Over the weekend is was announced that the Federal Government will be guaranteeing bank deposits and have allocated a total of 700bn to do this. As a result the Australian dollar has started trading at higher levels almost immediately since the beginning of trade this morning.
This will go a long way to inspire consumer confidence and create a safety net in a worst case scenario, again assuring Australians who have savings in a banking institution that their money is safeguarded against loss.
The stabilisation of the Australian economy is critical at the local level and is a leading step towards showing the global economy and governments on how to manage this credit crisis.
There is also a move to inject funds into the financial markets through a further $4bn being offered to lending institutions to allocate to borrowers although the process for lenders applying and being approved for funding is yet to be determined.
Talks about similar initiatives are being held currently by Eurozone countries, as a combined effort the impact of such decisions can have an enormous positive impact on a global scale. More news to come on the Eurozone decision so stay tuned as a blog on this will be out shortly.
Another blog you may be interested in is the 'Financial Review - AWFG -' which is updated regularly and contains a great deal of up to date information and opinion on economies across the globe.
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