Dumb bubble headline of the day

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From Chanticleer:

Westpac Banking Corp’s decision to share the pain of higher capital charges with shareholders and home loan borrowers will deliver a big jolt to the economy.

Westpac customers with about $185 billion in mortgages will face higher monthly repayments from November.

While the customers share the pain, shareholders are being asked to pay up to ensure their bank is able to cope with a downturn in the economy.

…One of the considerations that prompted Westpac’s decision to raise capital before its full year results release on November 2 was the potential for hedge funds to attack the bank.

Hedge funds are circling because of the economy, stupid.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.