Banks

Here at Markets and Money we run a sceptical eye over the banks, the credit market and Aussie housing regularly to make sure you’re never vulnerable to the disasters bankers get themselves into all too often.

You’ll find out why central banks don’t always know as much as they let you think. You’ll be fully informed about Australia’s ‘Big Four’ banks too. They make up around a quarter of the Aussie share market index. Thanks to their privileged position the big four will continue to be a huge force behind the market.

We’ll keep you updated on whether bank stocks should be part of your portfolio (and the times when you should take your money and run).

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digital currencies and the blockchain
Private Currencies vs. Public Money
Blockchain is definitely allowing people to think about the future of money and how we use that money. And the rise of parallel currencies could increase competition for central banks. That is, if the central bank printed too much money and devalued the currency, people could flock to a more stable private currency.
House in a hand. Representing falling property prices.
Magnified Expectations and Bloating Debt
Meanwhile, wage growth has been plummeting. It is now just above 2%. So it’s not surprising that in recent years households have been getting into larger mortgages to get into the frenzy...and consequently, higher debt. And we are starting to see an increase in mortgage stress.
cash
Just a Piece of Paper
The truth is that we place more value on those pieces of paper than when we see them as a number on the screen. The great thing about cash is also that it gives you some financial freedom. Holding cash gives you control over how and when you spend it but pushing to digital transfers some of that control to the authorities.
Donald Trump US Economy
What Trump’s Quack Economists Will Do Next
Yesterday, stock markets bounced back in the afternoon, after investors began to think that maybe Donald Trump wasn’t really serious about a trade war. One day, perhaps soon, they won’t be in such a good mood. And the market won’t bounce back. Not that the end is necessarily nigh…but, in theory, it must be out there somewhere.
cashless society and the risks involved
Sorry, We Don’t Take Cash
Going cashless is great for central banks. It makes monetary policy much easier. Without a cash option, the longer you keep money in the bank the more it costs you. So, there is an incentive to spend it…which in turn could boost the economy. The central bank has warned Sweden could become the first cashless society. However, Sweden are now starting to realise that going cash free makes them vulnerable.
Commonwealth bank share price
Why CBA’s Share Price Spiked 1.44% Despite Outage
This wasn’t necessarily a shock. The multinational often sees online outages causing nationwide angst. Yesterday, CBA’s 6.2 million online customers were severely inconvenienced when their money became frozen or non-existent online. Issues ranged from being declined at McDonald’s to having full credit histories wiped.
Aussie banks in for a tough time
The Slow Death of the Banks
It was misconduct that led to a $75 million royal commission into banking that kicked off last month. And it’s looking like, by the time it’s over, the banks are going to have to dish out a lot more than $1 billion. The big four banks have lost around four percent of their value since the commission’s commencement. And with a new code of conduct about to be implemented, they could be in for even harder times.  
US economy
This Bellwether Stock Says the US Economy is Still on Track
On all the trade war talk, US stock indexes fell heavily last Thursday and Friday. The major stock market averages suffered their worst weekly losses in two years. Although, with all the noise about a trade war last week, bullish reports on the US economy, seemed to get lost.
privacy in a digital age
Is Privacy Possible in the Digital Age?
Using all of the information we willingly upload to the internet, extremely complex character profiles are built and recorded. Our political views, interests and fears are all laid bare — allowing software to create a tailored shopping list of consumers that is then sold to marketing companies.
gold price rally
This is Why the Gold Price Could Rally
The global economies may be growing in sync for the first time in 10 years, but it may not last long. Gold is used as a hedge in times of turbulence and uncertainty. And as a hedge against inflation and risk. Moreover, gold could rally if trade tensions between the US and China keep up.
Bank building
NAB Share Price Drops Nearly 2%
National Australia Bank Ltd [ASX:NAB] are trading, at the time of writing, at $28.92 a share while dropping today by 1.83% Their share value has been consistently low, but have shown some signs of growth in the past, as they were valued lower during 2016.
Australian economic news
Surprise Attack
Ever since June 1991 — our last official recession — the textbook approach to generating GDP growth has been to encourage households to borrow to ‘get the economy moving’. Our economic ‘success’ has really been a massive failure…setting households up for an extended period of financial pain and in some cases, ruin.