Does Gillard inspire confidence?

[Mofra]

The ALP govt's (selectively applied) bank guarantee knocked out much of the secondary securitization market, the secondary lenders, giving the big 4 an enhanced market position post GFC.

I was working for a securitised lender as the GFC hit, and they shut up shop before the bank guarantee was announced - nonetheless, I disagree with any further fiddling with bank regulation, especially right now when it is such a political football and the temptation of all politicians will be to try and score some short term polling brownie points when they may be doing long term damage to the health of our banking system (which shielded us from many of the worst aspects of the GFC IMO).

 

[Julia]

nonetheless, I disagree with any further fiddling with bank regulation, especially right now when it is such a political football and the temptation of all politicians will be to try and score some short term polling brownie points when they may be doing long term damage to the health of our banking system (which shielded us from many of the worst aspects of the GFC IMO).

Excellent point. They are so focused on short term populist rhetoric, each party trying to exceed the other's outrage, there's a real danger they could actually seriously stuff things up.

 

[bellenuit]

Excellent point. They are so focused on short term populist rhetoric, each party trying to exceed the other's outrage, there's a real danger they could actually seriously stuff things up.

What really bugs me is that even if they could force banks to only raise and lower in line with the RBA or even if they could actually get banks to raise less than the RBA, the effect on mortgage interest rates would be negligible.

When the RBA lifted cash rates last week, it was because they wanted 'market" interest rates to rise 25 basis points, from about 7.4% to 7.65%, to keep inflation in check. The banks on average raised their interest rates by a further 15 basis points. It is this latter 15 basis points that one could expect to be saved by regulating the banks, but then only temporarily. That will hardly impact borrowers in any way. What's more, if the average market rate is sitting at 7.8% at the next meeting and the RBA thinks they should be at 7.65% (what they originally wanted), they will reduce cash rates by 15 basis points to get there on the assumption the banks will follow suit. So the effect of regulation is negligible and only temporary.

Let's say the banks not only had not increased their rates more than the RBA increase, but didn't move rates at all and fully absorbed the 25 basis point increase by the RBA. The RBA would have responded to this by increasing the cash rate by a further 25 basis points at their next meeting, assuming nothing else has changed in between. In fact the RBA would continue to increase cash rates until the banks market rates get to where the RBA wants them to be.

The next question is what about the 0.5% or so difference between the major four's rates and the other financial institutions. Couldn't borrowers save by moving their loans to these, assuming there are no costs involved with moving. This only works so long as a small portion of borrowers move. Since the majors hold the vast majority of mortgages, the RBA looks at their market rates in determining what to set cash rates to. Even though the other institutions have lower rates, they don't count in the scheme of things when it comes to the effect on inflation. But if borrowers en masse migrate then the RBA will look at the other institutions' rates as now having the greatest effect on inflation. So the RBA will simply increase the cash rate by the average differential between the big four's rates and the others. So borrowers are back to where they were.

Over the past 30 years, mortgage interest rated have been between about 5% and 19%. Such wild fluctuations have nothing to do with the banks. They are just tinkering at the edges.

If people/politicians genuinely want to reduce interest rates than they should be looking at government policies that effect economic parameters that the RBA is mandated to control. The NBN is a good example.

 

[trainspotter]

Gillard defies Senate order on NBN and refuses to deliver business case

Senate MPs have rebuked Prime Minister Julia Gillard after she deliberately ignored a Senate order mandating the Government turn over the business case for the National Broadband Network before Parliament votes on critical telco legislation.
The attack comes as the opposition, independent senators and minority parties have attacked a new proposal from communications minister Stephen Conroy to offer private briefings of the business case, saying the material must be released to the public immediately.

http://www.smartcompany.com.au/info...nbn-and-refuses-to-deliver-business-case.html

This morning, Greens communications spokesman Scott Ludlum told the ABC that it is unacceptable for the Government to be holding onto critical material while debating two pieces of legislation: the Telstra Separation Bill and the NBN legislation.

Hahahha haha haha ah aaa *cough sputter* ahahahahhahahahahaaaa

 

[sails]

Is this another of Ms Gillard's pre-election promises likely to be broken?

Gillard brings forward decision on carbon price

Reuters/AAP CANBERRA - The federal government intends to wrap up an agreement next year on pricing carbon, Prime Minister Julia Gillard has said, testing the strength of her minority rule and pressing the accelerator on Canberra's climate change fight.

With the way she and Rudd are happy to be flitting around the world frequently in jet aeroplanes, I have trouble believing that they care anything about their carbon footprints - it's just about more taxes, IMO.

And Malcolm Turnbull is showing his colours again in this same article.

 

[noco]

Senator Cory Bernardi spells out why we should have no confidence in Julia Gillard. Her broken promises and NBN stupidity is enough.


http://www.corybernardi.com/2010/11...m_campaign=Feed:+CoryBernardi+(Cory+Bernardi)

 

[Logique]

I'm a fan of Sen Bernardi.

While Miss Gillard may be ideologically dedicated to higher taxes and the desire to impose more government control on every Australian, her commitment to a carbon price defies common sense and the latest scientific evidence regarding climate change.

Every day, new evidence emerges that the climate alarmists have got it wrong. The earth is no longer warming and the alarmist camp has been exposed as riddled with scoundrels, shysters and snake oil salesmen.

Yep.

 

[zzaaxxss3401]

Is Julia Gillard a Dalek?

I've just listened to a press conference on the telly by Julia Gillard. Has anyone else thought that JG sounds a lot like a Dalek in her pronunciation of words and phrases?

Julia: "We will rebuild. We must rebuild!"
A Dalek: "Seek. Locate. Exterminate!"

Of any of the politicians, I think Anna Bligh comes across the most natural, confident and very easy to listen to (if it's of interest).

 

[sails]

Re: Is Julia Gillard a Dalek?

lol - had to look up the meaning of Dalek:

A member of a fictitious race of extraterrestrial mutants regularly appearing in the television programme Doctor Who, known primarily for their lack of compassion and their bent on domination through extermination of other beings.

http://www.allwords.com/word-Dalek.html

a strange and frightening creature from the British television programme Dr Who that has a metal body and talks like a machine. Daleks show no emotions, always follow orders....

http://www.macmillandictionary.com/dictionary/british/Dalek

 

[glenn_r]

Re: Is Julia Gillard a Dalek?

I've just listened to a press conference on the telly by Julia Gillard. Has anyone else thought that JG sounds a lot like a Dalek in her pronunciation of words and phrases?

Julia: "We will rebuild. We must rebuild!"
A Dalek: "Seek. Locate. Exterminate!"

Of any of the politicians, I think Anna Bligh comes across the most natural, confident and very easy to listen to (if it's of interest).

If Dalek = Bogan, then the answer is yes.

 

[Knobby22]

Re: Is Julia Gillard a Dalek?

I have heard Julia's sister talk and she has none of the drone of her sister, in fact speaks quite well.

 

[outback]

Re: Is Julia Gillard a Dalek?

HHMMM, Julia, the love child of Davros and Bob Hawke, certainly food for thought.

 

[Calliope]

Re: Is Julia Gillard a Dalek?

Well they do have big butts.

 

[nunthewiser]

Re: Is Julia Gillard a Dalek?

dalek/not dalek........i,d still do her.....


good thread

 

[zzaaxxss3401]

Re: Is Julia Gillard a Dalek?

dalek/not dalek........i,d still do her.....


good thread

Nun - you are certainly living up to your name.

 

[c-unit]

Re: Is Julia Gillard a Dalek?

dalek/not dalek........i,d still do her.....


good thread

 

[robusta]

Re: Is Julia Gillard a Dalek?

I clearly remember as a kid hiding behind the couch watching Dr Who around the corner scared out of my mind by the Dalek's. Now I am 41 and scared by Julia Gillard so maybe.........just maybe that bastard Davros has learnt to disguise them better.

 

[Solly]

Re: Is Julia Gillard a Dalek?

dalek/not dalek........i,d still do her.....


good thread

nun, OMG, Like The Fist of An Angry God ?

 

[todster]

Re: Is Julia Gillard a Dalek?

dalek/not dalek........i,d still do her.....


good thread

Bahahaha you know what they say about redheads

 

[Julia]

Re: Is Julia Gillard a Dalek?

I've just listened to a press conference on the telly by Julia Gillard. Has anyone else thought that JG sounds a lot like a Dalek in her pronunciation of words and phrases?

Julia: "We will rebuild. We must rebuild!"
A Dalek: "Seek. Locate. Exterminate!"

Of any of the politicians, I think Anna Bligh comes across the most natural, confident and very easy to listen to (if it's of interest).

I only heard this on "PM" radio this evening. You're quite right. Her robotic, wooden delivery is becoming worse. It's just horrible. Doesn't she ever listen to a recording of herself????