NSW has actually been in a state of recession for at least ten years.
It would be simply impossible for anyone to win a spirited debate in defence of the NSW Labor government’s competency over the last decade. If you thought “underbelly” was riveting viewing, imagine a screening of “undergovernment” where honest tax payer monies simply disappeared, just like elected politicians (on pensions). Yet despite NSW record tax receipts, the state government actually went backwards financially and this resulted in the collapse of infrastructure.
The elected government at “Fort Crumble” (NSW government) is now faced with liquidation asset sales – this only happens when you are stone motherless broke. A government initiative to sell when weak and not at the peak is self explanatory. Soon to appear on eBay:-
NSW Government – sales spin to likely buyers.
Fort Crumble revealed this week yet another new initiative – a rain tax! Farmers will be slugged an additional $60.00 per annum for (wait for it) “unregulated river system management costs” which will be rolled out throughout all farms in the Premier State. Those city slickers can soon expect an “unregulated oxygen management cost” tax with the catch cry – “in NSW we squeeze the life out of you.”
This is evidenced by the brutal statistic that unemployment in NSW stands at 6.9 per cent – equivalent to that in Britain today. Simply put, the NSW state government is a global embarrassment to this once successful and very proud state but hey, Australia is now in recession (as if we didn’t already know).
Ruddy Fantastic announced this week that Australia would be dragged into a recession for the first time since the 1990’s. Our esteemed leader Kevin Rudd said, “the worst global recession in 75 years means it’s inevitable that Australia will be dragged into recession.”
So let’s look at the big picture – on 22 October 2008 Ruddy Fantastic’s officials met to discuss bank deposit guarantees – approved. The triple A rating is maintained with absolutely no conditions applied for the banks to toe the line by assisting struggling Australians. This monumental mistake by our Prime Minister defies rationality. An amazing and historical moment was lost – better known as an incompetent moment of confusion (also known as panic).
When the Rudd government guaranteed banks why did they not screw them on credit card rates? Why did they not protect the unemployed from credit card 18 – 22 per cent rates when our cash rate is just 3.00 per cent? Holiday announcements for property mortgage holders, but no respite for those struggling with credit card debt – a monumental blunder.
Therefore, one can only assume that housing values have bottomed, given that our Rudd “guaranteed banks” only passed on 10 basis point reductions when the Reserve Bank of Australia (RBA) cut the cash rate by 25 basis points this month.
You may ask which part you have missed? In the very same week that Ruddy Fantastic announced that Australia “had been dragged into a recession” his government’s bank guarantees identified Westpac and NAB actually increasing fixed home loan rates. On the one hand, we have a stimulus package and on the other hand we now have a banking frustration package
Just as absurd was this week’s announcement by Ruddy Fantastic’s government that it is considering banning bank “exit fees” to help borrowers frustrated by the failure of banks to pass on interest – rate cuts. Hello – banks are now increasing interest rates. Forget the horse – the banks have bolted. My point: the Rudd government held the cards – and folded.
Over to the Real Estate Institute of Australia (REIA) President, David Airey, who said it was surprising that two of the largest lenders in the home mortgage market had suddenly decided to raise rates.
Airey said “I ask the CBA and Westpac to justify the reasons for increasing fixed mortgage rates when it is clear that the RBA are doing their best to stimulate the economy and decrease official interest rates.” Nice to see that somebody finally asked this question. Just a shame it was overlooked by our politicians (on both sides).
Such an absolute debacle and the banks’ reason for the increase was the wholesale market swap rates. Back to the REIA “the London Interbank offered rate (libor) which is the rate banks charge for lending unsecured funds to one another, is lower than it was one month ago and less than it was one year ago.”
The three month libor rate is now 1.12 per cent versus 1.30 per cent a month ago – which makes the Rudd Bank (our banking Folding Fortress) complete, with Court Jester too!
We are in recession so how much of the hook, line and economic sinker should constituents be forced to swallow? Australia is the only country that I am aware of where the banks are raising rates.
Authority lost – you can bank on that!
Oh dear – what a monumental stuff – up! The much awaited rhetoric when the federal government announce its budget in just over two week’s time, will be riveting.
With ANZAC Day now upon us – our banks and governments should share the spirit of what made this country great and what it stands for today.
With our unemployment rate now predicted to climb to 10 per cent plus – one does not have to be a genius to work out who and what is out of control. Banking institutions simply outsmarting our federal government (Fort Fumble)? This is a great concern in my humble opinion. You may think differently?
Cheers ^__^
For this week’s recorded Mosman real estate, Cremorne real estate, Neutral Bay real estate and Cammeray real estate sales http://www.rwm.com.au/news/
