Red lights blaze at Canberra's crossroads

Labor and the Coalition couldn’t be further apart in their responses to the economic woes that could see analysts slash earnings forecasts for the coming year.

No Australian Treasurer would announce major new taxes on the eve of an election unless he saw very nasty short and long-term economic signals coming across his desk.

That means domestic Australian profits in the current year are almost certainty going to be below analysts’ expectations – but given current global market buoyancy the impact of what is ahead may take time to be understood. 

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