Category: Economics and Banking

The Cruel Trick: An Essay In Corporate Power And Corruption!

How is it that commercial interests can gain control of an important Government inquiry? This is the excellent question posed by Dale Webster at The Regional. The Regional Banking Taskforce was, she says, stacked by bankers, and its outcomes were pretty much biased from day one.

The current Government are also culpable.

We need a proper inquiry in Regional Banking services, as Dale and I highlighted in our recent joint letter to the Senate. Please get behind it!

Our submission is available to view here and download : https://digitalfinanceanalytics.com/blog/loss-of-in-person-banking-letter-to-rarat-committee/

And a list of Senators by state is available here: https://citizensparty.org.au/aus-senate

If you care about the economic future of our regional towns and suburbs, then please contact your local Senators and tell them that they should support the initiative, ideally over the next few days, so as to create maximum impact in the final sitting week of the year.

The Regional: https://www.theregional.com.au/

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The Markets Believe … Honest …!

The latest edition of our finance and property news digest with a distinctively Australian flavour.

“CONTENTS*

0:14 Introduction
0:41 US Markets
5:50 European And UK Markets
7:40 Oil and Gold

8:16 Asian Markets
9:30 PBOC Monetary Policy
17:55 Japan
19:13 Australian Markets
22:45 Crypto
25:50 Summary And Close

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The Busted Flush Is A Real Thing! With Tarric Brooker

Another Friday canter through Tarric’s latest slides, as we look at the disconnect between monetary policy and real life. Is Australia somehow different?

Charts are here: https://avidcom.substack.com/p/charts-that-matter-25th-november?sd=pf

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The Bank Puppet Masters Pull The Government Strings Again…

Laws to implement some of the remaining recommendations from the Hayne Royal Commission, including penalties for bankers supported by the Greens was pulled yesterday, thanks to direct pressure applied by the banking industry and their lobbyists.

As a result, legislation to sharpen up protection of consumer credit were also shelved, and a number of customers with specific complaints in the works are now in limbo.

A weak Government, whose strings are being pulled by the Bankers?

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China Provides More Stimulus To Support The Economy!

China looks like it will reduce the reserve requirement ratio (RRR), or the amount of cash that banks must hold in reserve, to shore up its slowing economy amid growing headwinds.

This is an attempt to stimulate the economy (reverse to Federal Reserve and other Western economies) by encouraging banks to lend harder to the property sector and in response to the COVID lock downs.

Question is of course is, will it work – or just slim the reserves of the banks some more….

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New Zealanders Must Continue To Take The Interest Rate Rise Medicine!

The NZ Monetary Policy Committee today increased the Official Cash Rate (OCR) from 3.5 percent to 4.25 percent. Core consumer price inflation is too high, employment is beyond its maximum sustainable level, and near-term inflation expectations have risen.

Demand in the New Zealand economy has remained resilient. Worker shortages are holding the economy back and increasing inflation. Global developments are adding to inflation in New Zealand but weakening our economic growth outlook. Higher interest rates are needed to meet our inflation and employment objectives

So, The Committee agreed that the OCR needs to reach a higher level, and sooner than previously indicated, to ensure inflation returns to within its target range over the medium term.

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The Buy Now Pay Later Credit Card Duck Just Got Shot!

An estimated 7 million “buy now pay later” users will soon see new laws introduced by the federal government that aims to better protect them against financial abuse.

A new Treasury paper released by Financial Service Minister Stephen Jones today suggests buy now pay later players could soon be subject to the same laws as credit card providers, as “unaffordable or inappropriate lending practices are contributing to financial stress and hardship, and other types of consumer harm”.

The paper said there were 7 million active buy now pay later accounts in the 2021-22 financial year resulting in $16 billion in transactions, an increase of almost 37 per cent on the previous financial year.

The Treasury paper makes it clear self-regulation, without some controls, is no longer an option.

It raises a range of issues, noting there’s been reports of “poor complaints handling processes” and that “the lack of hardship assistance for consumers leads to delayed or unsatisfactory remediation”.

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A Major Presentation On Property, Households, Finance And Stress

This is an edited version of a major presentation I gave a couple of day back to a range of Finance Professionals across Investment Banking, Hedge Funds and Analysts. I walk through our analysis and models and take questions from the audience.

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The Market’s Twisted Hands….

The latest edition of our finance and property news digest with a distinctively Australian flavour.

In another wild week, where FED speak on one hand, and hopium on the other drove markets all over the show, the Dow ended higher on Friday as investors weighed up further hawkish remarks from Federal Reserve officials, and the latest wave of quarterly results from retailers. Looking to the shortened trading week ahead, the Fed’s minutes from its October meeting will garner investor attention for clues on the central bank’s thinking on monetary policy.

Chief Hawk, St. Louis Fed President Bullard said this week that “Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation,” in an analysis by the St. Louis Fed that debated the appropriate rate regime for the central bank after six increases since March.

  • CONTENTS
    0:00 Introduction
    0:40 US Monetary Policy
  • 4:15 US Markets
  • 6:00 Oil
    12:22 Gold
    15:20 Europe and UK
  • 18:00 ECB Monetary Policy
  • 21:10 Asia
    25:02 Australia
  • 27:30 Crypto Winter
    28:10 Close

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