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Be prepared for the recession we might have avoided.

Posted by on Dec 14th, 2008

Although Rudd stated some weeks ago that Australia would not slide into a recession it seems another one of his forecasts has exposed just what an economic dunce he is. Possibly only Swan can make worse assessments of the state of the Australian economy with Glen “I raised rates too far” Stevens (the Reserve Bank [...]

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Buying and Selling on Price

Posted by on Aug 29th, 2008

All businesses should endeavour to create points of differences for their product or service, but what about if you are selling an undifferentiated product, something that is truly a commodity, such as petrol or even bottles of Coca Cola (which of itself is not a commodity, but you will get exactly the same product whether [...]

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Get Ready For Rate Cuts

Posted by on Aug 7th, 2008

Back in mid-June I posed the question, Is the RBA Done? Yesterday I think we got an answer. Whilst the RBA left the cash rate unchanged at 7.25%, the accompanying statement gave a hint of what was to come. Here is the money quote: Weighing up the available domestic and international information, the Board judged [...]

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How useful are economic forecasts?

Posted by on Jun 3rd, 2008

Economists are often the target of much ridicule. For example in this article, These are not good days for the dominant “who could have known?” school of economics. First, they missed the housing bubble. … Fortunately, the media do not hold economists responsible for their failures. … Being off by 300 percent might be considered [...]

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