Links 23 March 2020

Global Macro / Markets / Investing:

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Trans-Tasman:

Leith van Onselen

Comments

  1. BWAHAAAAAAAAHWAAAHHH!!!!

    “The CBA also confirmed that “any pause in repayments will end up being capitalised into the rest of the loan term.”

    That’s a very complicated way of saying, “after you’re done with your mortgage ‘holiday’, as some are calling it, you’ll have to keep up your repayments, and your balance will be bigger than when you started the deferral process”.

    https://www.abc.net.au/news/2020-03-21/mortgage-pause-coronavirus-nab-commonwealth-anz-westpac/12076690?section=business

    BWAHAAAAAAAAHWAAAHHH!!!!

    You can check out any time you like……
    But….

    • … the only way you’re going to leave is feet first, inside a box.

      Speaking of which, how many boomers have:
      A) reverse mortgages?
      B) true-blue real dinky-day mortgages
      C) been acting as guarantor for kids

      When a few start popping off the perch, that’ll make a bit of a mess…

      • truthisfashionable

        Good point, the one boomer house could be cross collateralised against two or more mortgages with with four or more different parties (parents, parents bank, kid & partner 1, kid & partners’ bank)
        That could be an interesting web to untangle.

  2. Obviously, word on the street is China has basicallly stopped testing people for the wuhan flu, so their numbers have falsly dropped.

    From a local perspective in a major QLD hospital – things currently are ok – we’re still admitting positives at 5-10 a day – all are well currently. Bad news is I’m being allocated to a team looking after them shortly and the prevailing wisdom for some reason is surgical masks are safe to wear (rather than N95 respirators). If I don’t shit-post once in every weekend links thread please assume I’m dead.

  3. The dole is kind of tempting with no asset test. $28,600 per year to avoid getting infected. No asset test either so you can still maintain liquid investments.

  4. Eggplant Wizard

    Did some back of the envelope extrapolations with the few states that released partial unemployment claim data in the US a couple days ago.

    Between Sunday and Wednesday last week, 2.5 million extra unemployed. So well over 4 million in one week, and likely 6-10 million extra for all of March, when all is said and done.

    Apocalyptic, and well beyond the capacity of the system to cope with. Don’t know what comes next but it won’t be good.

    • People will demand that we get on with things and go back to work. Old people just have to protect themselves best they can.

      For a lot of the working poor, lack of money is a far bigger problem than a virus that kills 0.4% of people under 50.

      They’ll take their chances.

      After the initial lockdown the government needs to implement temperature checks for entering public buildings, mandatory face masks, social distancing by law.

      The bodies will pile up initially and the system will be overwhelmed for a couple months, but the squeamish can lock themselves inside and watch MAFS.

  5. Anecdote. If you go to Woolworth’s you can only buy limited categories of food. e.g. different types of tinned food (beans, corn, etc) will count as the same category.

    So the whole point of social distancing is that you counter the contagiousness by reducing your contact with others. Meanwhile, our inept food distribution is forcing people to go to the supermarket several times per week, and having to queue up early in the morning to improve your chances of securing some food.

    They have also suspended home deliveries.

    We are fn useless.