michaelwest.com.au/tax-shysters-paypal-investigated-by-austrac-for-money-laundering-counter-terror-financing/
I was going to write a post the other day in regards the talk of the Government ' relaxing ' prudential lending and credit criteria for personal and business loans moving forward. On top of this there was even some speak coming directly from the RBA in regards to the possibilities of the Banking Sector to entertain ' Negative Mortgages ' as have others in Europe and the USA seem to be headed in the advent of ' Zero ' and negative interest rates.
And ALL of this as a result and the final nail so to speak in the face this latest COVID-19 affected economic backdrop.
So it got me thinking this week .....especially in view of Australia's largest ever Corporate penalty of $1 Billion Australian Dollars being levied against Westpac ..... with perhaps MUCH more to come on that front with respects to other lenders. So I thought .....is this perhaps in part the ' Magic Pudding ' solution to fix the Australian and Other economies - and then I thought ' of course it is ' right.... Keep pumping in the Liquidity so that the Businesses , Individuals , and Stock Markets can ultimately support and if you like prop up or bail out the fledgling property markets and high mortgages .
Whatever angle you think is more appropriate , there does seem to be this rather ' Bipolar ' connection of thinking and dichotomy connecting the ' Regulatory ' , the Banking and Financing Sector , and the Government's Policy making decisions around what's perhaps really needed in getting the Australian Economy to the ' other side ' of this Coronavirus Pandemic.
So I ask myself after considering these obvious competing forces surrounding this 'even further increasing liquidity - What is exactly on the ' Other Side '..... ?
Then of course comes this ' follow up ' article from Michael West regarding the potential further extension to the Banking enquiry inspired investigations into the payments ' Behemoth ' Paypal. ( see attached article link ) . Now one can take the view that this may be a ' Negative ' or ' Overhang ' on the sector temporarily ........but one would also have to consider did it really do anything against the Westpac share price specifically ....? No it didn't because Westpac's share price was up around 7.5% the very next day , and if you take note of the Share Prices of ALL the Big Four banks , you would observe that the Charts are ALL depicting the same overall ' shape ' and trends.
So I think we can assert that there is something else going on here in the overall financial lending and transactions Industry......and that something I believe is going to be a ' Heightened ' level of M&A activity between the Banks , the BIG Corporates , and the overall BNPL space. And we have of course have seen plenty of this activity within the BNPL space already , so it' only a matter of time before we see the Banks wade into it to some degree as well.
Now whether that is by ' ring fencing ' their existing operations and ' factoring ' out their ' personal loan ' lending book to the BNPL players and letting them run with the ' Self Regulation ' of this Industry .......or whether it is by Direct Bidding or Joint Venturing with a BNPL player , and then ring fencing this Venture - Either way there will definitely be some noticeable Corporate Activity in this space as result of this increased lending capacity due the ' relaxing ' of lending criteria.
Given that most Businesses would have stronger Balance Sheets ...irrespective of COVID-19 than say your average Individual , this puts Cirralto in a very very strong position moving forwards in this ever expanding credit lending and cashflow space.
And after all isn't it a fair assessment that at the end of the day the ' Improved Credit ' is intrinsically ' linked to ' Improved Cashflows ' ......and that my fellow investors is what CRO is all about.. And so it really is ultimately as someone here has stated a
WIN ( for Businesses ) =
WIN ( for Cirralto ) =
WIN ( for Shareholders ).......
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