Links 5 September 2019

Global Macro / Markets / Investing:




Leith van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Latest posts by Leith van Onselen (see all)


  1. Pension Funds Are Going To Be Destroyed In The Next Recession – Cassandra Capital

    The Atlantic recently had an excellent article warning that The Next Recession Will Destroy Millennials. The author is absolutely correct. Millennials are in for a tough time as they have little to no savings. However, boomers are unlikely to fare very well in the next recession either – in fact, they might even be worse off than millennials. Boomers are in trouble because it’s almost a certainty that pension funds are going to be absolutely wrecked in any future recession.

    it’s not hard to see what is going to happen

    just imagine the faces when companies announce no dividends in foreseeable future – no franking credits despite LNP win OMG OMG ….

    • The Traveling Wilbur

      Yeah, nah.

      They’ll still pay them anyway. Just expect to see the right hand side of their balance sheets growing proportionally while they do.

      Econ 101 from the P.S.E. for the 21st century.

    • The Traveling Wilbur

      It’ll end something like this:

      Courier FlasheService 2062
      August, 11th.

      Boomer over
      The last surviving dividend recipient in Australia (of the once vaunghted Boomer generation) passed through the viel of digital remembrance at 0001 this morning when public funding for the hospital commissioned to provide extremis-after-life-care for his corpus was withdrawn following last week’s failure of the RBA to identify any potential buyers for it’s -17% Premium 50-year bonds.

  2. Jesus – I just caught some talking head on the ABC AM news declaring that we do not need to worry because GDP ‘is a backwards looking number’


    ANZ agriculture economist Susan Kilsby thinks Fonterra may have to make still further asset write-downs of up to $700 million and may have to withhold some of the milk price payout … David Hargreaves … Interest Co NZ

    There is a “heightened risk” that Fonterra won’t be able to afford to pay its farmer suppliers the full milk price in the current production season because it will need to make further asset write-downs, ANZ agriculture economist Susan Kilsby says.

    Fonterra’s already announced write-downs of about $860 million and an after-tax loss of possibly up to $675 million for the financial year to the end of July. The full results are to be announced by the co-operative next week.

    In an ANZ Dairy Update, Kilsby is estimating, however, that another $300 million to $700 million of write-downs might be required into the next financial year.

    And if that’s the case, she thinks that Fonterra might have to hold back on paying the full milk price to farmers in the current production season. … read more via hyperlink above …

  4. Fear not MBers.

    The GDP may have stalled, but the vibrancy rolls on! This week, it’s god knows how much precious taxpayer money being chewed up by the courts to deal with that quaint migrant custom of burning your wife to death:

    Remind me again about all the wonderful multicultural benefits our migration program is bringing to ‘Straya?

    The overhang of welfare dependent / Medicare dependent / tax avoiding / wife killing / Uber passenger s_xual assaulting migration will be with us long after this place is deep into recession.

    Don’t say you weren’t warned, Scummo.