Busted: Bankers and The Global Economy

February 4, 2008

Aussies Waiting for Shoe to Drop

Filed under: banking, central bank, money — Tags: , , , , , , — digitaleconomy @ 12:00 am

Many Australians are feeling the financial pinch as symptoms of economic tension rise waiting for the market in the United States. The Central Bank (Federal Reserve of Australia) has been raising interest rates and people are getting tense as families struggle to keep their heads above the water.

It should wait and see on interest rates until the effect of the turmoil in the United States caused by the sub-prime housing market is clearer.

Apparently, the Aussie Fed is doing the polar opposite of the U.S. Federal Reserve as they struggle to keep their own profits coming in while creating additional risk of inflation. Australians have been living with increased tensions from rising interest rates in their economy. If they started defaulting on mortgages, I am certain the bankers wouldn’t continue raising interest rates. Isn’t it interesting how the Fed (central banks) in different countries work together to make extra money? One way or the other, bankers find a way to bring in the bacon. ~E.M.

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