Financial System

interest rates cut reserve bank of aus
The RBA Just Spilled the Beans on Interest Rates in 2018
The RBA can talk about business activity all it wants. Yet, at the end of the day, it all comes down to how Australian households would cope with a rate increase. One that banks would almost certainly pass on to mortgagees. In effect, the RBA has told us what to expect.
ASX hike after interest rates on hold
No Rate Rise Pushes ASX Higher
How the ASX reacts from here will be interesting to watch. Low interest rates for the foreseeable future could mean more investors flooding into the market, hoping to seek out returns.
goldilocks economy bear market
Goldilocks Economy Meets the Bear…Again
The actions taken by the Fed after the dotcom bust and the GFC would’ve, in 1999, been deemed to be sheer recklessness…bordering on lunacy. That’s how much the world has changed in the space of two decades. Goldilocks is going to be mauled by another bear…and it’ll be far more ferocious than the one that awoke from hibernation in 2000.
money
Just Follow the Money
In following the money, we find the wealth created in recent years has been nothing more than an illusion. This illusion can only be maintained if ever more money is printed…making the world’s newest and largest economy for the privileged few even bigger.
household debt burden
Blaming Everything but the Household Debt
Have you read any mainstream commentary identifying our world record household debt as the root cause of our economic miracle? I haven’t. Instead we’re dazzled with the brilliance of ‘adept management’ and ‘flexible inflation targets’.
Japan sticker
Japan: The Land That Forgot Time
The plan in Japan, as elsewhere, was the same old formula: create fake money…lend it at super-low rates…drive up inflation…and incite the public to spend and invest. The whole idea is preposterous.
Chinese economy
Is China A Ponzi Scheme?
Before stepping down as China’s central bank governor, Zhou Xiaochuan made a clear warning to the current political party. He told them to cut corporate lending, or face their ‘Minsky moment’.
china economy debt
Why You Should Care About China’s ‘Minsky Moment’
We’ve already seen it all play out in the US. Leading up to 2007, asset prices were soaring, encouraging borrowers to borrow more and lenders to lend more. But as we all found out, borrowing to buy six houses when you can only afford one eventually leads to disaster.
blockchain technology
Starting Next Week, Blockchain Gets Personal
I’ve taken the helm at Markets & Money this week to give you the background on a big step-change in the blockchain space. A pivotal moment where the bitcoin boom bleeds out into everything else. And it’s a moment that’s going to occur on a specific date in November…
US economy
The Real Deep State Candidate
Why did voters and investors turn their lonely eyes to a reality TV star…and put their trust and faith in a bombastic huckster, rather than a more conventional scallywag? In short, the fix was in…and Mr Market knew it.