The state of the economy at the street level

[sptrawler]

The banks actually changed the rules about 18months or more ago now so that if you fall behind in your mortgage they can now access your offset account. Previously they weren’t allowed to touch it. This move by ME is not going to be the first. I can see a lot of people suddenly without any money. I have already quarantined some living expenses in a separate bank

Sounds like a good plan berry, I think the banking Royal Commission left a lot of people thinking the banks have no rights, it is an interesting ploy by ME bank.

 

[Humid]

You could imagine what would of happened if they were given notice

 

[Dona Ferentes]

The banks actually changed the rules about 18months or more ago.
..... I have already quarantined some living expenses in a separate bank

smart

 

[Dona Ferentes]

Good intel @wayneL ...
I did notice that condoms are not selling, as is usual in a plague, as the population normally increases.
...

This may be in the wrong thread (..bedrooms, not street level) but according to some
Coronavirus: People are having less sex in lockdown, says Durex boss

https://www.bbc.com/news/business-52490023

 

[jbocker]

The banks actually changed the rules about 18months or more ago now so that if you fall behind in your mortgage they can now access your offset account. Previously they weren’t allowed to touch it. This move by ME is not going to be the first. I can see a lot of people suddenly without any money. I have already quarantined some living expenses in a separate bank

Thanks Berry Do you know if offset accounts have had similar rule changes, or similar (eg. offset rate reduced)?

 

[jbocker]

This may be in the wrong thread (..bedrooms, not street level) but according to some
Coronavirus: People are having less sex in lockdown, says Durex boss

https://www.bbc.com/news/business-52490023

1.5 metere rules puts me out of reach.

 

[qldfrog]

1.5 meters rules puts me out of reach.

no to boast but..ohh you mean meters not inches
and sorry for the thread divergence.
Back into what I believe is the street level side of the economy:
I have the feeling that banks are not trusted much , news like that (ME bank) or the so call mandatory help by CBA stopping loan repayments without asking, and this after the super funds preventing you to get your money even when requested by both so called owners and gov laws, brings a high distrust for institutions which are fully built on trust;which no trust: super funds and banks disappear
will not help in case of a bank run..or may even create one

 

[Dona Ferentes]

The banks actually changed the rules about 18months or more ago now so that if you fall behind in your mortgage they can now access your offset account.

thanks for that info. As I don't have an offset account, I didn't pick up on it.

Great, isn't it; introduce a product and then change the rules. Every time we're forced to tick I ACCEPT that's what happens

I can see a lot of people suddenly without any money. I have already quarantined some living expenses in a separate bank

Now the qldfrog has mentioned bank runs, why not? Let's have one. Except no-one will touch the cash.

Things are going to get stranger, and possibly more simple. Frayed so.

 

[Garpal Gumnut]

This may be in the wrong thread (..bedrooms, not street level) but according to some
Coronavirus: People are having less sex in lockdown, says Durex boss

https://www.bbc.com/news/business-52490023

It may be more accurate to say that people are having less unprotected sex. The normal in a plague is to "go for it".

gg

 

[Berry]

Thanks Berry Do you know if offset accounts have had similar rule changes, or similar (eg. offset rate reduced)?

This is one clause from St George. Others have similar


“29.4 Unlesstheamountowingisgenuinely in dispute, if you are in default, we may use any money you have in another account with us towards repaying the total amount owing (this is known as “combining accounts”).
We may combine accounts without giving you any notice but we will tell you afterwards.”

 

[qldfrog]

This is one clause from St George. Others have similar


“29.4 Unlesstheamountowingisgenuinely in dispute, if you are in default, we may use any money you have in another account with us towards repaying the total amount owing (this is known as “combining accounts”).
We may combine accounts without giving you any notice but we will tell you afterwards.”

As far as i know, in ME case, they were not in default
My uninformed opinion:
ME fundings usually coming from super funds, when renewing loans (that is the bank business:
borrow on the market, loan to John Smith for his bungalow purchase, every month or whenever roll over expiring money market loans until John repaid his loan after 5 10 20y
)
Union Supers are themselves short in cash so no $ to reinvest with me, international lenders look at ME and say: ME bank, what bank?
And do not loan...
By moving people cash to their HL, the bank reduces both the total loaned amount( so less risk for creditors) and reduce redrawing needs.
What we are seeing is money flow seizing or expected seizure?
Any other view?
Might need a thread on its own @Joe Blow what do you think?

 

[Joe Blow]

Might need a thread on its own @Joe Blow what do you think?

I'm happy for a new thread to be started on this topic. If you would like to start one from scratch please just go ahead and start it in the most appropriate forum.

If you would like me to split some posts off from this thread then I can do that, as long as it doesn't interrupt the flow of the thread.

 

[qldfrog]

I'm happy for a new thread to be started on this topic. If you would like to start one from scratch please just go ahead and start it in the most appropriate forum.

If you would like me to split some posts off from this thread then I can do that, as long as it doesn't interrupt the flow of the thread.

Thanks Joe, I will follow any advice from ourfellow members I they want to create a Money flow freeze thread , just in case it finds getting a life on its own..
Otherwise we will just leave this here and add it to what makes the people's mood and feelings

 

[jbocker]

Berry initiated the point I think. Up to @Berry

 

[Berry]

Berry initiated the point I think. Up to @Berry

I’ve been a fairly passive on the forums just learning and absorbing information. I dont want to derail things. Happy for you guys to do what you see best

 

[Dona Ferentes]

Thanks Joe, I will follow any advice from ourfellow members I they want to create a Money flow freeze thread , just in case it finds getting a life on its own..
Otherwise we will just leave this here and add it to what makes the people's mood and feelings

My son has an interest offset acct with Macquarie. Just mentioned this to him and he reports "no news is good news". It probably would be as QF says, a funding source issue.

He is renting the 2br inner city apartment out and, just another anecdote, the tenant is leaving this week, to move in with her boyfriend. The agent says 'don't despair' but he just wants it rented! Cash flow.

 

[Smurf1976]

ME bank playing me me me

The bigger concern I'd have would be if I had funds deposited with them.

When a financial institution takes action which has the effect of limiting withdrawals, regardless of the detail that always rings alarm bells and especially so when it occurs amidst a broader crisis.

 

[qldfrog]

The bigger concern I'd have would be if I had funds deposited with them.

When a financial institution takes action which has the effect of limiting withdrawals, regardless of the detail that always rings alarm bells and especially so when it occurs amidst a broader crisis.

It think it might should I say should worry more generally credit union members with deposits

 

[moXJO]

Ok busy as he'll for trades. My barber said he is constantly busy.
Other thing I noticed is we have this weird business environment going on.
Small business is going to the wall in a lot of areas: restaurants, retail. While big business seems to be making a motza: Bunnings, Kmart, etc.
People seem to be out spending though.

 

[qldfrog]

It think it might should I say should worry more generally credit union members with deposits

above: the result of smart?phone typing..not sure I can even guess what I initially typed...
much better on a laptop....