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Be careful what you wish for

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    Be careful what you wish for

    A cut and paste snap shot below, but we had a royal commision into banks.
    Without going into it you can read a little below but appears at time banks were erranoues in there lending etc etc. Findings in feb 2019.

    Fast foward a month later wow have banks tightenup criterea for lending plus add a looming recession if not already in one super super hard to access funding for new loans. Existing ones kinda stay in place.

    Farmers having awful time getting extensions of loans after drought, me included, people 2/3 way through housing loan applications now rejected car loans you name it. What was safe equity levels for lending is now out the window.

    Quite a mess for all customers banks mortgage brokers superannuation fund managers etc.

    Only those in top echelon get funding it seems almost counter productive.

    My bank manager said to me what if you have another crook year, barley was ok on my place but wheat almost worst ever.

    So swing into livestock a little more as a risk management tool.

    Could happen to you guys as well without a commision.


    The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, also known as the Banking Royal Commission and the Hayne Royal Commission, was a royal commission established on 14 December 2017 by the Australian government pursuant to the Royal Commissions Act 1902 to inquire into and report on misconduct in the banking, superannuation and financial services industry. The establishment of the commission followed revelations in the media of a culture of greed within several Australian financial institutions.[1] A subsequent parliamentary inquiry recommended a royal commission, noting the lack of regulatory intervention by the relevant government authorities,[2] and later revelations that financial institutions were involved in money laundering for drug syndicates, turned a blind eye to terrorism financing, and ignored statutory reporting responsibilities[3] and impropriety in foreign exchange trading.[4]

    The Honourable Justice Kenneth Madison Hayne AC QC served as the sole commissioner and submitted an interim report to the Governor-General of Australia on 28 September 2018, which was tabled in parliament by the Government on the same day.[5] The Royal Commission conducted seven rounds of public hearings over 68 days, called more than 130 witnesses and reviewed over 10,000 public submissions.[6] Commissioner Hayne submitted a final report to the Governor-General on 1 February 2019 with 76 separate recommendations.[7] The final report and the government's response to the report were made public on 4 February 2019.[6]

    #2
    Well if the FCC (government farm lender) has any brains it would have been making cash calls already, but it doesn't so will be riding the farm economy down again like it did in the 80's. Farming in western Canuckistan with a lot of debt has always been russian roulette, it just seemed like the laws of the universe had been suspended the past decade.

    Comment


      #3
      Originally posted by ajl View Post
      ...it just seemed like the laws of the universe had been suspended the past decade.
      How. Long. Can. This. Go. On?

      Comment


        #4
        Originally posted by burnt View Post
        How. Long. Can. This. Go. On?
        As long as they allow it.

        And even then, there are many who are betting that they only have to be slightly more solvent than their 2 or at worst 3 neighbors. FCC and the banks might take the low hanging fruit, but if they liquidate en-masse they'll flood the market and be the ones left holding the bag. The remainder? They'll seek terms.

        It's not like they'll be pulling the plug on a few quarter sections. It'll be 5000+ac blocks. If credit is tight who the hell is going to be in a position to stroke a cheque for that? Cause once SHTF most everyone's equity will be useless as collateral.

        Comment


          #5
          It will go on until the printing press is hooked up to solar panels and wind turbines then it will puke.

          Comment


            #6
            they will be coming after farms with equity first....the guys that are mortgaged to the hilt with new leases and high priced land are under water with a 10k per quarter drop in land prices.....there is nothing to get there...

            The managers at FCC that lended that money out can't balance there sheets with no equity farms....

            They will be after mine before the BTOs.....

            Comment


              #7
              Originally posted by bucket View Post
              they will be coming after farms with equity first....the guys that are mortgaged to the hilt with new leases and high priced land are under water with a 10k per quarter drop in land prices.....there is nothing to get there...

              The managers at FCC that lended that money out can't balance there sheets with no equity farms....

              They will be after mine before the BTOs.....
              That age old, if you owe 1mil its your problem, and if you 20mil its the lenders problem...

              Comment


                #8
                Originally posted by bucket View Post
                they will be coming after farms with equity first....the guys that are mortgaged to the hilt with new leases and high priced land are under water with a 10k per quarter drop in land prices.....there is nothing to get there...

                The managers at FCC that lended that money out can't balance there sheets with no equity farms....

                They will be after mine before the BTOs.....
                Agreed.

                Comment

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