Tougher Times Ahead

[turbotrana]

Hypnodoc, how do you think the Aussie banks will fair. I read the Money and Markets also which has alot on the US banking system but really cant find anyone who is clued up on the Aussie banking system.

[RapidF6]

Are we going to have to take our money out the banks soon? Edited 24/02/09 10:53 PM by RapidF6

[hypnodoc]

Hypnodoc, how do you think the Aussie banks will fair. I read the Money and Markets also which has alot on the US banking system but really cant find anyone who is clued up on the Aussie banking system.

Taking into account that I AM NOT a financial advisor. I do know that all of the big Aussie banks have derivative exposure between them of more than 4 trillion dollars and there entire capitalisation doesn't come close to that, the trouble is treying to figure out what and wheer the exposure is. I can't and wouldn't advise anyone what to do with their money, but if our banks have bought into shonky shares and dead investments etc O/seas and just aren't telling us yet, well you can figure it out for yourselves, but you can't believe what they tell you.

For example Citibank and The Bank of America, Barclays, the Bank of England and many others have all had to be nationalised, which means propped up by the taxpayer, they all said they were fine a month before they had to tell the truth, and although they are all O/Seas banks it doesn't make much difference in a global economy. One thing to consider despite what Rudd and Swann say, is that the 'The Govenor of the Reserve Bank of Australia Promises To Pay The Bearer" that was printed on our paper money disappeared when it reverted to the plastic variation.

In this so called economic crisis, all the rotten fruit is falling off the tree, its just a shame that the innocent and the lied to have to suffer, and if our banks begin to fail they have to be propped up by our taxes which means other things miss out. It didn't take a genius to figure out that the artifical growth couldn't and wouldn't last forever. Greed and complacency got us here, common sense and cutting spending will get us out. But I think this printing money to pump into the economy that got into the state its in by borrowing is akin to curing an alcoholic buy giving them another bottle of booze. The economy will retract another 15% I think and a lot of people who used to be paper rich will go from the penthouse to the outhouse and then things will level.

Edited 25/02/09 11:55 AM by hypnodoc

[Dillz]

Doc our enconomy could not exist without times like this. It's happened b4 and it will happen again. Running around screaming "Fire" has never solved anything

Edited 25/02/09 12:17 PM by Dillz

[phantomchic]

Bonds, King Gee maker axes 1,850 jobs

The maker of iconic Australian clothing brands including Bonds and King Gee will slash more than 1,800 jobs after the company announced it will take all of its manufacturing operations to Asia.

Pacific Brands says it no longer has a manufacturing future in Australia and will close seven sites and axe 1,200 production jobs.

About 550 jobs will go in Victoria, almost 600 in NSW, and 56 in Queensland over the next 18 months, as the company moves the remainder of its manufacturing workforce offshore to south Asia.

link here

your undies will probably be tagged "made in china"

[hypnodoc]

Doc our enconomy could not exist without times like this. It's happened b4 and it will happen again. Running around screaming "Fire" has never solved anything

It could exist and a lot better than it has. I am not screaming fire, it is just time to exercise common sense. This is the worst it has ever been as the debt is massive, but as I have said it will recover. If you prefer to put your head in the sand eventually you choke. All the optimism doesn't change reality

[Dillz]

Fair enough but what can I do as one single person that will effect our trillion dollar economy in any way shape or form?

Edited 25/02/09 01:29 PM by Dillz

[Dagabond]

your undies will probably be tagged "made in china"

A couple of things stink with this deal...

$17 Million pumped into the company by the government in the last 2 years and they're still closing the doors..

75% of they're production is already offshore and yet they still made an $150Million dollar loss last year...

Stinks of opportunism to me...

[ronburgundy]

Heard about this on the radio this morning and I thought the same thing. They've given them a lot more than $17m over the past few years too Dags! I know business is business as they say but that is a dog act.

[turbotrana]

I agree Hypnodoc. Its a very sick world economy. Aussie banks do have high derivative exposure and you really do not know how healthy they are regardless of what anyone with a vested interest says.

I listen to the usual guys like Shiff, keiser, Rogers, Celente,Faber just to name a few. I was listening to a less know economist, Dr Joern Berninger (on utube and has his own blog) and he is very good also. He reckons about April alot of sh-t will hit the fan.