Insulated No Longer, Distance Is No Factor When It Comes to Safety

Australia faces policy change to stay ahead,according to the I.M.F. The economy that seemed so healthy has to adapt or die, in the light of the commodity downturn

Australia is set to lose its charmed position that has seen it grow at double the rate of other developed nations and will have to make significant policy changes to bolster its economic outlook, says the International Monetary Fund.

The warning comes as the impact of China's slowing economy on commodity prices is beginning to hurt Australia's terms of trade and the profits of its mining companies, causing havoc in equity markets.

"Don't ever take a fence down until you know why it was put up." ― Robert Frost

Alistair , McAndrews

The IMF remained optimistic about Australia's growth potential but said the country would require more steering than during the mining boom years and policy changes if it was to avoid a radically slower economy.

The  IMF also raised the potential for a housing correction and called for more diversification.

The lending practices are being tightened up in the face of oncoming bad debt.

The big banks would need additional support and intense relief if the housing bubble,bursts.

Deja Vu all over again, just like in 2007 the safest course of action is to diversify to embrace the global marketplace and not just stick to a local market, any single market increases the risk.

The change in guard at ANZ is a strong sign that most pundits can see the writing on the wall.

Barclay's are projecting Australia and New Zealand to depreciate twelve per cent against it's U.S counterparts.

The Commodity producers will be continue to face stiff headwinds and this will lead to a revaluation of status and will have to wake up to new reality.

For investors  this will mean new business models,  must be put into place if they wish to stay afloat.