Malcolm Turnbull

[cynik]

Abridged version:

Sorry for being verbose.

[Jovial Monk]

people v the banks, yeah the big one.

good luck to the people on that one!

[cynik]

Abridged version:

Sorry for being verbose.

[Jovial Monk]

Yup

Only a few seemed to have picked we were living in a house price bubble, propped up by the mining boom. Now these miners are starting to be told not to come to work anymore (and, with AWAs and no union there is no redundancy etc) and these miners have huge mortgages. Then there is the multiplier effect. Iron ore prices will be renegotiated later thus year and they won't be renegotiated up that's for sure! So there is lots more pain to come here.

In a way I wish Howard & Costello had won the last election and had to cope with all their stupid policies crashing down around their ears. In an academic sort of way I wish that, fucking glad they are really gone!

[cynik]

Is it howard's policies that are crashing, or the international price of iron ore?

I don't care who leads the mad parade you call democracy in Australia, and from that reasonably neutral perspective, let me tell you now that your obsession with Howard betrays a lack of reason in your thoughts.

Frankly, you make a fool of yourself when discussing politics. Stick to fruit butter.

[Jovial Monk]

Both are crashing. Don't invest in ABC Learning Centres.

[cynik]

What are ABC learning centres, and why do I suspect I am not going to like the answer?

[mantra.]

ABC Learning Centres was a childcare monopoly run by one bloke Eddie Groves who received accolades for his entrepreneurial skills in creating a few hundred centres throughout Australia, as well as a few in the US. The banks lent ABC more than a billion dollars without checking out the debts. You can't even rely on audits these days - they're meaningless and only follow the Board's instructions, regardless of anomalies in accounts.

It's true - the banks haven't had a clue over the last couple of decades and have allowed every man and his dog to borrow on a whim and exercised no caution in lending when property prices rose to ridiculously high levels. The Reserve Bank of Australia bumbled along, lowering and increasing interest rates in total confusion. In the financial sector - everything is guesswork. These "gurus" have so much power and they don't know what they're doing. They believe if they talk big and sound confident - they are right and the blind meekly follow their advice.

It's all come crashing down now. The Rudd government has or will be introducing stricter regulation and the banks are embracing this gratefully. Already we are seeing the necessity of a 15-20% deposit necessary for a mortgage, although in some areas the banks are being too cautious and not extending credit to reliable businesses, which is creating cash flow problems and will exacerbate our existing problems.

As far as the bubble goes - anyone with half a brain could see the bubble was too big and was going to burst, although a few cautious economists who tried to warn of the impending danger were ignored.

[cynik]

Abridged version:

Sorry for being verbose.

[TomB]

I hereby appoint you, Cynik, as our Swiss living lawyer to sue all responsible govts for wilfully failing to protect the world's economy, on behalf of the members of PA. All gratuities to be established in a Swiss bank account under PA's name for use at our leisure.

Do I have to send you a retainer fee?