements like China and Italy is right now
 

Colly18

Well-Known Member
Seems like the Japanese are serious about their economy, a $300 billion stimulus package
We've been given a pep-talk by ScoMo, but I'm not sure that meets Australians expectations of the federal government!?
 

mikehzz

Well-Known Member
A lot of small businesses are going broke at the moment. Scrooge McMorrison will need to do something worthwhile or we'll be toast.
 

Colly18

Well-Known Member
Let's hope ScoMo gets brave and his team come up with some great responses to our situation. This is where we will discover the quality of leadership in our political system. Get it wrong and the Libs will be ousted next election.
Yep, many small businesses are/will be doing it tough. Although IMO small business should have a decent nest egg as a backup for unforeseen situations, the current human reaction to a corona virus (as expressed in plenty of places in this forum) is ridiculous. So my sympathies go out to micro and smaIl businesses. Really, given we live with flu viruses constantly, who would have forecast that the planet would go into 'lockdown' (factories shutting, travel bans) in response to a corona virus?, knowing it appears (for all practical purposes and as far as I can tell to date) to be be little more than a very contagious flu like virus than can cause pneumonia in some cases, with a low death rate (twice that of flu?), with frail elderly the most likely to have a fatal infection. (Yes, I know we are being cautious because we don't know enough about the virus yet).
ASX bounced back 3% positive today! Only 17% below Feb high now.
 

Spooner

Well-Known Member
A lot of small businesses are going broke at the moment. Scrooge McMorrison will need to do something worthwhile or we'll be toast.
Don't blame the PM .
I they were going broke before all this happened, then they are all toast.
Whatever happens Is actually "Our Fault" for letting this country slide into a non manufacturing anything anymore ,
To a "Just in Time " supply chain from China ;)
 

mikehzz

Well-Known Member
I didn't blame him, and the businesses weren't going broke before the fires, floods and virus scares. In areas where tourism is a big player, the visitors have dried up, and the money flow on to other businesses has stopped. The government is planning a stimulus to put money into the economy. I was saying they'd better do it right or we'll lose a lot of jobs due to more businesses failing. You can have a great business that will fail because other businesses in the chain fail because bills don't get paid.
 

mikehzz

Well-Known Member
The reality is that small business has been tight for the past 10 years, nest eggs have eroded. Many are now hand to mouth trying to keep their staff employed. It's a big burden knowing that maybe 10 families are relying on you to keep the wages coming in. A friend went down a few weeks ago putting 20 people out of work. He'd been running for 22 years, well established, but his customers couldn't pay his invoices, so he couldn't pay wages and suppliers.
 

Colly18

Well-Known Member
The 'experts' are telling us it will be those businesses operating 'hand to mouth' or with large debt that will be most likely to go under in the current environment. That makes sense, and makes it all the more important federal government act quickly to provide some financial backup for workers. At least easy access to the dole (eliminating any waiting period) so people can keep a roof over their head and food on the table makes sense.
To me it appears a lot of people/workers/families operate payday to payday without adequate attention to building their own nest egg in case of sudden job loss or disaster. They chose other priorities and for this society/government ends up meeting much of the cost and (for some reason?) the burden of responsibility.
We'll keep waiting to see what/whether ScoMo releases details of their stimulus package before weeks end(?)
 

rogerazz

4x4 Earth Contributer
Firstly, I see it as people getting top wages which in turn makes local production impossible.
Secondly I see that when we earn so much money we still expect to pay little for what we buy, through imports.
Australia is a vital part of the world economy and unfortunately we have priced ourselves out of that.
Imagine if you earned a basic wage of say $500.00 p.w. before tax, bought a nice new house for $75,000.00, a nice new vehicle for $5,000.00 , etc. etc. Then we could manufacture everything in Australia, employ lots of people to do that, get good quality goods and are competitive with many countries that take all that off us.
Travelled Ireland some years ago and spoke to a bloke in a hotel over dinner.
He told me there were about 60,000 rental property that were unoccupied which was creating an economic nightmare.
All because everyone wanted to own a rental property.
Over the years the more we fought for wage increases the more everything went up in costs, so we basically have priced ourselves out of the world market, because we now can't compete in manufacture and exports.
 

Colly18

Well-Known Member
ASX down again today!
Rogerazz, I sort of agree with what you say. But I think it is more a case of, "as we become more affluent (more income) we want and demand more (material possessions, services, public infrastructure)." And for some reason, this seems to coincide with accepting less personal responsibility and demanding more government help and responsibility for when things go wrong!
I'm sure there is an economist out there that can explain how this relates to western capitalist democracy and individuals' desires to "better themselves".
But IMO the reality is modern communications, ease of travel, open/free trade, etc. all means we (the human race) are moving fast to being a single global community, rather than a multitude of national communities. End result = common economy, common standards of living and "life expectations"(?)
That means, although I still see Australia as the best place to live on the planet at present, this may not always be the case(?)
My guess is Donald Trump plays on such thoughts to USA voters to his advantage(?)
The guy in Ireland had it right, we (in affluent western societies) have become too greedy IMO.
 

Colly18

Well-Known Member
Yep, I like an "off topic" option in a forum!
Maybe we are not experts in every field, but plenty of us excel in common sense and life experience! (Personally, I pride myself on being a 'Jack of all trades, master of none!' :))
It's no surprise that the pain continued today on the Aussie stock market; ASX down a further 7.4% down, with more to come. I can't quite fathom why we humans are such panic merchants - someone declares a pandemic, when nothing really changes from one day to the next, and all hell breaks lose?????
Gee, the super is looking a bit sick at the moment (understatement). Just ride it out I guess!?
Politicians could do worse than monitor forums such as 4X4Earth to gauge public opinion (well, at least what a segment of the population are thinking). I often wonder whether they/their minders/staff bother?
 

dno67

Well-Known Member
There forcing the share prices down on purpose, a readjustment of everyone's super due to the slowing world econemy. It's funny money, that the peasants will loose.
 

Colly18

Well-Known Member
I'm wondering, what would you do with the $750 part of the government stimulus package, if you were a recipient?
No $750 coming my way, but if I was getting it, I'd be spending it on local trades and hardware as there are a few things need fixing about home (or maybe a fuel and food for my escape to the bush?). It certainly wouldn't be spent on stockpiling toilet paper or Glen20.
 

Colly18

Well-Known Member
Phew! Some relief, ASX bounces back a little today after early slide. Guess I will check the super balance on the weekend to see what the damage was this week.
 
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