The soft depression that we had to have

[MichaelW]

Michael,

Have a look at what customer rate you would need to charge for funds raised at swaps plus 1.6% and ask yourself the question how desperate for cash you would have to be to fund at that cost....just sayin'

I agree mate, still very expensive...

I was just observing that at least the markets seem to be open for business again which is a step in the right direction. The government guarantee costs 0.7% so equates to 1.7% for the AAA rated government backed stuff which is pretty close to their 1.6% stand alone funding on their own AA rating.

Still too expensive, but at least there is movement. Time will tell if the easing in markets brings those rates down over time. You're closer to it than I am so I'd welcome your crystal ball gazing results?

Cheers,
Michael

 

[lizzie]

can't see any logjam here.

my banks certainly don't look to be tightening - received an unsolicited cc "limit increase" from wpac last week on my 55 day interest free card. signed it and sent it back (don't hurt to have a spare $5k available, even if never used) - and done. confirmation letter today.

cba are happy to take on our good debt and want to lend us more due to our valuations ...

beavers must've made a hole somewhere.

 

[Peter 14.7]

can't see any logjam here.

my banks certainly don't look to be tightening - received an unsolicited cc "limit increase" from wpac last week on my 55 day interest free card. signed it and sent it back (don't hurt to have a spare $5k available, even if never used) - and done. confirmation letter today.
.

Ditto

NAB upped our business card from $6k to $14k on our request over the phone. More if we want once we have another three months proven payment. Card is only 6 months old.

Peter

 

[Token Funder]

Ditto

NAB upped our business card from $6k to $14k on our request over the phone. More if we want once we have another three months proven payment. Card is only 6 months old.

Peter

Gross CC margins are huge at the moment, they don't really suck up the big money and you can reduce their limits on a whim so they aren't a good indicator.

Open-ended credit facilties, big, long-term infrastructure lending, lumpy commerical stuff and housing is where the squeeze occurs.

 

[nonrecourse]

Response to Keithj

Duty calls will get back to you with another post

Hi Keithj sorry for the delay but business comes first. To answer your question about where we are headed; There was an interesting Article in the Herald sun last week that compared the cost of World War II (388 billion) adjusted for inflation 3.2 trillion dollars and the global financial crisis 4.2 trillion dollars!!!! Puts into perspective what is happening in the real world.

For almost a year now I have posted and commented on the financial tragedy that has been unfolding. Earlier in the year I could understand a lot of the resistance to my posts as most of the information you had to go looking for it. Other than the syndicated series in the age entitled Planet Wall Street there wasn't much in the broadsheet press.

It is apparent that there is a significant section of SS are unwilling to accept that being geared at 80 or even 70% overall is no longer appropriate. I have seen my posts portrayed as being anti-property and that I am suggesting that you should sell everything. That has never been the case.

I would hazzard to guess that the vast majority here hold their investment properties in their own name. That approach allows you the advantage of claiming the losses so they are not trapped in a trust until such a time as you show a profit. That benifit also entails the risk of losing the lot to your creditors because you are reliant on your income and the properties in your name.

Initially with trusts the trustee and the properties have a charge over the assets. Over time some of the assets become unencumbered and are locked away from your creditors. No one plans to go bankrupt but most bankrupts fail to plan and therefore do go bankrupt.

I attended on saturday an auction of a property that last sold in Brighton in 2005 for 1.4 million just before prices lost contact with reality. It sold again on saturday for $1050,000 a 25% fall. We have at least another two years of severe consequence from the global melt down.If you want to believe the nonsensical figures quoted by the real estate industry at the moment then your in for a surprise. Ask yourself why is it that agents are refusing to list many properties if the seller refuses to meet the agents assessment of the market?

What I have been on about is common sense but apparently common sense isn't very common.

 

[Bill.L]

Hi all,

Nonrecourse....

What I have been on about is common sense

I disagree.

With governments around the world cranking up the printing presses, flooding the system with money like never before, common sense paints the picture of inflation. If governments were doing what they did in the '30's then I would agree with you, but they are doing the opposite.

"common sense" is that the result will be different to the '30's.

bye

 

[Sim]

mmm - this thread has become far too long to be manageable so I'm closing it. Feel free to start a new thread or 300