Saturday, October 25, 2008
SYDNEY, AUSTRALIA — For one of the first articles on The Backbench, I don’t like writing about bad stuff. Particularly when it’s about the “R” word. The reality is, though, Australia will be incredibly lucky if we avoid a recession. This is despite Australia facing the global financial crisis with 3 strong-looking levies: (1) a relatively strong banking system; (2) a $20bn commodity fueled budget surplus; and (3) China. However, as the credit crunch continues to corrode the global economy, more and more pressure is being applied to these levies and their resilience is increasingly being tested.
