Via Gotti today:
I have described previously how at the dramatic FINSIA regulators’ lunch in Melbourne it was clear that the Reserve Bank, APRA and ASIC, in their desire to quickly improve bank balance sheets, had little understanding of the downturn they would create and its implications.
But the share market now fully understands the dangers. And they were underlined by the OECD.
Somehow, some way, we have to explain to the regulators that they are going to cause a recession as consumers hold back and the home building industry contracts dramatically in 2020.
And someone needs to explain to the royal commission what happens if it goes too far.
Meanwhile, retirees who bought bank shares to gain income to overcome the low term deposit rates have seen their capital values slashed.
The regulators are finally doing their job inhibiting criminal behaviour. That is obvious progress.
If it brings on a recession that impacts greedy old farts then that’s just too bad. They didn’t have to take the bank bribe. Such excesses always end in tears.
It’s called a market, Gotti. Look it up.