Banks and Interest Rates
Banks and Interest Rates
interest rates could go lower
Get Ready for Even Lower Interest Rates
interest rates could go lowerJust because rates have been at records lows doesn’t mean they can’t go any lower. For one, there’s the Aussie property market to think about. However, by looking at what the big banks are doing, we can glean what the RBA is likely to do in the future.
Central Banks Still Behind the Curve
Central banks still behind the curveRight now, pass the cash parcel is in full swing, and central banks are only very timidly trying to reduce the size of the parcel. That’s basically why you’ve seen the US stock market rise unimpeded for the past two years. Central banks are behind the curve. There is too much cash in the system given the positive investor psychology that is unfolding.
The True Threat to Aussie Banks
banks biggest threat is blockchain technologyAs long as the big four can comfortably maintain their positions at the heart of Australian finance, it’s unlikely to change. There’s little competition for the big four, outside one another. But that comfortable position may not be as secure as they think.
Trump Gets His Tax Cuts — Now What?
tax cuts in the USDonald Trump’s long promised tax cuts finally passed. By reducing the corporate tax rate from 35% to 21%, Trump hopes to encourage US firms to repatriate capital and invest it at home. Tax cuts appease the right wing. Increased jobs and wages appease the working class. Everyone wins, right?
Is it Time to Sell the Banks?
banks royal commission into wrongdoingCalls for an inquiry into misconduct in the banking industry have been coming for some time. If public confidence in the banks is shaken, that could be more damaging than the real potential for misconduct to be brought to light and punished. So, is this the end of the banks’ dominance in Australia? Are our favourite dividend-paying stocks in trouble?
Why Banks Now Want a Royal Commission
banks royal commission inquiryThe royal commission is likely to recommend increases in regulation, red tape and bureaucracy as the solution to the problems that arise. They are less likely to look at options like increasing market competition or mandating technological improvements. And funnily enough, that’s perhaps what the big four banks actually want in the current environment.
The Huge Twist the Bankers Didn’t See Coming
technology innovation worrying bankersI do acknowledge that cryptocurrencies make some people nervous. They change deeply embedded societal structures. They change the fabric of your daily life. The security of certainty. Cryptocurrencies are a move in the direction of freedom. If we are willing to pay the price.