From Equities to Infrastructure

Brown Outs. Australia. Developed nation, First world faces brown outs? The global investment theme is Infrastructure investment. Whether it's America or China. Australia or Indonesia. Looks like it's going to be a decade of repairs.

Funds flow analysis. From money reservoirs like pension funds, super annuation to infrastructure projects.

From equities, basically stock market to infrastructure investment.

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http://www.businessspectator.com.au/bs.nsf/Article/NBN-broadband-infrastructure-Telstra-brown-outs-IR-pd20110531-HCSJF?opendocument&src=rss

As I thought about what Eddington said I realised that higher interest rates, the carbon mess, the big investment in housing and other forces have lessened the community's ability to raise the capital needed to fund city and other non-mining infrastructure. Banks are going to need local capital to lessen their dependence on overseas borrowing while the value of non-mining equity is under pressure given current conditions.

The only way to raise hundreds of billions on the local market is to entice superannuation funds to invest in infrastructure instead of equity or other interest bearing securities. Eddington doesn't favour compulsion. Almost certainly overseas investors will be required.