| News & Views |
| More RBA rate cuts predicted as confidence plunges |
| Posted on 12/11/2008 |
|
| Business confidence has slumped to its lowest level on record, fuelling speculation the Reserve Bank will continue to take a hatchet to its cash rate in the coming months. |
|
|
|
|
|
| We can all hope. The impact of an even more significant cut to interest rates is yet to be determined. We are all in economic unchartered waters.
Will business and consumers use this additonal free money to reduce debt, save or lift spending? That is the big question to which no one has an answer. |
|
| RBA notes litte pass-through of rate cuts to personal loans |
| Posted on 10/11/2008 |
|
| The Reserve Bank of Australia (RBA) says there has been little pass-through of its recent interest rate cuts to personal loans.
“Since the end of July, average variable interest rates on unsecured personal loans and margin loans have decreased by six basis points (0.06 percentage points) and 43 basis points respectively, while rates on standard and low-rate credit cards have risen by eight basis points and 34 basis points respectively,” the RBA said in its quarterly monetary policy statement.
|
|
|
|
|
|
| Gee, why am I NOT surprised by this media release. I am truly becoming disgusted at what I see is a grab for profit by the bigger banks, potentially to offset their losses in non home loan areas.
Why should not the shareholders pay for these mistakes and not home loan borrowers.
Some smaller lenders, such as Police & Nurses Credit Society now have rates a deal less than the Big 4. How can they do it and the BIG 4 cannot? This begs an answer.
How can anyone not think negatively toward the major banks when considering market rates for the global money market have fallen, the banks have been given a government guarantee from tax payers plus other support funds from tax payers and a number of the BIG 4 competitors have closed shop.
|
|
| Building approvals hit 7-year low, more rate cuts to come |
| Posted on 06/11/2008 |
|
| A fall in monthly building approvals to a seven year low reflects a faltering economy and increases the pressure for more interest rate cuts, economists say.
Building approvals fell by a greater than expected 7.2 per cent to 11,167 units, seasonally adjusted, in September, the Australian Bureau of Statistics (ABS) said.
It was the lowest level since April 2001 and the third consecutive monthly fall in the data.
|
|
|
|
|
|
| The most interesting statement in this article is .. "In the year to September, building approvals were down 21.6 per cent from the previous 12 months."
This is a staggering result ... |
|
| Swan “disappointed” by Commonwealth Bank |
| Posted on 05/11/2008 |
|
| Federal Treasurer Wayne Swan says he is disappointed with the Commonwealth Bank’s decision to not pass on all of the Reserve Bank’s latest rates cut.
The Commonwealth cut its lending rate by 58 basis points, less than the Reserve’s larger than expected cut of 75 points from to take the cash rate to 5.25 per cent.
|
|
|
|
|
|
| Mr Swan isn't the only dissapointed person in Australia, millions of others are also.
Considering recently some of the bnks are announcing record profits, plus they have been given a Govenment Guarantee I personally cannot see any reason not to pass on the full rate cut.
The big four have gained almost control of the home loan market now. Personally I believe this is very unhealthy going forward for competiion in the home loan market. |
|
| Some local councils may face bankruptcy: LGA |
| Posted on 29/10/2008 |
|
| The global economic crisis is financially hurting up to 25 local councils in NSW and some face possible bankruptcy, says the Local Government Association (LGA).
LGA president Genia McCaffery says both metropolitan and rural councils are exposed to the collapse of US investment house Lehman Brothers.
|
|
|
|
|
|
| What on earth are Local Governments doing investing on overseas non banks? Where is the accountability here.
Poor rate payers will have to pay for these questionableinvestments. |
|
| GE Money closes its doors |
| Posted on 27/10/2008 |
|
| GE Money will close its operations in Australia with immediate effect, according to inside sources. These sources have confirmed that this is indeed the end for GE. GE will continue to honour all approvals that have been issued up to the 31st October but all other applications will be withdrawn at that date.
|
|
|
|
|
|
| This is defnitely not good news for Australia, GE Money have a definite market for those who would find if difficult, if not impossible to gain money through the normal banking network. What happens to these people and their needs now?
This gobal meltdown gets worse by the day. |
|
| Bricks & Mortar may lure stock market refugees ! |
| Posted on 30/09/2008 |
|
| Direct property could bounce as investor confidence in the sharemarket wavers, industry analysts say. |
|
|
|
|
|
| The stock market meltdown of 1987 was the prime influence in the huge growth in property prices afterwards. The big question now is will the same thing happen in 2009, remembering we are dealing with a severe a cash crisis and a global world market seemingly moving into recession. |
|
| Low-doc loans dead, says Symond |
| Posted on 30/09/2008 |
|
| AUSTRALIA'S biggest mortgage broker has declared the controversial "low-doc" home loans dead as lenders flee from high-risk products amid the disaster in the financial sector. |
|
|
|
|
|
| Have to agree with this article, The last few months have seen almost the total withrawal of the NO DOC loans and those willing to continue offering LO DOC loans are tightening policies and doing significantly more checking of applicants.
It is going to get tough for those without incme recods to get loans in the future. |
|
| Leading economist slams the RBA’s irresponsible monetary policy |
| Posted on 15/09/2008 |
|
| Dr Peter Brain, Executive Director, National Institute of Economic and Industry Research maintains that the Reserve Bank is sitting on a knife’s edge and that it’s only got itself to blame. |
|
|
|
|
|
| This is a stunning attack on Australia's Reserve bank coming from a respected and credible source. The comment that if all doesn't go to the RBA's plan “then they’ve stuffed it” is indeed powerful and worrying. |
|
| Swan urges unhappy consumers to dump their lenders |
| Posted on 08/09/2008 |
|
| Federal Treasurer Wayne Swan has again urged consumers to dump their financial institutions if they are unhappy with the service they are receiving. |
|
|
|
|
|
| How sad to see the Australian treasurer so openly display his naivity. Or perhaps its just more poltical spin to make people think he is doing something. |
|
| Banks profiteering despite claims of troubled credit market |
| Posted on 08/08/2008 |
|
| Australian banks are profiteering from customers despite claims by the industry that margins are suffering from a troubled credit market, a new report shows. |
|
|
|
|
|
| Gee why am I not surprised. For those of us in the finance industry is is so obvious what is going on now. The "big four" do run the rish of seriously putting the pubic and mortgage industry so "off-side" that they will pay for this greed by a significant loss of market share in the future.
As the old saying goes "what comes around, goes around" ... |
|
| Swan warns banks on rate moves outside official hikes |
| Posted on 23/07/2008 |
|
| “There’s a global credit crunch which is putting upward pressure on rates,” Mr Swan told journalists in Sydney.
“They (the banks) have a choice between their shareholders on the one hand and their customers on the other.
“They need to take great care in taking decisions on passing on rate rises outside the official cycle.”
|
|
|
|
| I attempt not to make political comments, however with the world markets, financial insitutions and economies in chaos, I believe blantant politicing such as this is unwarranted.
Treasurers around the world, not only Australia, need to stop politicing (blaming others) and get down to the essential job of managing their economies to avoid the poteial for a meltdown. |
|
| Swan tells banks to justify their rate actions |
| Posted on 23/07/2008 |
|
| Federal Treasurer Wayne Swan says retail banks need to justify their mortgage rate actions to working families. |
|
|
|
|
|
| Pardon? ...... If our national treasuer does not understand the the present market climate that is forcing banks to lift their rates then he shouldn't be in that position. One cant help thinking this is nothing more than political opportunism at its worst. |
|
| Getting a home loan just keeps getting harder |
| Posted on 23/07/2008 |
|
| Australians are finding it more difficult to obtain housing finance as home lenders battle to deal with the global economic slowdown, a new survey has found. |
|
|
|
|
|
| This is a crunch article.Boiled down it states lately 60% of applicants cannot get finance. Only 40% are experiencing little or no problems.
I wonder how many of the 60% did not use a broker !!! |
|
| Lending finance posts biggest slump in 16 years |
| Posted on 23/07/2008 |
|
| Australian lending finance has posted its biggest annual fall in 16 years as slumping consumer sentiment wards off business borrowing. |
|
|
|
|
|
| When you consider this is the largest annual decline since January 1992 when Australia was emerging from a
recession the whole economic outlook starts to look a little "dim". Perhaps the RBA was too eager in its push to slow the Australian economy. There have been sufficient obvious negative pressures from all around the world that would have naturallyslowed the local economy without slamming the skids on as I believe they have done. |
|
| Global slowdown set to linger in 2009 |
| Posted on 23/07/2008 |
|
| The global economic slowdown looks set to linger into 2009 as developed countries start to lift interest rates to fend off inflation, independent forecaster Access Economics says. |
|
|
|
|
|
| I think the following media comments says it all for the next 2 years ...
“The US is in recession, and the `R’ word has already been bandied around as a risk for Japan and New Zealand, with the UK slowing too,” |
|
| IMB Banking and Financial Services |
| Posted on 12/07/2008 |
|
| Due to financial impacts of higher funding cuts IMB will cease accepting new Residential loans as from 30/6/08. |
|
|
|
|
|
| Similar to the Macquarie Bank and several other home loan lenders of late who have withdrawn from the Australian home loan market, now IMB advises its out also.
Now does that song go?
"And another one bites the dust" ... |
|
| Fewer take out mortgages as interest rates bite |
| Posted on 09/07/2008 |
|
| The number of home loan approvals fell for the fourth straight month as 12-year high interest rates continue to bite, economists say. |
|
|
|
|
|
| Lending is down a staggering 23% in the last 4 months. Other reports With all the negative influences around the world and locally at the moment, I expect lending to continue slowing for at least another 3 - 6 months. |
|
| Australian Cities Median Dwelling Values |
| Posted on 06/07/2008 |
|
| The attached table, sourced from Citibank, provides information on changes in Australian value proce changes over the past 12 months. |
|
|
|
|
|
| Perth, Sydeny and Darwin prices changes ground to a halt the last quarter. During the same period Melbourne, Canberra, Adelaide and Hobart are bounding ahead - for how long though .... |
|
| Property Supply |
| Posted on 06/07/2008 |
|
| Source -- Citibank. According to the HIA housing finance and other leading factors point to a further widening in the gap between housing supply and demand.
|
|
|
|
|
|
| In summary HIA predict demand for housing due to population growth will continue to outstrip supply. Personally I think the biggest impact will be on renatl values. For many potential new enterants to the home market proces are out of their range. |
|
| RBA tipped to leave loan rate alone |
| Posted on 02/07/2008 |
|
| Markets anticipate no chance of the reserve increasing official interest rates. |
|
|
|
|
|
| Time and other world influences will prove this belief in time. Too much is happening everywhere to predict anything at the moment. Anything is possible. |
|
| Nation needs one million homes |
| Posted on 02/07/2008 |
|
| The HIA warns almost 1 million new dwellings will be needed to house Australia's growing population in the next 5 years but it is highly unlikely that many will be built. |
|
|
|
|
|
| Based on this advice the housing situation can only worsen and rent rates will continue to grow to record levels. Good news for those investors who are in or plan to get into the industry. |
|
| Aussie Banks Thrive |
| Posted on 02/07/2008 |
|
| Australia's big 4 commercial banks are the most profitable in the developed world and managed to thrive last year despite the global credit crunch. |
|
|
|
|
|
| Their crys of angst are now falling on deaf ears around the country. No one believes them any more.
The big question is has the present high interst rates and the credit crunch aded to their bottom line? |
|
| Auctions Fall Flat |
| Posted on 02/07/2008 |
|
| Homes in Perth listed on the market for sale has reached 18,000, the highest level for 12 years. |
|
|
|
|
|
| No matter all the "upbeat" comments from the real estate industry, the market is seriously down and may stay there for some time. |
|
| Home loan growth at recession levels |
| Posted on 01/07/2008 |
|
| Home loan growth has slumped to its slowest annual pace since the 1991 recession, Reserve Bank of Australia (RBA) figures show, which could mean the end of the interest rate rise cycle. |
|
|
|
|
|
| This may mean interest rates have peaked for 2008, al other infuences remainng same. |
|
| Super Slump |
| Posted on 29/06/2008 |
|
| Editorial in The West 29/06/08, page 41. Outlines the negative impavct the present economic climate has had on the values of super policies. |
|
|
|
|
|
| When you consider the previous $ volume of superannuation that purchases lenders securitised loan portfolios, the impact only compounds the negative imact on the cash market that is available for lenders to use for funding loans. The most immediate impact seems to be a drying up of funds in areas outside the traditional residential home loans market. Already there appears a drying up of money for business and development. |
|
| New WA Stamp Duty Scales |
| Posted on 29/06/2008 |
|
| A new stamp duty scale of tax takes effect in WesternAustralia from Tuesday 1st July 2008. |
|
|
|
|
|
| A welcome partial respite in the heavy tax burden in this state by the State Government. Frankly, the new rates are still, for many trying to buy a home, disgustingly high. |
|
| MFAA: One system for credit regulation is best bet for businesses and borrowers |
| Posted on 26/06/2008 |
|
| The Mortgage and Finance Association of Australia (MFAA) has called for the Federal Government to step up to the
plate and take responsibility for all credit products and credit regulation, rather than dividing responsibility for lending and personal finance between the States and the Commonwealth. |
|
|
|
|
|
| About time. Completely agree with one regulatory body. |
|
| Cash hard to find for fringe area expansion |
| Posted on 25/06/2008 |
|
| Due to reduction of cash on the market for lenders to borrow to lend out for all purposes, lenders are being more cautious on where and to what projects their funds are directed., |
|
|
|
|
|
| The result is more of these deals will need to go to be channelled to second tier, non bank lenders who are more expensive. |
|
| Senate Select Committee recommends AussieMac model |
| Posted on 25/06/2008 |
|
| The Senate Select Committee on Housing Affordability in Australia has explicitly recommended that Treasury
examine whether an “AussieMac” initiative would be beneficial to the Australian market and help increase the rate
of home ownership: |
|
|
|
|
|
| Personally, like recent WA initiatives such as joint ownership, I do not believe this initiative will have any positive impact past a few lucky hopefulls here and there. |
|
| Credit Ombudsman urges WA borrowers not to delay seeking financial |
| Posted on 25/06/2008 |
|
| The Credit Ombudsman, Mr Raj Venga, has urged its non-bank
lender members to be particularly mindful that some Western Australian workers may be stood down in certain
industries or face temporary job loss. |
|
|
|
|
|
| The tenticles of the WA gas crisis spreads further. |
|
| WA gows as people head west |
| Posted on 25/06/2008 |
|
| WA is luring 80 people a week from NSW and Victoria, attacted West by the resources boom and other state's floundering economies. |
|
|
|
|
|
| Think about this article. Taking account of all economic factors, if all WA can do is attract 80 people per week from the east, then this is an absolutely abysmal figure. Its only 4,160 per annum. The WA state government's advertising can only be considered a failure. |
|
| NAB Predicts Rate Drop 2009 |
| Posted on 15/05/2008 |
|
| Article oulines NAB predicts a rate drop in 2009 |
|
|
|
|
|
| Depending on the many variables influencing the market, will this mean a drop in the Aussie dollar to the US$? |
|
| MLC 2008 Budget Analysis |
| Posted on 14/05/2008 |
|
| MLC's analysis of the 2008 Federal Budget |
|
|
|
| KPHM Report on Major Banks |
| Posted on 13/05/2008 |
|
| KPMGs Performance Report on Major Banks, Half Year 2007/2008 |
|
|
|
|
|
| Very interesting reading. Especially the performance of the majors in areas of market funding, bad debt provisioning and loans arrears. |
|
| Bad debts Threaten Banks |
| Posted on 13/05/2008 |
|
| The West 13/05/08 Page 33. |
|
|
|
|
|
| Interesting to see investors shift their cash away from shares and investment funds to the banks. This may have a small postive impact on the banks fundings, reducing their reliance on costly market funds, albiet a small impact. |
|
