Anyone have a subscription to the AFR to get some more detail? http://www.zerohedge.com/news/austr...the+survival+rate+for+everyone+drops+to+zero)
Australian Prudential Regulation Authority envision worst-case scenario of 12% unemployment, 30% drop in house prices, 40% fall in commercial property values, AFR says Banks will assume that write-offs, other mitigation measures are unavailable; later stress tests might allow for such steps, AFR says Australia's banks have A$87.2b of exposure to Europe, or 2.7% of assets, with A$74.6b of it mostly tied to bank borrowers in France, Germany, Netherlands, AFR says, citing RBA statistics
IMF is warning a 1930's circumstance. http://www.guardian.co.uk/business/2011/dec/15/imf-world-risks-1930s-style-slump In that case, add 10% to those estimates by APRA (and btw, for anyone else reading between the lines, the Guardian article seems to me to indicate that Ireland may join the Pound)
Can the European central banks embark on a program of quantitative easing? I assume that they will try anything to kick this 44 gallon drum down the strae for as long as they can...
there is only one ECB and they have no intention of printing any euros, this is why the euro is being trashed
What amuses me is that the EFSF needs to be funded for the next bailout of the failed Euro states but the fund has to be funded by the very same failed Euro states. Ha ha. Italy and Spain will have to ante up 30 % of the next bailout.
Correct. If they can resist the urge, then it will be more beneficial in the long term. However there are alot of angry citizens which need to be told the hard truth first.
Well it really does look like the $h1t is hitting the fan finally. Gold has dropped to $1600 U.S. an ounce as predicted money is flowing into the U.S. currency. They reckon gold will drop to $1400 U.S. in the short term. The Aussie dollar has dropped 4 cents today. Expect it to go to 70 cents as the crisis picks up steam. It may even go as low as 40 cents Time to take those aussie dollars you have been hoarding under the mattress and buy more gold bullion; this I suspect is the real deal and if its not, its an exercise in gold cost averaging if you have been methodically stacking. I went to my bank way back in 2007 and asked the question if properties drop 50% and I am meeting my P & I mortgage payments will you call in my loan they laughed at me. Asked the same thing and reminded them of the earlier conversation in November 2008, they didn't laugh that time. Took two weeks to get an answer from head office. The response was it was unlikely the bank would want to crystalise their losses by selling in a falling market if we were meeting our P & I payments. Since then we have been building up our reserves by stacking bullion Kind Regards non recourse
ANZ dodges the question: ANZ rejects stress test report for banks Read: "We are aware of a request by APRA to complete a review on that basis within the next two weeks, but the suggestion that we need to model global financial Armageddon within one week is alarmist nonsense."
What I find amazing is how the mainstream media and some 'supposed' pro's in economics and markets etc ect have mostly denied that AU will be impacted by this much much bigger GFC 2....... It totally crazy!!! I'm actually half happy this is all going down, finally after soooo many years/months of crisis meetings and BS bailout deals the truth of the matter is exposed...... Now the world will see what 'the banks' have done and how greed caused total destruction of the worlds finacial system...... Hold on tight peoples!!!
APRA. The banks regulating the banks? I'm sure we will see exactly what they want us to see, just what we need to calm down.
