Is this what lies ahead for us in Australia?

The Fed’s latest attempt to ease seized-up credit markets marks its most direct effort yet to repair the mortgage meltdown (and slumping house prices) that poses the biggest threat to the economy.

Well, it was either good news, or slightly not so good news.

While the Fed promised to open the taps and markets responded, in Australia consumers have already voted and are now the gloomiest they have been in 15 years.

Australia’s employment growth surpassed all expectations, with figures out today showing the number of employed Australians has hit a 33-year high.

A mix of unfavourable domestic data as well as weaker global markets played havoc with investor sentiment today, pushing the Australian shares down by more than 2%.

As expected China’s February inflation rate leapt on the impact of bad weather and high prices for energy and food.

The Australian and New Zealand dollars declined a third day yesterday against the US currency, and lost ground against a surging yen, as concerns credit-market losses are mounting prompted investors to sell higher-yielding assets.

Despite signs of a slowing rate of economic activity and perhaps a slight easing in jobs pressures, the financial markets continue to be gripped by the credit freeze.

The Australian share market did a nice bounce today, with steep gains in the mornings led by the strong Wall St result overnight, and then eased down slightly towards the end of the day.

After the general election at the weekend, Malaysia is now in uncharted territory, with the government facing real opposition for the first time since 1969, when the National Front was denied a two-thirds supermajority in parliament.

More evidence yesterday of the extent of the disruption caused by the heavy snowstorms and bad weather in China in January and February.

Chevron, the world’s fifth biggest energy group, has revealed plans for two significant gas projects in the Asia region at a cost of perhaps $10 billion.

Wall Street and European stocks were lower as oil once again touched a new record high and copper fell sharply.

The share market was 1.2% weaker today after it was lead by finance sector losses as well as resource firms’ declines, after more fear was instilled about the possibility of US recession.

Apart from oil and perhaps copper, not much in the way of good news on Friday for commodities followers and resource companies.

Well, judging by the fall on Friday on Wall Street, Australia will take the brunt of today’s selling as trading resumes in Asia.

Twice now since the start of the year US stockmarket indices have flirted with steep falls and near death experiences.

Today will be rough in Australia and the rest of the week is likely to be just as uncomfortable for markets around the world on the back of figures from the US, Japanese and Chinese economies on growth, inflation and other key indicators, and more rumours of problems with the creditworthiness of major companies and financial groups.

Australian shares fell 1.6%, hitting a new 2008 low on Monday after unfavourable U.S. jobs data and a slump in Wall St on Friday added to overall investor concern regarding possible US recession.

Despite deteriorating global economic conditions, inflation remains a global concern, not just in Australia.

The Australian economy is in better shape than the Reserve Bank, the federal government and the rest of the country believed before the December quarter National Accounts were issued yesterday.

One way or another, the Allco Finance Group is dying, who’s next?