Until there’s a panic and there’s a rush on the banks ATMs.
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Financial Armageddon!!
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Originally posted by Perry View PostAs A has withdrawn the original 10 x $100 bills, how does the $900 remain an interest-bearing debt?
I don't see any problem here but I suspect the author is trying to show how evil the bank is - earning interest while it has no cash in the vault.
Maybe WINZ can comment on such examples and explain the difference between cash and debts?
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Originally posted by Bob Kane View PostThe $900 debt remains because B hasn't paid it back.
I don't see any problem here but I suspect the author is trying to show how evil the bank is - earning interest while it has no cash in the vault.
Maybe WINZ can comment on such examples and explain the difference between cash and debts?
When the bubble bursts D through to L want their money back, the bank demands payment from B and M through V. Most will not be able to repay and go bust, as will the bank and almost everyone looses.
Now multiply A to V by a few tens of thousands of people and you’ll see the problem.Last edited by Learning; 20-01-2018, 12:05 AM.
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Originally posted by Learning View PostWhen the bubble bursts D through to L want their money back, the bank demands payment from B and M through V. Most will not be able to repay and go bust, as will the bank and almost everyone looses.
Now multiply A to V by a few tens of thousands of people and you’ll see the problem.
In practise, the govt and the banks want to stay in business and so measures are taken to avoid the crash.
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Originally posted by Bob Kane View PostThat's the fear.
In practise, the govt and the banks want to stay in business and so measures are taken to avoid the crash.
Dunno about here but the banks and the government are one and the same.
They work for the SEC, look the other way, get a job at a big bank on a big salary.
Or they work for a big bank, but then see the "error of their ways" and go and work for the SEC. But of course they're actually still working for the bank...
When the GFC started, who did they hire? Yep, Timothy Geitner, banker.Squadly dinky do!
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'It is frankly scary': World financial system as stretched as before 2008 crash
24 Jan 2018
Originally posted by StuffThe world financial system is as dangerously stretched today as it was at the peak of the last bubble but this time the authorities are caught in a "policy trap" with few defences left, a veteran central banker has warned. Nine years of emergency money has had a string of perverse effects and lured emerging markets into debt dependency, without addressing the structural causes of the global disorder. "All the market indicators right now look very similar to what we saw before the Lehman crisis, but the lesson has somehow been forgotten," said Professor William White, the Swiss-based head of the OECD's review board and ex-chief economist for the Bank for International Settlements.
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^
White said there was an intoxicating optimism at the top of every unstable boom when people convince themselves that risk is fading,
but that is when the worst mistakes are made.
Central banks are now caught in a "debt trap".
They cannot hold rates near zero as inflation pressures build,
but they cannot easily raise rates either because it risks blowing up the system.Last edited by eri; 24-01-2018, 09:40 AM.have you defeated them?
your demons
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Property downturn sees more homeowners cashing out with losses
24 Jan 2018
Originally posted by StuffThere has been a sharp increase in owners selling houses and apartments for less than they paid. One in 10 apartments sold in the third quarter of 2017 went for less than their owners paid for them, according to CoreLogic's Pain and Gain Report. House owners fared better, with just 4 per cent of sales resulting in a loss.
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only days later
the line from that story
"They cannot hold rates near zero as inflation pressures build, "
doesn't seem relevant for nz
as inflation isn't building
NZ dollar tumbles as tepid inflation dashes chance of rate hike
http://www.nzherald.co.nz/business/n...ectid=11981854
so as has been said here before about interest rates + inflation
the outlook is for flat
with more flat
on the horizonLast edited by eri; 25-01-2018, 05:27 PM.have you defeated them?
your demons
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More migrants leaving NZ, more UK and Philippines citizens want work visas
2 Feb 2018
Originally posted by StuffMore migrants who once moved to New Zealand to live decided to leave the country for good last year. The latest Statistics New Zealand net migration data shows almost 2 per cent more foreigners left New Zealand in 2017 than they did in 2016.
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Bitcon dropping very quickly just now.
From this site:https://www.coindesk.com/price/
Price is $6,780.12
Which is down 17.18% in one day.
Still very good if you bought a year ago, but terrible if you bought 6 weeks ago at the peak of $19k
This has always looked like a bubble to me.Last edited by Davo36; 06-02-2018, 09:19 AM.Squadly dinky do!
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