Printing more money and using monetary policy is not going to get anyone out of recession and it certainly did not end the depression is the 1930s. The government needs to become an employer of its people to build or rebuild infrastructure.and not hand out gratuitous payments like job killer. The big end of town is just protecting their own hindquarters and is not up to the task nor interested in nation building. They are all playing a game of chicken, sitting on their overinflated shareholding seeing who will blink first.
Speaking of over-inflated shareholdings, there's some things on the ASX and international exchanges that are simply unbelievable right now.
All the Aussie Big Four banks for a start - notices are about to be sent this week to people with their loans on 'pause' in order to re-start their loans - but the heads of the Commonwealth and NAB banks have already said that they don't expect this process to go well because there'll be a lot of customers who can't afford to 'catch up' with their loans considering it was only the repayments and not the interest that was put on hold. The head of NAB even said not long ago that anyone who thought they wouldn't be able to resume payments should have bailed a long time ago - particularly investment properties.
So we have that problem - but we also have stocks being extremely over-valued like Tesla, which is presently valued at more than Toyota despite the fact that they haven't made any money since their inception. I guess its just people looking for somewhere to park their money and they consider that stock a good investment - but is that a good idea considering they've never made money?
Tesla has now reported that it made four quarters in a row profit, some few automakers can say.
Share prices are not so much what they have made, its about what people think they will make in the future and considering their books are full and they cannot make cars or release new models fast enough, they have strong prospects. Their side businesses are also in strong demand. (and to think some of us here believe the Australian car manufacturing industry had a future with automakers that barely have a future on their home soil)
Meanwhile almost the rest of the legacy American auto makers are in decline outside the pickup (ute) market and of the pickup makers, even some of these are not expected survive against the wave of electric pickups and existing low production volumes, Ford being the leading exception with its F150.
Expect to see a growing number of infrastructure projects, obviously the acceleration of the Western Sydney airport railway (14,000 jobs) being one of many.
Banks, well they cannot allow the honeymoon to continue. Rule number 1 with a housing loan, always budget for a year's unemployment and you will unlikely ever loose the roof over your head. Rule number 1 with a investment loan, should not be solely dependent on both rent and your income for repayments, unless you don't like sleeping at night.