Mid-September 2008 saw a significant change for the Australian economy, with the collapse of Lehman Brothers triggering the global financial crisis. The global financial crisis was characterized by a contraction in the availability of money from foreign markets which forced governments to intervene to maintain market stability. The Australian economy and its leaders have given rise to considerable debate over the prospect of a global recession, while many expected the financial crisis to have a greater impact on the Australian economy, one factor that was not considered was the immediacy of its effects. In the December quarter of 2008, corporate stocks depreciated by $3.4 billion, the largest decline on record. Additionally, there has been a significant drop in real estate prices, resulting in many businesses/people having too much debt with too little wealth. As a result, consumer confidence collapsed, which in turn deteriorated consumption. Throughout September and into October, the financial crisis spread from the United States to Europe and throughout the global economy, with economies contracting growth. Budget 2010 and the Economic Stimulus Plan focused on nation-building and were designed to stimulate jobs, create a strong foundation for future growth and enable the Australian economy to benefit from the global recovery. Key initiatives Stimulus now and investment for the future A balanced stance on fiscal policy has been targeted by the government in response to the global recession between short- and long-term policies. These measures included the payment of bonuses to low- and middle-income Australians for insta...... middle of paper ......d 2009, 'Rudd stimulus package protected jobs: OECD'. Retrieved May 23, 2010, from -http://www.news.com.au/business/rudd-stimulus-package-protected-jobs-oecd/story-e6frfm1i-1225775501075(nd). Monetary policy in Australia 2010 (pp. 1-6). West Perth: WACE Revision Centre.Wayne Swan 2009, 'Budget Speech 2009-10', Australian Government. Retrieved May 20, 2010, from: http://www.ato.gov.au/budget/2009-10/content/speech/html/speech.htmWayne Swan 2010, 'Budget Speech 2010-11' Australian Government. Retrieved May 20, 2010 from - http://www.budget.gov.au/2010-11/content/speech/html/speech.htmWestpac Institutional Bank May 2010, 'Westpac Market Insights Australia, New Zealand, G3 and China' Retrieved June 6, 2010, from: http://www.westpac.com.au/about-westpac/media/reports/australian-economic-reports./