Crisis worse than first thought: Smith

THE government’s cabinet budget committee will meet later today to take any action deemed necessary from key meetings of the International Monetary Fund and Group of 20 finance ministers in Washington today.

Foreign Minister Stephen Smith said there was a growing realisation that the international financial crisis was worse than originally thought.

He would not confirm reports that the government would follow other nations and lift the proposed savings guarantee from $20,000 to $100,000.

Considering most government’s have ignored the credit binge since banking was de-regulated, it’s no wonder the crisis is worst that first though. Just having a look at how overvalued Australian House Prices are is enough to put a shiver down your spine. Even more frightening – Now it’s all about to start to unravel. Better get that deposit guarantee into legislation quick smart.

» Crisis worse than first thought: Smith – The Australian, 12th October 2008.