Sign in to follow this  
Followers 0
cobran20

ABS: 5671.0 - Lending Finance, Australia, Feb 2011

7 posts in this topic

link

FEBRUARY KEY POINTS

FEBRUARY 2011 COMPARED WITH JANUARY 2011:

HOUSING FINANCE FOR OWNER OCCUPATION

  • The total value of owner occupied housing commitments excluding alterations and additions fell 1.0% in trend terms and the seasonally adjusted series fell 4.8%.

PERSONAL FINANCE

  • <LI type=square>The trend series for the value of total personal finance commitments fell 2.3%. Revolving credit commitments fell 3.0% and fixed lending commitments fell 1.6%.
  • The seasonally adjusted series for the value of total personal finance commitments fell 3.5%. Fixed lending commitments fell 5.0% and revolving credit commitments fell 1.8%.

COMMERCIAL FINANCE

  • <LI type=square>The trend series for the value of total commercial finance commitments was flat (0.0%). Revolving credit commitments rose 1.3%, while fixed lending commitments fell 0.5%.
  • The seasonally adjusted series for the value of total commercial finance commitments fell 6.6%. Fixed lending commitments fell 9.9%, while revolving credit commitments rose 1.0%.

LEASE FINANCE

  • The trend series for the value of total lease finance commitments fell 0.9% and the seasonally adjusted series fell 10.4%.

Share this post


Link to post
Share on other sites

I know most here understand finance and the fundamental role it plays in our now unsustainable bubble but these figures are even more atrocious when you consider just to keep our house prices at normal turnover from collapsing we actually need finance growth at a growing rate.

To have the rate of takeup of finance fall we are surely even from my view entering a pretty shaky time for house prices.

Share this post


Link to post
Share on other sites

...To have the rate of takeup of finance fall we are surely even from my view entering a pretty shaky time for house prices.

wash your mouth, house prices only rise! ^_^

Share this post


Link to post
Share on other sites

wash your mouth, house prices only rise! ^_^

I am sure their is someone doing Darth Vader choke holds on me right now... :starwars:

Share this post


Link to post
Share on other sites

Good blog from Deep T on finance and government involvement in it;

Covered bond legislation will be finalized in the second half of the year. The importance of covered bonds will be that the major banks will be able to weaken their balance sheets but still maintain the same ratings with implied government support and so will be able to further leverage up those under capitalised balance sheets. This is stated in the explanatory note to the covered bond legislation [REF] where it says that depositors do not have to worry if a bank fails as the government explicitly guarantees deposits of $1m or less (of course all deposits have an implied guarantee).

http://macrobusiness.com.au/2011/04/plunge-protection-has-begun/

Share this post


Link to post
Share on other sites

According to Tom's article - 2012 is gearing up to be the year of the crash. It's looking more and more like it will be. I'm still amazed that old Frank was so on the money.

I recon, us younger, housing inexperienced bears, from 2008 til now, had all the maths and logic of the situation down pat but not the experience (or patience) to gauge how it would work out in real terms.

Australian sentiment proved resilient, when brought with government spending and media hype. I wonder if the determination of our government to spend and ward off recession was apparent before previous housing price corrections in this country?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0