How safe are our banks?

[satanoperca]

Thought this article could lead to some interesting discussion.

Trillions in risk lies under shell

http://www.smh.com.au/business/trillions-in-risk-lies-under-shell-20100301-pdjh.html

One factor saving Australia from liquidity problems is the carry trade.

It found that NAB has $100 billion more in liabilities than assets at call and a further $60 billion more in liabilities than assets within the zero to three-month maturity band.

the OTC market in Australia turned over $69.9 trillion in the year to June 30,

It would seem that it will not take much to rock the boat and passengers get thrown into the frigid waters.

Cheers

 

[Bigukraine]

Thought this article could lead to some interesting discussion.



http://www.smh.com.au/business/trillions-in-risk-lies-under-shell-20100301-pdjh.html







It would seem that it will not take much to rock the boat and passengers get thrown into the frigid waters.

Cheers

Well if you believe all that is written the banks are safe as houses 100 thingy you know !!!

 

[joeyr46]

could be an interesting topic but I think too many people have their rose coloured glasses on again so may not get many takers
Personally I,ve always said we are in shocking shape both as an economy and a country and have been going downhill since the 70's early 80's mostly because of government interference and dollar devaluation (inflation) that really does no one any favors when it comes to paying the piper.
Every depression over the centuries has been caused by too much debt and this time it's no different. can't see why are banks are any safer than their US counterparts when the **** hits the fan,
Banks do have a conflict of interest when it comes to lending money as the more they lend the bigger their profit, and I suspect we have now gone so long since a decent correction in real estate that the people at the top have only factored in a 20% correction. After the 87 crash RE took off till about 91/92 then corrected in many areas by about 50% (inner city held up quite well)
If that happens this time we have got some serious problems because of the LVR levels in the outer suburbs and lack of liquidity in the system generally
I'll be keeping a close watch on the banks share prices in the next couple of years but not sure were to keep any money ATM

 

[joeyr46]

Well if you believe all that is written the banks are safe as houses 100 thingy you know !!!

The question then becomes "Are houses safe?"

 

[Bigukraine]

could be an interesting topic but I think too many people have their rose coloured glasses on again so may not get many takers
Personally I,ve always said we are in shocking shape both as an economy and a country and have been going downhill since the 70's early 80's mostly because of government interference and dollar devaluation (inflation) that really does no one any favors when it comes to paying the piper.
Every depression over the centuries has been caused by too much debt and this time it's no different. can't see why are banks are any safer than their US counterparts when the **** hits the fan,
Banks do have a conflict of interest when it comes to lending money as the more they lend the bigger their profit, and I suspect we have now gone so long since a decent correction in real estate that the people at the top have only factored in a 20% correction. After the 87 crash RE took off till about 91/92 then corrected in many areas by about 50% (inner city held up quite well)
If that happens this time we have got some serious problems because of the LVR levels in the outer suburbs and lack of liquidity in the system generally
I'll be keeping a close watch on the banks share prices in the next couple of years but not sure were to keep any money ATM

basically my thoughts but you have explained them well, all we need is a japan event in RE (1990's) and this country will have to pay the piper

 

[satanoperca]

Cheers Joey for your reply which I agree with fully.

Interesting that are safe as house (pun intended) banks required ;

1) Depositors bank govnuts guarantee
2) Wholesale funds govnuts guarantee

As long as that credit keeps on rolling in and keeps on rolling out to indebted businesses and individuals all will be OK.

Stay turned.

Cheers

 

[nunthewiser]

I posted this on another thread .

Abit of light reading for ya satan

http://www.globalresearch.ca/index.php?context=va&aid=17736

 

[newbie trader]

depends who you ask....

http://www.heraldsun.com.au/news/na...n-handbag-snatch/story-e6frf7l6-1225835825642

 

[satanoperca]

I always trust a nun, thanks for the link.

Got to love the first sentence

The people have been lulled into a false sense of safety under the ruse of a perceived “economic recovery.”

The nations of the world are mired in exorbitant debt loads, as the sovereign debt crisis spreads across the globe, entire economies will crumble, and currencies will collapse while the banks consolidate and grow. The result will be to properly implement and construct the apparatus of a global government structure. A central facet of this is the formation of a global central bank and a global currency.

Got to love living in this time, makes you feel alive.

Cheers

 

[MR.]

Picked these links up a few weeks back:

http://www.investmentpropertycalcul...-its-loan-to-valuation-ratios-lvr/2010/01/21/

Westpac Banking Corporation has tightened its mortgage loan criteria by lowering its loan-to-valuation ratios (LVR) for new full-documentation mortgage customers on Wednesday from 92 per cent to 87 per cent including two per cent for lenders’ mortgage insurance.

So, what does this mean for investment property buyers? I think it means you might get a bargin in 12 months.

I’ve heard that before! What have the other banks done?

http://www.creditmart.com.au/news-detail-Other-majors-reject-Westpac-‘s-LVR-tightening-9092533.htm

ANZ, Commonwealth Bank and NAB today said they had no plans to follow Westpac’s lead

Ol well
You gota wonder, have we learned anything from the GFC?

and

http://www.mlc.com.au/resources/MLC.../Unlisted_property_can_ignorance_be_bliss.pdf

After the share market crash of 1987, money flowed into property as a safe haven and returns remained strong for a period. But by 1989 it was becoming apparent that property was to suffer the same fate as the share market.

sorry wrong thread, got carried away