Fair comment, but it doesn't help to identify, understand or address the issues underlying or implicit in the stance Bollard, the RBNZ and a number of other key governement departments are taking.

c'mon Bernard and others, show a bit of damn positivity!!!!
Blind faith and positivity isn't called for, but surely we can show a bit more hope and conviction!!!!
Although I don't totally agree with Bollard, I think the economy will pick up through 2009

Andrew.

Do you really want to know, or would you prefer to remain insulated from harsher realities, and believe Bollard et al?

Andrew.

A sensible approach to what is a complex issue. I don't expect we will conclude this in days, so I hope Bernard will allow the creation of a permanent link to the discussion.

The world has a lot riding on the paradigm driving decisions of governments and central banks being sound. I would like to start with an attempt to understand the economic component of that paradigm "“ from the fundamental principles of economics through to the dogma. See if we can for example agree on supply and demand theory, then work through others towards whether for example the currently accepted understanding of the cause of the 1930's depression holds.

Peter

I think i am fairly pragmatic. I am more interested in what it is you are seeing now that is worrying you, rather than getting into a discussion about paradigms, philosophy ,politics, belief systems and what in my experience so far, tends to be difficult to discuss if we dont *already* agree.

A big concern for me right now is whether the US will do what is necessary to stimulate demand in the world economy and it is my assumption that because of globalisation there will be coordinated moves to get that moving sooner rather than later.

For example i just learnt that the fed intends to buy up 5 billion of agency mortgages. That sounds pretty posative to me.

Also this week there was a coordinated series of very large interest rate cuts. Sweden cut the most i think at 1.75%. Yes demand is falling very dramatically but the moves being made are *massively* aggressive and i think that has to be seen *also*. Inflation is still actually the current battle even though deflation is becoming a greater fear of very real concern as a possibility.

Bollard and co have quite an arsenal of tools to help stimulate demand.

I am not saying this is ideal and that we should have got here into this mess as we did. But we are here now and they appear to be moving in the right direction so far. That is why i feel not too pessimistic so far. I am though looking at this from an NZ viewpoint based upon somebody living in NZ

As I say i dont want to get into a hugely complex discussion. I would rather know what it is that right now is staring you in the face that you see now that worrys you as it applies to life here in NZ were we live and will experience what happens as this thing evolves.

If you really want to talk about this it might be better to move it to another forum where we dont clutter up other peoples discussions and can avoid an overly complex interaction involving a large number of people going in all manner of different directions.

More of the 'the worst is over' opinion out of the US;

http://www.cnbc.com/id/28069440/