9th August, 2017
Glass-Steagall is also a war avoidance policy
A 1995 analysis by the Royal Institute for International
Affairs, aka Chatham House, the premier think tank of the
British Establishment, called for Britain to use the Commonwealth
to exert its political and economic influence worldwide,
especially in rapidly-expanding Asia. Crucially, that
analysis acknowledged Britain was still an empire, not of
territory, but "an informal financial empire". In other words,
Britain's interests are not those of the British people, but the
interests of the City of London.
The failing global financial system that we are witnessing
is actually the collapse of Britain's informal financial empire.
This creates the opportunity for a new, fair and just financial
and economic architecture. China has provided an example
for the world, pursuing for nearly three decades public
credit and Glass-Steagall policies that the USA and Australia
pioneered, but abandoned.
Articles include the following:
- Mortgage delinquencies and investor losses on the rise
- Stock market 'not working'
- King O'Malley on 'fog wealth'
- If your refugees aren't bad, why are they in prison?
- Echoes of HSBC in CommBank money laundering scandal
- Legal showdown over Queen's Whitlam letters
- Whistleblower warns 'sequel' to financial crisis is here
- NY Fed's refutation of Glass-Steagall backfires
- A marriage made in Hell targets the Presidency
- Trump caves in on 'unconstitutional' Sanctions Act
- The Glass-Steagall divide
Click here for more...
8th August, 2017
Bubble watch: mortgage delinquencies and investor losses on the rise
Each new report relating to Australia’s housing market indicates the inevitable, near-term collapse of the property bubble, and the banks that are intertwined in it. The government and banks must treat these reports like gasping canaries in a mine, and act to get the Australian economy out of danger, starting with a Glass-Steagall separation of banking from speculation.
Mortgage insurer Genworth Mortgage Insurance Australia, which has about 30 per cent of the mortgage insurance market, has revealed in its latest half-year results a distinct rise in mortgage delinquencies—borrowers falling behind or defaulting on their payments. Genworth pays out to the banks when borrowers are delinquent on mortgages it insures.
The insurer has experienced a sharp rise in the number of paid claims, and an even sharper rise in the amount of those claims. In the first half of 2017, Genworth paid out 711 claims, up from 566 claims in the first half of 2016, and 633 claims in the second half of 2016. The average dollar value of those paid claims shot up from $72,600 in the first half of 2016, to $102,300 in the first half of 2017.
This rise in delinquencies is shocking, considering that interest rates in Australia have been at record lows for a long time. It demonstrates how even a modest rise in interest rates will cause carnage among overstretched borrowers—as foreshadowed in April by Finder.com.au, which revealed that 57 per cent of mortgage holders would not handle even a $100 per month increase in their mortgage payment.
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