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I haven't been here for a few weeks, but reading over the recent messages, can't help thinking that we are getting too despondent. I can remember the dreadful economic disasters in Australia right back to the credit crunch of 1960 (when Menzies held on by one seat which they only got because of leaking Communist Party preferences). So today's events don't look too worrying.

Yes, cycles tend to happen, though we can't know exactly when.

Yes, the Nasdaq's run over recent years was a bubble - not sound investment

Yes, there are some profitable businesses listed on the Nasdaq.

Yes, Keating oversaw things during the 1980s crunch. But the ALP had actually made all the major economic changes which Fraser had promised and not done! And Howard would have had Buckley's chance of introducing GST if the ALP had not already done the hard yards for him!

Howard's problems are really his own:

failed to control bureaucrats grabbing revenue

cut universities' funds when we needed massive increase in techy and science grads and postgrads

fiddles with infrastructure funding (Yes-No to Badgery's which was always a bad idea; Yes to Alice Springs-Darwin rail which is largely useless, No to Sydney-Canberra fast rail when it should have been yes to Syd-Cba-Mel)

failed to realise and allow for that a US downturn could interact with a GST-induced slowdown.

Beasley's team may well be much better managers of an economy than Howard's - would you put Tony Abbott in charge of anything???

I'm on hold in mostly low-tech, cyclicals and recovery situations in Australia. If they drop 25% this year, I'll still be there.


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