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Banks fix their rate according to the funding rate they have to pay, if they'll go just following their guesses they'll bankrupt very soon. Long term rate are higher because they don't have cheap long term funding. If they'll get a pension fund or investor that will lock in money in the bank for...

Good point, I also think the cash flow is the key point, if it is positive just wait and will get better and better (like WW said) and also the market will turn around. The risk is that a society that taking more debt improve the cash flow is going to implode and as soon as more people realise...

you've got to know that playing with the rates is like playing with fire, you have to be very very very very carefull. Just look at UK in the last week: EU drop the rates by 0.5% and UK by 1.5%, this week and specially last 2 days UK experienced the biggest fall in the exchange rate against the...

Interesting read Michael, I was feeling a bit like you a year ago when all media, investor and consumer where playing down what was happening and what was going to happen and thinking things will be business as usual and stilll risking a lot of money to fuel speculations. Here we are, 1 year...

I know it is early for a bet on the RBA move the 3rd of december, anyway bloomberg think the 100bp (or 1%) is the most likely from their very reliable survey: seems the NAB business confidence number that came up yesterday where far worst then forecast and had a lot more impact then usually...

I can tell you I don't want to be a bank share holders these days, a bank to make money need to have someone to deposit the money in the banks as much as someone to loan the money to. So if loan interest rate goes down deposit rate need to go down as well. Who is going to leave money in...