Downside up

Here is a rough transcription of the presentation for people who are hard of hearing. Apologies for the lack of grammar, I am working to improve the automated transcriptions -
Hillary and will old and stare a bright little bit of reading to you so you’ll have to screw your brains into gear right to follow what I’m saying it all links up and makes sense as long as you do something can Bloomberg banks use $1.77 trillion to double Treasury purchases August 20, 2012 the gap between US bank deposits and loans is growing at the fastest pace in two years providing lenders with more funds to buy bonds and temper the biggest sell-off in Treasury since 2010 as deposits increased 3.3% to 8.8 8 trillion in the two months ended July 31 business lending rose 0.7% to 7.1 1 trillion Federal reserve – oh the record gap of $1.77 trillion has expanded 15% since May the biggest similar period gained since July 2010 banks have already bought 136.4 billion in Treasury and government agency debt this year more than double the $62.6 billion in all of 2011 pushing their holdings to an all-time high of $1.84 trillion keeping up to not easy for you to keep your brains working from the set middle of the article the recent rise isn’t keeping up with record bank deposits as savings of US households have risen 4.4% of incomes as of June from 1.7% in 2007 dad show every bank is looking for a way to increase their yield said Mike Pearce present of bank of the West in great bar in Texas whose company has been purchasing government securities after deposit to grew faster than loans in 2010 and 11 instead of burning the federal funds rate of 0 to 0.25% on deposits its bond holdings are yielding about 3.25% he said that I worked out at what the banks are doing with the money a big jump to both strive earlier Aussie banks grab silver medal in global ranking Australian now boasts the second-biggest banking industry in the world by market capitalisation eclipsing those of the Eurozone Britain and Japan and America I think the surprise member that in our think China is the biggest in market And Australia’s second could be wrong it might might be in America buffet I think Aussies begin in America now banks market capitalisation is the hint obviously there is that don’t be investing in Australian banks at the moment unless you got it on a very high line you can just go for it followed off very quickly that will not lest third we going to Holland and a big are Reuters article insight when its insight is generally not just a small thing into full article Dutch camp fair play on words that dammed by homeowner debt August 20 Reuters the Eurozone crisis is washing over the walls of one of the region’s safest havens so far the Netherlands a founding member of the European Union fiscal and fiscal hawk along with neighbouring Germany has been spared the dramatic collapse of property prices associated with southern Europe and European countries such as Spain housing prices have fallen roughly 15% since 2008 compared with up to 30% in Spain since the crisis began now though for years after the global financial crisis first hit the economy is on the brink of another recession and steadily sinking property prices are exposing a deep Dutch weakness unpaid mortgages the Dutch who have been able to borrow up to 12 times their income to buy homes are leveraged to the hilt by some measures the Netherlands has the highest per capita mortgage debt in the European union later in the article in fact this is the end of the now towards the end of the article heading down down house prices could have a lot further to fall by two at 2013 mortgage leader Rabbo bank has forecast the price declines from 2008 peaks will have reached nearly 18% and that’ll be optimistic that compares with a slide of 34% in the previous housing crisis in the late 70s and early 80s and club could you to do now we talking about sewers money billions in potential collective write-downs by Dutch municipalities read the article to find out what the municipalities in clunky land have got up to the Dutch central bank expects a moderate recovery in 20 1314 assuming the Eurozone’s problems don’t worsen the country is headed for elections on September 12 nope art you will win an outright majority in an election largely focused on the future of the euro but polls indicate the far left Socialist party is in the lead slightly ahead of the pro-business liberals besides implementing billions in spending cuts and halting economic decline and new government will be tasked with working out how to phase out more than a century of the subsidies that encouraged high indebtedness Dutch households who spend more than a quarter of their household income on their homes can expect only pain they wanted everything and now they have nothing said Vandross it’s only going to get worse and that is getting right to the core of the Eurozone number four is from our Rebecca Wilder who just do this as a bit of a talk on Holland and its problems and gives us this chart which is the Dutch unemployment rate going back to 2000 it’s been very up-and-down begin can see from 2008 it went up you could say try to come down I would say ratcheted up and then started off again and it’s on up and running it up through 6 1/2% now 6.3% that’s a lot for them and the way lots of automatic stabilisers cutting in and a lot of government spending will have to be going out and they will have severe budget problems to our to do the the austerity budgets that are demanded by our what they signed up for for Brussels and that unemployment rate is going to go up and up and up finishing Britain a Conway next favourite imagine you’re a bank manager you are a customer who keeps getting deeper and deeper into debt you setting targets the spending and borrowing but he has repeatedly missed them a few weeks ago it transpired that his annual income had fallen even more than expected and now today is in your office again asking for another loan what to do I imagine one answer that’s not particularly likely as to give him free money and yet that is what in effect the market is decided in regards to a not dissimilar customer the great British government Britain is borrowing more than expected this year on the basis of the latest yesterday’s public finance figures the government may well borrow more than last year missing its £120 billion borrowing forecast by 30 billion according to some the other get to the end of heads article while it’s tempting to try to compare an indebted country to an indebted person the comparison is somewhat misleading for one simple reason unlike Joe Public country has the power to raise taxes act will open in extremist has the capacity to print money at will in fact those record low interest rates are more likely to mean investors believe in the following Britain will not default it will be able to raise taxes and cut spending in order to pay off the debt please pay the interest however this will likely stifle the economy for an extended period of time which in turn will prevent any investment in UK plc yielding much of a reward hence those lucky low yields is nowhere else to put the money that’s what happened in Japan during its lost decade it has since been dubbed a balance sheet recession where there is so much debt hanging over the public and private sector that it simply weighs down activity for the fuse foreseeable future and on the basis of the latest evidence that is precisely what is happening in the UK at the moment by