Today is Monday, May 21st, 2012
This denial of reality should be interesting to watch. When a credit bubble deflates and an economy breaks its addiction to reckless debt, the sensible thing to do (since you’re repairing your balance sheet) is dial things back a bit. Save. Cut back on the gadgets. Eat more staples. Wear a sack cloth.
But if you still believe that you can get something for nothing-well then yes-you’d continue to borrow and spend like a madman.
July 6th, 2009 | Dan Denning | 9 comments | Continued
How to Make a 979.2% Return in 43 Years… Embrace inflation, that’s how. In some newer dictionaries the term “Inflation” is beginning to be revised as a phenomenon of rising prices. But I prefer the traditional meaning where “Inflation is the Increase in the money supply”. I’m sad to say, the Keynesian economists and other money printers are in effect encouraging this change of the financial lexicon. If you read from the RBA’s mission statement you’ll read the expression “targeted inflation.”
May 25th, 2009 | Mark Thompson | 3 comments | Continued
What’s changed? Well for one, rising layoffs are having an effect on the real economy. Today’s papers report that mortgage delinquencies are on the rise. Delinquencies on full-documentation loans are still relatively low. Just 1.75% of full-doc loans are more than thirty days past due, according to a story in the Sydney Morning Herald.
April 2nd, 2009 | Dan Denning | 1 comment | Continued
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
The “Australian economy has not experienced the sort of large contraction seen elsewhere,” wrote RBA Governor Glenn Stevens in the note that went out with the announcement. “The Australian financial system remains strong and the monetary policy transmission process is working to deliver large reductions in interest rates to end borrowers.”
March 4th, 2009 | Dan Denning | 9 comments | Continued
We do not live in normal times, which is too bad, because it seems like a pretty nice first working day of March here in Melbourne. Later this week the Reserve Bank of Australia meets on interest rates. It will have to decide if bad news in the rest of the world (a revised 6.5% contraction in fourth quarter U.S. GDP, for example) is enough to lower rates for 3.25%–or if it has time to wait and see.
March 2nd, 2009 | Dan Denning | 10 comments | Continued
| All Ordinaries | 4124.400 | ||
| S&p/asx 200 | 4073.600 | ||
| China Shanghai Co | 2348.30 | ||
| Gold Sep 11 | 0.00 | ||
| Clj11.nym | 0.00 | ||
| Nikkei 225 | 8633.89 | ||
| Indu | 0.00 | ||
| S&P 500 | 1295.22 | ||
| Ftse 100 | 5290.75 |