Comments for thedepression.org.au

Comment on QUESTIONING THE CASH RATE SWINDLE by Michael

Michael — Thu, 16 May 2013 09:22:55 +0000

Following with interest Peer to Peer lending which seems to be a rapidly growing birth child of central bank ZIRP rates.

Comment on SUCH IS THE CLEVERNESS THAT GOT US HERE by Michael

Michael — Wed, 08 May 2013 05:11:14 +0000

I can see Monsanto capitalising on this concept. Their argument would be that their genetically modified crops that dominate global agricultural belts produce clean oxygen and absorb carbon dioxide. No doubt they will demand their pound of flesh with a levy on every breath we take.

Comment on OF BANK BUBBLES AND VOTERS by Bryan Kavanagh

Bryan Kavanagh — Tue, 07 May 2013 00:47:26 +0000

But wouldn’t that be “Self UNattribution bias” in this case, Magnus?

Comment on OF BANK BUBBLES AND VOTERS by Magnus Carlsen

Magnus Carlsen — Sun, 05 May 2013 17:35:00 +0000

Re: debt loads. The behavioural finance term I believe you are looking for Bryan is ‘self attribution bias’.

People can’t stand to attribute failures (like their proclivity for accumulating unmanageable debt loads) to personality faults, hence the government becomes one of the many obvious targets in order to deflect from their own failings.

Conversely, any successes in one’s life are inevitably attributed to personal characteristics rather than external influences or events.

It is the way of the irrational investor – particularly those molly-coddled, middle-class welfare pork receiving, entitlement-addicted, Aussie whingers which seem to infest the joint.

Comment on OF BANK BUBBLES AND VOTERS by Michael

Michael — Sun, 05 May 2013 06:39:52 +0000

I remember back in 1984 the Australian dollar was at parity with the US dollar. Two years later the Aussie dollar collapsed. I was in Rome July 1986 when I got 49 US cents for 1 Aussie dollar.
Arriving back in Australia businesses were going bust left, right and centre because they took out loans in foreign currency. Loan principal doubled because the Aussie dollar halved.
This around could the same happen again, particularly car loans.

Comment on BANKS INFLATE BUBBLES by Michael

Michael — Sat, 04 May 2013 10:46:41 +0000

I’m sure our Reserve Bank will follow in the footsteps of the Fed Reserve, ECB and the BoJ.
I guess we can expect government solving our debt problem that the banks have created with more debt, GST at 15% and the raiding of our super funds.
And when that does’t work, expect the likes of Goldman Sachs to seize the future royalties of our gas, coal, uranium and iron ore reserves.

Comment on BANKS INFLATE BUBBLES by Bryan Kavanagh

Bryan Kavanagh — Sat, 04 May 2013 05:00:59 +0000

Oh, yes: the obscene profits will certainly turn into losses shortly. But this is where we have to be different from the Us and Europe and not bail them out for their sins, or else they have it both ways: becoming winners in good times and bad. Let someone simply take them over after due diligence on their assets: they won’t have to pay much with all those non-performing loans!

Comment on BANKS INFLATE BUBBLES by Michael

Michael — Sat, 04 May 2013 03:10:19 +0000

My theory is that a huge number of borrowers are getting further and further behind in their mortgage payments and now that China is coming off the boil this will become an epidemic.
30 year mortgages (or any other loan) are fine as long as there are no black swan events during the loan period such as income reduction by loss of job (unemployment now rising), reduction of hours worked (jobs now shifting from full time to part time), illness, pregnancy, child care fees (on the rise), divorce (domestic violence at record highs), debt deflation etc. With mortgages at 8x income any of the above events (which are happening now) will crucify the borrower. En-masse, this will crucify our banks.

No doubt QE4ever will endeavour to mask mortgage default losses for as long as it can.

Comment on BANKS INFLATE BUBBLES by Bryan Kavanagh

Bryan Kavanagh — Fri, 03 May 2013 08:26:38 +0000

Yep, I agree in part, but you say 30 year mortgages at inflated prices don’t boost the bottom line of these parasites?

Comment on BANKS INFLATE BUBBLES by Michael

Michael — Fri, 03 May 2013 02:05:19 +0000

Aren’t our banks recipients of the trillion dollars of cheap money printed by the Fed.

Doesn’t Wall Street park this money on the balance sheets of foreign banks that have a licence to operate in the US where the funds are disguised as cash on the sidelines increasing the value of the bank and thus it’s share price.

Sounds like one big fraud by the banks to jack up their value as it is certainly not due to their mortgaged stretched customers boosting the bottom line.