It’s going to be interesting as more and more banks tighten their lending policy and make it harder for people to borrow. In the article below, CBA is axing their no deposit loans. I think its important to interate that the Property market is “moved” by the ability to finance the asset (ie the property).
Reducing/tightening credit policies [...]
Last week the Government announced:
All bank deposits will be guaranteed, at no charge, until 28 November 2008.
After 28 November, the first $1 million of a deposit will continue to be guaranteed, at no charge, for three years until 12 October 2011.
After 28 November any amount over $1 million will be guaranteed only if the bank [...]
Here’s the media release from the Reserve Bank of Australia state the reasons for the 0.75% interest rate drop today. Official interest rates is now 5.25% from an all time high of 7.25% (5th March 2008)! The last time interest rates in Australia was 5.25% was 3rd December 2003 (nearly 5 years ago), be expecting [...]
Here’s a quick update on what the market’s been doing and some implication on the Property Prices In Australia. The AUD/USD has dropped from a high of around ~0.98 early last month to just above 0.88 today. This is based of the growing speculation of a rate drop next month and that the world demand [...]
Equity markets are continuing their sell-off today, so the delicate balancing act facing the RBA next Tuesday week gets more complicated by the day.
If not for sub-prime contagion, even before next Wednesday s publication of the December quarter CPI, the case for another cash rate hike would be compelling, but nothing is clear cut when [...]
First it was the sub-prime mortgage, now its the US recession… when will it stop
There are a lot fundamentally strong stocks which have suffered. The recent drop caused by the mixture of US recession & subprime mortgage appears to have pillaged the equity market much more than the previous ’sub-prime’ crisis…
FYI, this has definitely affect [...]
Equity markets finally buy the this could be serious sub-prime line
Soft US payrolls data last Friday night the wake-up call to Wall Street
All Ords now down by 10 per cent since historical peak
Equity markets jitters ironically get worse as key debt market risk spreads fall, although
Spreads still well above normal, so too [...]
Definitely an interesting time in the market… its definitely interesting for me especially working in a bank doing all the ‘credit’ risk management during this very interesting time of ‘credit’ crunch. I understand why I got a job and how its important the financial sector is in supporting the world’s economy.
Who would have thought that [...]
Fed disappoints Wall Street by cutting funds rate by only 25 basis points, but
Equity markets are ignoring the moral hazard dilemma faced by newish Fed Chairman as he tries to
Escape so-called Greenspan Put
Asian equity markets drop in sympathy with Wall Street, but not as sharply
Debt risk premia spreads still high in US, [...]
Dow stages mini-recovery but equity markets still skittish, while
Global debt markets remain unsettled by sub-prime fallout, as
US corporate bond risk premia rise further, while
Spreads at shorter end also rising, although not as high as when Fed delivered its first emergency funds rate cut on 18 September
US house prices still falling from coast to [...]
