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Who'd have thought the CEO of NAB is a doom & gloomer? Not sure how this one slipped out - doesn't he know to keep quiet about these things
Who'd have thought the CEO of NAB is a doom & gloomer? Not sure how this one slipped out - doesn't he know to keep quiet about these thingsApril 28 (Bloomberg) -- National Australia Bank Ltd., the country’s biggest by assets, expects bad debts to spread from businesses to consumers next year, Chief Executive Officer Cameron Clyne said in an interview.
Clyne was speaking after the Melbourne-based bank posted a 0.9 percent decline in first-half profit to A$2.66 billion ($1.9 billion). Charges for bad and doubtful debts rose to A$1.8 billion during the six months, the company said in a statement.
“We’re now in a period of small and medium business impairments, and 2010 is likely to be when consumers will suffer some stress as we head into a rising unemployment environment,” he said. “We’re clearly going into an economic downturn now and we’re seeing that in our result today.”
ANZ Bank today underlined the difficulties facing the Australian economy in the face of the severe global recession by predicting a higher-than-previously forecast level of bad debts for the rest of the financial year.
The bank followed up yesterday's sour loan-crunched result from National Australia Bank by disclosing a 28% fall in its net profit to just over $1.4 billion, which also saw it cut its interim dividend by a quarter to 46 cents a share in order to preserve capital. ANZ reported a 43% fall in first-half cash profit, as bad debt provisions doubled.
Unemployment to soar: Access Economics
Access Economics is predicting unemployment will soar beyond eight percent by the end of 2010. In its latest Business Outlook report, the economic forecaster said it expects close to one million Australians will be unemployed by ...
Government grant leads to inflated housing market
Tuesday, 21 Apr, 2009 – 10:27 | 2 Comments
Low interest rates and government grants have led to inflated housing prices according to Adrian Raftery, CEO of accountantsRus.
Raftery says that activities over the last few months have led to unhealthy, yet familiar symptoms as …
LOL, you got me again - plenty of notice this timeSo, this means we have about a 6 month run up in prices until the crash.
I'm with you on this one.LOL, you got me again - plenty of notice this time6 months or out to 2010 sounds about right?
Hey, if the bulls are calling a bottom, I'm calling a top to balance
Hey, if the bulls are calling a bottom
I think UF was talking equities bottom.What are you talking about? There has NEVER been a bottom in the property market, none, zero. It has never stopped rising anyway.
By the way, we have too many property threads already. Let's try to consolidate this into the "falling!!" mega thread.
What are you talking about? There has NEVER been a bottom in the property market, none, zero. It has never stopped rising anyway.
By the way, we have too many property threads already. Let's try to consolidate this into the "falling!!" mega thread.
I'm with you on this one.
Should be some bargains in the second half I think.
The banks have already shafted business in this country, why would they exempt private property if their precious profit margin is vulnerable?
http://www.moneymanager.com.au/articles/2009/04/27/1240684397983.htmlAccording to the Reserve Bank of Australia, the aggregate household debt-to-income ratio has risen from 61per cent a decade ago to 141 per cent today, meaning that for every $100 we earn we are spending $141.
On a personal level, reining-in spending and paying back debt is the logical thing to do. But on a national scale, it's sending the economy into a tailspin.
"Paying back debt means less money for consumption," says Steve Keen, an associate professor of economics at the University of Western Sydney. "And less consumption means a smaller economy, which inevitably means less jobs and more unemployment."
It also means plummeting values in property, shares and other assets. In real terms the wealth held by Australians fell 11.8 per cent over the past year the biggest fall on record according to CommSec. It estimates wealth slumped by over $24,000 to just under $224,000 on average the steepest fall in records going back 48 years. Stockmarkets lost 45 per cent from their peak; super funds were down between 14 per cent and 25per cent and the upper end of the house market fell by up to 20 per cent.
As the deleveraging continues, we can expect more of the same, says Keen, who predicts house prices will fall 20 per cent over the next two years and unemployment will "go through the roof". "If the peak level of unemployment is less than 15 per cent by the end of 2010 it'd be a reason to throw a party."
Bushman, they (the banks) have already baulked at passing the latest interest rate cut on to (private) borrowers in full, and all Rudd & Swan did was pull out their Mr Potatoe Head Angry Eyes and said how disappointed they were, then went back to being a coupla spuds again
So, it's all about debt and the inability to pay it off?
http://www.moneymanager.com.au/articles/2009/04/27/1240684397983.html
"The young man who waited for the property prices to come down"
(pictured an old man)
Anyone else feelin old? (I am a little)
waiting waiting........
Good advice, and there are a lot of people buying up fast with the current fhog in my area. I will probably look at buying in the second half (hopefully goes down a bit more).Bottom line, in my view if someone is looking to buy their first home, waiting and saving more will probably still be OK, as the heat should come off the lower end for a while in the 2nd half of this year. However, you have to watch the market closely - I mean the actual area you want to buy in - on the ground. Know what's happening and what's on the market, how many buyers are sniffing around, what's selling, for what, how fast and watch for trend changes up or down. the ABS stats etc etc are looking in the rearview mirror!
BUT - if you are waiting/expecting some sort of great crash (falls of a further 20% or more), I think you will continue to be disappointed.
Cheers,
Beej
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