March 31, 2010

ANZ warns of crisis aftershocks

Stuff News featured a story this week ANZ warns of crisis aftershocks in which ANZ boss Mike Smith says that the global economy is likely to continue to suffer "aftershocks" following the 2008 crash of Lehman Bros. For a small debt-laden economy like New Zealand this is not good news.

In the US and Europe economists and policy makers are still trying to figure out how to get back the huge sums of money they loaned out to big banks and finance companies to help shore up a creaky finance sector in the midst of the 2008 financial collapse.  At least in NZ we avoided the worst of taxpayer bailouts of finance houses.

Meanwhile sharemarkets here and overseas remain subdued. Unemployment remains at higher than usual levels and the economy remains in a fragile condition.  The first glimmers of economic growth are starting to show but there is still room for changes that "make the NZ Inc boat go faster".

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