Search results

Here is some advice before investing in bonds that are not listed or cleared though some form of reputable clearing house (Eg Euroclear etc...), or registered with a securities regulator (Eg APRA, SEC, FSA) *Demand full financials.. make sure they add up to the last dollar, and are updated and...

Switzerland is a bit more convenient

Except pokie machine manufacturers take very little risk with their investment - they sell the machine to the club and the cashflow is basically guaranteed.. whereas if a bank lends any entity money, they (and their shareholders - which includes everyone who has their super in a fund) take a...

Dunno about the really small ones. I only got 5g, 20g and 1oz ones, and they were about 1% over if you pay in CHF or EUR.

How about the fact that 5yr bank bond spreads have gone from about 100bps over 5yr government bonds to 225bps in the past year. I trade bank bonds, and talk to large investors every day - and the opinion is unanimous.. they will keep going wider as the confidence in the property market dries...

And whats to stop fractional reserve banking using gold?

But people do beleive in it, and we are all happy, and we can continue to make money by borrowing at rate X% and lending at X+Y% When people stop beleiveing it, there will be a bank run.

Correct, but from my $10 deposit you can only lend out $9 once.. and i if want my $10 back, then you would have to call back the $9 loan, which means the $8.10 loan gets called back, etc... meaning the total CASH that can ever exist from my $10 deposit is $10

You forget that banks can only borrow overnight USD at 0%... converting that to AUD and hedging your term and FX risk (using FX forwards and interest rate swaps or cross currency basis swaps) and you are suddenly borrowing at... 5.6%!!

Yes fractional reserve banking does seem like money creation.. but these loans do get paid back. If you borrow money to buy a house, you pay it back, if a bank borrows money to fund new mortgages, they have to pay it back (unless they issue equity). The moeny in the system that the bank...

Im watching an listening.. and as much as i press the button on my keyboard... im not creating any more dollars.

True.. money raised as equity can also be used to lend out.. although good luck rasing enough equity to suppost a serious lending book. Money raised through equity is genreally around 10% of a banks assets - it is the most expensive form of capital there is!

Umm... tell me mechanism how a bank can create moeny out of thin air? A bank can only lend money it sources from deposits, or by issuing bonds. Only the central bank can create new money - which it then can lend to commercial banks, who the lend to consumers.

2 reasons why banks raise borrowing rates: 1) Their own funding costs rise (5y bank snr bonds are at 5.6%.. so mortgage rates at 7.6% are not unreasonable) 2) The perceived riskiness of mortgages rises, and banks need more of an incentive to lend against riskier assets: given that the property...

Not every small brach stocks all types, but the main one just down the road from Zurich stations has everything!

Here is a UBS branded Kinebar.. available at 1% over spot at any branch in Switzerland... Will have to pick up a few more next time I'm over :)

UBS Kinebars are pretty foolproof as well :)

US 10y TIPS are at -0.095% real yield atm.. seems like market is still expecting neg real yields

You can demand spot.. on 1000oz bars; pre dec or even 1966 50c if youre lucky on ebay :)

Story 2 is actually a very good point.. the love affair ppl have with shares is quite dangerous from the diversifiaction point of view..