Australia’s Banking System Nearly Collapsed, Says Prime Minister
October 30th, 2008Via: Daily Telegraph:
PRIME Minister Kevin Rudd, vowing to “level with the Australian people”, last night indicated the Australian banking system was on the brink of collapse two weeks ago.
Mr Rudd said confidence in local banks was fading as institutions in other countries were given government guarantees.
The Government decided to grant its own protection.
“Failure to act could have meant significant difficulties accessing credit and higher loan rates,” Mr Rudd said.
“This would have affected investment and consumption and ultimately growth and employment.”
And he made clear the forecasts were for more bad days to come.
“We must level with the Australian people: We are not immune from this crisis. We are feeling its impacts now and we will be feeling its impacts long into the future,” he said.
Government sources said the Prime Minister wanted to ensure Australians were aware the international financial disruption had not finished affecting our economy.
And he wanted to make clear there was no single precaution or response which would protect Australia.
Research Credit: IL
And here’s what he said a few weeks ago:
“We are different to banks around the world, our banks are in a strong position.”
http://www.thewest.com.au/aapstory.aspx?StoryName=521199