Glen48
Money can't buy Poverty
- Joined
- 4 September 2008
- Posts
- 2,444
- Reactions
- 3
BHP is now at $24.00 in a couple of weeks they will be $15 and then every one will panic and pull their money out regardless of what the Fed's and Banks are saying.
Bank Deposit Guarantee = BAD NEWS
- Thread starter numbercruncher
- Start date
- Joined
- 6 September 2008
- Posts
- 7,676
- Reactions
- 68
- Joined
- 6 June 2007
- Posts
- 1,314
- Reactions
- 10
...and then we might finally have capitulation and a bottom.
GreatPig
Pigs In Space
- Joined
- 9 July 2004
- Posts
- 2,368
- Reactions
- 14
- Joined
- 31 January 2007
- Posts
- 411
- Reactions
- 0
Here is a quote from that article (last para). Now I know 747 is a politician so one should not expect anything intelligent to come out of his mouth. But sheeesh, give me a break. So just exacly what has the deposit tax got to do with "every mum and dad in the gallery", apart from the fact that it is going to see a mass exodus of funds from Australia, the AUD at about 23cents to the USD, an increase in business failure, unemployment, blah blah. And an increase in the cost of your plasma TVs and the rest of the harvey norman crap.
"We have taken decisive action because every mum and dad in the gallery would like to know this today, their deposits are guaranteed, and under the actions of this government that guarantee is being provided, and furthermore as a consequence of that action we have also seen through the other action taken by the government downward pressure on interest rates.''
- Joined
- 7 April 2008
- Posts
- 384
- Reactions
- 1
Did I hear something on the news tonight that you have to have a million or more, anything less won't matter? That can't be right...
I was watching ch 7
Found this and read it, insurance for over a mil
Feel sorry for the people who's fund froze payout, they depend on this to survive, and at least they are living off there own backs.
http://news.ninemsn.com.au/article.aspx?id=653042
I was watching ch 7
Found this and read it, insurance for over a mil
Feel sorry for the people who's fund froze payout, they depend on this to survive, and at least they are living off there own backs.
http://news.ninemsn.com.au/article.aspx?id=653042
- Joined
- 30 October 2006
- Posts
- 310
- Reactions
- 20
As soon as they admit that Henry dismissed the RBA's advice. The RBA would like to see it capped at $200K.
- Joined
- 2 July 2008
- Posts
- 7,102
- Reactions
- 6
The National Australia Bank CEO John Stewart said the he fully supports the bank guarantee. In the words of Mandy Rice-Davies;
I saw the CEO Perpetual Investment Management interviewed on The Insiders this morning. He was more concerned about the fallout.
I saw the CEO Perpetual Investment Management interviewed on The Insiders this morning. He was more concerned about the fallout.
Julia
In Memoriam
- Joined
- 10 May 2005
- Posts
- 16,986
- Reactions
- 1,973
As well he might be. Puts them and similar funds in a most unenviable position. Don't know how the government plan to solve this one.
- Joined
- 10 July 2004
- Posts
- 2,913
- Reactions
- 3
Easy-peasy. Same way as the US Fed.
Promise them "All is well". Promise "Everything is covered". Promise "More $AUBananaBuck$ for all!".
Promise, promises, promises. Guv-Mints luv 'em. It's wot makes Guv-Mints go round, you see.
If the numbers somehow "don't add up" in 6 months time and some tricky journos whisper "strewth - the country's going broke!" why, they can just expand the Mint output to cover their a$$e$!
Rece$$ion? Pah! Humbug! Our esteemed ones spit in the eye of the StagFlation Monster.
HALLELUJAH BROTHERS AND SISTERS. WE ARE ALL SAVED!
:engel:
- Joined
- 10 July 2004
- Posts
- 2,913
- Reactions
- 3
ooops....
Fergot me Cynic pill this morning. *choke*
Fergot me Cynic pill this morning. *choke*
numbercruncher
Beware of Dropbears
- Joined
- 12 October 2006
- Posts
- 3,136
- Reactions
- 1
haha love it - Morning AJ !
- Joined
- 2 July 2008
- Posts
- 7,102
- Reactions
- 6
It would be naive to think that Mr Rudd would not have known exactly what the fallout to his unlimited bank deposit guarantee would be. He would have done his sums. He would have been encouraged by the assumption that handouts to millions of non-investors would give a hefty boost to his approval rating.
The fact that a few hundred thousand investors in mortgage trusts and income funds might have their redemptions frozen was a risk worth taking. After all this mainly affects the elderly who have tried to make provision for their retirement by taking a little more risk than putting their money in the bank for a trifling interest.
But he may now be thinking that he was too rash. The problem is we don't know what Kev will do when caught in the headlights.
The fact that a few hundred thousand investors in mortgage trusts and income funds might have their redemptions frozen was a risk worth taking. After all this mainly affects the elderly who have tried to make provision for their retirement by taking a little more risk than putting their money in the bank for a trifling interest.
But he may now be thinking that he was too rash. The problem is we don't know what Kev will do when caught in the headlights.
He can always call Howard/Castello. Wasn't there a joke before election on exactly the same scenario.
I have just read through the replies in this thread in the hope that someone would have made a reasoned explanation of why this guarantee was such a bad thing in the circumstances. I too am uncomfortable with it but have yet to hear a convincing alternative proposal. Reading through this leaves the impression that a lot of people are using it simply to give vent to their political prejudices rather than offer constructive criticism and comment.
PS: I think the same criticism could be levelled at the media on this issue.
PS: I think the same criticism could be levelled at the media on this issue.
- Joined
- 30 October 2006
- Posts
- 310
- Reactions
- 20
My suspicion is he was advised there would be a rush on the non APRA-regulated companies that are now falling over themselves to get bank status to have those mortgage and cash trusts' guaranteed and ultimately **government** regulation, as opposed to dodgy self regulation or worse! approval from Standard & Poor's - who has faith in what they approve these days?!?!?!
Will hopefully mean less financial cowboys playing with people's savings, even if it means we're going back to a 60's scenario of banks and more banks.
- Joined
- 30 October 2006
- Posts
- 310
- Reactions
- 20
Pffff...as someone who's not a big fan of Dudd, I'd say it's the best thing he's done since he became PM. If he didn't announce what he did that weekend, I believe there would have been a panic rush on the banks the following Monday...he defused the 'bomb' so to speak. Now the devil is in the detail. Let's no forget there is a time limit of only 3 yrs on deposit guarantee's. It's possible as time goes on the cap will lower as confidence in the markets is restored.
It is one important point no one is drumming.
- Joined
- 11 June 2007
- Posts
- 79
- Reactions
- 0
Wasnt it for under 1 million, so to get past that people could just split the funds through a few financial institutions?
Julia
In Memoriam
- Joined
- 10 May 2005
- Posts
- 16,986
- Reactions
- 1,973
Just a warning on the bank deposit guarantee, this does not include the interest earned, at least with the CBA and Bank of Qld. I'm awaiting the reply to the question from ANZ.
I have term deposits with the above three organisations, one quite large where the interest paid at end of the term is a reasonable amount of money.
It would be pretty upsetting (in the admittedly unlikely event of any of the above falling over) not to get the interest.
BOQ advise that only the capital is guaranteed.
CBA advise that the interest is only guaranteed if it is added to the original deposit at the end of the term and rolled over into a new term deposit.
Expect ANZ will be similar.
I have term deposits with the above three organisations, one quite large where the interest paid at end of the term is a reasonable amount of money.
It would be pretty upsetting (in the admittedly unlikely event of any of the above falling over) not to get the interest.
BOQ advise that only the capital is guaranteed.
CBA advise that the interest is only guaranteed if it is added to the original deposit at the end of the term and rolled over into a new term deposit.
Expect ANZ will be similar.
Similar threads
