Global financial crisis
The credit crisis explained visually
For those still a little bit baffled by how the credit crisis started and then snowballed I recommend you spend 11 minutes watching this video. The concepts are very simply explained including: leverage, collaterised debt obligation and sub-prime. The knowledge will help you become a better investor in the future so that you can better understand [...]
I declare the downturn to be over
I wonder…if together we all declared “I’ve had enough! The downturn is over. From now the economy and markets are growing;” could we create a self-fulfilling prophecy? Yes? You think we could? Great, then join me now in making the declaration and spread the word to your friends, family and everyone you know. Blog it, [...]
Forecasters are so trustworthy
This cartoon accompanied the front page article on The Australian today, 28th April 2009. Beautiful work Jon Kudelka! Found this article useful? Then please spread the word:
Don’t Stress About Losing Your Job
Are you worried about how you will cope if your job is made redundant? Is this occupying your mind for too much of the day, taking some of the joy out of life or even worse, causing you to lose sleep? If you have the three elements shared in this video in place then you [...]
Media “experts” finally held to account
“Even if nothing happened in the financial markets that day there would still be a 60 page edition of The Australian Financial Review published the next day.” That was the view shared by one of my first lecturers in financial planning back in 2000. (I wish I could remember which lecturer so I could give [...]
Redundancy First Aid
Worried about how you will cope if you lose your job? Follow the DR ABC of Redundancy First Aid to reduce your immediate stress and be confident you will survive. The advice is also great to keep in mind just in case you are one of the first on the scene when someone close to [...]
Donate It Forward Project
If you received a payment from the Government’s Economic Stimulus Package that you consider partly or fully to be surplus to your immediate needs then consider using it to support someone really needy. Check out Donate It Forward, which is being held in conjunction with Pay It Forward Day. The aim is to donate $50 [...]
Deciding when to start investing again
At some time during the recent bear market did you sell most or all your investments to cash? Or maybe have you been holding out on your regular investment plan because you haven’t felt comfortable? Watch the video below for some insights into how to decide when to start investing again.
Ten Best Paid Politicians – Value for Money?
With all the kerfuffle by politicians over the remuneration of company executives I found it interesting to read this list of the ten best paid national leaders. Originally compiled by The Times and then re-crunched by The Australian to show their payper capita. (If the link does not work you may also read the article [...]
RBA rate cuts an ineffective stimulus
“Figures from the Big Four banks show that fewer than 5 per cent of mortgage borrowers have opted to reduce repayments as interest rates continue to slide.” (As reported on News.com.au here or here) What that means is that the massive rate cuts from the Reserve Bank of Australia over the past four months have [...]
How long markets have taken to recover
The Reserve Bank of Australia’s Statement on Monetary Policy (released 6th February 2009) included the following graph of the largest falls in Australian equities (aka shares). As the RBA note in their report “Historical experience indicates that, following large falls, it can take between three and six years for the share market to recoup losses”. [...]
First Home Buyers: Don’t Rush In
Many in the media are saying that the latest interest rate cut makes property more affordable for first home buyers. I disagree. Let us remember this is the lowest interest rate in over 30 years. Rates are artificially low to stimulate the economy short term. This is not normal or even an average. So it [...]
Ensure your employer paid your super last month
In a presentation last Thursday night, Australian Taxation Office (ATO) second commissioner Jennie Granger said that of the 2,200 employers selected and visited since July 2008, around 1,045 had not met their superannuation guarantee obligations. (Reported here.) With many small businesses struggling with cash flow at the moment it can be very tempting for them [...]
My lessons from the crisis of 2008
“Those who cannot remember the past are condemned to repeat it.” George Santayana, Spanish philosopher I have just finished reading my gift from Father Christmas, “The Ascent of Money: A Financial History of the World”. This is the newly released book by renowned British historian Niall Ferguson. 2008 was not a first. In the past [...]
Top 10 Financial Collapses of 2008
Time Magazine has published its list of the Top 10 Financial Collapses for 2008. The list is interesting, but I most liked the commentary about what contributed to each collapse. Hindsight is a wonderful thing, and it makes it easy to criticise what now appears as stupidity. So I applaud courageous people like Alan Greenspan who [...]
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