And while China and America bicker over currencies, Chinese firms are scrambling to buy real assets. And while Aussie banks source foreign borrowing to lend in local real estate, Aussie mining firms go begging for bits of capital that would bring world-class ore bodies (and key strategic resources) into production…by local producers and owners.
November 19th, 2009 | Dan Denning | 1 comment | ContinuedAll Posts Tagged With: "aussie banks"
Rally in Stocks and Rise in Aussie Dollar is a Result of the Carry Trade
That’s just what happened last year. Only then, it was both a dollar and yen carry trade that led to a rise in Aussie assets. Once the credit crisis set in, the yen carry got dropped and investors fled risk assets and piled right back into the greenback and U.S. Treasuries.
October 29th, 2009 | Dan Denning | 9 comments | Continued
IMF Report Concludes Aussie Banks are “Very Sound”…
The Guv also said he would not be too timid about raising interest rates. He believes the threat [of global financial calamity] has passed and that the bigger threat may well be inflation. That kind of tough talk sent the Aussie dollar right up to over 92 cents against the greenback. If it weren’t late fall, now might be the perfect time to take a trip to America and see how cheap things really are.
October 16th, 2009 | Dan Denning | 13 comments | Continued
Government Stimulus Programs Make Life Harder For Banks
Just to recap, government borrowing draws away capital from businesses that might use it to invest in productive projects that generate a real return. What you get in return is higher debt, probably higher interest rates, and people who’ve never really had to earn a paycheck or meet a payroll deciding how to allocate capital. And you still think it’s a good idea?
October 1st, 2009 | Dan Denning | 6 comments | Continued
A National Mortgage Bubble
This brings us to a quick point about the Aussie property market. A frequent complaint in the e-mail box is that house prices are a local and not national phenomenon. If that’s right, then it doesn’t make any sense to talk about a national property bubble…because there can’t be one, can there!?
August 11th, 2009 | Dan Denning | 2 comments | Continued
Building a National Economy Around the Housing Industry
Let’s also assume that the government cannot borrow its way to larger stimulus payments. With lower spending forecast for government, businesses, and households, you begin to wonder if Australia’s economy has a home grown engine, or if it will rely on something else, or someone else beyond the borders.
July 30th, 2009 | Dan Denning | 9 comments | Continued
Corporate Debt is Just One Aspect of the National Debt Problem
The wheels are in motion for Friday’s Debt Summit at the State Library of Victoria. Today’s Australian reports that corporate Australia, “is sitting on a $200 billion debt bomb that needs to be refinanced over the next three years…
July 27th, 2009 | Dan Denning | 1 comment | Continued
Roubini Says Recession Will Continue Through End of Year
“I have said on numerous occasions that the recession would last roughly 24 months. Therefore, we are 19 months into that recession. If as I predicted the recession is over by year end, it will have lasted 24 months with a recovery only beginning in 2010. Simply put I am not forecasting economic growth before year’s end.”
July 20th, 2009 | Dan Denning | 0 comments | Continued
Bogus Bond Bust
Bonds, however, are looking rather infirm. Prices fell and yields rose on U.S. Treasury bonds. This is easy enough to dismiss as a natural consequence of the recovery theme gaining traction. But might also have something to do with the fact that the U.S. Treasury will auction another $140 billion in bonds next week. That amount tops the $104 billion amount auctioned last week. It’s a lot of borrowing, isn’t it?
June 19th, 2009 | Dan Denning | 2 comments | Continued
Aussie Banks Addicted to Foreign Borrowing
The article made three basic points. The deposit base of Aussie banks is “too low.” Aussie banks are over-reliant on offshore money. This entire situation is a “threat to economic recovery.” So it appears Aussie banks are addicted to foreign borrowing and are currently suffering from withdrawal symptoms. In case you missed it a few months ago we’ll say it again: Australia’s property boom was bought with borrowed money…
June 18th, 2009 | Dan Denning | 18 comments | Continued