APRA’s changes to liquidity requirements will improvement bank liquidity but won’t stop the need for government assistance during crises
Memos
Closed borders have highlighted Australia’s population Ponzi scheme
The Covid border restrictions are an opportunity to reset migration, increase wages and employment, make housing affordable and address productivity problems.
End Lockdowns Faster With Basic Economics
With better incentives and information, Australians would get vaccinated and get back to normal faster.
Governments Are Running an Anti-Productivity Agenda
Using debt-fuelled spending to drag forward consumption is counterproductive in the long term, it leads to stagnation, not innovation.
Evidence of excess liquidity is everywhere
Central banks are repeatedly replenishing the punch bowl when the guests are already trashing the venue
Does adding leverage reduce returns?
A new study says yes and there are plenty of historical examples of how leverage can go wrong
The most dangerous words in finance and economics
The MMT experiment is just a sugar hit, we need productivity reforms to promote sustainable prosperity
The Crown hybrid conundrum and hybrid misconceptions
With Blackstone and Oaktree showing interest there’s a wide range of possible outcomes on the Crown hybrids
Who’s to Blame for the Greensill Mess?
Lex Greensill, Softbank, credit insurers, fund managers and BaFin all played a part in billions being lost
RBA to APRA – we’ve set house prices on fire, you fix it
The RBA admits that rising house prices are creating financial stability issues, but it expects APRA to clean up its mess
Credit lessons from the Greensill downfall
For credit veterans Greensill’s downfall isn’t a surprise with many common red flags long associated with this business
It’s (almost) all about the yield
If central banks take away the metaphorical punch bowl, the party would quickly become a riot with asset prices trashed