NAB loses $798 million

[boomtown]

Exactly. Crappy leverage and no control. Bugger that.

 

[Sunder]

Exactly. Crappy leverage and no control. Bugger that.

Control over the housing market is a bit of an illusion anyway.

If you owned a house in Liverpool this past year, could you have stopped the price drops?

Can you stop tenants trashing your place?

Can you force a tenant to live in your property at what you think is a reasonable rental rate?

You say that you can renovate and kick out tenants etc? Well, recent studies show more of the gain from renovations is from a rising market, than the extra value. And you can simply not buy any particular stock you don't like on the market too.

Control is illusion.

 

[Righteous Toss]

I don't know much about this but i've got $30k in a ANZ term deposit. Is this safe or should I withdraw?

 

[boomtown]

Control over the housing market is a bit of an illusion anyway.

If you owned a house in Liverpool this past year, could you have stopped the price drops?

Yes I can. I dont own in mortgage belts and I dont rent to battlers.

Can you stop tenants trashing your place?

How many doctors and lawyers do you know that trash houses?

Can you force a tenant to live in your property at what you think is a reasonable rental rate?

No but there is 1 vacancy in my suburb at a comparable price - and thats probably already been rented.

You say that you can renovate and kick out tenants etc? Well, recent studies show more of the gain from renovations is from a rising market, than the extra value. And you can simply not buy any particular stock you don't like on the market too.

I don't reno - I buy and hold.

Control is illusion.

If you say so.

 

[GreatPig]

i've got $30k in a ANZ term deposit. Is this safe or should I withdraw?

What would you do with it if you withdrew it?

GP

 

[Righteous Toss]

Bank it, I just don't want to loose it. Term deposits arn't 100% fool proof are they?

 

[Spectre]

As an interesting point
Westpac - comes out with a promotion today.
Refinance to them and take a pro-pack and westpac will pay you $600 towards your costs after the loan settles. Qld & WA only... starts 4aug ends 17 aug.

Going after the customers who might be a bit 'concerned' about their big 4 lender mebbe...

 

[GreatPig]

Bank it where? Do you think ANZ is less safe now than other banks?

Nowhere is 100% safe, but you have to weigh up the relative risks. Bank deposits are generally at the safe end of the spectrum, but banks are also perhaps most exposed to credit issues since they do most of the lending that might not get repaid.

If you're concerned about ANZ specifically, you could either move it to what you consider to be a safer bank, or spread it across two or three banks. If you're concerned about banks in general, then you have to look at other options. Assets like shares and precious metals are higher risk as they're quite volatile, especially right now. Safer than banks would be government bonds, but with a matching lower return.

No one can tell you if ANZ or any other bank is completely safe. Any of them could blow up tomorrow (I say that just as a statistical possibility, not that it's likely), so you need to assess the risks of the various options yourself and choose what you're comfortable with. At times like this though, it can be difficult to feel completely comfortable with any option.

GP

 

[Spectre]

Luke

Can I pick all 4?

Thanks

No

None of them are true

 

[boomtown]

Doesnt Australia have an equivalent to the FDIC? I would think a term deposit with ANZ would fall under that?

 

[GreatPig]

There's been talk about it, as mentioned here, but I don't know if it's been implemented. Even if it has, it's only for $20K (not bad on a $30K deposit I suppose, but not much really).

GP

 

[alba]

hi all
have a look at anz nab bankwest and keep an eye on boq and bendigo.
at this stage all the losses have not come out but I think its at about 1.5billion for nab and anz is about 1 or 1.5 put on top of what the opus and the shares they sold that have not fully been agreed to as they are still incourt and you have alot of possible write offs still to come.
I am more interested in the ones that haven't come out.
the ones you are seeing know are the ones that have been written off
the question is what about the ones to be written off and there is still alot of that to come.
its interesting to me that you can write off 1 billion off your books
increase the returns to the share holder
and increase the interest to cover the cost and still have the capacity to buy an opposition bank and still say that banks are not in any position to reducing interest rates.
maybe mr rudd should be able to say sorry but you can't write that off your books
unless you make the same commitment to invest the same amount as the loss into the aust market.
how can you invest outside
make the loss and then squeeze the current customer base for your loss and say that there is some sort of credit squeeze
but oh look we found this little 1 billion dollar cash bundle in the corner lets buy another bank.
why is mr rudd not looking at doing the same to the bank as they say for petrol.
you make a loss you must have been able to lose it
so reduce rates or we will assess as if the loss did not occur.
I think anz have written off 25% of its last year net funding so thats a bit of money.
for me no loss fine
huge loss drop your rates to accomodate or tax as normal and give the funds out as rent assist
and we will have to keep an eye on you to make sure you are a lender and not a speculator.
some thing is wrong in the system either the numbers are wrong or we are not being told the full story
but a couple of the banks are not as rock solid as we may all think.
I always think of the old soccer rule attack is the best form of defence
so maybe some of these are smoke screens
so whats behind the glass mirror.
the us still has 3 or 4 trillion in pledges to get rid of
and I don't think that anyone has told us at this stgae to what extent or lender are exposed to those pledges.
and I for one would think that we should know.
I hold no bank stocks but I think when you have at least 2 billion exposure at the moment and no sound of anything comming out of canberra
I think a few people are very worried, saying it or not.
it would not go down well if a bank came out with just lost 798million and not sure how much more we will lose but she'll be right.
that distilles about as much joy as a thief waves at you as he getting in the car.
you stand there and say
great
I think the rba does have a place to play in this and I think that just as asic rules are like a set of cheap tights and alot more holes then they think
I think the rba is looking the same.
they have not had to really check on banks as its plane sailing
but we are now in high seas
the waves are hitting 10mtrs high
and our rba captain is turning over in his bed saying it will be fine in the morning we just have to weather the storm.
sorry thats the way you lose the ship.
and believe me we are at high sea and I don't think we have hit the roaring 20's or base straight at high sea
but I think its comming and unless a couple of these ships are not turned around they are going to collide( merge) or a couple I think could sink.
or another captain take over.
for me I am yet to see one thing mr rudd has said and has done.
and thats in english or chinese.
to let these banks just write these off as if
well that just a little loss is just
a a joke
b were is the management
c were is the accountability
d were is the watch dog
and for those that say well this is a private company and how can you regulate it.
simple we are all paying for it.
finance cost have not increased globally if anything the cost of money is less in europe and asia in europe rates are dropping.
what we have is banks writing off losses and because they are not as good a credit position it costs them more.
its that simple and the rba for me should say drop rate to a reasonable amount above the bill rate or you can't write off losses we will tax as if the loss is not there.
that would make rates drop

GR you are making a lot of sense, and Bluecard, that's exactly right, trying to pick the bottom in a downtrend is a dangerous exercise.