Call me a fool but I'll have to say 'B' - Although I never had any faith in state-backed depositor insurance of any stripe, anywhere. Its in my opinion that having all your cash accounts solely within one national jurisdiction is not a prudent financial arrangement.
Read this post for the first time about 10mins ago and came to the same conclusion..I was just about to post a reply when I saw yours.. Good work mate! Its nice to see someone not dazzled by the glint of the silver. Regards Errol43
it's because people have replied B and C, or A and D instead of just one answer. The ratios are probably right, just the %s are out
E, None of the above... You see, it's not my money, it is our money. So while I can explain that, due to inflation it is actually going down in value and that we are taxed on the interest anyway, this makes no difference, my wife sees banks as a safe haven for money and a bamboo plantation in Nicaragua as a poor investment strategy. So we compromised and spent it on a kitchen.
I don't see why that's an excuse to keep money out of the bank O_O You're gonna cop inflation anyway, and any profits you make will get taxed to some degree - higher taxes should be no excuse to miss out on a "safe" profit. I'd think 6.51% compounded interest keeps up as best as it can :/ Even so, I think it's more important for income from productivity to keep up with inflation rather than income from investments. But I am all about productivity after all.
Roswell, Old Codger wrote: Australia has the strongest, best managed, best regulated, and best governed banking system in the world! "Was that statement meant to be sarcastic, my Senior Citizen friend?" No, my very junior friend, it was not, and I cannot see why anyone would think it. If you care, and are able to do some research, you may be able to find a site such as this:- http://www.gfmag.com/tools/best-banks/10533-worlds-50-safest-banks-2010.html#axzz1R9f2LOd6 This will show you that Australian banks are well placed on the world banking stage, and the EU banks listed above them will have slipped a bit recently, you may have read of a place called GREECE, where many EU banks are likely to founder! You may have also have read that with the EU debacle, Australian banks are not involved in all the red ink sloshing around there. They call that "Prudential lending", or in this case, NON lending!!! And for your further education, you may care to 'do a Google' on APRA, the Australian Prudential Regulation Authority. This organisation was set up by that outstanding PM, John Winston Howard back in the '90s. A thorough read of that site will educate you in the basic principles of prudential lending and control and oversight of risk. The Australian banks have a very low provision for 'Bad and Doubtful Debts', which appear in all Bank annual reports every year. Far better than your average bank! Here endeth the first lesson! OC
And in that article is says "Ratings from Moody's, Standard & Poor's and Fitch were used." Would that be the same Moody's, S&P and Fitch that rated CDOs a triple A rating? Oh yes, I think it would! :lol:
jparrie, You have missed the point, the ratings are but one of various criteria used to grade the big banks. ...and banks are NOT countries! OC
OC Australian Banks are illiquid, we are prone to financial collapse, once the so called mining boom expires there will be no other income for the Banks. Their monopoly on Real Estate is waining and if interest rates are lowered then the people will pull their savings. It's not as rosey as Wayne Swan would have you believe. Read some of the Daily Reckoning and Money Morning for a different angle. Did you know that Westpac and NAB borrowed $5B collectively from the TARP and never reported it to their shareholders? If it wasnt for Ron Paul we wouldnt have even found that out. I would be on your toes with the banks, runs can happen (e.g. Northern Rock) cheers Hiho
I am a afraid that the claims in your post above are at odds with my knowledge and experience. I am VERY familiar with DR and MM and many others and in the case of DR in particular, disagree with him, and you. The 'Big 4' are NOT "illiquid", and would be most interested in your source of that information. OC PS, Borrowings (Notes and Debenture issues) by banks are NOT reported to the shareholders on a case by case basis, they are included in the Annual report! About HALF of all the funds lent to their customers is in fact from that source!
