whilst we r on the topic of declaring interests....
maybe "swazee" might like to reveal himself as well - i think we would all find that very interesting given where "he" works.... and the rumours he pushed.
it didnt take me very long to track u down buddy and i am sure u will prove quite newsworthy.
Given MR's post I thought I would put in my 20 cents worth and provide some perspective.
My answers are that our escape route from previous downturns was to renew the private lending engine, and that this is a trick that is one recession past its use-by date.
The 1990s recession saw private debt to GDP ratio top out at 85% in late 1990, and then fall to 76% by early 1994. From then it took off once more, with households taking over the borrowing binge mantle from business, which actually reduced its debt level from 56% of GDP to 40% in mid-1995. The household debt binge, which began in 1991 in the depths of Keating’ recession, took the household debt to GDP ratio from 30% to a peak of 99%, from which it is now falling.
Meanwhile, business borrowing likewise began a China and Private Equity fuelled blowout in mid-2004, rising rapidly from 46% of GDP to 66%–a new record–by early 2008. The combined debt total reached 165% of GDP in March 2008, and it has since fallen to 160%.
So what are the odds of encouraging businesses or household to start borrowing again, from their now record levels of debt?
Not good, I would think. Instead, they will be de-leveraging, not just for the duration of a standard recession but perhaps for a decade or more, to bring debt levels back to something like 1960-70 levels of 25-50% of GDP. Deleveraging has only just begun, and it has a long, long way to go.
So we can’t encourage businesses to borrow, or households. Who else does that leave?
And the bingo award goes to Kevin Rudd: government can get into debt instead. That is what is now happening of course, and from a position in which the government’s debt to GDP ratio is currently close to zero. So it has capacity to borrow and thus boost demand, but how does that weigh up against what the private sector might do in the opposite direction?
Not well.
There's a question and reply on E&J C's web site regarding gearing for the over 65's
http://www.cassimatis.com.au/FAQRetrieve.aspx?ID=36205
It is claimed that the question was submitted from a person from the "CBA" so I suppose we can predict the tone of the reply.
I found the response reasonable.
Where the post talks about the Master of Applied Finance that EC developed does anybody know the course content, electives, prerequestites etc. What inputs EC actually had into the course?
Does anybody here known any graduates ? Which campuses is it offered?
What are the chances of the CBA extinguishing loans?
So, anyone changed their minds about Storm clients receiving some sort of restitution?
A class action being prepared by Slater & Gordon is expected to allege that Storm effectively acted as an agent for CommBank, and other Storm partners like Bank of Queensland, which would make them liable for its flawed advice.
Yep, exactly the thought I had when I read Mr Scattini's remark, Bunyip.Slater & Gordon's Damien Scattini said the deals might open CBA to accusations of undue influence and unconscionable conduct given the distressed state of customers and the short time given for people to settle. "It's disappointing they want to go about things this way," he said.
I wonder if Scattini's disappointment could be due to the decreasing likelihood of him getting a decent cut out of it, if CBA comes to some private arrangement with clients on an individual basis.
Slater & Gordon's Damien Scattini said the deals might open CBA to accusations of undue influence and unconscionable conduct given the distressed state of customers and the short time given for people to settle. "It's disappointing they want to go about things this way," he said.
I wonder if Scattini's disappointment could be due to the decreasing likelihood of him getting a decent cut out of it, if CBA comes to some private arrangement with clients on an individual basis.
So, anyone changed their minds about Storm clients receiving some sort of restitution?
Does any one know if Storm altered the info on victims forms forcing them to end up more highly geared?
IF Storm had authorisation from Victims to do as Storm liked on their behalf and the Banks were aware of the scam then you could understand the Banks wanting to talk.
I can't see any banks lending $1.8M to a Victim on $50K PA...
Does any one know if Storm altered the info on victims forms forcing them to end up more highly geared?
IF Storm had authorisation from Victims to do as Storm liked on their behalf and the Banks were aware of the scam then you could understand the Banks wanting to talk.
I can't see any banks lending $1.8M to a Victim on $50K PA...
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