Glenn Stevens, Governor of the RBA, has had a speech distributed by the BIS in today’s email alert. It covers the Australian economy, with particular reference to the market waves last week.

The speech is here. It is worth a read but, to summarise, from my reading he agrees with everything I have said over the last few days – the credit problem arising from this is distributed through the system but is small in total. The problem is that no-one is sure where it is – causing liquidity to dry up.

The real economy is unaffected.

Oh – and if you know anyone wanting to move to Australia (and in particular Western Australia or Queensland) that has any marketable skills at all let them know that we need them. Look