Today we talked about what saves Victoria.
From my 5km bubble, perhaps Victorian people, with the blessing of a crazy government, were trying to abandon the idea that they might be able to get out of the problem in the next decade.
Perhaps this little hipster-led, latte-slurping, COVID-infected condition could become some kind of mining paradise in the 2020s.
At least these are my thoughts as a dog, and I walked the streets for a government-approved movement and bought a huge latte in the typical Melbourne spring rains.
Although it has been masked up, it is still allowed to touch the joint paper. Australian person I changed my morning topic with a headline: “The undemolished bank said-go to the loan.”
There is a decade of financial change in the box.
And the banks and the government will do whatever it takes to put you in debt … I’m sorry, I’m going to put you in debt.
All debt is good debt says government
Australian Citizens … Get ready for boooorrrrrooow.
The Consumer Credit Protection Act passed in 2009 has been abolished.All 100 pages of regulation say “torn” Australian person..
And there is no doubt that everything surrounding the dangerous banking business revealed by the Royal Commission of Banks will be quietly ignored.
Who needs facts and rules about predatory behavior if there is a stimulating economy?
From here on, it’s all about “unleashing” credit from banks and incorporating it into the economy.
Former Prime Minister Kevin Rudd has introduced a series of laws on private lending in the wake of the financial crisis. Consumer credit law has returned the responsibility for verifying information to banks. It transforms from a borrower to a bank and is responsible for the information provided by the individual.
The bank didn’t like it.
If they do not lend, they will not grow. It takes time … an individual checking the facts. They were very fond of using the automated household cost method, which assumed that all households had similar costs.
Today’s announcement from Federal Treasury Secretary Josh Frydenberg essentially overturns Kenneth Haynes’ findings at the Royal Commission.
We can claim that the banks have won their battle. They complained that these restrictions hampered their role in the economy as lenders. Banks couldn’t spit out enough loans to grow under the old rules.
Frydenberg believes that this deregulation will benefit SMEs. Banks are likely to lend to small businesses, claiming that they will help the economy grow in the long run.
And there is no doubt that our collapsing economy, which relies on the continued expansion of credit for “growth,” is behind the impetus.
The question is how much debt people are expected to take and where does this money go?
Homes won’t be expensive unless people borrow more zeros from banks
Australia is famous for exporting rocks, delicious animals, and —. As I pointed out yesterday — Our spectacular real estate bubble.
Real estate and commodities have been an imbalanced impetus for Australia’s economic growth for 30 years.
But here we are in the midst of a recession and the economy will not restart on its own.
Therefore, the government is just entering the stage with the dream of sending digital zero to the economy for these lenders.
Banks say they can’t lend because the law is like a rope around the neck. And how many Australians are capable of taking on more debt?
Given that an important part of Frydenberg’s deregulation is lowering the mortgage-to-value ratio of homes, this move could only lead to more money towards homes.
Frydenberg states that credit underpins home ownership and business investment. that is true.
The problem is that Australian credit is unlikely to be directed to business investment as the government wants.
Incredibly high living costs Australia is potentially choking innovators.. People want to put a chunk of money into a mortgage rather than putting money into an idea that might never take off.
Our people, who have the luxury of safe employment during a pandemic, are overwhelmingly spending more on savings and debt repayments. They are not stimulating the economy. They are protecting themselves.
The most lazy thing a writer can do is to quote himself. But there’s something here — Ironically, I wrote this time last year on exactly the same day — It looks pretty prophetic.
‘The important thing is that the old lending method has been revived.
‘I haven’t learned anything since last year.
‘We are about to witness a new credit boom in home prices.
‘Do you think the rise in home prices over the last decade has been significant? Well, you haven’t seen anything yet.‘
Even the pre-pandemic move was done to facilitate lending. The urgency of putting these loans into the economy is only increasing. Where will this new Mula end up?
Editor, Daily Reckoning Australia
Shae is also the editor of Rockstock Insider And Hard manate radar. By interviewing experts from around the world, Shae’s Rockstock Insider The purpose is to show people why gold is healthy money. Hard money trader Is a speculative newsletter recommending some of the riskiest stocks on the market … a small gold explorer.
Citizens … Get ready for Boooorrrrow
https://www.dailyreckoning.com.au/citizenslets-get-ready-to-boooorrrrow-2/2021/01/04/ Citizens … Get ready for Boooorrrrow