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Sorry you may have a different way of thinking to me. First up I accept return on equity is fundamentally important to ones wealth position. that said when one says I have made 3.5pc or 10pc or whatever returns they have made at face value this means for me return before interest. Otherwise...

Well in the example shaz is using it is actually making 8.5pc per annum which is well above inflation. 5pc nett yield before interest plus 3.5pc cap gains. If it was only making inflation, rather than making 84k in the first year be losing bout 50k pa after interest. And I reckon most people...

Ive thpight about this before. If it was a tax on profits do you think it would effect borrowing costs? I'm not sure that it would. In fact if the australian gov had a war chest for catastrophic events I'd expect our banks would get finding easier / cheaper.

I have to say thank you for that post mark. It is good to read something balanced yet influential. Very interesting about the smaller operators having the bigger capital ratio requirements. A couple of points thoug on your sources thoughts; A) comparing big four banks roe to the very best...

I would argue our regulation allows our big four banks to make super profits to the exclusion of others. All the more reason for a banking super profits tax that can be used as a war chest for an adverse event.

Exploration does not necessarily yield a result I.e. a mine. It is more appropriate to see it as a cost in my view rather than capex. It would be like the time spent at a real estate company committee meeting being capitalised because they may set up a new office in a new suburb at the end of...

I suspect to paint the illusion of bulletproof big four banks, our gov has allowed our banks to issue covered bonds. These instruments are as safe as houses given they are covered by depositors who are meant to be first in queue in a bank liquidation but now sit behind these special bonds. So...

Yes those examples are very helpfull to see how with a small amount of cash we can have a gigantic broad money supply. Ie deposits can be far larger than cash. These deposits are considered bank liabilities like each of the deposits into your safe above are all liabilities to you. To a bank...

In summary to te op: does private debt matter? Yes it does and while serviceability is a part of the reason why equally important is the effect private debt has on the money supply. Without a thirst for debt asset values would be far lower than they are. Inflation has been subdued in...

While I am almost certain many really dont care, I love talking about this so here goes; Frb still requires one dollar of deposits to make one dollar of loans unless the banks capital itself is loaned out. The multiplier effect is about the money written in loans often coming back in further...

Well for me; Real wage drop: check Cutting back on unnecessary spending: check Doing it tough: not yet but planning that we could be. I think thoughts to the future are the biggest issue. I'd be happy on my current wage into the future but even a small cut back in wages in a new job has...

:) Yes I used to have thick hair. I turned 36 and it has apparently started shedding. I wonder if its related to my eyebrows now growing at an alarming rate. ;)

I'm not scared of them but couldn't see myself becoming one. I reckon if you go to the gym after work you are not working hard enough so I couldn't see myself becoming one. Besides I'm married, so why bother. ;)

Yes I used to refuse but only got asked occasionally. Same way I refuse hair product as well. My latest trip she told me if I used hair gel it would mask my thinning hair. Before that I didn't know I was going bald! I hate trips to the barber more than the dentist. my dentist doesn't punish my...

Funny anecdote and warning about metrosexuals / grooming: I went in holidays with a mate from high school something we said we would do well over a decade ago. He is not married and looks after himself. While I think he would object to being called metrosexual he is quite close to the above...

Wow, this thread proves you are never too old to learn. On why men prefer asians; When I've traveled to Asia, when first arriving i think asian women are very attractive. Same when i see them around in aus. This is due to the lack of them in wa i suspect and they being something exotic...

Isn't it more a case of old houses might have asbestos in the kitchen and small bathrooms? Anyway, don't get me wrong I am happy with my double brick single story house. My comments relate more for two story where double brick is a big part of the reason 2 story homes cost in Perth is far...

When I was in yr 10 about 1993 I still recall our school getting a reformed criminal in to talk to us about booze and drugs. I still recall him telling us to stick with light beer. Anyway how this is relevant to the two story costs is that he explained that his time as a crim he learnt to walk...

Sorry I know we have moved on though I have to point out a double storey house can have as much as half as much roof per square metre of floor than a single storey. I'm not saying this compensates for all the costs but the premium in Perth is in a different ballpark to Sydney or Brisbane.

Perth moved about two decades after the east coast from pitching rooves to knocking up frames. I expect the next move will be for two storey homes at least to go from double brick to brick veneer. The marketing on brick here must have been fantastic given real estate agents appear compelled to...