Welcome Guest [Log In] [Register]


Reply
Massive Australian Bank Profits - Are They Sustainable?
Topic Started: 15 May 2014, 11:47 PM (3,830 Views)
stinkbug
Member Avatar


goldbug
16 May 2014, 03:21 PM
Don't take this twaddle of peter's seriously anyone. APRA is funded by the banks themselves and that's like the REIQ or any other mob that is funded by the industry under it, it does the bidding of said industry and is not as many believe independant. Peter is a debt peddler himself so he is part of the banking system and defends it, albiet he is down on the bottom rung and independant to a degree.




A rigged system where the big corporate banks are protected by layers of governing bodies they in fact control. APRA, the RBA, they all are in the pockets of the banks. You only have to observe the jobs they came from before entering office and the seats on the big boards they command after leaving office.
Sorry Goldbug, but this is ridiculous.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

Profile "REPLY WITH QUOTE" Go to top
 
Sydneyite
Member Avatar


SittingOnDeFence
15 May 2014, 11:47 PM
Should we be worried about the details of the NAB Forex trader who was racking up huge wins with his buddy in the ABS?
He wasn't a "NAB Forex trader", he was a NAB employee, who happened to trade Forex on his own personal account on the side, as it turns out using inside information on upcoming ABS data releases supplied by his mate. And those two guys were complete numpties, and now will probably end up in jail....... :wak:

So what-ever it is you should be worried about with the banks, the above is not one of them IMO.
For Aussie property bears, "denial", is not just a long river in North Africa.....
Profile "REPLY WITH QUOTE" Go to top
 
goldbug
Default APF Avatar


zaph
16 May 2014, 04:56 PM



A rigged system where the big corporate banks are protected by layers of governing bodies they in fact control. APRA, the RBA, they all are in the pockets of the banks. You only have to observe the jobs they came from before entering office and the seats on the big boards they command after leaving office.
That new tin foil hats doing a good job. Where did you buy it? Or did you make it yourself?[/quote]Ha Ha Ha, that's right, corruption exists at all levels but not at the very top where corporate banks control the capital flows across the entire world. There were a lot of people who had minds as simple as yours back in the 1930's. One day they woke up to find their bank had gone to the wall and their life savings with it. Then to their horror they found out that in the reshuffle their mortgage, held at the same bank, had been sold off for peanuts to a big bank and they still had to make their repayments. A year later their gold coin they held in a safe deposit box was stolen too :lol

But don't let that concern you, that was another age and people don't behave like that now do they. You just keep believing that all those men up at the top of our political and banking structures are honest altruistic servants of the public, and will make sure nothing evil happens to your life savings.
stinkbug
16 May 2014, 04:59 PM
Sorry Goldbug, but this is ridiculous.
Of course it is. If it were true your whole future would be at risk wouldn't it?
Edited by goldbug, 17 May 2014, 08:27 AM.
Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
Profile "REPLY WITH QUOTE" Go to top
 
SittingOnDeFence
Default APF Avatar


peter fraser
16 May 2014, 11:57 AM
Ireland is a currency user - the Irish Government needs Euros to do anything. The government had to go into debt in Euros to salvage their banking system. That puts a huge financial burden on the people until they can sell the banks back to the public.

If the same situation occurred in Australia our government would go into debt in AUD so the debt does not have to be funded in some other nations currency. That makes all the difference.

Our government can finance a purchase in money that they can raise easily and then later sell the banks back to the market for a profit.

Two entirely different system. When you think of Ireland think of a state like South Australia, not like a country.
This only makes it easier for the banks then? The bigger the safety net, the bigger the risk?
Sydneyite
16 May 2014, 05:05 PM
He wasn't a "NAB Forex trader", he was a NAB employee, who happened to trade Forex on his own personal account on the side, as it turns out using inside information on upcoming ABS data releases supplied by his mate. And those two guys were complete numpties, and now will probably end up in jail....... :wak:

So what-ever it is you should be worried about with the banks, the above is not one of them IMO.
True - its clear that he wasn't using the bank's tools etc to make the trades

Though had he done it through the bank he probably would've got away with it!
Edited by SittingOnDeFence, 18 May 2014, 02:18 PM.
Profile "REPLY WITH QUOTE" Go to top
 
Ex BP Golly
Member Avatar


peter fraser
16 May 2014, 08:27 AM
Banks will lend responsibly, they have no choice anymore. APRA have audited the lenders policies and systems and once audited they can't go beyond their lending criteria without a very good reason. We have much tougher lending conditions than most people realise.

As for profits - certainly they will maintain their profits, but the rate of profit growth will be subdued. I would expect their share prices to soften but not collapse.
Peter- something like 60-75% of our banks loan books are residential housing.

That simply is not responsible.

Shoving some crappy safety net criteria onto a system like this misses the point.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
Profile "REPLY WITH QUOTE" Go to top
 
Sydneyite
Member Avatar


Ex BP Golly
18 May 2014, 04:01 PM
Peter- something like 60-75% of our banks loan books are residential housing.

That simply is not responsible.

Shoving some crappy safety net criteria onto a system like this misses the point.
Why is not responsible? If the loans are prudent, then it's a good thing with respect to the risk profile and profitability of the bank.

Did it ever bother you that building societies (which have all mostly turned into or been acquired by banks now) used to have nearly 100% of their loan book based on residential housing loans? Were they seen as riskier / more dangerous financial institutions as a result?

Don't fall into the "Veritas trap" of imagining that banks are meant to be high risk venture capital providers to start-up businesses - they never have been. Even when they lend to businesses, they usually require hard collateral, often in the form of residential property in the case of loans to small business, or equity based in the case of larger businesses.

Venture capital for business comes from other sources, including the share market - not from banks.
For Aussie property bears, "denial", is not just a long river in North Africa.....
Profile "REPLY WITH QUOTE" Go to top
 
stinkbug
Member Avatar


goldbug
17 May 2014, 08:25 AM

Of course it is. If it were true your whole future would be at risk wouldn't it?
Everyone's future, including the banks, would be at risk. Fortunately it's pure bullshit.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

Profile "REPLY WITH QUOTE" Go to top
 
Drgonzo
Member Avatar


Sydneyite
18 May 2014, 06:06 PM
Why is not responsible? If the loans are prudent, then it's a good thing with respect to the risk profile and profitability of the bank.

Did it ever bother you that building societies (which have all mostly turned into or been acquired by banks now) used to have nearly 100% of their loan book based on residential housing loans? Were they seen as riskier / more dangerous financial institutions as a result?

Don't fall into the "Veritas trap" of imagining that banks are meant to be high risk venture capital providers to start-up businesses - they never have been. Even when they lend to businesses, they usually require hard collateral, often in the form of residential property in the case of loans to small business, or equity based in the case of larger businesses.

Venture capital for business comes from other sources, including the share market - not from banks.
Of course it's risky, it's like having a portfolio of shares all invested in a particular type of mining stock or even a single industry.

If there is a downturn in the housing market, they're fucked and they fake everyone's super with them.

The sensible thing would be to have a diversified loan book.
Profile "REPLY WITH QUOTE" Go to top
 
Banks
Unregistered

The majority of people making negative comments come off as incredibly ignorant. Typical internet stuff.

How can you attack the very institutions which pulled through the GFC better than most other businesses. The Banks created stability in a time of severe instability. They supported many businesses and house holds with freezes on interest payments or an easing of payments for a period of time (for those who really needed it and asked for it). They took unsecured risks by allowing overdrawn amounts to ensure businesses who didn't have cashflow could still operate.


Diversify the loan book how? Residential lending is arguably the most safe lending out there. Diversify the loan book by doing cash flow lends to who, scaffolders or to Greece? It's just ignorant. Or maybe the banks should diversify their income streams through other financial services or investments... oh wait they do.


Banks are very heavily regulated and the general talk about credit standards dropping is nothing but garbage from ignorant people. If anything credit standards have increased substantially compared to 5 years ago.


"If there is a downturn in the housing market, they're fucked and they fake everyone's super with them." - some really smart person wrote this. Hey buddy, guess what? There was a downturn in the housing market, guess when? The last 5 years. If you don't understand, do some reading and don't make baseless comments. Understand the many drivers around the housing market.
"REPLY WITH QUOTE" Go to top
 
stinkbug
Member Avatar


Banks
18 May 2014, 08:11 PM
The majority of people making negative comments come off as incredibly ignorant. Typical internet stuff.

How can you attack the very institutions which pulled through the GFC better than most other businesses. The Banks created stability in a time of severe instability. They supported many businesses and house holds with freezes on interest payments or an easing of payments for a period of time (for those who really needed it and asked for it). They took unsecured risks by allowing overdrawn amounts to ensure businesses who didn't have cashflow could still operate.


Diversify the loan book how? Residential lending is arguably the most safe lending out there. Diversify the loan book by doing cash flow lends to who, scaffolders or to Greece? It's just ignorant. Or maybe the banks should diversify their income streams through other financial services or investments... oh wait they do.


Banks are very heavily regulated and the general talk about credit standards dropping is nothing but garbage from ignorant people. If anything credit standards have increased substantially compared to 5 years ago.


"If there is a downturn in the housing market, they're fucked and they fake everyone's super with them." - some really smart person wrote this. Hey buddy, guess what? There was a downturn in the housing market, guess when? The last 5 years. If you don't understand, do some reading and don't make baseless comments. Understand the many drivers around the housing market.
Careful, common sense and facts will get you strung up around here!
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
ZetaBoards - Free Forum Hosting
Free Forums with no limits on posts or members.
Learn More · Sign-up Now
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy