[staringclown]

The banks' delicate property balance

I'm off to get a better deal on one of my TD's. Westpac have offered me 5% for 12 months. They obviously want me to do my bit to support the property market.

Quote

Historically, Australian banks have made substantial profits by borrowing money on the overseas wholesale market and using that money to fund about 40 per cent of our home loans. European banks are headed for a substantial money squeeze and that may spread to the US, particularly if US state and local governments get into trouble. If that happens then Australian banks will have to either pay the going wholesale rate, bid up the local deposit interest rates to attract local savings or curtail their lending.

Each of those alternative actions will affect the value of Australian dwellings. One of the looming dangers in the banking sector is the exodus of European banks from Australia.

As they withdraw funds from a large number of medium-sized businesses, those enterprises will lower employment levels, although the accelerated mining boom will take up a lot of the slack.

The aim of Australian banks in 2012 will be to attempt to take advantage of the sharemarket turbulence to entice people to put money in bank deposits and without paying substantially higher interest rates.

If they can do that, it will contain the higher interest rate pressure and be of great value to the dwelling market.

[Bernard L. Madoff]

http://www.ubank.com...avings-overview

Quote

Introducing an online, high interest savings account that gives you a great interest rate, easy access to your money, 24/7 online AND rewards you for regularly saving.

Just deposit $200 per month with our Automated Savings Plan and for balances of less than $200,000 per customer (this balance includes all USaver joint savings accounts) we'll reward you with a 0.50%p.a. Savings Bonus over the standard variable rate

Currently 6.11% with bonus. 5.61% without.

Best TD is Capricornia CU: 5.5%

Best overall USaver as above. NAB is on a winner.

DYOR http://www.infochoic...gs-account.aspx

[cobran20]

Bernard L. Madoff, on 03 January 2012 - 02:33 AM, said:

Best TD is Capricornia CU: 5.5%

Beirut Hellenic Bank - 5.8% for 3 months

[Bernard L. Madoff]

Hellenic? Probably attracting that capital flight from Greece now in its 3rd year.

[cobran20]

Bernard L. Madoff, on 03 January 2012 - 03:07 AM, said:

Hellenic? Probably attracting that capital flight from Greece now in its 3rd year.

I noticed that the Bank of Cyprus is now owned by Bendigo bank. I wonder if that is only the Oz subsidiary or the entire bank? In any case, these are all underwritten by the Australian tax payers for the first $250K.

[staringclown]

Bernard L. Madoff, on 03 January 2012 - 03:07 AM, said:

Hellenic? Probably attracting that capital flight from Greece now in its 3rd year.

hehe. Staying away from all things "hellenic' at the moment.

I ended up haggling westpac up to 5.8% from 5.6% for 6 months. I threatened to close all accounts and switch to UBank. Felt good!

[Mr Medved]

staringclown, on 03 January 2012 - 03:33 AM, said:

I ended up haggling westpac up to 5.8% from 5.6% for 6 months.

Are we talking six figures?

[staringclown]

Mr Medved, on 03 January 2012 - 07:46 AM, said:

Are we talking six figures?

Yes but only because he upped the rate. It was only 50 to start with.

[Solomon]

Did anyone else watch this on TT?
http://au.news.yahoo...-repossessions/
If they're correct, the banks are getting aggressive.

[staringclown]

Solomon, on 03 January 2012 - 10:15 AM, said:

Did anyone else watch this on TT?
http://au.news.yahoo...-repossessions/
If they're correct, the banks are getting aggressive.

I did watch this sol. I'm not proud.

I was waiting for the "there's bargains aplenty to be had" line and the sovereign island guy delivered. Louis got the 'FHB stimulus getting some people into trouble' message out well though. The banks got their doingittough web site a plug as well.

[cobran20]

Solomon, on 03 January 2012 - 10:15 AM, said:

Did anyone else watch this on TT?
http://au.news.yahoo...-repossessions/
If they're correct, the banks are getting aggressive.

The banks are concerned about their credit ratings & profitability. Any deadwood is being chopped much earlier than before.

[savagegoose]

all i got was tv ads

[staringclown]

savagegoose, on 03 January 2012 - 10:31 AM, said:

all i got was tv ads

Exactly my point!

[Solomon]

staringclown, on 03 January 2012 - 10:28 AM, said:

I did watch this sol. I'm not proud.

I was waiting for the "there's bargains aplenty to be had" line and the sovereign island guy delivered. Louis got the 'FHB stimulus getting some people into trouble' message out well though. The banks got their doingittough web site a plug as well.

Don't feel too bad SC.
After all, I watched it.
I too waited for the inevitable spruiker to suggest now was the time to buy. Why! Why! Why!
Sorry to waste everybody's time.

[savagegoose]

lol sorry sol, i have a real problem with TV ads on the internet and wont watch any video if it is pre loaded with an advert., ill close the window and just live without every see what was in the link.
still i have a habbit of walking away from the tv and never finishing a show im watching because the ads annoy me too much. lol
ill try again i dint realize the ad was actually the point of the link

but this time i clicked play, and there was no tv ad, just strait into the story@!
they must have read my bitching

but onto the story lol.
nice i like sov island what a stink hole good to see

This post has been edited by savagegoose: 03 January 2012 - 11:20 PM

[wulfgar]

n

Quote

Historically, Australian banks have made substantial profits by borrowing money on the overseas wholesale market and using that money to fund about 40 per cent of our home loans. European banks are headed for a substantial money squeeze and that may spread to the US, particularly if US state and local governments get into trouble. If that happens then Australian banks will have to either pay the going wholesale rate, bid up the local deposit interest rates to attract local savings or curtail their lending.

One day I'll be watching a gritty documentry of how stupid the Aus banks were in pushing money into a sector that bombed big time in other places.

"Damn the torpedoes, full speed ahead!"