APRA Says That Housing Downturn Is Gonna Hurt but Not The Banks

ALesha77 on 03/08/2022 - 19:03
Last edited 08/08/2022 - 22:06

It has been a while since I annoyed local "investors" so let's make up for it.

Gonna make short and brutal -

the news of the week was APRA blessing the housing crash in their advice to Albo

https://www.abc.net.au/news/2022-07-28/apra-warns-albanese-g…

Maybe a bit melodramatic but to the point - APRA have put it in writing that they do not see risks to banking or insurance sectors in the event of a substantial decline in the housing prices. Investors' losses? Who cares? (literally, APRA does not care - it is not their job).

If anything, I am more interested in what was the "redacted sentence" that gave, opinion or advice - I am curios what was their advice to Albo that was cut out from publicly available version of the document? Judging by no reaction from the government, the advice was to sit tight.

What does this mean for all wealthy "investors'?

So, if you are expecting some federal cavalry to ride out of the bush and save the housing market with some ridiculous law-hat trick - it ain't gonna happen. At least I would not hold my breath waiting for it. Institutions were reported to be safe and there is no urgency in that.

Read the full published note (48 pages though - lots of cats videos will go unseen) and they repeat word for word what I have been preaching here .

Still think I can't time the market, huh?
A bit late now but 10% down is still better than 40% down.

Financial

Comments

  • brendanm on 03/08/2022 - 19:32
    +2

    Another day, another Alesha77 shitpost.

    • randomusername2017 on 03/08/2022 - 19:35

      Being regular is a bad thing now?….

      • Sleeqb7 on 04/08/2022 - 11:23

        Have you never had diarrhea?

    • ALesha77 on 08/08/2022 - 21:51

      Another shit-reply from brendanm.
      You could have used some brains to fake at least some intelligence in your replies

      • brendanm on 09/08/2022 - 06:35

        That's ironic coming from someone who just regurgitates FUD they find in blogs, while pretending to be an expert.

        • ALesha77 on 08/09/2022 - 14:32

          Aah, another personal-attck fart from brendan with no proof and wild imagination.
          Everything that I put out is my speculation only. Be a cuddly poodle and prove otherwise before farting again.

          • brendanm on 08/09/2022 - 16:10
            -1

            @ALesha77: Not sure how on earth that is a personal attack. You still haven't let us know why anyone should actually value your opinion on these matters?

  • Benoffie on 03/08/2022 - 19:37
    +1

    That was their advice - at no time should the government interfere in this correction. Any attempts to do so will only add to inflation and prolong any recession.

    Source: Me and Common Sense

    • iDroid on 03/08/2022 - 21:50

      Every problem we have is caused by a solution to a previous problem.

      Common sense is not so common.

    • ALesha77 on 08/08/2022 - 21:52

      My view is that the government should not interfere into the private economic dealings at all. But that never stopper AU government

      • [Deactivated] on 08/08/2022 - 21:53
        +1

        never stopper

        lol

  • funnysht on 03/08/2022 - 19:49

    when the banks aren't passing the interest rates to savings but just to mortgages— tells you a lot about their greed

    • ALesha77 on 08/08/2022 - 21:54

      Nah, that tells a lot about their books - they don't need extra cash
      And even with that, they don't want to lower rates.
      Wait until they run out of TFF cash - rates will now rise to protect margins

  • sjj89 on 03/08/2022 - 20:23
    +1

    Financial institutions will never lose now. Buffers have been created since 2008. And if they do?
    Nice little bail out from the government at our expense

    • Vote for Pedro on 03/08/2022 - 21:57
      +2

      Privatise the profits, socialise the losses. That’s what capitalism does.

      • locknuts on 06/08/2022 - 19:11

        Corporatism mate. Not capitalism.

        • Vote for Pedro on 06/08/2022 - 20:10

          Differentiate the two

          • locknuts on 06/08/2022 - 20:33

            @Vote for Pedro: I run a business. I'm a capitalist. If I were to run a corporation large enough to influence government policy and used that power, I'd be a corporatist.

            • Vote for Pedro on 06/08/2022 - 20:57

              @locknuts: Are you sure you’re not confusing corporatism with something else.

              My concept relates to the US bailout of failing banks using public funds with no equity stakes or even the former Government bailing out Qantas and not taking equity in the airline despite Joyce demanding the government not bail out Virgin

              • locknuts on 06/08/2022 - 21:13

                @Vote for Pedro: Pretty sure the heads of those corporations were asking for the bailouts and the government officials were corrupt enough to give them. That's corporatism. 'Control of the State by large interest groups' I believe is the official definition. It deprives voters of their power. Capitalism is basically just running a business for profit.

                • Vote for Pedro on 06/08/2022 - 21:23

                  @locknuts: I get what you are saying but I think corporatism isn’t necessarily the way you are portraying it.

                  Capitalism is basically just running a business for profit.

                  Yes. And thats my point. These are companies that want to operate under capitalism when they are making a profit. When their failures lead to collapse they cry bailout and suddenly believe in socialism.

                  I’m not going to go much further because it’s a simple slogan to illustrate a point and I know there are numerous factors at play, and those may include corruption or blind ideology.

      • ALesha77 on 08/08/2022 - 21:57

        No, that's what socialist government does.
        Capitalism is a wild and cruel animal that rips inefficient investment into pieces to make a better use of what's left for future generations.

        We are trapped to pay the wealthy pensioners by making young generations debt-slaves

  • matbargain on 05/08/2022 - 07:11

    You’re a weirdo
    Why so obsessed with all of this?

    • ALesha77 on 08/08/2022 - 21:58

      You are a weirdo who decided that I am obsessed with something.
      Why are you obsessed with calling people names, weirdo?

  • GourmetFoodie on 06/08/2022 - 21:37

    It’s great news for those of us waiting for investment opportunities.

    • ALesha77 on 08/08/2022 - 22:01
      +1

      I don't see any "investment" opportunities in the over-leverd asset market - it is pure pump and dump speculation be definition.
      But even for speculation part of a portfolio, I would not touch it until 30-40% wipe-out or only after RBS cries uncle and folds with 100 basis points cut.

  • El-Rhi on 09/08/2022 - 07:04

    If you’re waiting or hoping for an across the board 30-40% reduction in metropolitan house prices, you’re going to be sorely disappointed.

    • negger on 07/09/2022 - 18:00

      ~30% is a given based on where things are heading. More?. Who knows?

    • ALesha77 on 08/09/2022 - 14:33

      Just you wait….

      • El-Rhi on 09/09/2022 - 08:50

        Might be waiting a while. The CoreLogic aggregate 5 capital city index is only down 4.4%…. I doubt it will even pass 15%.

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