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Recent Posts Tagged With 'economics'
Bull market or just bull?
"Foundations for a bull market are now as strong as they've been in years,though an early and sustained uptrend can't be taken for granted""I think it is pretty well conceded that we have reached or passed the bottom ofthis depression and from now o...
BIS says rate increases a mistake
Chief economist for BIS Schrapnel, Frank Gelber, thinks the Reserve Bank has increased interest rates too soon. Glenn Stevens was as nervous as all hell about a cash rate at 3 per cent but rates in most other economies are going to be stagnant and ho...
October interest rate rise?
(source: Sydney Morning Herald, 6 October 2009) ...
40 per cent less millionaires
Australia has taken third place in a survey of the biggest casualties of the global financial crisis, a report shows. Boston Consulting Group's latest Global Wealth Report found Australia suffered the third largest drop in personal wealth among 62 co...
US economic recovery - slow and painful
A year after the US financial markets went into a tailspin, the US economy is showing tentative signs of a weak recovery but jobless numbers are continuing to rise, though not at the terrifying rate of six months ago, when 600,000 people a month were...
US house price crash - could it happen here?
The Australian dream of home ownership is slipping away, leaving a threat of a US-style collapse in house prices, according to a team of university researchers.Analysis by researchers from South Australia's Flinders University has revealed home owner...
Americans continue to unload debt
Several economic reports this week showed data that shows a change in the way Americans and U.S. businesses are handling their finance as debt has continued to fall and business inventories are leaner.The US Federal Reserve released the July consumer...
Banks may raise rates regardless of RBA
Variable mortgage rates offered by the banks might increase by around 10 to 15 basis points regardless of what the Reserve Bank (RBA) does between now and Christmas.At a historical low of 3 per cent, the cash rate is at emergecy levels and will have ...
US Consumer credit in retreat
US consumers are reducing their use of credit at a much higher rate than expected, casting doubt on recent hopes of a robust economic recovery.Consumer credit, including credit cards, car, student and personal loans dropped at an annual pace of 10.4 ...
Prime borrowers start to default - US
In the US, the long recession and rising joblessness are taking an increasing toll on the nation's most credit-worthy borrowers, who are now falling behind on their mortgage and credit-card payments at a faster pace than people with poor financial hi...
US recession loosing its grip
Evidence is mounting that the longest recession to grip the United States since World War II is losing its grip. The latest hint is due Friday when the US government releases data on consumer spending and income for July.Importantly, personal spendin...
US consumers optimistic
Sentiment among US consumers rose more than expected in August and expectations hit the highest level since the recession began, indications that Americans' pessimism about the economy may be lifting. The housing sector also showed signs of life as a...
Housing Finance Approvals
Alan Kohler is a well know and respected finance analyst. Take a moment to view his "August Economic Report". Pay attention to the Housing Finance Approval -in particular to the graphic showing owner occupiers verses investors. ...
Under-employment and unemployment
In spite of the global financial crisis, Australia’s unemployment rate is holding steady at around 5.8 per cent. Although high, it compares favourably to the continued rising unemployment in other countries such as New Zealand where the rate is 8.5...
Paying the price of keeping our wealth
Interest rates are near zero per cent in countries like the US and Japan. Our rates at the current 3 per cent are higher than that in New Zealand but not as high as China, Brazil and Iceland. So why are Australians paying some of the highest interest...
Official rates will fall - retail rates may not
The Commonwealth Bank of Australia (CBA) is under fire from all quarters over its decision to raise its standard variable rate (SVR) loans by 10 basis points. Of the four big banks, CBA had the lowest SVR and even after this increase its SVR is still...
RBA keeps rates on hold
At its meeting today, the Reserve Bank of Australia has decided to keep rates on hold, continuing with a cash rate at 3.00%. RBA governor, Glenn Stevens, said Australia's economy was benefiting from the significant cuts to interest rates made so far,...
Bigger slice of less competitive pie
According to a report just released, two mergers in Australia's banking sector may be reshaping the home loans market. The report shows the merged entities Westpac and St George and that of the Commonwealth Bank and BankWest claimed a whopping 85 per...
Bank service is reaching horror levels
The past 12 months have seen a tremendous shift in Australian banking. Despite the fact our banks are much better off than in other contries, many banks are no longer in the mortgage market. I personally believe this has taken the banking industry ba...
Big Aussie banks control 95% of all lending
A Federal Treasury analysis has revealed the extent to which competition in the Australian lending market has been eroded by the current financial meltdown in the US. While officials are at pains to explain that Australian banks are in nothing like t...
Good news and bad news
If the Debt Futures Market (DFM) know their stuff, the Reserve Bank of Australia (RBA) is going to lower its cash target rate to 2.75 per cent by April next year. That represents a fall of another two and a half per cent from the current cash rate 5....
Tight, easy and neutral
Monetary policy is a tool by which government (usually through an independent central bank) can influence the economy by affecting interest rates.To stimulate the economy when things are slow a central bank, like the Reserve Bank of Australia or the ...
