Australian Part of the Global Bail-Out

The Australian Government is having a session over the weekend to conduct measures in line with the Finance Ministers' meeting in Washington. The conclusions from today are the following:

The Government will...

* Guarantee all term wholesale funding by
Australian banks operating in international credit markets. (Anyone lending money to an Australian bank has an absolute assurance
their money is safe)

* Guarantee all deposits of any size in any
Australian financial institution for the next three years. 

* Direct the Australian Office of Financial
Management to purchase an additional $4 billion in residential mortgage
backed securities.

These steps should work out well. In Australia there is no need for Government to buy banks because they are doing well in the current situation. The regulation and lack of involvement with risky loans in the U.S. happen to be extremely useful in times like this.
Financial response, therefore, should be alright. After the crisis, the eyes will be on China and whether it will be able to keep up its growth. The IMF already stated that 100% of the world growth will come from emerging economies and not the developed ones.
Saturation in the developed nations? A balance of power will follow the money. But more on that as things develop.