The Budget handed down by the Treasurer Wayne Swan on Tuesday night didn’t really offer much in the way of financial services in either a positive or negative manner.
Having scoured many offerings available outlining the details of this year’s Budget and searching for content that might affect our clients, this SIRA Views will be a brief report and we trust you will find some benefit in the following outline of the key issues relating financial services.
The recent decline in the share market is a correction rather than the beginning of a new bear market! Why do we believe this?
In 1933, the US Federal Reserve Bank began massive ‘open market operations’. It bought $2 billion of government bonds, and flooded the system with liquidity. $2 billion in 1933 was a massive amount. It’s about $35 billion in today’s money, but of course, the ‘real’ (inflation-adjusted) economy was much smaller then.