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That’s Finance! Alan Kohler joins 2NRS and talks about the R-word (recession)

Alan Kohler, one of Australia’s most experienced business commentators, joined Wendy and Jay on Drive today to talk about how listeners can keep themselves financially safe in the wake of the Coronavirus pandemic and the announcement the country is officially in recession.

Alan shared his insights into what may lie ahead, with concern at the potential “double whammy” in late September when banks reinstate mortgage payments as the Federal Government’s Job Keeper and Job Seeker are scheduled to end. As Alan said to 2NRS caller Sharmila, finding work, or shoring up your job security is the most important thing we can be doing right now. Alan told Sharmila that her mortgage payments have just been delayed, with the payments added to the length of her mortgage, and advised that she should do what she can to increase her work in hospitality.

Alan told Wendy and Jay that the recession announced yesterday is unlike any other the country has seen before, as the Government had effectively shut down the country, in an effort to reduce the severity of the pandemic on the health of the country. And that means that there may be a bounce back, so long as packages to stimulate the economy are effective and if an effective vaccine is found and implemented, opening up the borders so that the travel and education sectors, dependant on international markets can fire up again.

And it’s also unlikely that the government and banks will withdraw support suddenly, with a more gradual return to normalised welfare and mortgage payments, likely not being in place till year-end.

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Australia’s leading finance journalist Alan Kohler on Drive with Wendy & Jay