Look I don’t know what that poe chart even represents without any labels
The boj- fed and boe ecb own huge amounts of bonds - as buyers they have driven the prices/ rates down- that was their purpose - major central banks have and hold truckloads of bonds- how do you think the prices have come down for a decade
Anyway- as for cba- plenty of provisions made- well up on 2018 - as a percentage its high- non performing loans in an economy with lowest ever rates and subsequently slashed twice tells a story
Many assets prices have exploded for over a decade thanks to a credit fueled boom fueled by lower and lower rates - this is a fact
Credit curve inversions have everyone suddenly saying it signals recession- the truth is inverted rates seriously diminish the incentive for banks to create credit as they borrow short end and fund longer- lower rates reduce nim and credit creation is difficult because the margin is very small for the risk
Lower credit growth due to rates lower- regulatory requirements mean that the asset prices pumped by cheap money are at risk
Increases in provisions and falling profits when assets prices are supportive of super low rates is a big problem imo
If rates falling and debts rising- all good until the rates reverse and the debt has to be accumulated
- Forums
- Commodities
- GOLD
- gold
gold, page-54350
- There are more pages in this discussion • 72,161 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GOLD (COMEX) to my watchlist
The Watchlist
BPH
BPH ENERGY LTD
David Breeze, MD & Executive Chairman
David Breeze
MD & Executive Chairman
SPONSORED BY The Market Online