Australian’s should be able to sleep better tonight, knowing that PM Rudd has today decided to guarantee all deposits (of any size) in ADIs (Authorised Deposit-taking Institutions) for three years. Rudd has also gone further to guarantee all money Australian banks borrow internationally and instructing the Australian Office of Financial …
THE government’s cabinet budget committee will meet later today to take any action deemed necessary from key meetings of the International Monetary Fund and Group of 20 finance ministers in Washington today. Foreign Minister Stephen Smith said there was a growing realisation that the international financial crisis was worse than …
Only last week the IMF was quite conservative on this crisis. Today the head of the IMF, Dominique Strauss-Kahn is saying “Intensifying solvency concerns about a number of the largest US-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown.” umm, on the …
With a turbulent couple of weeks on global financial markets, credit around the world freezing up and with the RPdata Rismark Hedonic Index for August 2008 (prior to recent carnage) showing a fall in house prices in every Australian state (missing data for Tassy), I’m willing to endure egg on …
AUSTRALIA’S big four banks have warned they may need extra backing from the Rudd Government and the Reserve Bank to prevent Australia from being sucked into a global credit-crunch recession. The chief executives of the Commonwealth Bank, Westpac, NAB and ANZ all agree that the world’s finance ministers and central …
THE G7 nations have vowed to take all necessary steps to unfreeze credit markets and ensure banks can raise money but have offered no collective course of action to avert a deep global recession. » G7 vows to fight credit crunch – The Australian, 11th October 2008.
Well what a turbulent week it has been. On Friday the All Ords fell through 4000 points for the first time to close at 3939.5 down -8.93% for the day. The All Ords peaked on the 1st of November 2007 with a high of 6853.6 and today’s close is now …
To even all the boom & gloom up, Gold Coast property analyst Bill Morris is predicting a property boom in 2 years time. But he does come bearing bad news. He claims : the value of million dollar homes has halved since 2006 and prices for more modest properties have …
It seems US debt is still spiraling out of control. The debt clock ran out of digits last month after US debt exceeded 10 trillion U.S. dollars. » US debt clock runs out of digits – The ABC, 10th October 2008.
New data released shows UK house prices fell 12.4% for the year to September. This is the biggest annual fall in over 25 years. » UK house price fall steepest in 25 yrs – The Guardian, 12th October 2008.
While it would appear this week that the ceiling is caving in, it is always good to take a moment to benchmark our economy with that of others. Official stats just released show Zimbabwe has a July inflation rate of only 231 million percent! » Zimbabwe inflation soars to new …
Official figures show the jobless rate climbed in September. The Bureau of Statistics says the unemployment rate jumped from 4.1 per cent to 4.3 per cent in September, as employers’ demand for workers eased against the backdrop of a slowing economy. » Jobless rate jumps to 4.3pc – The ABC, …
The US Federal Reserve has led a global round of emergency interest rate cuts in an effort to contain the worst financial crisis since the 1930s. The Federal Reserve said it was cutting its key federal funds rate by 50 basis points to 1.5 per cent. » Central banks cut …
The Reserve Bank says it is moving to ease the pressures placed on local banks in recent weeks. The RBA has announced it will lift its restrictions on the use of certain forms of collateral such as residential mortgage-backed securities in its daily repurchase operations. » RBA loosens banking restrictions …
Overnight the Australian dollar shredded 6.8% falling to a low of 69.85 tomorning. 30 minutes ago, the Reserve Bank of Australia announced that it would cut interest rates by a large 100 basis points. The new official cash rate would be just 6.00%. The last time we saw a fall …
These days it seems it’s another day – another bank collapse. This time it is not in the United States, nor the United Kingdom, but rather Germany. Another major European bank is close to collapse following the failure of talks to rescue Germany’s second-largest mortgage lender, Hypo Real Estate. The …
With margin loan lenders making on average 360 margin calls a day, the top end of town are scrambling to sell their prestige cars and boats. With such a surplus, some dealers are no longer taking certain makes as they are unable to move the stock. » Quick! Sell the …
It’s not even a month since the Adelaide Advertiser printed an article Get ready for the big property boom where it suggested “THERE are increasing signs that South Australia’s next property boom will be its biggest yet.” Today, it’s now printing : ADELAIDE property prices have taken a hit from …
The United States House of Representatives has approved a revised $US700 billion Wall Street bailout, bowing to intense pressure to help avert a global economic meltdown. » US approves $US700b Wall St bailout deal – 4th October 2008
It wasn’t all that long ago that the experts were saying the mining boom still had another 20 to 30 years left. How quickly things can change. Just as expected, if the world starts tightening it’s purse strings, demand for product from China has to contract. Couple this with an …
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