How safe are the big aussie banks?

Tell your friend he's an idiot.

The *real* figures were released by a FOIA request, the aussie banks were on there.

Also, *why* do you think the margins on commercial lending have recently been put up by the banks... remember all that talk of "swanny" cracking down and pushing competition..... actually don't answer, just let the CEO of Westpac answer...

http://www.theaustralian.com.au/bus...ely-to-ease-back/story-e6frg96f-1225853260572

Credit is drying up. It's costing *more* to get the cash.

As mentioned by GP in another thread, it's near impossible for him to borrow in the states to buy a cut price (-75%) house.

So whilst your friend has a point.... ask him what happens when the fed will not lend anymore @ 0%.

[....crickets]

(kind of what we discuss here.... this is whats known as the "Sovereign Debt Crisis".... ie when China doesnt believe you'll pay it back anymore.

wake up, the 0% came from nothing other than the printing press.

Governments will try to inflate their way out of paying... China will just walk...
 
margeandtina said:
Brad, ironically enough I was talking to a friend of mine who works in "wealth management"

yesterday and told him about the bailouts you mention. His response was virtually the same.

He went on to inform me that the US was in a recovery!

When I brought up PM's he all but scoffed at me. Yet some are saying there is a PM bubble. Not likely.

Anyway, if it weren't for chaps like him we'd all be paying a lot more for our PM's right now, so

I should be thanking him.

By the way, he didn't know the Fed is a private organisation owned by the banking oligarchs.

Long way to go for the PM bull me thinks.

Mark.
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LOL.
Similar tale when discussing 'wealth mgt' just last week. Aforementioned wealth manager questioned about previous investments etc. Told him about silver (with what I thought to be adequate background)....prolonged pause.... he said that wasn't such a great idea. He's also very bullish Oz property. And global recovery. *slaps forehead*
I'm bearish on both, to be quite frank. Very polar bearish.
I've said it before about so-called 'financial planners' and 'wealth managers': it would be up there as one of the easiest professions to function in. Until, of course, you meet a stacker...
 
Agauholic said:
Tell your friend he's an idiot.
Click to expand...

I can't do that! He was in my wedding party, and he's godfather to my first born son....

He also believes in AGW. So, maybe, he is.... ;)
 
MelbBrad said:
Agauholic said:
Tell your friend he's an idiot.
Click to expand...

I can't do that! He was in my wedding party, and he's godfather to my first born son....
Click to expand...

A bet each way i see... not such a bad move ;)

(no offense intended, just have him explain "what happens when 0% is not available next time".)

This is where AusPM's rants are going.... those with debt will get slaughtered when cheap credit goes... and the only source of cheap credit is a printing press that China has now lost faith in.
 
MelbBrad said:
LOL.
Similar tale when discussing 'wealth mgt' just last week. Aforementioned wealth manager questioned about previous investments etc. Told him about silver (with what I thought to be adequate background)....prolonged pause.... he said that wasn't such a great idea. He's also very bullish Oz property. And global recovery. *slaps forehead*
I'm bearish on both, to be quite frank. Very polar bearish.
I've said it before about so-called 'financial planners' and 'wealth managers': it would be up there as one of the easiest professions to function in. Until, of course, you meet a stacker...
Click to expand...

Lol 75% increase last year, not such a great deal. Man these wealth managers are hopeless. Its exactly the same thing, when I rolled over my superfunds. The scummy bank tell at ANZ asks me if I need a financial planner to help manager the funds. I told them, they won't be able to make anywhere near the gains I would be making this year if they even tried. I would be lucky not to lose money.

Slam
 
Slam said:
Lol 75% increase last year, not such a great deal. Man these wealth managers are hopeless. Its exactly the same thing, when I rolled over my superfunds. The scummy bank tell at ANZ asks me if I need a financial planner to help manager the funds. I told them, they won't be able to make anywhere near the gains I would be making this year if they even tried. I would be lucky not to lose money.

Slam
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That's priceless.
 
goldpelican said:
Forge said:
The real aspect to note is that the banks here are severely exposed if / when we have a real estate collapse. There would be severe difficulties if there way say a drop in real estate values of 30% or so over the coming years. If you think that sort of drop is unlikely, look what happened elsewhere around the world last time.
Click to expand...

It's been amazing to do foreclosure tours here in the US and see what were 5BR 4BA $1m+ waterfront properties with private docks in Florida selling for $200,000-$300,000. 75% price drops from the last sale price aren't at all uncommon. You literally cannot build a house for less than the asking price that 2000-2008 properties are available on the market for. <10yo homes with three bedrooms regularly selling for $60,000 or less - that's 2000oz of silver for a house. Saw one waterfront house yesterday with 3 levels, 6 bedrooms, TWO kitchens, fully furnished with brand new furniture to help it sell - you just needed to buy some food and you could move in - for under $500,000 in a neighbourhood where three years ago vacant blocks were $700,000 and people spent another $700,000+ building a house. These are saltwater canal houses literally with sailboat access - there's private docks at the back door - the neighbours to this house had something like a 40' flybridge cruiser on one side, and a 40' yacht the other. $500,000. Think about the hovell that sort of money would buy in Melbourne or Sydney.

Had half a mind to buy one via SMSF and just let my super contributions pay it off, but you couldn't borrow two cents to rub together from a bank here at the moment, and I'm buggered if I'm borrowing AUD to buy USD property.
Click to expand...

Wait for fraudclosure blow over, that $500,000 waterfront house of your will go down even further.
 
A question I wanted to ask.

If hyperinflation happens, isnt it benefitial to actually get as much debt before it happens as possible? Spend it on Real valuable htings, such as houses, PMs etc. Then once hyperinflation hits, you can sell one kg of silver and pay off your whole debt. This way you have no debt and a brand new house. Sounds good to me.
Get a smuch debt as you can is the logical way to go?
 
spets1 said:
A question I wanted to ask.

If hyperinflation happens, isnt it benefitial to actually get as much debt before it happens as possible? Spend it on Real valuable htings, such as houses, PMs etc. Then once hyperinflation hits, you can sell one kg of silver and pay off your whole debt. This way you have no debt and a brand new house. Sounds good to me.
Get a smuch debt as you can is the logical way to go?
Click to expand...


Yes correct, but... the only danger in the short term is that interest rates will skyrocket (to curb inflation), and that could screw you as wage increases normally lag behind inflation... also if for some reason it goes the other way and there is deflation you are screwed.
 
margeandtina said:
By the way, he didn't know the Fed is a private organisation owned by the banking oligarchs.

Mark.
Click to expand...

I assume you mean the fedral reserve. I keep hearing this but I've never seen anything to back it up. Got a link, or any proof? I'm quite sure the Reserve bank is gov owned.
 
bennybbc said:
margeandtina said:
By the way, he didn't know the Fed is a private organisation owned by the banking oligarchs.

Mark.
Click to expand...

I assume you mean the fedral reserve. I keep hearing this but I've never seen anything to back it up. Got a link, or any proof? I'm quite sure the Reserve bank is gov owned.
Click to expand...


The fed has stockholders and operates totally independent of the government, this means their main responsibility is to its major stockholders which just happen to be the big 4 banks who I believe are also board memebers. I will see if I can find a few links.
 
Court Ruling: Lewis v. United States, 680 F.2d 1239 (1982)

Federal reserve banks are not federal instrumentalities for purposes of a Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations in light of fact that direct supervision and control of each bank is exercised by board of directors, federal reserve banks, though heavily regulated, are locally controlled by their member banks, banks are listed neither as "wholly owned" government corporations nor as "mixed ownership" corporations; federal
Click to expand...
 
bennybbc said:
Doesn't seem that way in Australia-

http://www.rba.gov.au/qa/role.html
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I think it is written to be misleading, from memory when i researched it its allegiance is to the commonwealth of Australia which is not the Australian government it is england and some how has ties into the english central bank (bank of england). or something along those lines..

here is some quick info i found;

The Reserve Bank of Australia and the Australian constitution

The Reserve Bank is a foreign ADI. A "foreign ADI" means a body corporate that:
(a) is a foreign corporation within the meaning of paragraph 51(xx) of the Constitution; and
(b) is authorised to carry on banking business in a foreign country; and
(c) has been granted an authority under section 9 to carry on banking business in Australia.

Prior to 1959 the Commonwealth issued and printed its own money and had control of the printing of money. However after the 1959 Reserve Bank Act, the Reserve Bank was established as a stand alone independent
foreign ADI, which took over the printing of money and lent the money it printed to the Commonwealth at interest. So instead of the Commonwealth printing its own money, we have a foreign body corporate printing our money and lending it to the Commonwealth which the Commonwealth needs to pay back!

"RESERVE BANK ACT 1959 - SECT 77
Guarantee by Commonwealth
The Commonwealth is responsible for the payment of all moneys due by the Bank" (The commonwealth of Australia is paying money is borrows back to the stand alone bank)
(Source: http://www.austlii.edu.au/au/legis/cth/consol_act/rba1959130/s77.html)

"RESERVE BANK ACT 1959 - SECT 27
Bank to be banker for Commonwealth
The Bank shall, in so far as the Commonwealth requires it to do so, act as banker and financial agent of the Commonwealth" (The reserve bank is the Commonwealths banker and lender and the Commonwealth must pay the money back to the Bank!)
(Source: http://www.austlii.edu.au/au/legis/cth/consol_act/rba1959130/s27.html)

EVIDENCE THE BANK IS A FOREIGN ADI WITH FOREIGN LINKS AND BRANCHES:

The below act shows how foreign coroporations have power of attorny over the Reserve Bank of Australia:

RESERVE BANK ACT 1959 - SECT 76
Attorney of Bank
The Bank may, by instrument under its seal, appoint a person (whether in Australia or in a place beyond Australia) to be its attorney and a person so appointed may, subject to the instrument, do any act or execute any power or function which he or she is authorized by the instrument to do or execute. (Source: http://www.austlii.edu.au/au/legis/cth/consol_act/rba1959130/s76.html)

Foreign Agents in control of the Reserve Bank of Australia:

RESERVE BANK ACT 1959 - SECT 75
Agents etc.
In the exercise of its powers and the performance of its functions, the Bank may:
(a) establish branches and agencies at such places, whether within or beyond Australia, as the Bank thinks fit;
(b) arrange with a person to act as agent of the Bank in any place, whether within or beyond Australia; and
(c) act as the agent of an ADI carrying on business within or beyond Australia.
Click to expand...
 
The RBA is owned by "the commonwealth"
The profits are paid to "the commonwealth"

"the commonwealth" is *not* the Australian government, it is not us, the profits of this country goes to our owners.

like the saying goes, it's as "federal" as fed express
 
In my books anyone who doesnt know that the FED is private needs to start teh whole research from the bottom. Watch Zeitgeist or something like that.
 
bennybbc said:
Google zietgeist debunked then get back to me champ.
Click to expand...

What do you have a problem with? did you do the research yourself or are you watching someones video that says it's crap?
 
Silverthorn said:
bennybbc said:
Doesn't seem that way in Australia-

http://www.rba.gov.au/qa/role.html
Click to expand...

Quite right and at the end of the day the treasurer, if the Governor-General agrees, can direct the RBA if it feels necessary.
Click to expand...


The boards make the decisions, not the treasurer or the governor-general, they have an audit committee. just so happens that most of the board members are directors and board members of large corporate companies.
 
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