Walk The World
I discuss a recent RBA release about correspondence between the Treasurer and RBA about risks from derivatives. While the focus of the letters is superannuation, there are wider issues at play here, as I explore with Robbie Barwick from the Citizens Party.
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Caveat Emptor! Note: this is NOT financial or property advice!!
I'm too mature to say 'first'.
Just ignore the several TRILLION used by the big 4 banks in derivatives though says the government. Look at this little pile over there.
Love your work Martin. Hopefully some talk on the bank runs currently happening in China with some of the big state banks, they are withholding deposits, not looking good. https://www.youtube.com/watch?v=DF__Gr_NVok
Super is under attack from all sides
Vow. They attacking our super as well now
I have been telling everyone I know to get their Superannuation out for the last 4 years to no avail.
Where can I get a copy of that map showing rising sea levels, please.
Not sure if it's a smart idea to put money in Bonds that go to infrastructure if that infrastructure is tied to the Road and Belt Initiative.
Gr8 Discussion Robbie and Martin….Cheers from Damo.😊
I hope our friends at Nucleus Wealth are taking care of us Martin… Damien and the team seem to know what they are talking about on the streams….can they walk the walk though and protect or even make money in this market?
Australian Banks are ready to Bail In all savings on collapse of the economy courtesy of the Scott Morrison Government
I am so glad I am in SMSF.
As good as it has been for the nation’s overall savings, I wonder how much the super industry hides its true performance by constant mandatory inflows? What is the rate of return when the previous year’s inflows are removed?
Super is a bubble, kept pumped up by compulsory naive inflows.
That demographic is changing right now…for the worse.
Frydenburg's slight worry about derivative gambling within retail banks should signal all-out terror in anyone who is actually paying attention…
Lowe has to go.
Podcast edition: https://episodes.castos.com/dfa/b590ff76-2c2a-4c49-941e-b2ac68846ddd-SHGN7-S001-S001-T006-ISO1.mp3
LOL.. Subtle… But no its not gonna happen. You can try hyperstition it all you want buddy but it aint happening.
Its not really an industry and more like a racket…. Designed to separate you from your money.
A transaction tax would reduce speculative trading.
Just wish I took out 10K of My super when I had the chance recently and invest it some where for a return as My super is going backward now.
My Super called me , and asked me where , did i want to invest my Account .
I said , i am a Driller , i know all about Drilling ! I know Nothing about Finance , that's why in have a Super Account .
Put Australia on a gold standard and get on with it
This is appalling. I recall macquarie bank shares fell to about 17 dollars during the gfc. An enormous amount of macquarie's profits is derived from trading. We have a right to know their derivative exposure.
We also need a much more accountable system for super funds. Australian super reported their balanced fund only lost 2.7% in the past financial year. I'm sceptical this is actually true. The share markets around the world have fallen fairly heavily. I suspect, they revalued their non listed assets to hide their true position. I smell a rat. Im not sure anyone is really monitoring these funds appropriately.
It feels somewhat ironic that I now understand derivatives and the huge potential risks by watching people become millionaires in 1% of cases or loose everything and then some in 99% of cases on wall street bets YouTube videos… The idea that the banks have trillions in positions is frightening. If super derivative positions are in things like selling covered calls or cash covered puts that's fine but I somehow doubt that it's all that safe.
The Australian Prudential Regulatory Authority, is the regulator of the Super/Private Pension/Retirement funds, not the Reserve Bank of Australia. APRA's oversight is founded on the "QUALITY OF RISK" doctrine. The easiest oversight is to invest in "INDEX FUNDS", the hardest oversight is to directly deal with "HEDGE FUNDS". I doubt any fund would deal with such casino betting that Derivatives are.
(Glassed Eagle) nice!
This was amateur hour. Derivatives for hedging in super is a non issue. If you want a story on industry super, look into their dodgy practices around valuations of unlisted assets, i.e. CALPERS just sold $6bn of PE investments at a 10% discount, did Aust super mark down unlisted assets… likely not??? As for banks, they're financial intermediaries, they're paid to manage risk which they do with derivatives. Regulators impose capital requirements against derivative positions on top of the daily collateral calls between counterparties, they also use netting agreements with counterparties that makes reporting gross exposures redundant. It is a highly complex interdependent global system with multiple levels of oversight, checks and balances. It is also levered and vulnerable, but risk can't be made to disappear, only transferred to those best equipped to manage it. I could go on, but its pointless, just stop misleading people with click bait.
Whenever there’s a pot of gold it’s surrounded by fast talking idiots.
Great content guys.
Why are industry super balances going down? Because its a scam! Smsf and inverse etf's " bboz , bbus so why don't your fund use them?
Are Bank 'Term' Deposits also subject to potential 'bail-ins' ? if so, seems treasury bonds are the only savings avenue that are 'hands-off' !
Sometimes ideas have flaws that are so attractive it gets buried so deep inside it that they never get examined. But the flaw remains and a developing pathology grows within it. Superannuation growing inside global financial markets is exactly one of these things. It tied the interests of the ageing to a finance capitalism and a status quo that silenced their discontent with so many other things.
But, it all depends on not just on growth, but continuous growth and eventually that growth gets conjured with magic. Derivatives. But once it is unleashed, it is like a cancer that can't be treated because treatment entails suspending growth and allowing recovery.
So it continues. The most perfect of these vehicles is SMSF because its rests upon characters who believe they are a genius when times are good. Superannuation, oh Jesus. But, if this spaghetti universe of counter party risk ever tears itself a part, it will destroy even the most conservative manager of a SMSF, without ever touching it. Its a weapon of mass destruction, potentially.
I've said it before. Our new Treasurer has been captured by the Treasury Mr. North. You saw it from his first days in the language he took to the public. Derivative risks? I enjoy listening to Robbie Bobblehead, sometimes, he knows how rotten this financial system is. The trouble is he hasn't a clue on how to do anything about it, other than jumping up and down in the new Town Hall.
Wait for the press conference Mr. North. It is still to arrive. Chalmers will present himself looking all serious holding the text of a speech that was written by his controllers. The system is going to save itself. It is not going to commit Seppuku simply because it is not stupid and people like you keep saying it is.
Commendable and perhaps a timely presentation. See you in September Mr. North.