A few more charts

Discussion in 'Markets & Economies' started by mmm....shiney!, Oct 28, 2020.

  1. mmm....shiney!

    mmm....shiney! Administrator Staff Member

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    Some charts from Michele Bullock's (RBA Assistant Governor) speech yesterday. Nothing particularly juicy in her speech nor new.

    Household savings, Capital Equity Ratios major banks and housing prices.

    Screen Shot 2020-10-28 at 8.40.15 pm.png Screen Shot 2020-10-28 at 8.46.07 pm.png Screen Shot 2020-10-28 at 8.42.21 pm.png
     
  2. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Give me the laypersons explanation?
    I don't usually care what others are doing. ;)
     
  3. mmm....shiney!

    mmm....shiney! Administrator Staff Member

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    People are saving more money than before.

    Banks are in a stronger position to deal with bad loans than in 2008.

    With the exception of Perth and Darwin, house prices are strong.
     
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  4. leo25

    leo25 Well-Known Member Silver Stacker

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    That means bad for the general economy.

    Banks don't have to deal with excessive bad loans. ;) So "stronger" or "weaker" become irrelevant. Banks just are.
     
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  5. mmm....shiney!

    mmm....shiney! Administrator Staff Member

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    I suspect it's why the RBA insists that governments issue bonds rather than it just depositing funds directly into the Commonwealth's and State's Treasury coffers. The current financial system could well collapse if bonds didn't exist.
     
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  6. mattyman174

    mattyman174 Active Member

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    As long as these numbers are up and not down wouldn't we consider them pointless? Since the uptick can simply be attributed to the government handouts and mortgage freeze?
     
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  7. mmm....shiney!

    mmm....shiney! Administrator Staff Member

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    IMO as long as the RBA and government support is there, then any potential crisis can be (a) delayed, (b) averted or (c) overcome. Take your pick of which one. Short term I'm in "b", longer term leaning toward "c".

    https://www.fxstreet.com/news/rbas-harper-can-ramp-up-bond-purchases-indefinitely-202010280204

    Edit to add: remember "government handouts" are a tool of the modern monetary system, as such, they're going to be with us for a long time.
     
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