Okay so I use biblical terms in the title ... for the record, it was just for effect ... of course as Lloyd Blankfein of Goldman Sachs tells us, the banksters are doing gods’ work,
though later a spokesman did say that it was a joke and what he really meant was that he was “living a dream”.
Er, and that is better how?
I digress ... we are talking the Aussie banking system here ... what in the hell is everyone on? So many lies, so much corruption, unprosecuted admissions of massive criminal activity, contradictions that would make your wallet explode ... and no-one cares and/or no-one understands ... (I say no-one ... of course someone does ... )
Bloomberg reports that Moody’s is about to downgrade the Aussie banks’ credit ratings. Why? Because of funding worries in the overseas wholesale market. This is the mantra trotted out by our big four banks over the past few years every time they move in an extraordinary manner against the cash rate movements. In fact about two years ago I wrote to the Chairman and CEO of ANZ asking how they justify the moves outside those mandated by the RBA ... the answer was that due to the increased price of wholesale funds from overseas they had to increase the spread from the cash rate.
But interest rates around the world are close to zero.
The banks have some of the highest ratings of any bank in the world.
The AUD has been going up meaning it is cheaper for them to pay down old debt than before.
We are in a boom so shouldn’t we be in a trade surplus and therefore paying down the debt not taking on more?
But that is the problem with the high interest rate, it leads to a high exchange rate meaning our exporters get less AUD for their goods meaning less net trade surplus meaning the banks have to borrow more from overseas and since it is a high interest rate leading to a high exchange rate they borrow less AUD for every USD they borrow. WOW the RBA is doing a good job on the country. It is the Great Fleece of Australia ... and no sheep involved this time ... just the RBA and high interest rates.
So apparently there is good news coming though. The banks now claim that Moody’s of course should not downgrade them as they have fixed the problem with the reliance on wholesale funds from overseas –
“ANZ, Australia’s third-largest bank by market value, has “been working hard” to reduce its reliance on wholesale funding, which now accounts for about one third of the Melbourne-based lender’s funding mix, Group Treasurer Rick Moscati said in a statement today.”
Well then GIVE ME MY MONEY ... SMACK ... GIVE ME MY MONEY ... SMACK ... I DON’T WANT TO HEAR IT ... SMACK ... GIVE ME MY MONEY ... SMACK ...YOU HAVE TWO DAYS ... SMACK ...
If they have managed to reduce their reliance on overseas wholesale funds then the cost of funds has lowered relatively using their own arguments SO DROP THE MARGIN dickhead!
GIVE ME MY FUCKING MONEY ... you are on notice ...
[Greg the Bunny says: wooooah Ferretous, deep breath now ... ]
[Ferretous says: phew ... thanks Bunny]
But perhaps it is more likely that in fact Moody’s is worried that the criminally illegal* Australian banking CARTEL, as described by Australia’s banking industry newsletter The Sheet, is breaking up, as confessed by the nab in spectacular fashion by taking out full page confessions in all the national rags and even setting up a website to detail every facet of how they conducted the confession ... if you are going to admit to a CRIME* then do it in style I say ... make it so LARGE that it goes straight over everyone’s heads and people actually CONGRATULATE YOU for being such a good bloke ...
“yeah I shot your daughter ... but look I used this REALLY cool Smith and Wesson hand engraved for Bill Cody”
“Wow that’s so fucking cool man ...”
[WhiteyRound Eye says: On the topic of Cartels I recommend you watch the latest Keiser Report. An excellent analysis on the other half to this two headed Petro Dollar Cartel.]
*alleged - read the fine print fucko!!
though later a spokesman did say that it was a joke and what he really meant was that he was “living a dream”.
Er, and that is better how?
I digress ... we are talking the Aussie banking system here ... what in the hell is everyone on? So many lies, so much corruption, unprosecuted admissions of massive criminal activity, contradictions that would make your wallet explode ... and no-one cares and/or no-one understands ... (I say no-one ... of course someone does ... )
Bloomberg reports that Moody’s is about to downgrade the Aussie banks’ credit ratings. Why? Because of funding worries in the overseas wholesale market. This is the mantra trotted out by our big four banks over the past few years every time they move in an extraordinary manner against the cash rate movements. In fact about two years ago I wrote to the Chairman and CEO of ANZ asking how they justify the moves outside those mandated by the RBA ... the answer was that due to the increased price of wholesale funds from overseas they had to increase the spread from the cash rate.
But interest rates around the world are close to zero.
The banks have some of the highest ratings of any bank in the world.
The AUD has been going up meaning it is cheaper for them to pay down old debt than before.
We are in a boom so shouldn’t we be in a trade surplus and therefore paying down the debt not taking on more?
But that is the problem with the high interest rate, it leads to a high exchange rate meaning our exporters get less AUD for their goods meaning less net trade surplus meaning the banks have to borrow more from overseas and since it is a high interest rate leading to a high exchange rate they borrow less AUD for every USD they borrow. WOW the RBA is doing a good job on the country. It is the Great Fleece of Australia ... and no sheep involved this time ... just the RBA and high interest rates.
So apparently there is good news coming though. The banks now claim that Moody’s of course should not downgrade them as they have fixed the problem with the reliance on wholesale funds from overseas –
“ANZ, Australia’s third-largest bank by market value, has “been working hard” to reduce its reliance on wholesale funding, which now accounts for about one third of the Melbourne-based lender’s funding mix, Group Treasurer Rick Moscati said in a statement today.”
Well then GIVE ME MY MONEY ... SMACK ... GIVE ME MY MONEY ... SMACK ... I DON’T WANT TO HEAR IT ... SMACK ... GIVE ME MY MONEY ... SMACK ...YOU HAVE TWO DAYS ... SMACK ...
If they have managed to reduce their reliance on overseas wholesale funds then the cost of funds has lowered relatively using their own arguments SO DROP THE MARGIN dickhead!
GIVE ME MY FUCKING MONEY ... you are on notice ...
[Greg the Bunny says: wooooah Ferretous, deep breath now ... ]
[Ferretous says: phew ... thanks Bunny]
But perhaps it is more likely that in fact Moody’s is worried that the criminally illegal* Australian banking CARTEL, as described by Australia’s banking industry newsletter The Sheet, is breaking up, as confessed by the nab in spectacular fashion by taking out full page confessions in all the national rags and even setting up a website to detail every facet of how they conducted the confession ... if you are going to admit to a CRIME* then do it in style I say ... make it so LARGE that it goes straight over everyone’s heads and people actually CONGRATULATE YOU for being such a good bloke ...
“yeah I shot your daughter ... but look I used this REALLY cool Smith and Wesson hand engraved for Bill Cody”“Wow that’s so fucking cool man ...”
[WhiteyRound Eye says: On the topic of Cartels I recommend you watch the latest Keiser Report. An excellent analysis on the other half to this two headed Petro Dollar Cartel.]
*alleged - read the fine print fucko!!
