Budget week

Much media attention will be directed to analysis and presentation of the Federal Budget this week. A very helpful start in easy to understand language will be found at http://www.sbs.com.au/news/specialcoverage/46/Budget-2009#

We'll have daily copies of the Australian and Courier Mail in the library and my office, but wider reading should also be occuring - try discussing the implications on your family with your parents.

Where is Jung Wu?

Said he wanted some articles to respond to, but he's not responding to the recent posts. In fact, no body is.... should I go on holiday and forget about you all?

Consumer confidence improves... indicating what?

Consumer confidence is a closely watched and hotly debated economic indicator. Some analysts regard it as an exceptionally meaningful barometer and forecasting tool, and many cite it as a strong factor in stock market swings. Yet others question its fundamental validity. Can we trust gauges of consumer confidence? Just what do they measure? How do these measurements interact with economic conditions? Do movements in confidence correlate with other indicators, including personal spending? Is confidence a leading, lagging or coincident indicator of economic recession and recovery?

Here's what was reported in the Australian today - note what story they think the figures suggest:

http://www.theaustralian.news.com.au/business/story/0,28124,25307477-5018001,00.html

Why don't you do some wide reading on the usefulness of Consumer confidence as a macro economic indicator...

DRQ:Consumer behaviour changing in response to...

http://www.economist.com/business/displayStory.cfm?story_id=13415207&source=hptextfeature

This article from the Economist suggests reasons why consumer behaviour is changing. Explain why using evidence from the article, highlighting the use of coincident indicators such as these figures in the graph. Evaluate the effects through the economy as savings become more of a priority, also how businesses will have to adjust to attact potential shoppers. Using the DRQ answering process to define red terms, diagram to show falling demand, then blue directions for the rest of the answer.

DRQ: Soaring price of Gold...

http://www.theaustralian.news.com.au/business/story/0,28124,25293950-36418,00.html

People are literally trying to find more gold as its price keeps rising. Analyse why Demand for Gold continues to rise in-light of economic uncertainty and risks of inflation. You might also explain some of the history of the commodity as a standard for valuing currency, etc.

Bear talk - time to restructure....

http://www.abc.net.au/insidebusiness/
Watch Alan Kohler's interview with Stephen Roach of Morgan Stanley. Some interesting insight into where the market is due to correct further after excessive growth and activity.
List the different bubbles Stephen talks about. Why is 'carnage' expected? What's out of balance? What bubble exists in Australia which may still have further to deflate?
What restructuring needs to occur in the Chinese economy, how different is this to USA?
What is he worried about? From Demand and Supply side?
What is missing in Australia's economic plan?
How have central banks been negligent in relation to asset bubbles?
What figures from the Depression are put forward as being far in excess of anything we will experience in our future?

Why higher oil prices haven't cut demand...

http://www.msnbc.msn.com/id/6249750%20
Msnbc - american media source - wide range of links and data regarding the future of oil, prices and alternative fuels.

http://www.accc.gov.au/content/index.phtml/itemId/793605
price of oil is Singapore markets, direct effect upon bowser prices for fuel in Australia.
http://www.accc.gov.au/content/index.phtml/itemId/790921
follow the ACCC's investigation of fuel pricing in Australia...
http://www.accc.gov.au/content/item.phtml?itemId=300941&nodeId=ed87dd1de7d0b91f4b4b06d2b40f875e&fn=Caltex Australia.pdf
see Caltex's response.