From Kevin Rudd’s witness statement yesterday, Rudd recalled the fateful post-Lehman weekend meeting of the Strategic Budget and Planning Committee of Cabinet:
“Cabinet was informed that unless the Government moved immediately to provide a Government guarantee for every Australian’s bank account, there was a real prospect of a run on the banks, as had occurred abroad.”
“We were also advised that the Government also needed to provide a guarantee for the inter-bank lending requirements of Australia’s private banks because global credit markets had already frozen.”
Is that insolvent enough for ya?
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.