Dodgy RBA lifts Aussie markets

As John Kehoe observes today:

The RBA’s fingerprints are all over the CFR statement, which says “an overly cautious approach by some lenders to incorporating relevant laws and standards into loan approval processes may be affecting lending decisions”.

The result is that the bond market has gotten hosed today as it mulls whether the RBA can bully criminal lending back into existence swiftly (I’ll have more on that tomorrow):

The move is much greater than elsewhere and is larger than the equity market rally:

It’s put a little bid under the AUD as well:

Dalian is flat

Big iron is off and running:

Big Gas not:

Big Gold hosed:

Big Banks are also up on the RBA criminal lending bid:

And Big Realty:

Nothing like a bit of RBA greasing to turn the wheels.


  1. They r so reckless and dodgy

    Lower rates to insane emergency lows and wipe their hands of it….esp that Lowe

    All rba board members should have a financial disclosure…how many ip they own. Shares etc. As they r making insider decisions that can affect their own assets

    • proofreadersMEMBER

      We should never undersestimate the self-interest and self-preservation of central bankers. Whatever it takes, whomever has to be shafted.

    • RBA members selling their IPs or shares would be a great sell signal.

      I wonder if there is any way of finding out what they own?

  2. I can’t believe you are surprised, the whole system is built on corruption, it’s the only way we could have got to this point

    • Even StevenMEMBER

      The whole system is not built on corruption – just a lot of it. Believe it or not there are some very dedicated people and organisations working for the benefit of Australia. Unfortunately, there seem to be key organisations like the RBA that wield unbelievable influence and I do wonder if they essentially just represent vested business interests.

  3. Rba types have a narrow gene pool. All went to the same unis. All did the same type of subjects. All Keynesian. All lower the rates for longer forever. All hope it doesn’t crash on their watch.

    • Central bankers enjoy an extraordinarily powerful position: they run a monetary system that 99.9999% of the population do not understand; they are appointed, not voted for and they can utilise monetary policy to confer profits on whomever they please (generally the wealthy) as well as themselves. In fact, as monetary policy has such a powerful impact on risk-assets they are effectively free to front-run their own policy decisions i.e. profit from insider trading.

  4. I’m going through a refi process at the moment moving banks (dissastisfied by current rates).

    What’s interesting is our current bank unable to match another bank’s offer and instead urging me to fix (at a higher rate than current variable) as rates are going up. CBA, WBC, adamant they’re movin on up, movin on up. A local credit union was circumspect and admitted a lower likelihood of that happening.

    It will be interesting to see if MB’s prognosis occurs and what the banks pass on.

  5. proofreadersMEMBER

    “Australian equities aren’t overvalued” – free advice from the newest financial adviser on the block, your RBA?