There will be a bank bail in in Australia

[billy the kid]

https://www.abc.net.au/news/2020-04-27/ ... n/12188112
Forgot this link......most of it is repetitive but a couple of muppets are questioning the banks overall
strategy.....

[Juliar]

Billy is on a bank roll!!!

[Redneck]

Juliar is on a Dill Do .....

[Juliar]

Hard core Lefty Reddy is on a Bread Roll hurling out the Lefty HATE and longing for a Socialist Handout.

He is still a bit mentally disturbed after ScoMo slammed AnAl (who ?) in the latest historic NewsPoll.

The Voters are enchanted by ScoMo's Churchill style War Time Prime Ministership brilliance. When ScoMo pounds the podium you can almost hear those Spitfires smashing the Huns out of the sky!!!!

[Black Orchid]

[billy the kid]

"In an 8 June article in The Australian, “D-day looms for banks over $224 bn in loans”, experienced business commentator Alan Kohler reported that 744,904 people and businesses have currently deferred their repayments on $224 billion in loans from banks. Kohler noted the “slightly awkward fact” that this represents 90 per cent of the capital of the Big Four banks.
Kohler questioned whether the loans should be considered deferred, or “impaired”, which in normal circumstances would require the banks to record losses against them. “If they were accounting normally for loan impairments and provisions for bad and doubtful debts there’s probably not much doubt the entire Australian banking system would be insolvent and the economy would be in a lot more trouble than it is now”, he observed.
Under the coronavirus restrictions, payments were deferred for six months, which period expires in September. The assumption of hibernation had been that the economy would “snap back”—businesses would pick up where they left off and homeowners would go back to work and resume their repayments. Now it’s clear that many businesses which are only hanging on due to the government’s Job Keeper payments won’t survive when the payments run out, and many homeowners won’t keep their jobs or easily find another.
“September is rushing towards the banks”, Kohler warned. “How many of the 744,904 people and businesses, and counting, will be able to resume repayments? How long can loan deferrals go for? What proportion of the loans must be classified as impaired at 30 September? What provisions must be struck for future impairments? How much capital would need to be raised to cover these sums? If it’s a 12-figure amount (that is, more than $100 billion), who will supply it?”
OF COURSE...that's if JobKeeper lasts til September...….
$224 billion.....744,904 people and businesses.....
We're fucked...….
BTW...Aussie Banks have a $50 trillion exposure to derivatives......

[billy the kid]

Addendum to above....
Derivatives expert and Wall Street whistleblower Frank Partnoy has just exposed the danger of CLOs in a detailed article in The Atlantic, “The Looming Bank Collapse”, which is a warning to the world: “The US financial system could be on the cusp of calamity”, he wrote. “This time, we might not be able to save it.” Australia’s banks between them have close to $50 trillion in exposure to derivatives.
https://www.theatlantic.com/magazine/ar ... ket-newtab

[Nom De Plume]

Addendum to above....
Derivatives expert and Wall Street whistleblower Frank Partnoy has just exposed the danger of CLOs in a detailed article in The Atlantic, “The Looming Bank Collapse”, which is a warning to the world: “The US financial system could be on the cusp of calamity”, he wrote. “This time, we might not be able to save it.” Australia’s banks between them have close to $50 trillion in exposure to derivatives.
https://www.theatlantic.com/magazine/ar ... ket-newtab

It is a given... dare I say, planned for! Not to worry though, the US has been hoarding gold in readiness of a return to the gold standard... as has Germany, btw.

[Bobby]

The 4 big banks in Australia cannot fail as the Reserve Bank
would just print however much money they needed to remain solvent.

I read somewhere that the Reserve Bank already poured $70 billion into the Banks
as a result of the Covid-19 crisis.

The real problem is that printing money causes inflation
and people may find that they need a wheelbarrow of money to buy a loaf of bread.

[Juliar]

Oh Bobby, you have totally destroyed Billy's Bank Roll Fantasy where Socialist Hordes chanting Black Power Slogans would appear out of the darkness and seize control of the Banks and NATIONALIZE them!!!!!