Two Countries, Two Circumstances

Let's compare US & Australia.

In US, it has launched a US$700 Billion Rescue Package.
In Australia, we have a A$10 Billion Stimulus Plan.
The amount of money reflecting the Seriousness of the Problem.
And reflect the Degree of Panic.

Also, US Government has to buy bank shares to stabilise the Share Market as the mean to stabilise the Economy. Whereas our Australian Government is trying to put money into everyone's pocket, aiming to encourage people to spend.

After the recent turmoil, the World Economic Forum has assessed "How Safe the Banking System" in 134 countries. It has ranked US's at 40th, UK's at 44th, HK's at 11th and Australia's?

At 4th!

In US, even though the Federal Reserve has cut rate dramatically since Sept 2007, the mortgage rate did not fall much as it is linked to the UK's Inter Bank Rate. Whereeas in Australia, when the Reserve Bank cut the rate by 1%, the mortgage rate dropped by about 0.8% and tonight another surprise, ANZ bank cut another 0.25% in its mortgage rate.

In US, the house price has dropped about 15-18% from its height at 2006 and is expected to fall by another 10-15%, whereas in Australia I personally felt that the price has dropped about 10% from a year ago.

With the Australian Government's recent Stimulus Plan and the recent 1% interest rate cut (and more is expected), the auction I attended earlier today had a better clearance rate.

To conclude, I do feel Australia is much much better placed than US - let's do NOT forget Australia is closer to the Rising Super Power, China than US - "The Eye of Storm".

Even though China is slowing down but is still expected to grow at 9% a year, whereas US is expected to have ZERO growth if not Negative for the coming quarter, confirming it's in Recession.

Cheers
Fate
Think Globally, Gain Locally