Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that South Canterbury Finance's receivers have released their first report.
The receivers say it's too early to say how much of the NZ$1.6 billion paid out by taxpayers to depositers will be recovered, but it noted NZ$446 million of provisions for bad debts uncovered in the accounts. See more here in Alex Tarrant's article.
Meanwhile, the Reserve Bank has released papers showing it was concerned about South Canterbury Finance as early as April 1 last year when it noted related party deals that were potential breaches of the trust deed required for the Government guarantee. See more here in Gareth Vaughan's report.
Elsewhere, US mortgage insurer Ambac Financial filed for bankruptcy overnight as the fallout from the US housing collapse and credit crunch rumble through the system.
Two years on from the worst of the Global Financial Crisis, central banks are still scrambling to boost economies and avoid more financial fallout.
An intense period of action is due from central banks.
The Reserve Bank of Australia may hike its official rate around the time of the running of the Melbourne Cup later today. The US Federal Reserve will announce its plans for a second round of money printing early on Thursday morning.
That is then expected to trigger responses of some sort or another over the following 33 hours from the Bank of England, the European Central Bank and the Bank of Japan.
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10 Comments
I kept thinking Ben must have a weapon ready to use to bash down the price of Gold...yes the ETF scam of selling paper promises is doing the rounds and heaps of people now own a promise that they own some gold..but there has to be something else tucked away...and there it was, hiding under his desk...it's so simple when you see it in action...buy all the gold you can get your hands on..drive the price higher why don't you...Ben don't really care because Ben has control over what it will cost you to change the gold into US toilet paper. Take a look at the buy and sell numbers even at the NZ Mint...now who can tell me whether there is anything to stop the buy price from being dropped!...Consider this situation in the States...word gets out that the Fed has dictated a buy price on gold for US$....a price that will decrease by 1% per month regardless. Can you sell your gold to someone else..of course you can....but the word is out...and unless you can use your gold as a means of exchange to buy stuff...what use is it?....who would accept the coins or ingots as payment if they know they too will see 1% loss per month on the metal....overnight gold has become a hot spud....who wants it.
Dunno Rob. The ETFs sure are a scam. Seems that more gold is owned on paper than exists in or on the planet. Goldcorp was a cracka rort. The IMF and Fed BoE ECB and BoJ are for sure meddling with the price at every turn.
The ETFs offer the easiest route to drop the price. Everything is secret. Who knows what is not sold to whom at a mouse click and oh gosh gold drops $60 in a blink.
Do you think the Fed is unlikely to meddle....would they ignore a chance to rob the gold investors blind...why should they accept the price of gold as being that set by the real bullion market, when no such entity exists in the market.
Who decides what the margin will be at the NZ mint on the buy and sell?
Your tell me Rob.
Wolly you have hit upon one of my concerns here. It isn't a conspiracy theory because the price has been devalued before and its ability to be converted to cash altered.
Seems like there isn't a safe investment to be had at all, other than ones own ability to earn.
I just don't see the Fed bending over for gold ...especially when they can determine the buy price in every US bank and in many other countries....the NZ Mint has a buy price but with Fed pressure that could be driven down or kept from rising at the same rate as the sell price. The margin begins to open. If you cannot sell...the stuff has no value! Overnight the demand for the metal can go poof.
Throw in the fact that gold transactions over about 15 grams in the US results in govt paperwork....you can't sell it and then you get taxed on it...finally it is stolen by the govt.
"Safe" has to be that which you can exit in 24 hours and sooner if possible.
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