Wednesday, October 29, 2008

Is the Rudd Government that naive?

There are a couple of matters which have indicated to me that the Rudd Government is not quite up to the mark.

The first puzzling initiative was the decision to lift the Medicare levy surcharge recently. This was enigmatic because blind Freddie would've known that this would cause large numbers of Australians to ditch their private health insurance. This would in turn put further pressure on the public health systems of the various states.

But we all know that this system is already struggling and the only real hope of getting your knee, hip or other operation in a timely fashion is to be able to go into a private hospital.

Can anyone enlighten me about the Government's thinking on this matter?

Then there is the recent issue of the guarantee of bank deposits!

Again blind Freddie would've seen that funds would be moved by scared investors away from mortgage trusts etc and into safe havens causing runs on funds which are not really that liquid---and in a position where they are forced to realsie assets when prices are down!

Surely a public servant worth his salt would have seen this coming and built it into their advice to an unsuspecting Rudd Government! Surely!

Can anyone tell me why this little consequence of the bank guarantee policy would've slipped past Cabinet?

Or is there some other agenda?

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