These days the overwhelming majority of financial transactions are purely speculative, made by traders, speculators or hedge funds that look to control or corner markets. This makes many markets purely speculative and in effect nothing more than expensive gambles that serve no useful purpose and have no positive social impact on society.

So many times we see once great businesses destroyed by inept or bad management only to end up as playthings for punters, speculators and day traders. The anguish that this causes staff, long term shareholders and customers is enormous and the fall out is often much greater than realized, people lose their jobs, their confidence and the fallout is widespread throughout the community.

It also means that investors miss out on many opportunities, as it is difficult to distinguish fact from distorted reality.

The disconnect between the financial and the real economy produces the bubbles that keep on plaguing the global economy. In effect money flows the wrong way as smaller more innovative businesses have less access to capital in constrained markets and economies. Smaller projects that involve people without a long track record barely get off the ground if Banks won’t fund them as they are seen as below the risk line acceptable line.

In many large financial institutions we are plagued by “intellectual bankruptcy”

We seem to be suffering from a collective condition of helplessness and disempowerment.

So how do we overcome this “affliction”?

On Wednesday July the 17th in Mackay, Queensland Tony Abbott said the following; "I want to be an infrastructure Prime Minister should I have that privilege after the coming election," Mr. Abbott said.

This may herald the long awaited change in our growth prospects from the mining industry to other East Coast concentrated businesses.

Who wins?

For a start companies like Leightons, Telstra, Cardno, Adelaide Brighton Cement and the like would be set to benefit.

Simon Bond