hypnodoc It's All In Your Mind Gold Donating Members 2,198 Member For: 21y 1m 1d Gender: Male Location: Melbourne Posted 30/09/08 08:00 PM Share Posted 30/09/08 08:00 PM (edited) It is interesting to see all the Govt and banks lies floating to the surface as the global economy melts down and they go into desperation. Common sense and simple mathematics dictated that it had to happen. Now we will see the greatest credit squeeze in history, all of the artifical home inflation drop back to reality, and a hell of a lot more super annuation value evaporate. The desperate measure the Govt took last week buying 4 billion dollars worth of valueless de faulted mortgages really means the Aus taxpayer will pay for the bankers folly. This might help explain why many so retiring politicians got high paying directorships at the now fast failing Macquarie bank. The figures below show the true state of the 4 major Aus banks at the end of 2007. Bear in mind that the asset values would have dropped significantly since then. Baton down the hatches people as reality dictates there is much worse to come than simply going into a recession .NAB. Derivatives (exposure) $2.53 trillion. Assets $485 Billion. Cash $28 Billion.Commonwealth. Derivatives $1.39 trillion. Assets $401 Billion. Cash $24 BillionANZ. Derivatives $1.22 trillion. Assets $330 Billion. Cash $20 BillionWestpac. Derivatives $1.3 trillion. assets $300 Billion. Cash $16 billionTotal Combined Value of Assets and Cash = $1.604 BillionTotal Combined Exposure = $6.4 Trillion True Position MINUS $4.8 TRILLION how are we ever going to dig our way out of this hole. The party is over, there is one hell of a hangover coming amid a mess that can never be cleaned up. Maybe Krud will just put up the coming Carbon tax and pretend its not real Edited 30/09/08 08:02 PM by hypnodoc Link to comment Share on other sites More sharing options...
tab Sucker Moderating Team 32,303 Member For: 20y 7m 5d Gender: Male Location: Brisbane Posted 30/09/08 09:40 PM Share Posted 30/09/08 09:40 PM What's scarier is when you look at the likes of China...don't quote me on it but can recall stats from the ABC news that their loans to asset/savings ratio was 20% or something...compared to us and the US hovering around the 200% mark Link to comment Share on other sites More sharing options...
senna_T Forged Member Lifetime Members 15,818 Member For: 17y 9m 23d Gender: Male Location: SW Sydney Posted 30/09/08 11:30 PM Share Posted 30/09/08 11:30 PM Looks like I'm going to be renting for a few years yet... Link to comment Share on other sites More sharing options...
smicky Go Pies!!! Donating Members 2,852 Member For: 16y 9m 14d Gender: Male Location: Vic Somewhere - Sometimes NSW Posted 30/09/08 11:33 PM Share Posted 30/09/08 11:33 PM Yeah, and I noticed that you have not included the likes of Macquarie Bank, and St George (while it is still St George), etc...Anyways, we all know its been a long time coming, well 'we' should have known...It will run its course on the typical 3, 5, and 7/8 yr cycles that Australian business seems to run on...Up, down, flat, Anyways just spent the last 2 weeks preping for a meeting with my accountants next week so enough from me, im going to go hide my brain from thinking about any of this crap!!! Link to comment Share on other sites More sharing options...
summoner Member 288 Member For: 19y 3m 26d Posted 30/09/08 11:46 PM Share Posted 30/09/08 11:46 PM This is a non issue unless people do the typical stupid knee jerk reaction of trying to pull all their money out of a bank. If people keep a cool head then it won't be as bad as it seems. Link to comment Share on other sites More sharing options...
TUFXRT6 Silver Donating Members 687 Member For: 18y 8m 10d Gender: Male Location: Victoria Posted 01/10/08 05:45 AM Share Posted 01/10/08 05:45 AM It is interesting to see all the Govt and banks lies floating to the surface as the global economy melts down and they go into desperation. Common sense and simple mathematics dictated that it had to happen. Now we will see the greatest credit squeeze in history, all of the artifical home inflation drop back to reality, and a hell of a lot more super annuation value evaporate. The desperate measure the Govt took last week buying 4 billion dollars worth of valueless de faulted mortgages really means the Aus taxpayer will pay for the bankers folly. This might help explain why many so retiring politicians got high paying directorships at the now fast failing Macquarie bank. The figures below show the true state of the 4 major Aus banks at the end of 2007. Bear in mind that the asset values would have dropped significantly since then. Baton down the hatches people as reality dictates there is much worse to come than simply going into a recession .NAB. Derivatives (exposure) $2.53 trillion. Assets $485 Billion. Cash $28 Billion.Commonwealth. Derivatives $1.39 trillion. Assets $401 Billion. Cash $24 BillionANZ. Derivatives $1.22 trillion. Assets $330 Billion. Cash $20 BillionWestpac. Derivatives $1.3 trillion. assets $300 Billion. Cash $16 billionTotal Combined Value of Assets and Cash = $1.604 BillionTotal Combined Exposure = $6.4 Trillion True Position MINUS $4.8 TRILLION how are we ever going to dig our way out of this hole. The party is over, there is one hell of a hangover coming amid a mess that can never be cleaned up. Maybe Krud will just put up the coming Carbon tax and pretend its not real Hypnodoc,I really think you need to get your facts right.The Federal Government did not buy useless RMBS but they WILL (Start in December) buy AAA rated RMBS which is the highest class of RMBS (these RMBS has the least amount of risk).Derivatives are often used to reduce risk by hedging positions (I think you might be looking for leverage not derivatives)Personally I cant see why you would use CASH (most liquid asset) in your classification of risk.Unless you work in the financial industry (credit market in particular) I dont see any point in scaring the masses.I am in noooo way saying the credit markets are in trouble butttttt I could point out a truckload of differences between Australian markets & OS.RegardsTUFXRT6 Link to comment Share on other sites More sharing options...
hypnodoc It's All In Your Mind Gold Donating Members 2,198 Member For: 21y 1m 1d Gender: Male Location: Melbourne Posted 01/10/08 07:33 AM Author Share Posted 01/10/08 07:33 AM (edited) Hey TUFXR6T.If reality inspires fear then so be it. You can try to justify it with all the acronyms you want. You are obviously in the financial system which you should know is global. Australia's position is minescule when compared with the US and European economies and they are all so far up the creek they can never find a way back and by the very fact that the economy is global we have to follow the general trend. I used cash in the equation to show a comparison of position. You can call a derivitive whatever you want it still equals exposure. I suppose you are one of the ones that thinks the taxpayers should bail out wall street. There maybe a truckload of differences between global markets but with the global de-regulation and chicanery of Investment banks, which aren't even real banks anyway, they have burned it to the ground and the trickle down effect will be more of a raging torrent. If you can bring your head out of the fog for a moment can you answer this question for me. How is an obviously ruined and bankrupted global economy with a total value of 70 trillion dollars ever going to repay the total global debt of 680 trillion dollars? Whatever way you want to look at it and wish it wasn't real the facts are globally as far as economics are concerned WE ARE STUFFED MATEY. In my opinion, like many of the general public in the US, the greedy buggers that told all the lies and blew out the bubble should be hung. Still as they say "The Bankers Own The Earth". If you think this is going to just go away and Aus will breeze through it perhaps you should go back to economic school. The piper has called to be paid and there ain't no money to pay him. The result will be worse in a direct economy of scale than the so called Great Depression and by calculation that means about 500 times. For the average punter, who got sucked in by the banks to borrow against their assets to invest in the global lottery shop which the stock market became, stock markets work mostly on emotion and the emotional lean isn't exactly calm and favourable at the moment. The average mortgage valley family is stuffed. It is a mathematical certainty. If financial advisors, experts, and bankers really knew what they were on about these things would never happen, but they do, 1930s, 1987, and now this. Each event worse than the other by many times. There will be multi millions of people in Aus and around the planet who now wish they had never listened. Edited 01/10/08 07:47 AM by hypnodoc Link to comment Share on other sites More sharing options...
XRSCAR Member 414 Member For: 16y 9m 21d Gender: Male Location: FTG, Victoria Posted 01/10/08 07:45 AM Share Posted 01/10/08 07:45 AM Link to comment Share on other sites More sharing options...
Dillz Three pedals are better then two.. Donating Members 15,637 Member For: 17y 6m 5d Gender: Male Location: Melbourne Posted 01/10/08 08:02 AM Share Posted 01/10/08 08:02 AM (edited) A gold line I used today, "Is what happens thousands of miles away in a country most of us have never been to going to effect you paying ten thousand more for this seemingly insignificant 3 bed home in ****???" Edited 01/10/08 08:03 AM by Dillz Link to comment Share on other sites More sharing options...
Dagabond Bored Member Administrator 35,722 Member For: 22y 17d Gender: Male Location: Dé·jà vu Posted 01/10/08 08:11 AM Share Posted 01/10/08 08:11 AM This is a non issue unless people do the typical stupid knee jerk reaction of trying to pull all their money out of a bank. If people keep a cool head then it won't be as bad as it seems.BUY BUY BUY!!!! It'll be over before we know it.... Link to comment Share on other sites More sharing options...
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