From 2012-2019 central banks should have been unwinding stimulus, but instead they increased it and created a bubble in financial markets and the economy.
Banks
A Virtue Signalling Rate Cut
The RBA’s decision to cut rates on March 4th seems more about appearances than cold economic logic.
There’s No Good Case for October’s Rate Cut
The RBA cut the Cash Rate on October 1st, but it has again failed to put forward a decent argument for why another cut is required.
The Dumb Money is Buying Bank Hybrids
The retail buyer base for bank hybrids is taking far more risk to get the same return as institutions buying AAA rated Australian RMBS
Central Banks are Fighting Economic Fundamentals
Central banks are using a monetary policy hammer when economies need a screwdriver. Here’s what they should do instead.
Bank Hybrids are a Screaming Sell
For bank hybrid investors, there are some obvious alternatives that are both lower risk and have higher expected returns
The RBA Has Lost Its Way
The RBA is ignoring the mounting evidence of the damage caused by low interest rates and the counterproductive outcomes from its actions.
APRA Should Ignore the Big Banks on Tier 3 Capital
APRA has recommended Australian banks hold more tier 2 capital. This submission covers key measures aimed at reducing the risk of banks needing bailouts.