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Non Performing Loan Across Countries

Discussion in 'The Economy' started by Chris C, 30th Apr, 2009.

  1. Chris C

    Chris C Well-Known Member

    Joined:
    2nd Apr, 2008
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    1,327
    Location:
    Brisbane, QLD
    I'm presently studying Monetary Economics at uni which I'm thoroughly enjoying, and I'm in the process of doing an assignment so I'm doing lots of research on topics that I'm normally quite passionate about - but alas the more I learn the more confused I am... it's so hard to tell where this bad boy of a recession is going and if Australia can avoid the worst of it.

    Anyway I stumbled across this graph and thought I'd share it to see if anyone wanted to chat about it. It shows the percentage of non-performing loans that banks hold. The traditional rule of thumb is banks start to really struggle when non-performing loans reach 0.5-1% which the Australian banks have yet to reach, but seem to be moving towards.

    The graph also puts into perspective just how bad things are overseas...

    [​IMG]
     
  2. Debt

    Debt New Member

    Joined:
    5th May, 2009
    Posts:
    1
    Location:
    QLD.
    I don't believe Aus. can avoid any of it - it's only just started it's run here,
    unemployment just started rising and house prices have just started falling -
    Let's see what we think 12-18 months from TODAY - In the meantime as you are studying ME it might help to become unconfused by the best,
    Professor Steve Keen via his superb blog at,

    Steve Keen's Debtwatch
     
  3. Chris C

    Chris C Well-Known Member

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    I do already follow Steve Keen's website, and I do subscribe to a lot of his views, but he is just one of a hundred different perspectives you could take, and he tends to be at the extremely bearish end of the spectrum. So whilst I definitely lean more towards his argument for debt deflation I think there is a lot that could eventuate that could stifle his vision of a recession on par with, if not greater than, the great depression.
     
  4. joanmc

    joanmc Well-Known Member

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    ah , now I understand why you respond the way you do!!:D
    I think it's interesting that the Aussie line starts in about 1994. It would have been more interesting to show the figures that included 1988 and 89, 90. As this was the period that we had 18% interest rates. I know that just in our street it sent 2 families to the wall. (sigh...yes I am that old) anecdotally I would think the defaults were quite high but I would be interested in actual figures too.

    Do you have them...o studious one?
     
  5. Chris C

    Chris C Well-Known Member

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    Location:
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    I assume you are talking about me when you say "you" though I'm not sure what you mean when you say "the way" I respond?

    :confused:

    I agree, but the both the RBA and APRA are not in the business of scaring the wits out of the Australian public (aka telling us the whole story), their job is providing national stability which doesn't always correlate well with a well informed public

    ;)