Mark Bouris and Christopher Joye of Property Observer say policymaking around Australia’s banking system has been predicated on a flawed and risky paradigm.
Reserve bank of australia
RBA could increase rates if there’s a sharp rise in inflation
Lots of mea culpas this morning from business economists and media pundits who got the Reserve Bank rate decision horribly wrong yesterday, write Glenn Dyer and Bernard Keane.
The Reserve Bank’s inclination to punish
The Reserve Bank of Australia are a callous lot, says Richard Farmer. Let’s not worry about those 5.2% of people without a job, or all those working less hours than they would like to.
Wayne Swan causing a credit squeeze? Get real
Claims that Wayne Swan could hurt the banks by pressuring them to pass on rate cuts are rubbish.
Rates cut expected: will banks pass it on?
Crikey media wrap: The Reserve Bank of Australia is expected to cut the cash rate by 0.25% to 4% today, putting pressure on banks to pass those savings onto its customers.
Gottliebsen: facing off against a jobs raid
Global hedge funds and the capital markets are engaged in a two-pronged game to skyrocket Australian unemployment, writes Robert Gottliebsen, at Business Spectator.
Why the RBA should hold fire on rates
The local and international economies aren’t as bad as many claim, and the RBA should hold off on cutting rates.
Joye: rate cut consensus awaits real-world momentum
After the flood-induced downdraft in housing prices, loan approvals on existing homes have been rising steadily since March. An interest rate cut is no certainty, says Christopher Joye of Property Observer.
Is Australia’s housing bubble finally close to bursting?
One of the world’s last and greatest house price bubbles is finally ending, argues economist Steve Keen.
Joye: why lower risks mean lower bank returns
Despite much public interest in, and debate around, the major banks’ purported “gouging” and taxpayer-guaranteed status, some very fundamental questions remain unanswered, says Christopher Joye on Property Observer.
Your Say: Daily Mail readers' feedback: Black Swans and Christmas turkeys
Black Swans and Christmas turkeys: Niall Clugston writes: Re. “Power Shots: can Swan beat the banks? … biggest Power fails of 2011 …“ (yesterday, item 14). Well, in fact, Australian parliaments have all the power that previously resided with absolute monarchs. The only real restriction is the federal constitution, but that doesn’t mention interest rates. […]
Crikey Says: Media’s bank-bashing ritual? Bah, humbug
Whatever would we do without a round of bank bashing stories this time of year, when all other news content is reduced to How to Baste Your Turkey and Top Ten Top Tens of 2011…
Why the US Fed is still the kingpin of banks
Shades of 2008, and why the US Federal Reserve is still the banker to the world: much to the chagrin and humiliation of Europe.
Wage pressures subsiding at an intriguing stage of the economic debate
Wage pressures appear to have abated, but it doesn’t necessarily mean there’ll be more cuts to interest rates.
Luckily the Reserve Bank can lower rates further
The ANZ job advertisement figures out yesterday at least must make you wonder whether this is the right time to keep talking about bringing the federal budget back into surplus as Treasurer Wayne Swan is doing, says Richard Farmer.
RBA’s rate cut an insurance against Europe falling over
Like it or not, Australia’s immediate economic outlook is in the hands of the cast of clowns, fools and the well meaning trying to keep Europe on an even keel.
Political snippets: Where the bank guesses we are headed.
It is not an easy time to be an economic forecaster with the outcome of the financial and political turmoil in Europe impossible to predict.
Bartholomeusz: NAB keeps five to stay alive
Wayne Swan’s attack on National Australia Bank, labelling it “greedy” for “only” passing onto home loan borrowers 20 basis points of the Reserve Bank’s 25 basis point reduction in official interest rates, is churlish and betrays a poor memory.
The great mortgage stress myth: we’re paying off our homes faster
By the reaction in the media, yesterday’s rate cut by the Reserve Bank is the greatest thing since, well, the last rate cut 31 months ago. But the narrative of mortgage stress is a myth — we’re paying off our homes faster.
Ask the economists: good odds on an interest rate cut
The Melbourne Cup is renowned as a day for a casual bet, but you could be forgiven for thinking there isn’t anything to gamble in today’s Reserve Bank decision — it’s been called by the media well before the race has been run.
Political snippets: Rate reduction a good bet
The money has been coming for an interest rate cut in this afternoon’s big event.
RBA independence on the line in complex Cup Day scenario
After the 0.3% core inflation result yesterday a rate cut next Tuesday should be a done deal. But it remains a complex scenario, says Christopher Joye of Property Observer.
Bartholomeusz: banks battening down for funding freeze
According to Australian Prudential Regulation Authority chairman John Laker, bank funding markets are already demonstrating some crisis-like features.
Risks outweigh rewards in commercial bank deposits: RBA
The Reserve Bank of Australia has reduced the amount of money on deposit with offshore commercial banks in the past year, ending years of using them to hold part of Australia’s $37 billion official foreign reserves.
