By: akipk
3 minutes ago Yahoo! Profile:
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Hello all Readers,
I see that Glen and his Friends at the RBA cut Interest Rates by a full One Per Cent Today. At last we are seeing some Leadership at the RBA therefore I feel completely vindicated by all of which I have posted here and thanks also go to all Posters.
(One wonders if some of the RBA Crew have been reading this Thread ).
Regards,
Contra |
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By: contratrad
Yesterday (8:49 pm) Yahoo! Profile:
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Hello All Readers,
Wow, Cop this, a Friend from Singapore has informed me that they pay just 2.6% Set on their 30 Year Government Housing Loan and that most people there are in this position. ( Private Bank Loans no doubt would be more expensive).
Well from that I can see that our Western Banking System has been operating like ' Pigs to the Trough ' with Housing Loans and Our Politicians from both sides of Politics here seem to wish to ' Purr ' along the Banks.
Mr Glen Stevens and his RBA Cohorts, like Allan Greenspan,have been just 'Rubber Stamping' the Banks desires to have Interest Rates increased with excuses like early 2007 the Price of Bananas is driving up the C.P.I., Retail Spending was Up late 2007(normal over pre Christmas) and Fuel prices are a threat to Inflation.
Now, 'the Chickens are coming home to Roost' for Mr Glen Stevens and our Greedy Fin. Sector Lenders and even Kevin and Wayne are 'purring' up with the Banks in saying the Banks need not necessarily pass on fully any Interest Rate Reduction. Could Kevin and Wayne have Shares in the Banks and want to see their Fully Franked Dividends continue to flow at the present Rate ?
A very concerned,
Contra |
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By: pol_pak
Yesterday (9:33 am) Yahoo! Profile:
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IMHO the RBA continues to fulfill its legal role, in accordance with the legislation passed...
Problem attitude: "Governments are voted in to run the country"
Parliamentarians in government were NOT voted in to run the country.
On my ballot papers it did not ask who I wanted to run the government !
Certainly wish us all to vote for who we feel should run the Executive Management Branch of Government.
Parliamentarians in both Houses are elected to represent their electorates (geographical and interest groups for balance) so as to legislate, set rules, under which whole country will operate, supposedly as best for entire nation.
Sure, many MPs want to run the country, but that is NOT why they were voted in.
MPs were elected to pass laws which set ground rules for everyone in the country.
MPs currently also select the person who governs the country, who runs the country.
MPs with their votes of confidence decide who will be the Prime Minister, the Ministers, and when they cease to be...
Along with many, IMHO this large part the problem.
MPs setting the rules are the same people supposedly following them to govern the country - so yes the rules sure get played with to favor these MPs !
That is concentration of power and influence.
IF you seriously wish this change, need people of Australia to elect the Governor-General !
Required for this is one simple act of Parliament passed by both houses, OR, one simple Bill re s.128 passed by a single House for the people of Australia to decide:
Are the People to elect the Governor General ? Yes/No.
An elected Governor-General required select his or her Ministers from MPs (or soon to be), so they are answerable to our representative MPs on how our elected G-G governs our country.
This is called separation of powers.
Currently is NOT separation of powers.
Currently Executive Branch manages Government business whilst also dominating an ... |
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By: rslique
Yesterday (6:34 am) Yahoo! Profile:
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pol pak
you sure dont know how politics work.
You just repeating the line politicans use because its the old blame game. Not our fault interest rates are high blame the reserve bank. politicans love that. Oh the independant remuneration panel says we deserve an extra $50000.00 wage increase this year.. not our fault the panel is independant and sets our wages but we will take the increase anyway..
Governments are voted in to run the country not hide behind departments that they can blame when it all goes wrong. |
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By: rslique
Yesterday (6:20 am) Yahoo! Profile:
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jan
the reserve bank controlls interest rates which controlls peoples ability to borrow money. if money is cheap to borrow as set by the reserve bank cronies people and businesses borrow more as they perceive interst costs are manageable. Saving is seen as a waste of time with inflation destroying saved money.
They also have influence on things like reserves, etc that the banks must hold this also influences the control on lending. They are in control.
Our monetary system is about controll as well. if you are in debt it makes it hard for you to not need money which gives the powers that be control over your life. They want you as debt slaves. why do you think they make interest rates low for periods of time. |
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By: rslique
Yesterday (6:00 am) Yahoo! Profile:
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so our completely independant reserve bank has talks with mr k rudd about the banks not passing on the full rate cut. Mayb not so independant?
Sack em all. they have failed in their job. they allowed hyper inflation in house prices because it was politically acceptable at the time knowing this was feeding into inflation. But as it was not wages inflation they turned a blind eye. Now we in a recession for a majority of australian workers and they still cant get it right. Incompetence of the highest degree. sack em all..
Why if our banks are so safe does the pm and his cronies have to keep telling us. If they are so safe he would not need to keep telling us. |
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By: ianporter2008
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| The problems we face are not the making of the reserve bank. We are a debt-based world. Too much of our wealth is hyped up by this factor. Sentiment drives prices, inflation and interest rates. These are like a train rattling along it tracks all around the world. When the debt-equity reality gets out of kilter, we see spirals. This is a big spiral caused by rampant borrowing and lending. While this is extended to housing in the US (and because of the scale being so great) the bursting of the bubble ends up being a national catastrophe. What is a big problem in my own view in this country, is personal indeptedness, which while not on the scale of housing bad debt, is right up there behind it. We need to live within our means, but unfortunately, we don't and now we see the unfortunate consequences unfolding. |
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By: pol_pak
3 days ago (Saturday, 8:33 am) Yahoo! Profile:
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Also feel Stevens and previous Reserve, have saved our Banks from bankruptcy.
Sure this to a point is at expense of the average homeowners, and sure this was supported by the government instead of a "rescue package".
However doubt any "rescue package" would have saved us better, particularly a government "rescue package".
Watching in USA is a government "rescue package" which in reality is postponing resolution of underlaying problems.
US problems revolve around over valuation of property, loans on property valued higher than reasonable, at interest rates lower than reasonable, on income higher than previously, on mostly short term borrowed money.
These all seem to be changing at once...
These US problems are world problems because around the world so many others followed them down same pathway...
End of day, our Reserve Bank kept reminding people of the links between Risk and Return, whilst concentrating on interest rates.
IF not for RBA raps on knuckles, our banks would be up with the worst of the USA banks.
As is, truth will dribble out over next five years... or perhaps worse come flow quicker than most people's stress levels will cope with.
The market is just a herd of investors, and major concern is avoiding mob panic... as herd could take off in any direction irrespective of increasing risk some directions have.
. |
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By: seabirdauau
4 days ago (Friday, 3:52 pm) Yahoo! Profile:
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Yo Al.
Generally what you have to say, what contra has to say, what I have to say and what the myriad of others have to say all carry some credence and as I have said before we could argue, discuss?, for ever and a day.
As you suggest a lets wait and see attitude best suits our points of view? Not to see who is right or who is wrong but rather to reveal what awaits us.
With results in truth resting with the politician, the money manager and the company CEO, I only hope we come out of it relatively unscathed. |
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By: almurrie1@y7mail.com
4 days ago (Friday, 12:26 pm) Yahoo! Profile:
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Hi Seabird
We all hope for better things, and high interest rates don't seem to have hurt the Bank's profits at all. Personally I think Stevens saved the Banks from bankruptcy at the expense of the average homeowner, and this was supported by the government instead of a "rescue package". I was paying 9.99% mortgage interest at one stage (so am sympathetic to Contra) and this was crazy when US banks were getting less than 5%. So instead of Australian banks going under, they "traded" out of trouble, unless their previous uncontrolled, completely stupid greedy decisions crashed them. Really transparency in the market does not exist and saying that it is there still doesn't make it so. We all have the wool pulled over our eyes on a daily basis. Big manipulation is ongoing, and the end result will not be known for a while. Meanwhile rumours are starting that Russia and China will move to a new gold backed currency that will make the "fiat" US dollar look very unappetising.
Al |
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By: seabirdauau
5 days ago (Thursday, 9:29 pm) Yahoo! Profile:
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Where the H..L have you been contra. Your one sided contribution has been sorely missed by both me,Glen and the RBA. As has the usual lads with their to and fro arguments which, unfortunately, have been replaced by a lot of new faces that are proving difficult to "believe"!
Glen, poor chap, has a severe problem in getting out his front door as the blame laid there is growing daily yet all he manages to do, from his front lounge, is flood the market with "new" money and threaten a drop in interest rates!
The cotton pickers don't know where they are going and by their pending actions appear to be only providing a stop gap measure while disrupting the rest of the worlds financial situations.
The idiots controlling the markets continue to bull and bear from day to day and by doing so may create their own profits but do little for the individual investor but ask "and who are they?".
I think you had better rethink you RBA attitude contra for in the current situation to "......Improved Regulation and LOWER Interest Rates is the Answer, Worldwide......" is something that will not happen for the heavy weights in both politics and business would prefer to rest in a stalemate while they extricate themselves and most of their monies from the shambles.
While you and others may offer solution after solution you must be realistic and accept the inevitable, hoping always that it will not be as bad as it appears. |
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By: contratrad
5 days ago (Thursday, 8:53 pm) Yahoo! Profile:
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Hello again all Readers,
I was very surprised Today at the Number of People seeking a Part Time Retail Assistant Position which I had also applied for.
The problem presently is many people need Two or Three Employment Positions to pay the Rent or Mortage and this all has been caused by Mr Glen Stevens and the RBA increasing Interest Rates to unfordable levels for most People.
Mr Glen Stevens and his last Four or Five Interest Rate Rises has a major effect on many People with Investments and also Renters.
He should also have known that Property Investors would increase their Rents by approx. Double the cost of his Interest Rate Increases in consideration of their Income Tax Positions. The Stockmarket has also been hit by Mr Stevens and those Interest Rate Increases before this recent 'Circus' the U.S.A., with just about no money flowing in to support Australia's Exploration Companies.
I have been proven Right by my Original thoughts here in this Thread and now see the best way for the U.S.A. to get out of their Mess is with Regulation and then LOWER Interest Rates, however this is unlikely to happen because the Wall Street Banks want the Interest Rates to stay at their present Levels for their Greedy Profits and that is why the so called 'Bail Out' package has been submitted.
Improved Regulation and LOWER Interest Rates is the Answer, Worldwide.
Mr Glen Stevens is 'out of touch' as now proven , and he should be Sacked.
A very concerned ,
Contra |
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By: pol_pak
21/09/2008
8:01 am Yahoo! Profile:
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Credit Default Swap (DS) over the counter insurance contracts off market between parties, covering specific bonds or loans as hedging devices to allow gambling - oops speculating, the bonds/loans would/not default.
Credit default swaps not standardized instruments, technically not true securities, not transparent, are npt traded on any exchange, are not subject to present securities laws, and are not regulated.
The International Swaps and Derivatives Association calculated $62 trillion of credit default swaps (CDS) may remain in the market, whilst unwinding perhaps for five years.
Sellers of such insurance (eg AIG, Bear Stears, Merril Lynch ?) faced defaults rising with no end in sight.
Are massive write-downs at banks and insurance companies, with result stock market chaos, direct result of CDS market unwinding ?
Interesting reading:
http://www.moneymorning.com/2008/09/18/credit-defa ult-swaps/
The unwinding, dribbling out to where visible so included in our everyday calculations seems have a way to go yet...
IF RBA kept Australian banks from increasing their involvement in this, we may be greatfull for small mercies.
Review now earlier discussions, promotions, and resulting actions to unwind such things as the derivative loans which so many local government authorities signed on for.
. |
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By: pol_pak
20/09/2008
9:45 am Yahoo! Profile:
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For an economy with a political Central Bank look at Zimbabwe...
. |
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By: pol_pak
20/09/2008
9:43 am Yahoo! Profile:
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By: axiswear
The Central bank must be independent to minimise any political leanings or private industry alliance. It must be a body of it's own with jurisdiction over the banking sector. The RBA is tasked with lessening the severity of the inevitable peaks and troughs of a capitalist economy no matter the current political climate.
- - - - - - -
With RBA tasked with lessening severity of the inevitable peaks and troughs of a capitalist economy they need independence FOR when economic climate becomes political.
For the RBA looking long term is at least ten years.
For politicians long term is tomorrow...
. |
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By: reynard2008@y7mail.com
20/09/2008
9:41 am Yahoo! Profile:
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What is an economy like without a Central Bank? Try Panama
http://mises.org/story/2533 |
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By: seabirdauau
19/09/2008
10:06 pm Yahoo! Profile:
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axiswear I for one appreciate you comments however it is difficult, if not totally impossible,(yes that's it : totally impossible) on this board to convince the true blue anti RBA, and the banks, and the US Treasury, and poor Glen, and a conglomerate of this lot.
But it is fun trying to do so! |
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By: contratrad
19/09/2008
8:25 pm Yahoo! Profile:
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I enjoyed Your Posting Axiswear, however I feel that Mr Glen Stevens and the RBA Board have acted incorrectly in Increasing Interest Rates in approx. the last Twelve Months.
The Government should have been putting pressure on A.P.R.A. to tighten up the excessive Lending practices by the Banks, like 105 % of valuation Property Loans etc..
Good Night,
Contra |
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By: axiswear
19/09/2008
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Perhaps if you'd actually worked at the RBA, you'll have a perspective based on objectivity re. the economy rather than the subjective victimised approach you are currently holding.
The Central bank must be independent to minimise any political leanings or private industry alliance. It must be a body of it's own with jurisdiction over the banking sector. The RBA is tasked with lessening the severity of the inevitable peaks and troughs of a capitalist economy no matter the current political climate.
Would you prefer a Central bank corrupted by what appeared to be popular decisions that had even worse long term outcomes? If you left it up to the politicians they'd make short term decisions every time, just so long as they got the all important round of applause in front of the cameras.
I recall a time not so long ago (around 8 yrs back) where some very difficult economic issues were at hand. Macfarlane was at the helm and was being hammered by the media, the politicians and the general public. The dollar was in free fall and the bank was doing all it could to prop it up to no avail.
Whenever the economy is not raining cash on consumers, they turn with bared teeth. Who takes the brunt of it? Those who have been working behind the scenes all along to try and limit the bust cycles.
Where's the praise when all is going well? Who's toasting the board when making record profits in a boom?
That stunt today with Rudd walking into the Head office of the bank was insulting. He has no influence, nor any business posing for the cameras as if he's going in to sort things out. Ridiculous. |
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By: seabirdauau
19/09/2008
4:54 pm Yahoo! Profile:
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| It's much like injecting drugs isn't it foxy? Gives everyone a great feeling about life but the cost will catch up before too long! |
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By: reynard2008@y7mail.com
19/09/2008
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brilliant!!!
For fifth day in a row the Reserve Bank has pumped billions of dollars into the Australian financial markets in an effort to keep the system liquid and cash rates low.
The bank did $1.926 billion in repos of bills, $40 billion of repos in asset backed paper (which has been rare) and $60 million of residential mortgage based securities (for the fourth time this week). The total was just over $2 billion for a system deficit of $1.050 billion.
However, there was another interesting deal. The bank did a foreign exchange swaps of $1 billion which took out money, taking the total amount to more than $2 billion and over $12 billion this week. The RBA did this swap to inject more US dollars into the system. The Australian dollars taken out were re-injected into the domestic market via the repurchase arrangements this morning. It was similar to what the Fed did overnight with other banks and itself, but the RBA did the deal from its own resources. |
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By: s_step000
18/09/2008
5:56 pm Yahoo! Profile:
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"seabird - the RBA is the CHIEF regulator of the banking system"
Reynard, actually the CHIEF regulator of the banking system is APRA. ASIC is CHIEF regulator for manipulation.
RBA is much powerfull than them. It is the CHIEF regulator of monetary policy for a whole country not only banks.
You are underestimating the power of RBA. |
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By: reynard2008@y7mail.com
18/09/2008
3:58 pm Yahoo! Profile:
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| seabird - the RBA is the CHIEF regulator of the banking system |
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By: seabirdauau
18/09/2008
3:43 pm Yahoo! Profile:
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Read and Bleed you GLen and RBA haters!
"......Governments and regulators however can, in good part, blame themselves for their present predicament. Their job is to regulate. They allowed Wall Street and powerful financial lobbies around the world to believe they had things in hand, that they did not need regulation.
Such was the complexity of all the structured finance deals and assorted high-finance transactions that the corporate watchdogs, the world over, simply went missing in the action. They could not cope. Cowed by the apparent brilliance of the investment banking fraternity, they did not even try.
Such is the crisis of confidence now - and locally with Macquarie shares smacked into the $20 range amid concerns over its massive debt load - that it would be likely ASIC and the disturbingly low-profile prudential regulator APRA must be at least thinking about having to broker a deal for the likes of Commonwealth Bank to ride to Macquarie's rescue. Essential infrastructure assets are at stake. The mind boggles.
As the financial engineers fall apart in Australia and corporate regulator ASIC uselessly chases rumour-mongers it reckons are destabilising BNB and Macquarie Group - shutting the gate well and truly after the horse has bolted - some new research from corporate governance consultant RiskMetrics Group drills to the heart of the problem - neglect.
ASIC and ASX let these paper-shufflers and their fast imitators Allco, MFS, Centro, and so on get away with whatever they wanted in pursuit of their fast buck . They granted myriad waivers from normal disclosure and even as financial stocks began to collapse have refused to force them to produce management agreements over their satellite stocks......" |
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By: seabirdauau
18/09/2008
3:25 pm Yahoo! Profile:
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Hey foxy I think you misread for surely he/she states that consumption is a No No? So NO eating for tu or moi?
"Debt for investment YES spending for consumption NO>" |
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