Australian Recession?

[Brendan]

Ok, I know I have been predicting a downturn in global markets for a little while, but overnight it seems like the globally economy has really slumped and its looking pretty likely that the US may go into recession..

A few interesting links here..
FT.com / MARKETS / Equities - London shares struggle in volatile trade (http://www.ft.com/cms/s/0/af07c6ac-c8bb-11dc-b14b-0000779fd2ac,s01=1.html?nclick_check=1)

http://www.ft.com/cms/s/0/d11994fe-c7c2-11dc-a0b4-0000779fd2ac.html

So, what does this mean for Australia?

In the UK they are starting to lower interest rates and take a few other measures to curb recession, yet in Australia there is talk of raising interest rates..??

How do you think Australia will be affected since all the major economies are having a massive downturn?

[crackers]

Australia will be ok i think, but we rely on china! and china relies on the usa!

So, maybe not? haha

[Brendan]

exactly, one of asia largest markets is exporting goods to the US.. so even though we rely more these days on the asian economy I don't see how we can not be affected.

I just wonder how strong our local economy actually is to be able to hold our ground during these unpredictable markets.. lets hope Rudd can pull a rabbit out of a hat :)

I have found this article which seems to give the impression that Australia is actually in quite a good position to ride the wave as they call it..

Australian shares crash 7% | theage.com.au (http://business.theage.com.au/australian-shares-crash-7/20080122-1nem.html)