Too Big to Prosecute - CBA/Bankwest fraud Senate Inquiry video

I agree with both of you on this. NR initially (target all other lower hanging fruit first) and then if things get bad enough 100% with Yip).

 

Sounds like your Mrs kept you on the straight and narrow when the times were tough - a good woman by the sounds of it.

I don't think anyone in their right mind would want to remain on the 9-5 treadmill for life (I certainly don't), but there's a lot to take in and consider when you're sitting at your desk and paying the weekly bills as opposed to striking out on your own.

From what you said, the first year and a bit you were DINKS and both working when many people were struggling to find a simple job - that definitely would have made a big difference and whilst I know times were tough back then (I worked through the recession too), there's no doubt that it's all situation and dependent on personal circumstances.

Sounds like you both put your nose to the grindstone, took a few risks when you could with some ingenuity and effort and it paid off well in the end.

 

A DINK :lol: is double income NO KIDS. The reason why we succeeded is because we both love what we do. The secret is finding your niche and going for it. Renovator and I are worlds apart in what we each do. The commonality is we have both found our niche.

Again it gets down to you the individual making it work for you. We all have clay feet. If you fail just pick yourself up and go again. You learn much more from your failures than your wins. If you look at many of the uber rich often they have been bankrupted a number of times.

The employee mentality is just an extension of your school training that to make mistakes is bad. What is bad is not experiencing trial and error because of what might happen. By all means be aware but take calculated risks. If your motivation is just money you will fail.

Kind Regards
non recourse

 

Coming back to the crux of the matter, I think this is what it's all about at all levels now.

Big banks look at risk/reward I'd assume in a similar matter, except that the price of their failure is passed on to others.

The complete lack of accountability for failure in the banking/financial sectors has simply opened up systemic risk as a business paradigm because let's face it, when the big players do it... there's really no risk at all, is there?

Heads they win & split the profits with Govt.
Tails they get their money back & pass the bill to the tax payer to bail them out.

It misallocates capital into riskier investments that's more akin to gambling than true investment based on risk/reward, is it not?

Is that really capitalism at play or just crony capitalism?

So coming back to your point on trial and error NR, it would seem the big wigs in the market are taking a similar approach - except when they make an 'error', they don't have to pay the price of failure. They just hold a gun to the government's head and say bail us out or we'll crash your economy.

That's not capitalism and here in lies the path to economic destruction.

 

We have cycles, sure, but the world economic meltdown is non-cyclic (secular) and encompasses and influences all of these cycles.

To blindly believe in cycles, like some form of economic karma, is just ignorant in my opinion.

And for what it is worth, I do not think we'll get 20% interest rates. That 'trick' was used to save confidence in the USD, but there's no saving it now.

We're in new territory (at least since 80+ years ago). We'd be better off with a recession than the destructive volatility that lies ahead of us (and currently being experienced).

 

I'd just like to say I'm really enjoying the civilised tone and content of this thread. Thanks Aus and NR.

 

We can agree to disagree. My take is all those fresh $50 and $100 dollar notes means just one thing. The debasement of fiat. That means hyper inflation. No one believes the current inflation figures, you only have to look at utility and food bills to realise we are already part way down that slippery slope.

That is the real reason most of you are on this site no? Gold and silver is a store of your wealth. Where we disagree is I do not view bullion as an investment but rather as a hedge to sustain my real weath the income generating REAL Estate.

Kind Regards
non recourse

 

^ hyperinflation...

Yet you expect interest rates to go to 20% like the 80/90's, right?

We're in a whole different world compared to that period of time. 20% interest rates would be inconsequential under hyperinflation... That's more like negative real interest rates. I doubt anyone on here has experienced the likes of that. What rationale do you offer?

Edit: Incidentally we both use PMs as a hedge, I just dont receive my income through real estate.

 

Too Big to Prosecute Part 3 link below

http://www.youtube.com/watch?v=Z7lwTwbLlII&feature=plcp

 

Just watched Part 3.

If true .... Unbelievable.

 

^ ditto to that

Interested to watch the next parts if there is more coming

Edit: embedded the video:

[youtube]http://www.youtube.com/watch?v=Z7lwTwbLlII[/youtube]

 

Too Big to Prosecute Pt 4 of 10, link below

http://www.youtube.com/watch?v=lT7AcNoXgQw

 

Keep em coming...

It's like a murder-mystery, and I just have to know

 

Too Big To Prosecute Pt 5, link below (ASIC response)
http://www.youtube.com/watch?v=RKaaCeiDlio&feature=plcp

Too Big To Prosecute Pt 6, link below (Taylor Woodings Receivers Response)
http://www.youtube.com/watch?v=9fC8vfm-0Sg&feature=plcp

 

OMG! :O

3:42 - ..FOS need the permission of the receiver before they can investigate any misconduct complaint against the receiver.

 

Unfknblvbl

 

Any guesses on the outcome of this?

 

A bunch of new (but still useless) regulators like ASIC. At least FOS may get additional powers to act on complaints (although it is probably a can of worms as legitimate receivers will presumably have to deal with far more unwarranted gripes).

In the process of getting a bunch of additional useless regulators we'll probably get the privilege of footing the bills for two dozen consulting reports and cost benefit studies looking into closing each loophole. So, wouldn't expect much until 2014/2015 (probably the latter as the senate committee won't have a report until part way through next year's sitting and the time to draw up legislation and the like will push out any parliamentary enacted changes until after the election, which if Libs get in may even be delayed until 2016 as they focus on other stuff first).

The "unconscionable conduct" phrase will no doubt be getting serious scrutiny.


More importantly for the current victims, however, I fail to see what proper compensation the inquiry or courts can possibly obtain once most of the assets have been bled dry or on sold. Especially given the massive delay tactics that CBA can and will continue to do.

 

Greg Medcraft spent nearly 30 years in Investment Banking at Socit Gnrale in Australia, Asia, Europe and Americas. More recently, he was the Managing Director and Global Head of Securitisation, based in New York.

http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/ASIC senior executives

It seems that our reglatory bodies are occupied by the players who created the problems.

Kind Regards
non recourse

 

can someone explained to me why bankwest deliberately under valued people's assets - how does this trigger a default?

edit: ill take a shot...
since the property is collateral there is some clause stipulating if the value of it was to drop below a certain % of the loan the borrows default or pay it all back

another question, what will come of this? will the victims get anything back? will CBA be fined? will certain people be locked away?

more importantly, what will happen to the CBA share price. what will happen to australian's supers and the economy if the share price was to be dramatically effected. is it in the govt's best interest to act in such a way which will NOT negatively influence CBA's value?