Economist Dr Jon Stanford points out the folly of Rudd's bank bailout.
The Commonwealth government's guarantee of bank deposits and bank debt has created serious problems in financial and banking markets. This reflects a lack of policy analysis in the preparation for the introduction of the guarantee. The announcement of the guarantee was a grandiose gesture which was far too much of a jump from the flawed suggestion of the Council of Financial Supervisors and from the realities of the situation.Ahem. It reflects the ineptitude of the PM and his advisors.