Plain English Blog

This is in your interest

Andrew Pegler – 26 March 2010 THE GFC has changed how banks raise money. While this isn’t great for borrowers it’s boon time for savers. Ever wondered how banks get their money? It’s a mix of your deposits with what they can borrow from other financial institutions on the capital markets. (Capital markets are where governments and companies go to raise money.) This funding mix was pretty stable leading up… Continue reading →

The news just gets better

Andrew Pegler – 19 March 2010 The Aussie economic recovery is going so well that some are tipping Wayne may bring down a budget surplus next year instead of 2015 as previously forecast. Let’s call it a Swan dive. To run a nation is expensive and roads, hospitals and memorial halls must be funded by taxes. If the tax collected equals what is spent we have a balanced budget. If… Continue reading →

From Bust to Boom

Andrew Pegler – 12 March 2010 Last month saw a record 20% rise in the ANZ job ad index. The latest NAB business confidence survey figures are the highest they’ve been in eight years and retail spending is up. This latest round of data continues a dazzling turnaround for the Aussie economy that has taken us from fears of a bust to threats of a runaway boom. But alas there’s… Continue reading →

Is it a bird, is it a plane? No, it’s an SMSF!

We put a sample of UBankers on the couch and between asking about their childhood and other proclivities, grilled them over their thoughts on self-managed super funds (SMSF) (a lot of you have one). So without further ado let’s all pop on our Freudian slippers and take a look at the results. The seemingly remorseless slaying of super funds by the GFC has dramatically altered the super conversation. Gone are… Continue reading →

The ads and disads of immigration

Posted by Andrew Pegler on February 26, 2010 Hello UBankers (don’t read that aloud too fast as it may sound like an insult). This week I will continue this blog’s firm political stance on not having a firm political stance and take a gander at the ads and disads of the political football that is immigration. Tony kicks to Kev, Kev kicks to Tony… Advantages of immigration: 1. We get… Continue reading →

Your Big Fat Greek Meltdown!

Heard about the unfolding Big Fat Greek Meltdown yet? If not, may I suggest you read on because if it goes the way some are suggesting it could kickstart the second wave of the GFC. Yes that’s right the second wave. The first started when the subprime collapse put a bunch of private investment banks like Lehman Brothers up against the wall. The second I fear may have already started… Continue reading →

I want to talk about your relationship

Andrew Pegler – 13 February 2010 Hello Valentine’s week lovers, it’s the cupid of economics here fearlessly firing weekly arrows of love (mixed in with the odd one of despair) into the digital ether. In this Valentine’s week I want to talk to you about your relationship. No not that one; it’s the one you’re rekindling with debt and spending that concerns me. Retail sales are up, house prices continue… Continue reading →

When economic forecasting makes astrology look respectable

Andrew Pegler on February 09, 2010 Despite the “smart” money plunging, hurtling, even careering behind a rate hike all week the RBA board has gone against the script and in doing so has proved every economist surveyed wrong. Perhaps John Kenneth Galbraith was right when he said “the purpose of economic forecasting is to make astrology look respectable”. Yes folks, as the shock of the no reverberated around the nation… Continue reading →

Why we will double dip in 2010

Andrew Pegler – 22 January 2010 Please excuse me while I put on my horns, crank up the fires of Hades and assume the role of devil’s advocate for a double dip in 2010 – folks, the recovery is an illusion David Copperfield would be proud of and 2010 will be a shocker. Right now things are going along well. Stats are looking up, the jobs market is turning, banks… Continue reading →

Why we won’t double dip in 2010

Why we won’t double dip in 2010 As we launch into another trip around the sun I thought it appropriate to explore both the doom or zoom scenario for 2010. This blog will present the reasons why we won’t have another recession in 2010 and next week I argue why we will. Meanwhile I’m off to see a movie with my split personality. Towards the end of a recession conversation… Continue reading →