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 | ContinuedAll Posts Tagged With: "aussie banks"
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
Bankers Going Galt
Why aren’t the banks lending locally and what are they doing instead? Well, they’re probably terrified that commodity prices won’t recover any time soon, rendering the collateral posted by mining companies worth a lot less. Or, worried about future losses in commercial property, the banks are saving up for a rainy day.
March 31st, 2009 | Dan Denning | 19 comments | Continued
Aussie Banks are Scrambling to Raise Their Tier 1 Capital Ratios
Aussie banks are scrambling to raise their Tier 1 capital ratios, according to yesterday’s Financial Review. Before this arcane financial knowledge induces you into a drooling coma, consider what it means. Banks are shoring up the quality of their assets so that when they go into the equity markets to raise new capital, investors greet them with open wallets instead of cold shoulder (or a punch to the face)…
December 11th, 2008 | Dan Denning | 0 comments | Continued
