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Not too powerful, just overly conservative. This has its advantages - our financial crisis experience was mild because regulations in the banking sector (plus o
by JacobAldridge 16y ago
Not too powerful, just overly conservative. This has its advantages - our financial crisis experience was mild because regulations in the banking sector (plus our small size plus our mining industry, but let's avoid that discussion here) helped us through.
But sometimes that conservative need to protect is combined with ignorance of reality, technical reality in these instances. That's a bad thing.
(Some side notes on conservatism - we're a country who didn't have it's own national flag in practice for 50 years post Federation; one of our first national Acts of Parliament was the 'White Australia' policy which lasted until 1975; the Prime Minister we had when Hitler invaded Poland was the same guy we had when Kennedy was shot 25 years later; and we call Football 'Soccer'.)
- mos1b1 16y agoour financial crisis experience was mild because reglations in the banking sector Those were liberal financial regulations. Seriously.
- nl 16y agoUm.. what do you mean by liberal? It is true that the Liberal government supported them (as did Labor). But they were conservative in that they restricted financial institutions in a number of ways (high capital requirements, strong(er) regulation of loans, etc etc)
- deleted 16y ago[deleted]
- mos1b3 16y agoI used the terminology in the same way you did. It's disappointing that you feel the need to pretend this is confusing to you.
- math 16y agoI doubt our banks are as safe as everyone says. Our housing market, by many measures is in a much bigger bubble than where the US got to and I'm convinced this is not due to supply demand fundamentals (as most people have been brainwashed into) - plenty of research out there as to why. We haven't seen bad times for 20 years. When we finally do (and there are people like Jim Chanos out there right now shorting China Property, i.e. Australian resources), that is when the swhtf. Our banks have massive exposure to mortgages. Not that many need to go bad before our banks are in trouble.