Philip Chronican, ANZ’s Chief Executive Officer, Australia has today said “Household arrears are a concerning trend. It is a problem that is going to stay for a while,”
The comments come a week after Fitch Ratings reported mortgage arrears had hit record highs. Mortgage arrears greater than 30 days increased from 1.39 percent to 1.79 percent in the March quarter this year. Arrears on low-doc loans hit 6.74 percent, up from 5.7 percent in the December 2010 quarter and above the peak 6.70 percent result recorded during the global financial crisis.
Meanwhile, the government is getting ready to cut the $1 million dollar retail deposit guarantee saying Australia and the domestic banking system survived the global crisis in good shape. It’s suggested the cap will be reduced to a figure between $100,000 and $250,000 in line with schemes in other advanced economies. . .
» Rising mortgage arrears a worry: ANZ – Sydney Morning Herald, 2nd June 2011.
» Mortgage arrears hit record highs – ABC News, 26th May 2011.
» Low-doc mortgage arrears top GFC peak – The Sydney Morning Herald, 26th May 2011.
Hence the new catch phrase from the Ministry of Propaganda;
“The Economy is going well, people are not.”
Phil Chronican was on Lateline Business last night :
“Falling house prices threaten economy”
http://www.abc.net.au/lateline/business/items/201106/s3234312.htm
“The market is likely to be soft: Chronican”
http://www.abc.net.au/lateline/business/items/201106/s3234315.htm
Executive Summary : He is concerned, but there is nothing to worry about – there won’t be a crash because we are different.
10000 RE agents fleeing the industry, individuals raiding their superannuation to meet debt obligations, taxes inncreasing, an extra $550 million funding to the ATO next year for audit. More laws and taxes equals less freedom and liberty. Is there a Australian version of Ron Paul that can stand up for our citizens?
Yoda say – Small ant may not hurt with bite on own, but nation of angry ants will bite hard on the ivory towers when pushed to far.
We have China
Well what a suprise, not ! A population of Aussies swimming in debt on the promise that property is their garunteed path to wealth. I nearly went down that path myself 2 years ago, and are now realising I nearly got sucked in to ‘the dream’. It appears now, finally, that some sensibilty will come into the market, and decent hard working Aussies can aspire to a modest home to raise a family ( if that is what you want to do ), or live in. Rather than have your home as a casino to bet on.
Yoda, best I can think of is John Williams….But he’s from NSW, I’m in SA, so I’m not that familiar with him. But what I seen he is more sensible than the mob of vote seekers we have in Canberra.
AverageBloke Says:
June 3rd, 2011 at 10:44 am
We have China
No for long…….. China is about to come tumbling down.
Many analysts say we have a housing shortage (not me) and most banks seem to agree with that, which will be their downfall. Rents will fall along with house prices when it becomes apparent the shortage is a myth. IMO, negative gearing is dead, and we are not in for a “soft” landing but rather than a pop. Our bubble has totally exceeded its limits, and a “soft” deflation is not an option. Auction results are dreadful in Sydney and Melbourne so it’s hard to see anything but a dramatic collapse in housing values.
Its all wishful thinking, looks like a bit of reality coming home to the ANZ now with their jobs survey today. Plunging in May job ads! This is the leading indicator from hell.
If jobs start to fallover, so do the mortgages. Arrears Rising !!
Agghh – greetings Big Banks from Yoda. Nice to see some Karma coming your way.
Matty, a bull frog on Viagra could run this place plenty than the current host leech. Who crashed the economy? Is it the banks foremost and supported by government policy? Or the other way round?
Yoda say – Wealth Destruction is the name of the game for these economy crashers. I think there is a little bit of something in that for all of us, don’t you. Better to just put head in sand for the rest of the decade, or go on welfare.
NG is not dead. Not one minor change has been made to the current NG tax rort rules.
I agree with you Average Bloke. I think it is all talk with the govt about changing the rules. If anything we are about to see arrears going throught he roof. Yoda is right about the jobs report it will only increase the arrears even more. Crash is just starting to gain momentum.