Four Corners ~ tonight program is scary .

[Outback]

This is all about the crazy lending that will turn into a nightmare
Mortgage stress could be the catalyst

The banks that hold your deposits may have lent that money to many who will not be able to repay it !

Your opinions please ?

Jack.

 

[limpalot]

You have to do the maths, if you can afford it then go ahead; if not leave it alone. Just bought a place for my son, needs a lot of work; but it was cheap so there is the ability to make it work.

 

[Goldfreak]

Ah the elephant in the room. Many religions forbid profiteering by lending. Not that that stops people. But it shows this is a lesson has been learnt before. Maybe we are due for a refresher course. My opinion anyway.

 

[HeadsUp]

Ah the elephant in the room. Many religions forbid profiteering by lending. Not that that stops people. But it shows this is a lesson has been learnt before. Maybe we are due for a refresher course. My opinion anyway.

I remember the worst lows after the GFC when some properties in Sydney were selling at auction at 45 % of their previous selling price ....

And homes in WA that sold for a million in the mining boom can't get a bid at $160,000 now

Don't worry , it will average out over a thousand years or so.

 

[Davent]

I wouldn't worry too much, 4 corners is just an ABC version of today tonight, they cherry pick facts to dramatise a story, just like any other current affairs program.
I know this for a fact, I was involved in the Don Dale story, still going to court, where the facts contradict the BS portrayed by the ABC.
So far, 7 out of 9 cases I'm directly involved in have been found justified by the supreme court.

 

[Goldfreak]

I wouldn't worry too much, 4 corners is just an ABC version of today tonight, they cherry pick facts to dramatise a story, just like any other current affairs program.
I know this for a fact, I was involved in the Don Dale story, still going to court, where the facts contradict the BS portrayed by the ABC.
So far, 7 out of 9 cases I'm directly involved in have been found justified by the supreme court.

Television still holds huge sway over public opinion but they are slowly loosing there grip which is great but they don't like it. I would have loved to put the bleeding hearts into a uniform and see how they would have handled the situation in dondale.

 

[Swinging & digging]

Have a look on U Tube, there are many people predicting a major GFC style crash world wide.
There reasons are: Rapid Increase in World Government Debts, massive increase in private debts ( housing lending and consumer debt, like car loans and credit cards ).
Significant over valuation of Property prices, Stock Market prices etc, most assets are in Bubble stage.
Very low or negative returns on Bonds and Cash after inflation and taxes are taken out.
Very real rapid increase in cost of living which exceeds very small wage increases.

At the moment interest rates are very low by historical long term trends, though there is mounting pressure globally to raise interest rates.
It is predicted by many that if it occurs ( GFC round 2 ) it will be far worse than 2008 which Australia was less effected than US / Europe etc.

I am very surprised the main stream media in Australia is now having a story on this as our government has no idea on the significant risk to the Australian economy.
The so called experts are saying Australia is the least prepared of any developed economy for the disaster that is about to unfold.

For any one who has debt out there i suggest you pay off as much as possible.
For those that don,t hold on to your gold. :Y:

 

[Heatho]

This is all about the crazy lending that will turn into a nightmare
Mortgage stress could be the catalyst

The banks that hold your deposits may have lent that money to many who will not be able to repay it !

Your opinions please ?

Jack.

It's a bit like the American subprime crisis, though not quite as bad here, interest rates in America went down to zero. I was watching telly with my Dad when we saw an article on TV back then that said interest rates hit zero there, we just looked at each other and said this won't end well.

Properrty prices are way overvalued in Sydney and Melbourne but not so bad in other cities, country town house prices aren''t too bad at all. I don't think this going to end up as bad as America was but you just never know. The problem will be when banks decide that mortgagees are over capitalised on their properties and then the banks may decide to foreclose when interest rates rise, though our banks are making huge profits so I really don't think it's going to go the way of the GFC when banks start closing.

As Dave said, they do like to cherrypick facts to make a story, I'm not too worried either.

If banks do start closing all I can say is BANKRUN!!!.

 

[Nuggetbuster]

This is all about the crazy lending that will turn into a nightmare
Mortgage stress could be the catalyst

The banks that hold your deposits may have lent that money to many who will not be able to repay it !

Your opinions please ?

Jack.

Jack, do you really believe that banks actually hold and sit on their customers deposits, or are you being disingenuous?

 

[Nuggetbuster]

I was watching telly with my Dad when we saw an article on TV back then that said interest rates hit zero there, we just looked at each other and said this won't end well.

Most of the dips I know, when hearing about zero interest over there, reckoned it was the best thing ever, and whinged "why can't we have zero interest like them?"

 

[Bacchus]

This is all about the crazy lending that will turn into a nightmare
Mortgage stress could be the catalyst

The banks that hold your deposits may have lent that money to many who will not be able to repay it !

Your opinions please ?

Jack.

The Australian banking system is seen as one of the most highly regulated and profitable in the world and is reflected in their share pricing and dividends. Unlike USA and others as of October 2008 deposits held in Australian banks and financial institutions up to $250,000 are guaranteed by the Government. This was implemented after the GFC to maintain confidence. Housing prices, interest rates , inflation etc are all part of the boom bust cycle but your deposits to the $250 k are safe unless that program is withdrawn to the best of my knowledge

 

[goldengoose]

This is all about the crazy lending that will turn into a nightmare
Mortgage stress could be the catalyst

The banks that hold your deposits may have lent that money to many who will not be able to repay it !

Your opinions please ?

Jack.

The Australian banking system is seen as one of the most highly regulated and profitable in the world and is reflected in their share pricing and dividends. Unlike USA and others as of October 2008 deposits held in Australian banks and financial institutions up to $250,000 are guaranteed by the Government. This was implemented after the GFC to maintain confidence. Housing prices, interest rates , inflation etc are all part of the boom bust cycle but your deposits to the $250 k are safe unless that program is withdrawn to the best of my knowledge

Many small business would not be here and people owning their own home if not for Banks. They also by law must hold an amount in cash/ float in proportion of their lending which recently has been increased. Lending risk assessments have also being tightened and the scaling down of interest only loans to shore up in view of a potential burst of the bubble. This is being done not only for the banks but also to protect people borrowing from the bank.
Banks write off a lot of debt that people cannot repay and its not in their best interest to reclaim and sell someones house.

Cherry picking and bank bashing has always been a favorite past time of current affair type shows. IMO

 

[Outback]

This is all about the crazy lending that will turn into a nightmare
Mortgage stress could be the catalyst

The banks that hold your deposits may have lent that money to many who will not be able to repay it !

Your opinions please ?

Jack.

Jack, do you really believe that banks actually hold and sit on their customers deposits, or are you being disingenuous?

Aussie banks are into real estate around 60% of our deposits , property values in major cities are so overvalued .
This will not end well , your money in the bank is vulnerable ' past Govt pledges to cover up to $250,000 deposits are just a dream when the next financial meltdown happens .

 

[Goldfreak]

So in the worst case scenario the bubble burst and the banks collapse. Where do the government get the money to guarantee everyone's deposit ? I thought they are in debt too.

 

[Swinging & digging]

So in the worst case scenario the bubble burst and the banks collapse. Where do the government get the money to guarantee everyone's deposit ? I thought they are in debt too.

The money to pay out lost deposits in the event of a large scale bank financial crisis will most likely be robbed from Superannuation accounts of working Australians.
Rudd & Shorten looked into it. :N:

Or rapid increases in taxes like PAYG Income Tax and GST. :N:

 

[Swinging & digging]

This is all about the crazy lending that will turn into a nightmare
Mortgage stress could be the catalyst

The banks that hold your deposits may have lent that money to many who will not be able to repay it !

Your opinions please ?

Jack.

The Australian banking system is seen as one of the most highly regulated and profitable in the world and is reflected in their share pricing and dividends. Unlike USA and others as of October 2008 deposits held in Australian banks and financial institutions up to $250,000 are guaranteed by the Government. This was implemented after the GFC to maintain confidence. Housing prices, interest rates , inflation etc are all part of the boom bust cycle but your deposits to the $250 k are safe unless that program is withdrawn to the best of my knowledge

When Kevin Rudd made the promise to refund lost deposits in the event of a banking crash, he said that this was guaranteed for 5 years ( from 2008 ), so that arrangement has expired.

Australian banks charge the highest Interest rates in the world on lending but offer the lowest rates in the world on deposits, thats why they are so profitable.
Ripping off the Aussie working class.

 

[Bacchus]

This is all about the crazy lending that will turn into a nightmare
Mortgage stress could be the catalyst

The banks that hold your deposits may have lent that money to many who will not be able to repay it !

Your opinions please ?

Jack.

The Australian banking system is seen as one of the most highly regulated and profitable in the world and is reflected in their share pricing and dividends. Unlike USA and others as of October 2008 deposits held in Australian banks and financial institutions up to $250,000 are guaranteed by the Government. This was implemented after the GFC to maintain confidence. Housing prices, interest rates , inflation etc are all part of the boom bust cycle but your deposits to the $250 k are safe unless that program is withdrawn to the best of my knowledge

When Kevin Rudd made the promise to refund lost deposits in the event of a banking crash, he said that this was guaranteed for 5 years ( from 2008 ), so that arrangement has expired.

Australian banks charge the highest Interest rates in the world on lending but offer the lowest rates in the world on deposits, thats why they are so profitable.
Ripping off the Aussie working class.

The initial FCS of 5 years was replaced in Feb 2012 with a permanent arrangement. The last update of covered financial institutions was June 2017

 

[Goldtarget]

The RBA have discussed the cash rate rising to 3.5% (all an exercise according to July minutes), but the point is they have the greatest influence on outcome economically speaking of the country in a global sense. So what does this translate to for the average Australian? Thankfully it seems unlikely we would return to the dark days of the early 90s in the medium term, but be prepared to see mortgages (variable and new) rising to 7% or better. That's 8 basis point rises between now and then so there is in theory time to get your house in order so to speak.

I have mixed feelings, on the one hand I'm still not a homeowner so the medium term outlook is positive for me, I would much rather apply with a larger deposit on a cheaper (relative) home at a higher interest rate than jump in now. Regret not getting g in early but rentals were a great cheap lifestyle choice at the time....Have to live with that, but in 2017 the same can not be said. A mortgage is little more a month than cost of renting.

Also I look forward to the share market feeling the pinch. I did quite well post GFC and expect those prepared with funds on hand to do the same. I lament not taking up BHP at the time, can't look at the unit price still...Big missed opportunity. And despite the advice of the experts telling me cash holdings are no good they sure beat losses once the tide starts turning...ask the retirees that got flogged holding for growth while the foundations shook around them.

I think if I had a mortgage I'd wait a few weeks after the next rise and lock in a rate if you have more than 5 years or more left in the term of the loan. The agenda has been set anyone caught in the middle of a sh1tstorm can only blame themselves not luck. If your not winning, your losing.