@jasonj Well i have to say that in the '90s Australia had its...

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nikcola

578 Posts.

12/12/15

00:57

Post #: 16599372
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Originally posted by jasonj ↑

I found quite interesting the following RBA paper :

rdp1999-06.pdf - Google Search
www.rba.gov.au/publications/rdp/1999/pdf/rdp1999-06.pdf

It suggests the 1890's depression was worse for Australia than the 1930's depression. Mainly because of collapse of several banks. These banks primarily collapsed because of a speculative housing bubble in the late 1880's that was funded by risky loans.

Fast forward to today and it seems we are in a similar boat, although not quite the same situation. Our currency today is floating which cushions the impact of a recession and supposedly our big 4 are well capitalised.

Kind of makes me wonder how bad it could get here in Oz. Could our big 4 come under pressure due to loan defaults? Could we end up in a localised depression?

And before Timber points it out, this does have relevance to gold because the currency would come under attack if there's a sniff of bank failures on the horizon. And this might be a reason to hold gold or USD.

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@jasonj Well i have to say that in the '90s Australia had its own recession(like the one in Europe now in the last 7 years)...at the time Australian banks had to restructure and only because of that our banks imo survived this time...China had it in the '97-99...and in USA started in'07...I believe we are pretty safe even if we would have a slow down in the economy ...its all part of the circles -Fibonacci sequence ,cheers
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0 Great analysis

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@jasonj Well i have to say that in the '90s Australia had its...

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