http://www.crikey.com.au/2008/04/21/rba-puts-11billion-into-mortgage-securities-whats-up/ now with extra source Sun, 12 Feb 2012 09:16:19 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.crikey.com.au/2008/04/21/rba-puts-11billion-into-mortgage-securities-whats-up/#comment-2124 tio Thu, 01 Jan 1970 10:00:00 +0000 #comment-2124 Kick-starting the homeloan market, or taking the toxic waste onboard to save certain banks? When Australia already has about 1 trillion of private debt, and interest rates are killing people, I somehow don't think that "kick-starting lending" is going to work, do you? I mean who is actually going to WANT to be (more) indebted in this current environment? I don't care what the spin docs are saying about this move: it screams loudly that Australia is in the same boat as the USA. Preditory lending and mortgage fraud took place here too, and now the RBA is eating the banks' poo sandwiches more hungrily than ever to keep them afloat (in the mode of the Fed). How long can they keep on doing this before they run out of capital themselves? And which banks are trying to offload their poo sandwiches to the RBA? One of them is feeling the pinch, that's for sure. NAB, tick tick tick ... ANZ, tick tick tick... Taxpayer bailout, tick tick tick Kick-starting the homeloan market, or taking the toxic waste onboard to save certain banks? When Australia already has about 1 trillion of private debt, and interest rates are killing people, I somehow don’t think that “kick-starting lending” is going to work, do you? I mean who is actually going to WANT to be (more) indebted in this current environment? I don’t care what the spin docs are saying about this move: it screams loudly that Australia is in the same boat as the USA. Preditory lending and mortgage fraud took place here too, and now the RBA is eating the banks’ poo sandwiches more hungrily than ever to keep them afloat (in the mode of the Fed). How long can they keep on doing this before they run out of capital themselves? And which banks are trying to offload their poo sandwiches to the RBA? One of them is feeling the pinch, that’s for sure. NAB, tick tick tick … ANZ, tick tick tick… Taxpayer bailout, tick tick tick

]]> http://www.crikey.com.au/2008/04/21/rba-puts-11billion-into-mortgage-securities-whats-up/#comment-2125 Adam Thu, 01 Jan 1970 10:00:00 +0000 #comment-2125 This looks like a global coordinated action to share the burden of global systemic risk rather than 'kick-starting' anything. Australian tax-payers, through the RBA, are contributing their share to maintaining global financial security by bearing risk for those financial institutions who currently hold the paper. If they go bust then we pay. If they benefit in their dealings because their competitors no longer think they hold too much of it, they profit. This raises the question: how was this decided, what do we know about this, and how did the RBA decide which paper to pick up? Was it collateralised on Australian assets, issued by Australian entities, held by Australian entities, or what? Did this come up in the governance sessions at 2020? This looks like a global coordinated action to share the burden of global systemic risk rather than ‘kick-starting’ anything. Australian tax-payers, through the RBA, are contributing their share to maintaining global financial security by bearing risk for those financial institutions who currently hold the paper. If they go bust then we pay. If they benefit in their dealings because their competitors no longer think they hold too much of it, they profit. This raises the question: how was this decided, what do we know about this, and how did the RBA decide which paper to pick up? Was it collateralised on Australian assets, issued by Australian entities, held by Australian entities, or what? Did this come up in the governance sessions at 2020?

]]>