We're No. 3! U.S. slips behind Australia in financial development
Filed under: Economy, Investing
Wall Street's Masters of the Universe might want to trade in their power ties and suspenders for Crocodile Dundee vests and Wallaby hats.The U.S. has slipped behind the U.K and, yes, Australia in the rankings of global financial development, according to the World Economic Forum's just released "Financial Development Report 2009." In addition to throwing swanky parties in Davos, Switzerland, for the most powerful people in the world (cough, Bono), the World Economic Forum likes to assess and rank and rate things. (And how. Just take a look at the full report here.)
After assigning and sorting through 120 variables spanning "institutional and business environments, financial stability and the size and depth of capital markets, among other factors," the forum figured that the U.S. now ranks No. 3., just barely edging past Singapore.
The global financial crisis our U.S. institutions helped create is to blame, according to the report's co-author, Nouriel Roubini, and he should know. Dr. Doom wasn't just the loudest, most prescient caller of the collapse -- the damn thing made his career.
Anyway, the rankings show how the crisis has turned the global world of finance upside down. And eastward. A year ago, the top five went -- pretty predictably -- like this: U.S., U.K., Germany, Japan, Canada.
Today, it looks like this: U.K., Australia, U.S., Singapore, Hong Kong.
The U.S. got nicked in the rankings largely because of its "poorer financial stability scores and a weakened banking sector," the report says. Well, duh. But who knew Australia was such a superstar?
Lots of folks, judging by the performance of the country's stock market. The Australian benchmark S&P/ASX 200 has gained 28 percent in 2009, beating the U.S. market by a full ten percentage points.
Being very rich in natural resources and close to the supercharged economies of Asia sure does help. Indeed, the economy Down Under is looking up. Witness the country's recent surprise rate hike. Australia is the first member of the G-20 to raise short-term interest rates. Policymakers only make such a move when they feel confident in economic expansion (so as to head off inflation.) And by the sound of things, the Aussies are feeling better than most.
"Economic conditions in Australia have been stronger than expected and measures of confidence have recovered," Australia's central bank governor, Glenn Stevens, said in a statement accompanying the rate hike.
The Aussies, you see, are already enjoying the fruits of their stimulus plan (ours isn't supposed to really kick in until next year), as well as growing demand for so much of the natural resources and basic materials the country exports.
So congratulations, Australia. Have a Foster's on us.
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Reader Comments (Page 1 of 3)
10-09-2009 @ 7:59PM
K Oala said...
Unemployment rates in Oz have also just fallen to 5.7%
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10-09-2009 @ 7:59PM
Rian said...
Why does this headline not surprise me, at all. I heard it already awhile ago. The only thing our country produces anymore is debt. And, we in turn, sell that debt to countries like China, and India. Well, guess what? They are now tired of owning our debt, and they will want to cash in on it. As that happens, we will slip from number 3, to number 33. Simply stated, we are no longer a nation of producers, but strictly a nation of consumers; therefore, we are indebted and at the mercy of outside countries, that do not have our best interests, in mind. Very sad, but very true.
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10-10-2009 @ 3:23AM
Defamed Raw Prawn said...
Crocodile Dundee? Wallaby Hats? Hey lay off the racial stereotyping buddy!
(Or at least find one more cool, like Robert Hughes, Rupert Murdoch, Clive James, Barry Humphries, Eric Bana, Peter Singer, Cate Blanchette, or Nick Cave. I know it's probably a strain on your imagination).
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10-10-2009 @ 2:18PM
rian said...
What's racial about croc's and kangaroos? Nothing I know of. They do have a lot of both down there. Last I checked, Aussies were a white race. Remember how Australia was populated? England used it as a dumping ground for all of thier criminals, felons, and regects, that they wanted removed from society; back in the day, of course. It does help to know your history.
10-11-2009 @ 12:27AM
Defamed Raw Prawn said...
Rian, yep a nation started by criminals. And to think that we're now considered more trustworthy with money than you are.
10-11-2009 @ 11:57AM
Linus said...
Being number 3 isn't so bad Charlie Brown. Maybe you'll just try harder next time.
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10-11-2009 @ 12:36PM
travelergtoo said...
Bush should be known as the magical president. When the twin towers were hit Bush DISAPPEARED. The Iraq nuclear missiles DISAPPEARED. The CIA tapes of interrigation DISAPPEARED. Bush was nowhere to be found when 'shotgun Dick' disclosed that Valerie Plame was a (covert) CIA agent which was classified information. When our embassy in Serbia burned Bush DISAPPEARED. Bush's Robber Baron presidency has made our money DISAPPEAR. With Voodoo Economics Georgie has made most of our jobs DISAPPEAR. But what would happen if Bush really disappeared? Can you imagine 'Deadeye Dick' with his finger on the nuclear trigger? If that were to happen everyone might just DISAPPEAR!!!!!!! When he wanted to put all the Social Security money in the stock market, Barney Frank said that Wall Street needed to be re-regulated. Bush replied by disappearing. He did manage to APPEAR just long enough to lobby for and sign into law CORPORATE WELFARE for the international banks. Goodbye Goofball Georgie, have fun in Texass.
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10-11-2009 @ 2:27PM
Kate said...
To bad you have completely messed that up. You need to go back and get your facts right loser.
10-11-2009 @ 3:07PM
kdloan said...
maybe Bush was responsible for the day you forgot to tie your shoe strings when you were a little kid
10-11-2009 @ 7:49PM
Joe Bob said...
Yep, cause 911 and the CIA really have a lot do with the economy... look you moron, we are in the biggest deficit of the history of the United States, Bush may not have been the best president but at least he knew that our money should go to the DEFENSE of the U.S. rather then some b.s. bailouts, social programs and groups like Acorn. And how about Obama, he is more of a magician, he can magically get a noble peace prize, magically have no experience once so ever and get the nations and probably the worlds highest office. Look I know you may be borderline retarded, but honestly me and you both know that despite Bush's flaws it is Obama's presidency and he F@*#ing is up majorly.
10-12-2009 @ 12:38AM
Jane said...
As usual, you Bush detractors lie faster than the eye can blink. BUSH NEVER ONCE WANTED TO PUT "ALL THE SOCIAL SECURITY MONEY IN THE STOCK MARKET." You people are crazy.
10-12-2009 @ 5:23AM
Mellon Fry said...
Better Bush than a radical socialist. Obama wants the USA to fail. We will rid ourselves of him in the next election if we survive. The reason most people hate Bush is because he is not a pacfist. Long live patrotism. also he defeated Gore the Gober of Tenn.
10-14-2009 @ 9:38PM
mark said...
yes australia....... fantastic one day perfect the next.
you see crime does pay
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10-11-2009 @ 4:34PM
Defamed Raw Prawn said...
This isn't a product of crime, Mark. It's something we in Australia call "hard work".
10-11-2009 @ 1:57PM
chicobombico said...
First of all the only products we make here is debt and deception. Lets give that ass from Bank of America a larger bonus. The Chinese are buying HUMMER that says a lot for AMERICAN CEOs. KEEP UP THE GOOD WORK> LARGER BONUSES FOR ALL.
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10-11-2009 @ 2:16PM
James said...
I just hope that all the lawyers, beauracrats and other Non-value producers in America are real proud of themselves for making it virtually idiotic and pure insanity to try and run a small business in America, much less start one. You open yourself up to leaches, lawyers and lawsuits the moment you even start thinking about. Much better to start your business OFF SHORE! Which is now where all the Jobs are.
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10-11-2009 @ 2:27PM
Macgyver said...
The reason for our decline is the Federal Reserve. This is not a Government entity, these are private banking families that run the Reserve. They say the head of the Reserve is an appointed position by the President, but he is a puppet! It all started under Woodrow Wilson a progressive and winner of the Nobel Peace Prize. Wow is that ironic! They are printing money 24/7. Our currency is worthless!
Macgyver
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10-11-2009 @ 2:41PM
me said...
Tracy Chapman said it in her hit song a few decades ago, "talkin about a REVOLUTION...." watch and see, it is not far off, rich people better get their minds right before it all goes down....
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10-11-2009 @ 2:47PM
michael said...
Can you please give me your definition of
"rich people"?
10-11-2009 @ 2:45PM
Michael said...
That damn George Bush. When is he going to leave the presidency???
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