I discussed the Treasurer’s comments today, that the banks should be lending more, on ABC News 24. It came directly after a package on his announcement.
Should The Banks Loosen Their Lending Standards?
One thought on “Should The Banks Loosen Their Lending Standards?”
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Pretty much irrelevant at the moment with the undermentioned issues influencing the economy:
Infrastructure under investment – by this I mean in productive areas, not media and other influencers projects. South Korea and other countries claim a 30% increase in GDP with internet speeds over 1,000mb v NBN at 25mb.
I’d also point out Google and Facebook and bringing in 40,000mb services in the next couple of years, they need it to sell advertising, at a cost of US$2 billion.
Our NBN is an obvious rip off, I suspect the politician in charge is proud to claim “I don’t use the internet” and therefore ripe for the plucking, Australian boards and politics is full of them.
Wrong education focus.
We are a service economy nation, we’ve spent the last 20 years getting rid of manufacturing, only problem is that the service industry is being automated and so the need for people to fill forms out and make coffee will dramatically reduce, add in legal and accounting to that as well.
The “Defence Spending of $200 billion” is really a re-education and bringing back manufacturing policy but we have 20 years of students that have to be retrained.
Election shadow and uncertainty – typically even with a foregone conclusion most of the general public and business of all sizes pull their heads in until the result is known.
Black Swan Event – Opal Tower and prefab construction method.
With or without media attention this is going to have wide ranging impacts, I was stunned to learn the average rectification cost within 2 years on units in Sydney was 27% of the properties original purchase price, industry standard is 5%.
So if you’re looking to buy a unit now you need to allow another 30% on top of the purchase price to cover rectification work.
As word of this spreads, most likely being experienced driven, “I just bought a new unit and had to spend $300k to get it fixed” as we know bad news travels at 10 to 1 to good news.
I’m forecasting a massive increasing in government spending, not because the ALP will get in, it really won’t matter who gets in we’ve got big problems ahead.
The only forlorn hope I have is that the “infrastructure spending” will be on projects that add value not make great press releases.