On Fri, Feb 11, 2000 at 09:32:44AM +1100, Terry Collins wrote:
> Craig Southeren wrote:
>
> >
> > > - are the sums involved in IPO's healthy for the ecomnomy
> >
> > In general, yes. Process that keeps money flowing through the economy are
> > usually good. Anything that causes money to be stagnant, is usually bad.
> > One of the reasons why Australia's economy is so dull is that most of
> > people's capital is tied up in their house mortagages because the tax
> > regime makes is sensible to do so. Other economies such as the the US
> > and Japan where house ownership is not so widespread have much more
> > vibrant economies
>
> So the fact that maybe 5% of the money in Australia is invested in
> housing (because we have such poor old age pensions), stops the other
> 95% from flowing.
That is probably right. Think of it this way; it is more beneficial for me
(tax wise) to take out a home loan and buy an investment property that to
accummulate stock and etc.
And as you are aware people with home loans tend to be `locked in' for a
while. Actually I believe the tax situation in this country means it is
a better idea to lock yoursle fin for 5 years at least.
> We have a high level of home ownership in this country because Bob
> Menzies started it as bulwark against communism. It is in Hansard!.
>
> Doesanyone know how many transnational companies have a bigger budget
> than Australia?
Many no doubt. Only three trans-national companies have larger revenues
than Australia's GDP. Microsoft, General Electric and IBM in that order.
Anand
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