No they don't. the data backs me up. What you really mean is that my information doesn't suit your bias so you hope that it's wrong, but it's not wrong, you are.
Lets look at the facts. If banks weren't lending to business there would be a shortage of business's ready and willing to provide you with the goods and services that you need or desire. Now can you tell me that there is a shortage of car dealers, high end and low end clothing retailers, a shortage of food on the shelves at your local supermarket, what a=bout your 7/11 store around the corner, is that not there with their shelves fully stocked?
Can you not find a dentist, doctor, lawyer, engineer, surveyor, and architect perhaps - are they in short supply - is it hard to feed your family due to a lack of goods or suppliers. I don't see any shortage of business's ready to compete for your spending money - do you?
If you were correct and banks were not lending to commercial enterprises there would be a lack of goods and services and that short supply would be evident - but it's not.
There is a much bigger non-banking lending sector now that there was 20 years ago, that lending isn't being recorded in the data.
If I am correct the data will show that following deregulation the percentage of lending officially recorded will fall while the percentage of home loans will increase, especially as brokers came on the scene as a genuine alternative. Lets call that the mid nineties. Bingo there it is in the chart below.
Despite the falling share in the "official data, business lending increases at a healthy rate every year apart from a couple of years when the GFC hit.
No they don't. the data backs me up. What you really mean is that my information doesn't suit your bias so you hope that it's wrong, but it's not wrong, you are.
Lets look at the facts. If banks weren't lending to business there would be a shortage of business's ready and willing to provide you with the goods and services that you need or desire. Now can you tell me that there is a shortage of car dealers, high end and low end clothing retailers, a shortage of food on the shelves at your local supermarket, what a=bout your 7/11 store around the corner, is that not there with their shelves fully stocked?
Can you not find a dentist, doctor, lawyer, engineer, surveyor, and architect perhaps - are they in short supply - is it hard to feed your family due to a lack of goods or suppliers. I don't see any shortage of business's ready to compete for your spending money - do you?
If you were correct and banks were not lending to commercial enterprises there would be a lack of goods and services and that short supply would be evident - but it's not.
There is a much bigger non-banking lending sector now that there was 20 years ago, that lending isn't being recorded in the data.
If I am correct the data will show that following deregulation the percentage of lending officially recorded will fall while the percentage of home loans will increase, especially as brokers came on the scene as a genuine alternative. Lets call that the mid nineties. Bingo there it is in the chart below.
Despite the falling share in the "official data, business lending increases at a healthy rate every year apart from a couple of years when the GFC hit.
Eh...the chart I posted is from the IMF.
The chart you posted corroborates the IMF chart.
So you agree with me?
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Actually, I'm 100% correct, so it shows YOU are the one that knows Sweet Fuck All.
OK, so you should be able to show that someone with $10,000 in savings who earns $50,000 per year can get a $5,000,000 home loan.
There is no shortage of capital for lending, so it should be easy for you.
Come on. Back up your claim.
peter fraser
29 Aug 2015, 11:36 PM
No they don't. the data backs me up. What you really mean is that my information doesn't suit your bias so you hope that it's wrong, but it's not wrong, you are.
Lets look at the facts. If banks weren't lending to business there would be a shortage of business's ready and willing to provide you with the goods and services that you need or desire. Now can you tell me that there is a shortage of car dealers, high end and low end clothing retailers, a shortage of food on the shelves at your local supermarket, what a=bout your 7/11 store around the corner, is that not there with their shelves fully stocked?
Can you not find a dentist, doctor, lawyer, engineer, surveyor, and architect perhaps - are they in short supply - is it hard to feed your family due to a lack of goods or suppliers. I don't see any shortage of business's ready to compete for your spending money - do you?
If you were correct and banks were not lending to commercial enterprises there would be a lack of goods and services and that short supply would be evident - but it's not.
Mainly because the majority of business lending is done as a residential home loan where residential security is used.
If you added that back onto the business lending data it would largely correct. It's easier to get a business loan now that it used to be before financial deregulation. Lets hope that APRA don't stuff it up.
That seems strange Peter.
Are businesses allowed a tax deduction on a residential home loan, or are most businesses forgoing a tax deduction they would otherwise receive if they had a business loan?
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
Are businesses allowed a tax deduction on a residential home loan, or are most businesses forgoing a tax deduction they would otherwise receive if they had a business loan?
You really have no idea of borrowing and taxation
The average businessman has to use some form of equity to borrow for business purposes. Even as an industrial property owner I have to borrow against residential property to finance commercial premises. I recently sold 8% of my business and the purchaser remortgaged their home loan to come up with the $900k to buy.
A loan is tax deductible if its for an income producing purpose. (Capital gains is not considered income for this taxation purpose) It is not dependant on whether the loan is against your home or a written sip of paper to buy a business. That doesn't matter. Its the purpose of the loan that makes it deductible.
You cant drive a house, BUT you can always sleep in a car!
Well your claim is equally deceptive and bollocks.
As you would well know, the concept of credit worthy shifts, there were many Americans who could suddenly not get loans post gfc because the lenders tightened their concept of credit worthy.
Your lack of comprehension has once again led you misunderstand the discussion.
My post, and others, addressed the issue of the quantity of credit obtainable to banks for lending which I assert is not some fixed quantity as implied by Peter Martin's article. Credit worthiness of potential borrowers is a function of perceived risk associated with those borrowers (which can of course change) and not a function of the availability of money to banks for lending.
“All logical arguments can be defeated by the simple refusal to reason logically”
There's no shortage of capital on offer for people to take a loan.
The way the banks are curtailing lending to you speculators it's only a matter of time. What's the up front deposit requirements now? 25%? The music has stopped, the party is over timmy.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
The way the banks are curtailing lending to you speculators it's only a matter of time. What's the up front deposit requirements now? 25%? The music has stopped, the party is over timmy.
Can you post this data showing housing finance is being curtailed?
Yet again you show your stupidity - investors don't want high LVR.
Are businesses allowed a tax deduction on a residential home loan, or are most businesses forgoing a tax deduction they would otherwise receive if they had a business loan?
Lenders look at the underlying security offered when determining IRs on loans (among other things). If business owners can offer housing as security then they will get the house rate, or close to it.
The ATO looks at the purpose of the loan. If a business borrowed to invest, or transact business, it's deductible regardless of the security offered.
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