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Why Australia can't avoid a recession; (& Canada, Korea, China and others)
Topic Started: 12 Dec 2016, 11:25 PM (8,496 Views)
herbie
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Damn, all that red 'n bold 'n big - It musta bin another post by Simon - LOL
Edited by herbie, 14 Dec 2016, 01:45 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Simon_S
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Trollie
14 Dec 2016, 01:28 PM
So we never bailed out any banks.

Thanks for confirming you're nothing but a click bait sucker :lol
Nah they didn't need any money...

Nah there was no Emergency just a GFC.....

They didn't need a Govt Guarantee either.....

Oh...Wait.....LOL


Edited by Simon_S, 14 Dec 2016, 02:34 PM.
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Trollie
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Simon_S
14 Dec 2016, 02:33 PM
Nah they didn't need any money...

Nah there was no Emergency just a GFC.....

They didn't need a Govt Guarantee either.....

Oh...Wait.....LOL

More backpeddling timo.

Would you like to admit we didn't bail out our banks now, or embarrass yourself a bit more?
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Simon_S
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Trollie
14 Dec 2016, 04:29 PM
More backpeddling timo.

Would you like to admit we didn't bail out our banks now, or embarrass yourself a bit more?
Oh wait is this a new tactic from Trollie?

Every time I make you look stupid you will accuse me of back peddling.......

Yes when you have no answer just accuse people of...........Umm whatever you can concoct.....

LOL....

So you are confirming that the GOVT did not Guarantee Bank Deposits and Wholesale Funding?

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Trollie
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Simon_S
14 Dec 2016, 04:48 PM
Oh wait is this a new tactic from Trollie?

Every time I make you look stupid you will accuse me of back peddling.......

Yes when you have no answer just accuse people of...........Umm whatever you can concoct.....

LOL....

So you are confirming that the GOVT did not Guarantee Bank Deposits and Wholesale Funding?
I see you've chosen to embarrass yourself more.

You claimed the Australian government bailed out the banks, then posted an article about 2 banks taking advantage of cheap funding from the US FED. Now you are compounding your troubles by trying to change your story to the deposit guarantee.

I hear some more click bait calling your name timo.

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Simon_S
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Trollie
14 Dec 2016, 04:55 PM
I see you've chosen to embarrass yourself more.

You claimed the Australian government bailed out the banks, then posted an article about 2 banks taking advantage of cheap funding from the US FED. Now you are compounding your troubles by trying to change your story to the deposit guarantee.

I hear some more click bait calling your name timo.
Maybe you could explain how none of this was required in the first place.........

Questions & Answers about the Guarantee on Deposits

Quote:
 
. Why did the Australian Government introduce the Guarantee Scheme for Large Deposits and Wholesale Funding?


Quote:
 
In the lead up to this announcement, developments in international wholesale funding markets were restricting the ability of financial institutions both here and overseas to access funding, with potentially serious implications for liquidity and lending activity.

To address these pressures, the Government guarantee arrangements were designed to promote financial system stability in Australia, by supporting confidence and assisting authorised deposit-taking institutions (ADIs) – banks, building societies and credit unions - to continue to access funding at a time of considerable turbulence. They were also designed to ensure that Australian institutions are not placed at a disadvantage compared to their international competitors that could access similar government guarantees on their wholesale funding.


But I'm sure they didn't need to........Just as the US FED didn't need to provide Emergency funding......

No Bail outs.......Just lots of Support to prevent contagion.

Oh wait whats contagion.......



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Chris
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Matthew
13 Dec 2016, 07:18 PM
I pay a massive amount of tax. It is the best thing about a large salary and investments coupled with no deductible debt.

I wouldn't have it any other way.
No matter how much you pay it will never compare to how much you leached out through subsidies prior to the asset becoming neutral or positive.

Besides if you have a significant income from property and you are not taking advantage of tax minimisation tools you would have to be the first investor in the world, or the most generous?
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Sydneyite
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Simon_S
14 Dec 2016, 06:03 PM
Maybe you could explain how none of this was required in the first place.........

Questions & Answers about the Guarantee on Deposits
It was done (obviously) to stave off a *potential* liquidity crunch / crisis, ensuing bank runs etc, which if had been allowed to occur would have had dire consequences. Such crises arise due to confidence (or lack of it) - the guarantees restored confidence in the safety of your money in bank deposits, and in the safety of wholesale loans made to our banks. Once confidence was restored, of course there was no crisis, calling in of wholesale loans, or runs on bank deposits, so the mere existence of the guarantee did it's job, and cost the government nothing. In fact the government made revenue from it.
Edited by Sydneyite, 14 Dec 2016, 07:14 PM.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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Jon Snow
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herbie
13 Dec 2016, 11:09 PM
Maybe ya missed tha bit where I said I've seen it happen? - 'N in Australia like.
Which recession, and did you see it in every part in Australia, or was it down the road you saw a house sell for more?

Sydneyite
14 Dec 2016, 07:13 PM
It was done (obviously) to stave off a *potential* liquidity crunch / crisis, ensuing bank runs etc, which if had been allowed to occur would have had dire consequences. Such crises arise due to confidence (or lack of it) - the guarantees restored confidence in the safety of your money in bank deposits, and in the safety of wholesale loans made to our banks. Once confidence was restored, of course there was no crisis, calling in of wholesale loans, or runs on bank deposits, so the mere existence of the guarantee did it's job, and cost the government nothing. In fact the government made revenue from it.

This, despite the fact that the banks can borrow as much as they want from the RBA, and the RBA can set overnight rates (and by extension, interbank rates) as low as it wants. How can there be a liquidity crisis when there is an unlimited line of credit in the overnight market?

An entity with an unlimited line of credit can never be illiquid.

Rufus
13 Dec 2016, 11:10 PM
Apart from short term fluctuations prices will continue to rise long term, and so will aggregate debt, especially with our rising population.

The same will apply in 10 years, 20 years, etc until our household formation peaks, which is well outside our lifetime, so who cares.
Rubbish. How does private debt rise indefinitely when wages are falling?
skamy
13 Dec 2016, 09:34 PM
Do you still believe this nonsense
Oh it's nonsense is it?

Which part do you disagree with?
- That money is created endogenously by banks?
- That wages share of GDP is in decline?
- That credit growth has started to slow?

Edited by Jon Snow, 14 Dec 2016, 08:06 PM.
Speak when you are angry and you will make the best speech you will ever regret.
Ambrose Bierce
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Rufus
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Jon Snow
14 Dec 2016, 07:53 PM
This, despite the fact that the banks can borrow as much as they want from the RBA, and the RBA can set overnight rates (and by extension, interbank rates) as low as it wants. How can there be a liquidity crisis when there is an unlimited line of credit in the overnight market?

Banks can't borrow as much as they want, they become insolvent when the shareholder equity has disappeared.

Quote:
 
Rubbish. How does private debt rise indefinitely when wages are falling?

Wages are not falling, and I think you know that.

Take risks - if you win you will become wealthy, if you lose you will become wise
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