Home Loans Online News

Wed, 2 May 2007
Interest rates on hold: reprieve for homeowners
In a boon for the nation's mortgage belt, the Reserve Bank decided at its quarterly meeting on May 1 to leave the official cash rate unchanged at 6.25 per cent. The Reserve Bank's decision followed the publication of a much lower than expected March-quarter consumer price index, which showed inflation rose just 0.1 per cent for the quarter and 2.4 per cent for the year. This was well within the Reserve Bank’s target of 2-3 per cent. In a rare show of consensus, many economic forecasters are now predicting a further easing in inflation and most believe interest rates will stay on hold for the rest of 2007, particularly given the impending federal elections.

Wed, 31 October 2007
First homebuyers to get boost
September 05, 2007 04:25am

Article from: News.com.au

FIRST-TIME homebuyers are expected to increase their share of the housing market through new forms of mortgages, despite record low levels of housing affordability.

A report released today by independent market analysts Datamonitor estimated that by 2011 first homebuyers mortgages will account for $45.9 billion, or 20.5 per cent of the owner-occupier housing market, compared with $29.2 billion or 17.7 per cent in 2006.

Datamonitor Financial Services Analyst Petter Ingemarsson said while the current affordability crisis would prompt further political discussions and initiatives, innovative mortgages have the potential to continue to aid first homebuyers onto the property ladder.

"Consumer advocates are concerned that some new products involve higher cost and risk for borrowers," Mr Ingemarsson said.

"Lenders must strike a delicate balance between helping people onto the property ladder and responsible lending."

Credit crunch

He said innovative mortgages and lower deposit requirements have helped first homebuyers into the market, but credit requirements may tighten due to the global credit crisis.

The report said that despite low levels of housing affordability, first homebuyers have increased their share of the mortgage market, since a low ebb in 2003 when they accounted for just 13.7 per cent of lending commitments to owner occupiers, or $17.1 billion.

The investment property boom at that time priced out many first homebuyers, but since then, innovations in the mortgage industry have helped this group back into the market.

Although most customers still prefer to take out traditional mortgage products, mortgages requiring little or no deposit have become more common, and the average loan-to-valuation of loans has risen.

Family support products, where customers can use a family member's equity as additional security for a loan, have increased in popularity and are offered by all major banks.

"These products ameliorate the problem of raising a deposit, which has become more of an issue as rental costs have increased," the report said.



Tue, 06 November 2007
ALP Offers home buyers tax breaks
Labour leader Kevin Rudd has promised $600 million in tax incentives to help young Australians buy their first homes, with a $3.5 billion plan that focuses attention on housing just as the coalition braces for another rise in home mortgage rates

SOURCE: AFR Nov 5 2007

Sun, 18 November 2007
Victorians are top Home Owners in Australia
Victoria has the highest proportion of home ownership in Australia; 76.1 per cent of households are in their own home, well ahead of the national average of 69 per cent.

Australian Bureau of Statistics figures show Victoria also has the largest proportion of mortgage-free home owners, at 43.3 per cent of all households.

However while the figures from last years census seem healthy, experts warn that the rate of entry of young people into the property market is dropping dramatically.

SOURCE : Herald Sun Sunday Nov 10 2007

Sat, 24 November 2007
ANZ plans to shift more operations to Bangalore
THE practice by banks of shifting operations overseas is to be accelerated by ANZ Bank, which wants its financial processing centre in India to drive further cost savings.

The new chief executive, Mike Smith, has identified the centre, in Bangalore, as an opportunity to increase efficiency as rivals such as National Australia Bank, Westpac and St George look to use overseas suppliers to replace back-office staff.

SOURCE:Brisbane Times NOV 2007

Mon, 03 December 2007
Aussie calls for first home tax relief
One of Australia's biggest non-bank lenders has called on the federal government to give tax breaks for first home buyers.

Aussie Home Loans founder and chief executive John Symond has proposed a $15,000 a year tax deduction for first-home buyers for dwellings worth up to $500,000.

Mr Symond said the proposal - which would equate to a $200 a month tax break for five years - had been handed to Prime Minister John Howard's office.

SOURCE: SMH Aug 22 2007

Sun, 09 December 2007
Brisbane property market soars
Brisbane's residential property market continues to soar, with figures from the Real Estate Institute of Queensland showing the city's median house price has risen to $425,000 in 12 months.

For the fourth consecutive quarter, property price growth across the Sunshine State was healthy and shows no signs of slowing down.

Queensland's increasing population was helping to drive the market in the state's south-east, according to REIQ chairman Peter McGrath.

SOURCE : BRISBANE TIMES 8 December 2007

Mon, 17 December 2007
Please help us to restore our fragile environment.
Ten more years at the current growth rate of green house pollution will kill us all. It must be dealt with now. That is right now!! Even if we stopped polluting today it would take thirty years for the earth to recover. That’s Thirty years. But it won’t happen that way will it? There is no way it will stop tomorrow, but it must be stopped or we humans as a species, and nearly every other species on earth are doomed.

It is therefore vitally important that you/we make people who count aware of the LEA technology.

Now that we are ready to showcase our technology it is time to act. Others, who support the coal, oil, and uranium industries are lobbying government’s world wide to push their own agendas. They have years of experience, and the know how, financial backing and networks to help them to “play the game” Remember Big Business does not take kindly to what they see as competition. In reality what we propose for our technology actually helps them to extend their resource life and by so doing make them more money. Take oil for example, what if the diminishing supply could last for an extra ten years, what would it be worth a gallon or litre then? We are not in opposition to these people, we want to fit in alongside them and help them as well.

Source: extract from open letter www.lutec.com.au LU Brits & John Chritie

Thu, 27 December 2007
Credit markets receive $580 billion vaccination
20 December 2007

In an attempt to ease global credit shortages central banks globally injected more than $580 billion into the banking system. Led by the European Central Bank the action caused a large drop in the rate banks charge each other for lending. Chief economist at the ANZ, Saul Eslake, said that the intervention was helpful and appropriate, but concerns that more losses may yet surface mean that the move may not be enough to restore banks' faith in each other to repay loans.

SOURCE: Daily Telegraph

Sat, 05 January 2008
States ranked for best/worst home inspections
New Mexico is one of 18 states without good consumer-oriented home inspection laws and a new report that ranks states that have the best and worst consumer protection legislation recommends Louisiana, New Jersey, Texas, Arizona or Massachusetts as models for such legislation.

The American Society of Home Inspectors (ASHI) 2007 state ranking of the best and worst home inspection regulation laws in the United States says in the past 10 years, 28 states have enacted some form of home inspection regulation.

"Florida is the latest state to regulate home inspection," said Frank Lesh, 2007 ASHI president. "We wonder why lawmakers would enact a law that does not require home inspectors in the state of Florida to take and pass a valid psychometric examination or adhere to standards of practice?"

ASHI's 2007 position statement includes a recommendation that states authorize a sunrise review by a neutral public agency to determine the need, costs, benefits and alternatives to the proposed regulations prior to adoption. This is in addition to ASHI's 2006 provision to evaluate whether laws as drafted are enforceable.

SOURCE New Mexico Business Weekly Jan 3 2008

Mon, 14 January 2008
St George home loan rates up
11 January 2008

From 15 January customers of St George Bank with variable rate home loans will pay an extra 0.20 percentage points. Both new and existing customers will now be paying 8.77% per annum for a standard variable rate loan. Chief Financial Officer at the bank, Michael Cameron, defended the move by pointing out that its cost of funds had increased by more than 0.30 percentage points and, until now, the bank had been absorbing the increased cost. The move leaves Westpac as the only one of the country's five largest lenders not to have moved rates yet but is expected to follow suit very soon.

By InfoChoice.com.au

Mon, 21 January 2008
Commuters' heat will warm up offices
Owners of Stockholm train station to tap into 250,000 bodies

Source:Reuters

updated 3:11 p.m. ET Jan. 10, 2008

STOCKHOLM - A Swedish state-owned firm has found a cheap, eco-friendly source of energy to warm one of its offices: body heat from a quarter million commuters steaming through Stockholm’s central train station.

Body heat already warms the station itself but the surplus, currently let out in thin air, will be redirected to provide as much as 15 percent of the heating in a planned 4,000 square meter office building, real estate firm Jernhusen said.

“We had a look at it and thought ‘We might actually be able to use this’,” said Karl Sundholm, project leader at Jernhusen, which also owns the station. “This feels good. Instead of just airing the leftover heat out we try to make use of it.”



Sun, 03 February 2008
Australian housing affordability concerns
The Housing Industry Association in Australia has warned that the skills shortages in the residential construction sector is likely to worsen housing affordibility across the nation.

The HIA's trades report for the final quarter of 2007 showed another decline in the number of tradespeople.

The worst affected cities were Perth, Adelaide and Brisbane.

The Association's Chris Lamont says that's likely to result in significant price increases for new home construction and renovations.

"The essential building trades, the ones that are just crucial when building a house - bricklaying, carpentary, tiling, electrical - they saw some pretty significant shifts, particularly once again in those areas that are enjoying some continued building activity," he said.

SOURCE:ABC RADIO 24-01-08

Sun, 10 February 2008
Building Approvals Plunge at End of 2007
Building approvals plummeted at the end of last year, providing further evidence that the large gap between housing supply and demand is set to deteriorate in 2008.



Total building approvals dropped by 16 per cent in December, their largest monthly fall in over five years. Detached house approvals were down by 10.6 per cent and reached their lowest level since September 2005. Approvals for the more volatile multi-unit sector dipped by 26 per cent which more than wiped out the November gain.



HIA Chief Economist Harley Dale said that ahead of a widely anticipated interest rate rise, building approvals provided clear evidence of further weakness ahead for the new home building sector.



“Building approvals weakened considerably at the end of 2007 and this occurred in every state and territory across Australia with the exception of Tasmania,” Mr Dale said.



SOURCEP: HIA Feb 5 2008

Wed, 20 February 2008
Deals for first home owners
The strategy To get a tax break on savings for my first home.

Can I do that? Not yet but the Government has moved to deliver on its election promise to provide tax-advantaged first-home-buyer accounts from July 1. You'll need a minimum contribution of $1000 to open one of these accounts but there's nothing to stop you building up savings now ready for when the accounts come into operation.

How will they work? Dedicated First Home Saver Accounts will be offered by super funds, life insurers, banks, building societies and credit unions. These institutions won't be legally required to offer the accounts but many are expected to have them up and ready to go. Earnings within these accounts will be taxed at 15 per cent - the same tax rate that applies to super funds - and withdrawals will be tax-free when you use the money to buy your first home or roll it over into super. That means your money should grow faster than in an ordinary savings account.

Will I get a tax deduction on my contributions? Not exactly. Labor's original proposal was to allow some before-tax contributions. But it has scrapped this idea and will instead make a co-contribution to the account based on your marginal tax rate. All your contributions will have to come from after tax income but the Government will contribute 15 per cent or more of the first $5000 you contribute each year.

How will that work? The Government's contribution will be either 15 per cent or your marginal tax rate minus 15 per cent, whichever is higher. So if you're a low income earner and contribute the full $5000, the Government will kick in 15 per cent or $750. If you're on the 30 per cent tax rate, your Government contribution will also be $750 but if you're on the 40 per cent rate it will rise to 25 per cent or a maximum of $1250. If you're on the 45 per cent tax rate you'll be eligible for a contribution of 30 per cent, or up to $1500.

Can I contribute more than $5000? Annual contributions will be limited to $10,000 but the Government will only kick in for your first $5000. The election promise also included a $50,000 cap on total contributions. The Government is seeking comment on whether this should be kept.

Can Mum and Dad contribute for me? The Government says third parties can contribute to the accounts, though the $10,000 cap will apply to all contributions - not just those from one source. Your employer will also be able to contribute, which means you could organise contributions from your after tax pay.

Can anyone open an account? To open an account you'll have to be an Australian resident, aged between 18 and 65, and have not previously owned a home. Restrictions will prevent anyone opening more than one First Home Saver Account.

Are there limits on how long I can have the account? It appears the only restriction is that you must close the account and transfer the money into super within 30 days once you turn 65. But most accounts won't run that long. To encourage savings, withdrawals will usually be allowed only after you've contributed at least $1000 a year for four years. However, there will be some early release provisions if you're suffering severe financial hardship, a terminal illness, or have compassionate grounds for withdrawal.

What happens when I'm ready to buy my home? The details have yet to be finalised but the idea is you'll fill out a withdrawal form before the sale or contract is finalised and close the account. If your circumstances change, you can also transfer the money to super as a non-concessional contribution. This means it will be transferred tax free but it will be subject to the non-concessional contributions cap of $150,000 a year or $450,000 averaged over three years.

Will my partner and I both be able to open accounts? Yes but you must both satisfy the eligibility requirements.

SOURCE: Domain :February 19, 2008

Wed, 27 February 2008
Environment focus for new ALP president
Mike Rann says he will work on building relations between state and federal Labor in his time as the ALP's federal president.

The South Australian Premier has taken over the role from today, from Special Minister of State John Faulkner.

Mr Rann is keen for a focus on environmental issues and plans to work closely with the Ministers for Environment and Climate Change.

"I'll be really pushing the concept of green Labor," he said.

"I've been pushing climate change initiatives. We've now got Kevin Rudd's Government which has signed Kyoto [protocol], so we're much more in sympathy with a Federal Government that shares our views on climate change," he said.

"Essentially I see the role as being a bridge between the Federal Government and the Premiers and the state governments and territory governments around Australia and - so as you know I was vice-president last year - this is the role I played then and certainly as president I intend to do the same."

SOURCE: ABC NEWS

Posted Wed Feb 27, 2008 9:06am AEDT

Updated Wed Feb 27, 2008 9:09am AEDT

Sun, 09 March 2008
Government's Housing Initiatives Welcomed
03 Mar 2008

Australia’s peak building and construction industry association, Master Builders Australia, has welcomed the Government’s latest plans to tackle the housing affordability challenge by addressing supply problems and at the same time boosting trades training opportunities in the construction industry.

Master Builders Australia Chief Executive, Wilhelm Harnisch, said “Many Australians stand to benefit from the policies introduced today. The end result should reduce the cost of housing.

“We see the initiatives announced today as a down-payment for more action in the future in dealing with the hard systemic supply problems of housing affordability.

“The policy commitment to build up to 100,000 new affordable rental properties, double the previous commitment, signals that the Government understands the severity of the housing affordability problem in Australia,” said Mr Harnisch.

“Of course the answer to the housing affordability crisis is not as simple as putting new houses up, because at the moment we don’t have enough skilled builders to cope with a sudden boost in housing construction.

“Mr Rudd has acknowledged the impact of this crippling skills shortage and today committed to bringing forward 20,000 new training places to next month and focus on the construction sector. For the industry these places can not come fast enough,” Mr Harnisch said.

Mr Harnisch said “Master Builders is also pleased to see an investment by the Government of up to $30 million to roll-out nationally electronic development assessments and online tracking services to streamline planning approvals.”

“The industry has been calling for a more streamlined and efficient development approval system for decades and today’s announcement will help to reduce the cost of building a home.

“Improvement in cooperation and collaboration between the Federal Government and the States in solving such problems is the key to tackling housing affordability and Master Builders looks forward to the Government implementing further initiatives to address these problems, said Mr Harnisch.

“Our housing issues are real and there is no quick fix. A national approach with a concerted effort from all levels of Government is necessary and a prerequisite to tackle this issue,” Mr Harnisch said.

SOURCE:MBA

Sat, 22 March 2008
Housing stress creating homelessness: PM
March 18, 2008 - 5:34PM

The housing affordability crisis is creating a whole new class of homeless people, Prime Minister Kevin Rudd says.

And it's a situation many working families could find themselves in because of the spiralling cost of housing.

A new report out on Tuesday showed the extent of housing affordability problem, which was particularly taking a toll on young home buyers.

The report, by AMP and the National Centre for Social and Economic Modelling (NATSEM), shows that 62 per cent of recent first home buyers are in housing stress.

Older generations are taking more debt into retirement with more than twice as many people aged over 60 still paying off a mortgage compared with the same age group in 1995-96.

Mr Rudd told parliament that there was a new group in the community who were turning to homeless shelters because they could no longer afford their mortgage repayments.

"Homeless shelters are now having to cope people who are falling out of the actual housing market because they can't afford to pay their mortgage," he said.

"Those who traditionally provide shelter services are now having to deal with a whole group of families who are now for the first time having to rely on various charities across the country to provide them with transitional accommodation and, in some cases, crisis accommodation because affordability has become such a problem."

Mr Rudd said bringing down the number of homeless people would be a core hallmark of whether Australia was a decent society.

"(There is) a ballooning housing affordability problem for working families everywhere placing all of them in risk of one day having to contemplate the possibility of needing emergency accommodation themselves," he said.

On taking office, Mr Rudd set Labor MPs and senators a task of visiting homeless shelters in their electorate.

By and large, they had reported back that there was currently a huge turnaway rate at homeless shelters.

"Turnaway rates of 40, 50, 100 per cent depending on where you are," he said.

"This means we have a problem in terms of the physical availability of crisis accommodation stock in the country. This a big problem."

Mr Rudd said another problem was that many using homeless shelters were return customers because of a lack of support services.

He said the issue was a debate the nation needed to have.

"It is a crying shame for Australia that according to the census data we have 100,000 people classified as homeless ... (and) we have 10,000 sleeping rough each night," Mr Rudd said.

SOURCE: SMH

Thu, 17 April 2008
Greedy landlords rorting rents
GREEDY real estate agents have been caught using scare tactics to prey on unsuspecting tenants as figures show the housing squeeze has led to rents increasing by almost 20 per cent.

Two real estate agents have been sprung scheming to gouge more money out of battling renters already facing a tight market.

One agent was spotted spruiking for more money with a sign in a window telling landlords, "Your rent should be increased now!"

Another sent out a letter warning tenants who don't pay on time they would face a rise and not be recommended for other properties.

The unscrupulous tactics come at a time when renters face sky-high rents. New Residex data shows rents in Sydney have risen up by 16.5 per cent in just 12 months, with the medium rent at $460, a $10 rise since December.

Statistics released to The Daily Telegraph show the number of families needing government crisis accommodation in the past 12 months jumped from 20,775 in 2006-07 to 20,008 in the year to date and projected to spike to 27,435 by the end of the year.

The State Government yesterday condemned the agents, with Premier Morris Iemma saying, "We can't have over-zealous real estate agents putting unreasonable pressure on tenants" and Housing Minister Matt Brown labelling the letter as "ill conceived and threatening".

But they were slammed by tenancy advocates who said NSW had the weakest protection of all the states and current laws were weighted in favour of landlords.

"In NSW there are no limits on the frequency and amounts of rent increase notices," the Tenants Union's Chris Martin said.

In one incident, an agent in Umina on the Central Coast put a sign in their window reading: "Urgent! Attention All Landlords Due to increasing demand of quality tenants your rent should be increased now!"

Principal of Richardsons Real Estate Lois Jones defended the sign, saying: "We don't create the market . . . we are not calling for anyone to increase rents."

When it was pointed out the sign said to do just that, she argued: "They have a choice."

Source: Daily Telegraph

April 16, 2008 12:00am



Sat, 17 May 2008
Banks grab $10.5 billion in fees
16/05/08

Banks earned $10.5 billion in fees during the year to June 2007, an increase of 8 per cent from the previous year. The Australian Bankers Association responded to the data from the Reserve Bank by saying that the jump was the result of a higher demand for services rather than increased fees. Businesses paid 58 per cent of all fee revenue, the first time in four years that their share has exceeded the fees generated by households. Overall bank fee income from households was up 9 per cent to $4.4 billion with 40 per cent of that coming from deposit account fees. Personal loan fees were up 14 per cent, credit card fees grew 12 per cent and fees from home loans increased by 8 per cent.

Source: News.com.au



Sun, 25 May 2008
Federal Home Price Index Drops at Record Pace
Biggest quarterly drop since record-keeping began





May 22, 2008



It may be too soon to call a bottom to the declining housing market. A federal home price index shows U.S. home prices suffered a record decline in the first quarter of 2008.

The Office of Federal Housing Enterprise Oversight said home prices dropped 3.1 percent in the first quarter compared with last year, the sharpest decline in the index's 17-year history.

The index, which is based on data from home sales, was 1.7 percent lower on a seasonally-adjusted basis in the first quarter than in the fourth quarter of 2007. This decline exceeded the 1.4 percent price decline between the third and fourth quarters of 2007 and is the largest quarterly price decline on record.

OFHEO's all-transactions House Price Index (HPI), which includes data from home sales and appraisals for refinancings, showed less weakness than the purchase-only index. The all-transactions HPI fell 0.2 percent in the latest quarter and was flat over the four-quarter period.

"These substantial home price declines bring positive and negative news," said OFHEO Director James B. Lockhart. "For homeowners and financial market observers, these declines spell further erosion in home equity levels and potentially more trouble for mortgage markets."

But Lockhart noted that the news is not so bad if you happen to be a prospective home buyer who has been shut out of homeownership because of affordability constraints. As long as mortgage rates remain low, he says, these declines may actually be welcome news.

Both OFHEO's purchase-only index and its all-transactions index show much more muted price declines than do other house price indexes.

"While house price declines are widespread, homes financed with prime, conforming mortgages continue to hold up better than those financed with other types of mortgages, a phenomenon we've been observing for the last several quarters," Lockhart said.

According to the index, prices fell in 43 states, with California and Nevada showing the largest declines. Home prices down by more than 8 percent in both states.

SOURCE: CONSUMER AFFAIRS.COM

Sat, 31 May 2008
Rudd defends petrol policy
May 31 2008

In an article from AAP PM Kevin Rudd defends the petrol price policy.

Stating "there is no silver bullet to fix the problem,through the Budget, the Government had done "as much as we physically can" to help."

Mr Rudd was grilled by voters for almost an hour by TV studio audience But it was the price of petrol that dominated the discussion.

He said the price of petrol, which hit a record high of $1.62 per litre in capital cities earlier this week, was largely out of his control.

"When it comes to things you do not have direct control over, obviously in terms of the global price of oil, then what you can do is simply act in the other areas to make sure that there are some more dollars to draw upon in terms of the family budget."

Mr Rudd also defended the planned FuelWatch program and criticisms that the Government would simply be watching fuel prices while the coalition's policy of reducing the fuel excise by five cents per litre would have a real impact.

He said the responsible course of action was to maximise competition among the petrol companies.

All this on the back of fuel companies release of net profits being made public.

Caltex reported net profit after tax in 2007 was $444 million on a replacement cost of sales basis, which removes the effect of oil price movements.

Royal Dutch Shell and BP, Europe's two largest oil companies, both saw first quarter profits jump thanks to record crude prices and higher natural gas prices.Shell's first quarter profits rose 25pc to $9bn, while BP's profit soared to $7.6bn from $4.6bn in the same period.

While US Based Chevron posts record $18.7 billion profit in 2007, the fourth consecutive year that the San Ramon company made record amounts of money.

Other companies have made even more. Exxon Mobil, the country's largest oil company, reported on Friday that its 2007 profit hit $40.6 billion, a 3 percent increase from 2006, while sales passed $404 billion. No American business has ever scored a higher profit.

"The major oil companies' incredible profits, boosted by multibillion-dollar tax subsidies to the industry, are ultimately clobbering taxpayers," said Judy Dugan, research director for the Foundation for Taxpayer and Consumer Rights.

Here in Australia it seems the skyhigh price of petrol will soon be felt more than just at the bowser, with the earnings of companies expected to be downgraded as profit margins are squeezed by higher oil prices.

The usual suspects of airlines and transport companies are in the sights of analysts at the moment, as they question what effect on the bottom line there will be from oil prices remaining above the $US130 per barrel mark.

However, the effect of higher oil prices will be felt across the market, particularly in the second half of the year, as the input and transport costs move higher and the spending patterns of consumer are crimped as they pay more for fuel.

It needs to be remembered that despite the current hubbub surrounding fuel prices, Rudd and Wayne Swan have not actually done anything from a serious policy perspective that will bring down the price at the petrol bowser for consumers.

Whilst a showdown with the states is looming over the proposal to scrap the GST that is levied on the fuel excise.

In reality, Rudd has only moved to include the GST arrangements on excise in the broad review of the national taxation system to be headed by Ken Henry.

The inquiry could report defiantly that the ``tax on a tax'' should be scrapped but the government does not have to follow suit. Like the majority of these reviews, the recommendations could be ``reviewed' by the government with little actual outcome.

The "tax on a tax" issue and fuel prices is an issue that if continued could see prices hikes for us all in groceries, produce and most consumer goods which will undoubtedly severely effect the economy and affordability crisis looming for all Australians.

How much longer Mr Rudd do we need to allow the Oil companies to create record (almost criminal) amounts of profit and seemingly hold the world to ransom with fuel prices, whilst almost all governments worldwide claim to be powerless in the effort to control ever increasing bowser prices ?

Do we see a whole transport industry crippled, or smaller operators closed their doors due to rising costs leading to major shortages of basic living needs shortages in groceries and produce before any steps by not only governments, but bodies like the ACCC.

The Mega rich tyccons of places like Dubia must be rubbing thier wallets daily whilst planning more spectacular and incredible feats of architecture rising up out of the once deserted strip that was named the main street of dubia in the early 90's.

Author: Craig OBrien

Sources: ABC NEWS, AAP, NEWS.COM, The Chronicle, Bloomberg



Tue, 10 June 2008
Fuel Prices: The Mass Debate
10 June 2008

Or How to Knock About 50c a Litre Off the Price Of Fuel

First and foremost this debate should be centred on Diesel NOT Unleaded. Why? You may ask. Just look at the increase in supermarket prices for your answer. While it may cost you $5 or $10 extra to fill your tank everything that is transported (which is everything) rises as Diesel rises. My average basket at the supermarket per week has increased on average $30 and that’s for one person. Australia’s whole economy is tied to Diesel and therefore it should be afforded the same priority and status as water i.e. an essential commodity.

I own a small transport company and I have had to significantly raise my prices twice in the past year just to maintain profit margins. This cost you money too.

I am compelled to write this letter because I am sick of all the namby-pamby pussyfooting around everyone seems to be doing about the current fuel debate. I have spent considerable time researching this area because it affects my income. Contained herein is the WHOLE truth about the debate, the WHOLE big picture, if you will. NO-ONE till now has had the testicular fortitude to stick their necks out and present the WHOLE argument about just how much we are being RIPPED OFF. If you want the truth and the WHOLE truth read on.

DON’T – Listen to spin doctors from the oil companies. THEY HAVE A VESTED INTREST TO KEEP FUEL PRICES HIGH.

DON’T – Listen to the government – state or federal. THEY HAVE A VESTED INTREST TO KEEP FUEL PRICES HIGH.

DON’T – pay too much attention to news or current affairs programs. THEY HAVE THEIR OWN AGENDAS.

So here we go, how to make fuel cheaper!

FIRSTLY – DISBAND FUEL PARITY

Parity, for those that don’t know, is government sanctioned price fixing (simple as that). Parity allows fuel companies to sell their products for the highest current price they find in the Asia Pacific region. It completely disregards supply and demand economics and eliminates any need for competition amongst themselves.

Don’t believe me? Just look at the price of Diesel. If you remember growing up when Diesel was always 10-15c p/l cheaper than Petrol you might understand this more.

How can a product that costs far less to produce (partially a by-product of producing Unleaded as well) and a product that Australia uses more of than any other fuel be MORE EXPENSIVE than Unleaded? Simple, ring Singapore, where they don’t use a lot of Diesel and import all their fuel, find out how much it’s selling for there and charge the same here – sound fair? NOT!

Any other industry who tried this one would be hauled of to the High Court quick smart and prosecuted for price fixing! Oh but hang on, our government ALLOWS them to do this

NUMBER TWO – BARRELL PRICE

That price the news loves to show us each night is the PREMIUM GRADE crude oil price. Australian oil companies DO NOT buy PREMIUM GRADE crude oil! In fact Australia produces around 70% of its own oil and imports about 30%. The cost of production per litre produced here is cheaper than that of imported fuel, but in no way is this factored into the pump price, because they don’t need to (SEE PARITY ABOVE) we pay a pump price based on PREMIUM GRADE crude oil price the same as if we imported all of it, say somewhere like Singapore! Starting to get the picture?

NUMBER THREE – LEVIES

Everyone knows that both State and Federal Governments take a large slice of the cost of a litre of fuel. This equates in total to about 46% of the price per litre. This money is used for infrastructure, road trauma etc. etc. so fair enough right? WRONG!

What is wrong is that it is a PERCENATGE! Look at this. If a litre of fuel costs $1.00 then the Government gets 46c p/l, right? A week later fuel rises to $1.10 p/l; the Government gets 50.6c p/l, bingo! Something tells me that in one week, their costs, IN NO WAY have gone up 9%!

As I stated previously – THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH. THEY MAKE LOTS MORE FREE MONEY! Why else do they allow fuel companies to maintain PARITY?

If they changed the tax (sorry, levy) to a flat rate tied to the GDP then the fuel price would drop drastically and immediately!

NUMBER FOUR – GST - THE DOUBLE DIPP

Now this one is outright “THIEVERY” and also applies to cigarettes and alcohol.

GST = Goods and Services Tax, correct?

46% or 46c in every dollar in the price of a litre of fuel is TAX (sorry; again, LEVY).

What part of LEVY is a good or a service? YOU CANNOT TAX, TAX RIGHT? WRONG!

You do the math.

Say fuel costs $1.00 p/l – the GST component = 9c

But hang on a minute 46% or 46c of this is TAX!

i.e., 4.14c of the GST is ILLEGALLY CHARGED ON THE TAX COMPONENT! Not much you say?

FOR EVERY LITRE SOLD IN AUSTRALIA EVERY DAY!

That equates to millions of free dollars for the Government! I’ll say it one more time - THE GOVERNMENT HAS A VESTED INTREST TO KEEP FUEL PRICES HIGH. THEY MAKE LOTS MORE FREE MONEY!

The GST on fuel should be 5.4% not 10%. At $1.75 p/l this would drop the current price by around 8c p/l.

Feeling a little annoyed? You should be!

Even without disbanding parity and introducing real competition among fuel companies, you should be paying about 40c less per litre!

My name is Graeme Strempel, (gusto1@arach.net.au) and I run a small transport business, I happily welcome anyone, Government and fuel companies included to prove me wrong.

If you feel strongly about this issue then pass this missive on to everyone in your address book. Eventually someone might take notice.

SOURCE: GREAME STREMPEL

Mon, 23 June 2008
Fuel Price -World protests spread
Is Australia NEXT?, maybe we should be ??

Whilst I agree something needs to be done, some other countries methods are maybe a bit over the top, but i guess how else are they to be heard.....So what is next in the global debate that i simply describe as the OIL COMPANIES HOLDING THE WORLD TO RANSOME!.

Artcicle source ABC NEWS Fri Jun 20, 2008

Spanish farmers marched, Israeli truckers slowed rush-hour traffic and Nepali students stoned cars overnight in anger at rising fuel prices and inflation that they say are crippling their economies.

Protests by truckers, taxi drivers, fishermen and farmers demanding fuel tax breaks have spread across the world, increasing fears of political instability and a global economic downturn.

The oil price, which dipped $US3 to $US133 after China's announcement, has touched record highs near $US140 in recent months, fuelling inflation and squeezing business margins.

In Madrid, thousands of farmers brought traffic to a halt on the capital's busiest road to demand lower diesel tax to help cushion the blow of higher fuel costs and low producer prices.

"This is the last straw. If good spring rain hadn't arrived this year and last, we would already have gone bust," sugarbeet farmer Evaristo Ortega said.

"The price of diesel and fertiliser is impossible to bear."

Diesel prices have shot up to around 1 euro ($1.62), from 60 cents a year ago, farmers said as they marched past soccer club Real Madrid's Bernabeu Stadium carrying banners reading: "For the future of our countryside."

For Greeks, the cost of living has replaced unemployment as the top concern, unions said.

Food prices have risen and motorists pay 13 per cent more for fuel than a year ago and heating oil costs 38 per cent more.

Labour unions have called for rallies in Athens to protest against the conservative Government's failure to rein in the price increases.

"Business interests have staged a party while the Government is duping us with its ineffective measures to contain rising prices," president of Greece's largest labour confederation, Yannis Panagopoulos said.

But Germany and other European Union states said they would reject a fuel tax break plan sought by France to cushion rising oil prices.

A senior French official said President Nicolas Sarkozy would ask EU peers to back a reduction in value-added tax on petrol across the 27-nation bloc.

In Berlin, German Chancellor Angela Merkel told Parliament: "In our view, financial policy intervention, which is being discussed again and again ... should be avoided."

Swedish Prime Minister Fredrik Reinfeldt went further and told reporters that Europeans should work longer hours and pay less income tax to cope with rising prices.

"I am asking myself ... that we might ease up on income taxes to make work pay even further, so that people could react to the fact that an increase in the petrol price could be met by working some extra hours," Mr Reinfeldt said.



Mon, 30 June 2008
Queensland Roads Chaos over Fuel Prices
June 30 2008

In the Article below i simply stated what transport industry sources were planning,I actually got the month wrong and this is planned for the end of JULY 2008.

Wether you read this in Australia or any part of the world for that matter, please understand this is only my opinion, which is that i think whether you drive a car or own a whole fleet of trucks, ride a pushbike even, we all need to get behind this, because it affects every single one of us, from kids and those that use public transport like buses and trains, to every day people, everything including groceries, building materials, general freight, houshold goods, the list is never ending for what is being affected by the rising cost of fuel, and it affects us all. These cost are flowing back to us, the end user.

Those who may say it's extreme,i will agree with also, as i said though its all just my opinion, but what else and how else do we get our government and the oil companies (that continue to push up these prices for apparently no other reason that profit margins) to listen to the public ?

Use the media to our gain, because that is what they are doing to us, create a big enough event that will bring worldwide media attention, in other parts of the world far worse and things of a more extreme nature are being done in protest over fuel prices.

So...lets support this, if it happens join in the trucks drivers efforts, even if its in your car, on your bike, or on foot, the more people the better. Let Get the message across peacefully but clearly.

Truck drivers in Western Australia have threatened a "State of Chaos" within six weeks if they don't get relief at the petrol pump. The Transport Workers Union gave a taste of the disruption they can cause today by setting up a blockade around Western Australia's Parliament House.

Hundreds of trucks arrived at Parliament House early this morning. Police had to rush to set up barricades so parliamentarians would be able to get to work. The blockade caused chaos in a city that's not used to the kind of crawling traffic typical in Sydney or Melbourne. The Transport Workers Union secretary, Jim McGibbon, says there'll be worst to come if something's not done about the high price of petrol.

The same In Queensland with a planned blockade of all major roads is reported to be coming for the Brisbane Metro area and west to Toowoomba at the end of the month (July), sending a clear message to our PM about the crippling price of diesel soaring to as much as nearly $2.00 per litre in some parts of the state. Placing a clear emphasis on the importance of removing the "TAX on TAX" scheme currently in place and showing that the transport industry can clearly return the so called " Holding for Ransome" that oil companies worldwide are currently displaying.

This planned blockade of Queensland roads will be one on a scale to cripple all major roads in and out of Brisbane and Toowoomba for up to 48 hours according to industry sources.

As much as this planned blockade will send a clear message, it is yet to confirmed.

It would be a sight to see, though with continual pressure worldwide on relief for transport operators of all kinds, and the growing pressure on governments to remove exise and taxes, i think this kind of protest is almost A MUST to show our government the message of unity amongst the transport industry as a whole, from big operators to small and owner drivers !

Source : ABC news and Webmaster



Sun, 06 July 2008
Fuel price drives Qantas fare increase
May 22, 2008

The rising cost of jet fuel has once again prompted Qantas Airways Ltd to increase the price of its air tickets.

Qantas said its international air fares would rise by around 4% and domestic fares by about 3% for tickets issued in Australia from June 4.

The increases follow hikes of about 3% for international fares and 3.5% for domestic fares earlier this month.

Qantas chief executive Geoff Dixon said the increases were unavoidable given the continuing high costs of oil.

"Oil and jet fuel prices continue to break records, with West Texas Intermediate (WTI) spot crude oil passing $US134 a barrel overnight and Singapore Jet Fuel today trading at nearly $US166 a barrel," he said.

Mr Dixon said Qantas had increased its fuel hedging and was now covered for 59% of expected crude oil requirements in 2008/09 at $US111.81 a barrel WTI, inclusive of option premium.

"Despite our hedging activities, fare increase, surcharges and strong focus on managing costs across our operations, we will not cover these higher fuel costs, which at current prices will add more than $2 billion to our fuel bill in 2008/09."

Mr Dixon said the carrier was continuing to target further efficiency improvements which now include a review of the network and schedules of Qantas, QantasLink and Jetstar.

SOURCE AAP

Thu, 17 July 2008
Blackouts loom in Queensland strike by power workers
July 13, 2008

A STATEWIDE strike for 48 hours by about 4000 electricity workers from Wednesday could lead to blackouts right across Queensland.

The stoppage involves 4000 Ergon Energy, Powerlink and Energex workers. Other trade unions, including the Australian Manufacturing Workers Union and the Australian Services Union, are also expected to down tools in support.

Do you support strike action by electricity workers? Emergencies will be covered, but people can expect long delays in the restoration of power if supply is lost, union officials said.

And they warn that strikes are likely to become longer and more frequent if workers don't get the increase in pay and improvement in conditions they're seeking.

It is the first big escalation in a bitter five-month dispute between the Electrical Trades Union and the State Government.

ETU assistant secretary Peter Simpson said the strike would cause lengthy power cuts, possibly up to 48 hours, but he said it was time to "send a message" to the Government over stalled pay talks.

"It is time to escalate matters. The Government is running this dispute now. They have taken an extreme hard line in negotiations," Mr Simpson said.

Energy Minister Geoff Wilson was critical of the proposed strike action, saying it could put public safety at risk and cut electricity supply to homes and businesses.

"It is very disturbing to hear what they are now proposing - this sort of behaviour does not help anyone," Mr Wilson said yesterday.

He said the three government-owned corporations would seek written assurances from the union that public safety and electricity supply would not be compromised.

But a return to the negotiating table seemed unlikely yesterday.

An ETU memo to workers on Thursday said the "Government's decision to again ignore its workforce" had led to the extended strike action.

Mr Simpson said power workers in the private sector in Queensland earned on average $31.80 per hour. Ergon and Energex workers received $29.05 an hour.

The Government had offered a 4.5 per cent pay increase, but power workers wanted an extra $1.50 an hour.

An Energex spokesman said previous strikes had not adversely affected consumers.

He said maintenance upgrades, network improvements and connecting new customers would likely be affected by the industrial action.

He said the pay claim sought by workers equated to a 10.3 per cent increase.

The union said its claim was more than an effort to get a competitive wage increase. "We are now under threat of losing any say in who switches the network, on single-person tasks and the general safety of our industry membership," Mr Simpson said.

Power sector workers have already taken industrial action this year, including 24-hour strikes.

They also picketed State Parliament, the Executive Building, the offices of Labor MPs, and the ALP state conference on the Gold Coast last month.

"This time everyone is going out . . . we are really taking it to the Government," Mr Simpson said.

Ergon and Powerlink workers will strike for 48 hours from 6am Wednesday, while Energex staff in the southeast corner will be out for 24 hours from 6am Thursday.

"We will have standby crews who will go to emergencies . . . but there are going to be massive delays and people will be affected," Mr Simpson said.

"Every safety issue, every loss of supply will be attended, but it will not be immediate. Someone could be without power for 48 hours."

SOURCE: THE SUNDAY MAIL

Wed, 23 July 2008
Public comments on Truck Protest over Fuel Prices
Wed Jul 23 2008

Truckers form fuel price protest convoy.

More than 100 heavy trucks have formed a go slow convoy from the NSW Southern Highlands to Sydney on Wednesday, in a protest against high fuel prices.

Some 40 trucks met at Sutton Forest about 6am (AEST) for the two-hour trip north on the Hume Highway to Casula, Transport Workers Union (TWU)

see full story at http://news.ninemsn.com.au/article.aspx?id=602088

THOSE THAT COMMENTED HAD THIS TO SAY:

Go Truckers!

Posted by: sharma, NT, on 23/07/2008 9:42:29 AM

Glad they take their right to protest and 'yes' it is very justified but unfortunately futile! Yes people will see and probably say,"Go truckers!" toot and or wave and then forget all about it! What they needed to do is disrupt the flow, for hours! All lanes at 20km hr! Today unless you impact on a practical level you are ignored! Spontaneous strike days! Now that would cause mayhem if lasting for a few days! The humble and often company abused truckies are the backbone of our commercial industries! Be in sight, Show your plight, Stand and fight for what is right! Block in tight, Make it bite, In the light with all your might! Go truckers!

--------------------------------------------------------------------------------

What a sight!!!

Posted by: Cat, Young, on 23/07/2008 9:40:54 AM

I am in full support for you truckies, without you we would not survive on either side of the Great Dividing Range.... Goodluck in your quest, remember city fokes will bag you, country fokes will cheer you on and be right behind you.

--------------------------------------------------------------------------------

Truckies

Posted by: Jordo, Mackay, on 23/07/2008 9:40:09 AM

Without Trucks, Australia Stops. GOOD JOB OLD BOY!

--------------------------------------------------------------------------------

go-slow convoy

Posted by: tricky, bowen, on 23/07/2008 9:39:44 AM

It is totally justified. Truck drivers and company are being pushed to the wall due to the rise in rego and fuel prices. retailers that are increasing prices on their goods due to fuel costs of transport should be checked to make sure they are actually passing on this increase to where it is meant to go. The trucking Industry. Not just in there pockets.

--------------------------------------------------------------------------------

trucks use more petrol!!

Posted by: cass, perth, wa, on 23/07/2008 9:38:51 AM

they have every right. people protest about all sorts of stuff. this is thier livelihood. Petrol prices are killing drivers who own their own trucks. people are going through the same thing... but hey catch a train or bus to work. truck drivers don't have that luxury, they need to buy petrol. haha if the protest is inconvienient, so is people handing out condoms, so is naked people in cages. be a little more tolerant, if they change something, you'll probably benifit too.

SOURCE: NINEMSN

Sun, 03 August 2008
House prices fall in most capital cities
July 31, 2008

AUSTRALIAN house prices fell in a majority of capital cities in the last few months as high interest rates brought about the weakest housing market in four years.

National house and unit prices could dive by 10 per cent next year as a prolonged real estate slowdown sets in, online real estate data group Australian Property Monitors (APM) said.

Median house prices fell in five of Australia's eight capital cities in the three months to June 30, according to APM's figures.

Perth had the biggest median house price fall, at 2.8 per cent, followed by Sydney's 2.1 per cent decline.

Hobart suffered the biggest median price dive for units - 3.8 per cent - and had the nation's cheapest capital city real estate with the median unit price at $207,568.

Brisbane's unit prices posted a 3 per cent slump and there were falls in three other capitals.

Adelaide was the only capital city not to experience a quarterly fall in house or unit prices, with both measures rising by 0.4 per cent in the three months to June.

"The June quarter housing data is the weakest we have observed since 2004," APM general manager Michael McNamara said.

"It is likely these results are the canary down the coal mine and that rapidly rising mortgage rates and a looming economic slowdown will usher in a sustained period of property market weakness."

For the year to June 30 , four capital cities posted double-digit median house price growth.

Melbourne house prices grew by a nation-leading 14 per cent to $449,888 over the year to June although Sydney still had the most expensive median house price, at $542,488.

Over the same 12 months, Darwin home unit prices climbed by a nation-beating 17.9 per cent to $324,454.

Adelaide was the only other capital city to enjoy double-digit price growth for home units, rising an annual pace of 16.9 per cent.

Sydney kept the title of having the most expensive median price for units, at $366,622, marginally ahead of Perth and Canberra.

SOURCE: NEWS.COM

Sun, 17 August 2008
Why Warming Your Car in Winter is Burning a Hole in Your Pocket
17 August 2008

Winter is a difficult time for drivers. It does it's best to wreak havoc on your gas mileage. You may be playing the part of an unwitting ally to winter's effect on your fuel economy. Improperly warming your car up could be burning a hole in your pocket.

Drivers are in the habit of warming their vehicle up in winter temperatures. Drivers seem to be under the mistaken idea that they need to warm up their car for it to operate properly. By warming up they mean idling the car for a considerable amount of time before driving. This misnomer is costing you money.

Many drivers idle their car for 5 to 10 minutes in the winter to let their cars warm up. You should not let your car idle for more than 30 seconds. You need no more than 30 seconds of idling to circulate the engine oil before you can drive away on cold days

When you idle your car to warm it up you are burning gas but not going anywhere. When you let that happen you are getting zero miles per gallon. You may think that idling your car for few minutes or so is no big deal, think again.

To get an idea about how much fuel you are burning by letting your car idle for 5 to 10 minutes when you start it consider this. Assume you idle on the short side, only 5 minutes when you start your car in the morning. Most likely you idle for 5 minutes again, when you start your car again to drive home.

Therefore your car is idling for a minimum of 10 minutes a day. For illustrative purposes we consider winter to be four months long, or 120 days long. If a car is idling for 10 minutes a day for 120 days then it is idling for 1200 minutes during the winter period.

1200 Minutes is 20 hours. Think about it, warming your car for only 5 minutes per start amounts to your car idling and burning gas going nowhere, for 20 hours. Can you visualize your car sitting and idling for 20 hours? Of course not. Then why warm it up for the equivalent of 20 hours of burning gas when it is completely unnecessary?

Warm your car up by driving it. To operate efficiently your car needs to warm up other parts in addition to the engine. Tires, transmission, wheel bearings and other moving parts also need to warm up. Your car's catalytic converter doesn't function at its peak until it reaches between 400C and 800C. The only way these other parts warm up is by driving. The reality is, to warm your car up completely you have to drive it anyway.

To save gas and increase gas mileage in the winter one of the simplest things you can do is warm your car by driving it, not by idling. Not only will it save you gas and money but you will also be doing something positive for the environment. That warm car will stop burning a hole in your pocket.

Source:www.fuelcostangel.com/newsarticles

Sun, 24 August 2008
Coalition putting rates at risk, says Tanner
August 24, 2008

FINANCE Minister Lindsay Tanner is accusing the federal opposition of putting politics ahead of the needs of the Australian people by planning to block legislation in the Senate.

The opposition plans to oppose several budget measures introduced by the government in May, including tax increases on pre-mixed drinks and luxury cars, as well as a hike in the Medicare levy threshold.

Mr Tanner said today doing so would punch a hole in the budget surplus and could even risk the Reserve Bank of Australia's (RBA) ability to cut interest rates.

"What the Liberals are doing is targeting a handful of specific things in our savings package in order to play politics,'' he told Network Ten.

"They are playing with fire because if they punch holes in the budget surplus the end result is that it is harder for the RBA to reduce interest rates.''

Mr Tanner said the opposition, as the alternative government, needed to start acting in a more responsible manner.

"The key people in the frame here are the Liberal Party,'' he said.

"Dr Nelson is fond of describing himself and the Liberal Party as the alternative government, it's about time they started acting like an alternative government.''

Opposition Leader Brendan Nelson today refused to back down, although he gave an assurance that the opposition would not go as far as to block budget supply in the Senate.

"There are a number of small and important measures to which we are opposed and as a matter of principle we will oppose them,'' Dr Nelson told the Nine Network.

"None of those tax increases - $20 billion of tax increases in the budget - were foreshadowed by the government prior to the election,'' he said.

"If you're fighting inflation the last thing you do is increase taxes on alcohol, cars, software and other functions of business.''

But this did not mean the coalition would move to completely block the budget supply in the upper house, he said.

"Of course we won't do anything of the sort.''

If the coalition sticks to its plans to block the legislation, the Rudd government will be forced to rely on the support of the Greens, Family First and incoming independent senator Nick Xenophon to get the legislation passed.

The new-look Senate will be sworn in on Tuesday.

SOURCE: NEWS.COM

Tue, 02 September 2008
Reserve Bank cuts interest rates by 25 basis points
September 02, 2008

THE first interest rate cut in almost seven years is welcome, but doesn't go far enough, industry and national leaders said today.

Today's RBA rate cut was immediately followed by a pledge from the big four banks that the full discount would be passed to mortgage holders.

The central bank lowered the cash rate to 7.0 per cent from 7.25 per cent following today's monthly board meeting, having raised the rate 12 times since May 2002.

However, several commentators said the central bank should have gone further.

According to the Australian Chamber of Commerce and Industry (ACCI) an easing of conditions in credit markets meant commercial banks had the scope to pass on even greater interest rate cuts.

The major commercial banks have all raised mortgage rates in recent months independent of any action by the RBA, citing an increase in the cost of getting funding in credit markets.

"We believe that the commercial banks can and will pass on official rate reductions to Australian businesses," ACCI spokesman Greg Evans said.

"We also believe there's also scope for some of the increases that flowed from the international credit turmoil to be passed on to Australian businesses in the coming months."

Mr Evans said today's rate cut would deliver a much-needed boost to business and consumer confidence, while also acting as a buffer against potential job losses.

Housing Industry Association chief economist Harley Dale said a greater cut in rates was warranted and would be needed to attract investment in the housing sector.

Mr Dale said a 50 basis point cut in the official cash rate would have been justified.

SOURCE: HERALD SUN

Tue, 09 September 2008
Mortgage bailout unlikely to lift US out of slump
September 8, 2008

If the government bailout of Fannie Mae and Freddie Mac is a salve to help heal what is ailing the U.S. economy, it is likely to be a slow-acting medicine that may not stop the infection before it gets worse.

Analysts predict the vicious cycle where housing, credit and financial problems force Americans to hunker down further — hobbling the economy and in turn aggravating those very troubles — won't be easily broken.

"The negative psychology has become embedded and will take time to unwind," said Brian Bethune, economist at Global Insight. "It is not instant coffee."

Many are expecting the government's action will have faster relief when it comes to mortgage rates, however. The national average interest rate for a 30-year fixed rate mortgage dropped 0.3 percentage point to 6.04 on Monday, according to financial publisher HSH Associates.

The decline in mortgage rates may provide an incentive to prospective home buyers and for existing homeowners to refinance into more secure, fixed-rate loans, but it won't be a quick cure-all for the crippled housing market.Builders, reeling from the record-high foreclosures and a glut of unsold homes, will keep cutting back for the foreseeable future, which will continue to be a major drag on national economic activity.

And, home values — people's biggest asset — likely will keep sinking.

When Freddie Mac reported second-quarter earnings in August, chief executive Richard Syron said he expects home prices nationwide to fall 18 percent from peak to trough, according to its measure. Syron, who is being replaced at the helm of Freddie Mac, said the market is only halfway through the descent.

Home prices for the 20-city Standard & Poor's/Case-Shiller index peaked in July 2006. Some economists predict prices won't recover until mid-2009 or later.

That, along with rising unemployment and shrinking paychecks, means consumers probably will retrench, dealing a blow to the economy.

A growing number of analysts believes the economy will be thrown into reverse in the final three months of this year and perhaps in the first three months of next year, meeting a classic definition of a recession.

"It would be a mistake to think there would be any immediate, or short-term, impact for economic growth," said Bethune. He is among those analysts in the camp that the economy will contract in the fourth quarter of this year and the first quarter of next year. "It will take time for the government to execute its plan and for worldwide markets to be comfortable with it," he said.

Howard Chernick, economics professor at Hunter College, predicts: "The U.S. economy will continue to spiral down."

The economy shrank late last year and barely budged at the start of this year. Growth picked up in the spring, thanks to brisk exports and the government's tax rebates, which energized shoppers at home. But that rebound wasn't expected to last.

Slower growth overseas will probably cause exports to fall off just as Americans are cutting their spending and the benefits of the rebates disappear.

"The economy will flatline," said Stuart Hoffman, chief economist at PNC Financial Services Group. He predicts the economy will stall out — logging no growth during the fourth quarter of this year and the first quarter of next year, rather than actually contracting. But it's a close call, he acknowledged. "It is going to be a tough period."

A deteriorating jobs market figures prominently into the dismal outlook.

The nation's unemployment rate zoomed in August to 6.1 percent, a five-year high, as employers axed jobs for the eighth month in a row. So far this year, 605,000 jobs have disappeared. The situation will get worse before it gets better, analysts predict.

Hundreds of thousands of more jobs probably will be cut through the rest of this year; another half million may be lost during the first quarter of 2009, according to some projections. There are those who predict the unemployment rate could climb as high as 7 percent by the fall of 2009.

High prices for energy, food and other things are taking a bite out of paychecks, another factor weighing on consumers, whose spending is a major shaper of overall economic activity. "Consumer psychology is pretty much at rock bottom," said Hoffman.

Businesses will stay in a cost-cutting mode until they start to feel confident that the economy has truly turned a corner.

"On the margin, the government's action makes the housing environment a little better and should be helpful in mending credit woes but it is not going to turn around the economy," said economist Ken Mayland of ClearView Economics.

Despite the poor economic outlook, the Federal Reserve is expected to hold rates steady at 2 percent, a four-year-low, when it meets next Tuesday. The Fed stopped cutting rates in June out of fears it would aggravate inflation. Before the Fed moved to the sidelines, it had carried out its most aggressive rate-cutting campaigns in decades to shore up the wobbly economy.

Still, Fed Chairman Ben Bernanke and other Fed officials have warned that the country will be stuck in an economic rut in the months ahead as businesses and consumers work through all the problems.

SOURCE:NEW YORK TIMES

Tue, 23 September 2008
Are banks better than non banks?
23 Sep 2008

If you read the papers or watch TV you’d be convinced that one of the dumbest things you could ever do is take out a loan with a non bank lender. Well, nothing could be further from the truth.

When you approach a mortgage broker and they come back to you with a non bank option there is an excellent chance that the loan will have better features and a better rate then a bank will offer you. This is because non banks are fighting to get your business and they need to tweak the rates to beat the banks.

Another thing seldom raised is that many of the non bank lenders are larger than any Australian bank. Take GE and ING for example, both are predominately balance sheet lenders which means that unlike Australian banks they lend their own money.

Over the past 12 months Australia has seen a number of funders or mortgage managers close their doors. In some cases they closed simply because of the cost of acquiring funds to lend and not because of their own viability. Those mortgage managers who represent GE and ING products have seen a strong growth in their client base and rightfully so.

Where a funder or mortgage manger has closed their doors there has been no real impact on the borrower, payments continue and borrowers retain their security. The only issues that may arise when a funder or mortgage manager closes is that if the borrower had a re-draw facility that may be closed.

The bottom line is that if you are looking for a home loan be sure to speak to your mortgage broker and see what is being offered by non bank lenders.

Also don’t be scared off if you’re looking for a loan for someone with bad credit.

SOURCE: AMN.com

Mon, 06 October 2008
Australian shares near 3-year low on Wall Street woes
6/10/2008

Australian shares dropped to their lowest point in nearly three years today as investors continued to worry about global growth prospects in the fallout from the credit crunch.

Australia's benchmark S&P/ASX 200 index <.AXJO> was down 3.3 percent or 155 points at 4,540.4, its lowest close since November, 2005.

The slide was led by heavyweight mining and bank stocks, in a holiday-thinned session.

BHP fell on concerns global demand for metals will fall as the United States slides into recession. Its takeover target Rio Tinto also sank.

Most financial stocks ended down with Macquarie losing over 10 percent of its value.

Shares in the insurance and banking group Suncorp Metway closed up 3.75 percent on news that several parties are interested in buying its banking and wealth management operations.

SOURCE: ninemsn

Thu, 16 October 2008
Global stocks fall sharply
October 15, 2008

Dow's 730 point plunge spooks investors as concerns about a painful recession grow.

NEW YORK -- Stock markets in Asia and the Pacific fell sharply on Thursday, a day after U.S. markets were pummeled by growing fears of a worldwide recession.

Japan's Nikkei index fell nearly 10%. Australia's market was down nearly 6%. Hong Kong's Hang Seng and South Korea's KOSPI index slumped 7%.

Wall Street was hit hard on Wednesday as recession fears mounted. The Dow Jones industrial average plummeted nearly 8%, or 733 points, marking its second biggest one-day point loss ever.

The jitters were prompted by a dismal report on retail sales, a bleak outlook by the Federal Reserve and sober remarks by Fed Chairman Ben Bernanke.

A government report showed that retail sales suffered their biggest drop in three years last month. With consumer spending making up two-thirds of GDP, the retail sales data stoked recession fears.

The Federal Reserve's new snapshot of business conditions showed economic activity weakened across all of the Fed's 12 regional districts.

Separately, Bernanke said the government has all the "tools" it needs to fix the problems in the financial and credit markets. But he cautioned that the recovery will take time.

Wednesday's retreat came despite recent steps taken by governments worldwide to free up the credit markets and restore confidence in the financial system.

On the bright side, the credit market continued to show signs of a tentative thaw Wednesday with a decline in a key overnight bank lending rate.

Stocks had rallied Monday as investors cheered the U.S. government's plan to inject fresh capital into ailing banks. But the effects of that plan will not be felt for some time, and investors gave back most of Monday's gains on Tuesday.

Wednesday was also a down day in Europe. Markets in London, Paris and Frankfurt all tumbled nearly 7%.

SOURCE: CNN MONEY

Wed, 29 October 2008
Consumers gloomiest ever as home prices plunge
Tue Oct 28, 2008

NEW YORK- U.S. consumer confidence dived to a record low in October as plunging home values and a severe financial crisis left Americans anxious about their jobs and pessimistic about the future.

The Conference Board said on Tuesday its index measuring consumer sentiment tumbled to 38.0 in October, down from 61.4 in September and the lowest reading since the index was first published back in 1967.

One factor depressing Americans was the rapidly declining value of their homes. U.S. single-family home prices dropped a record 16.6 percent in August from a year earlier and plummeted more than 30 percent in Las Vegas and Phoenix, Standard & Poor's said on Tuesday.

This was making consumers feel a lot less wealthy and dampening their spending, on which U.S. economic growth so keenly depends.

"Consumers are completely shut down at this point," said Lindsey Piegza, a market analyst at FTN Financial. "They see no end in sight even with all the actions that the government has taken."

The government has indeed done a lot. The Federal Reserve was expected to cut interest rates yet again this week to prop up the economy and try to stimulate lending, while the Treasury seemed to be trying to broaden its support of industry to include insurers and automakers.

Yet none of this has stopped the carnage in the stock market, which on Tuesday was struggling to hold in positive territory, and has already fallen nearly 25 percent in October alone.

The losses have also spread globally, with emerging markets showing an even more virulent reaction to the prospect of a global recession, and theories about a possible "decoupling" from the United States now shown to be largely implausible.

Source: Reuters

Tue, 18 November 2008
Garrett defends whaling research program
Tue Nov 18 2008

Federal Environment Minister Peter Garrett has denied rushing through a $4 million anti-whaling package as a Japanese whaling fleet sets sail on its annual Antarctic hunt.

Greenpeace monitors said the fleet's factory ship, the Nisshin Maru, left the port of Innoshima in western Japan on Monday.

The federal opposition said Mr Garrett reacted to that news by "frantically" announcing the research project because "he wanted to give the impression that he was doing something pro-active about whaling".

"All he did was to waste millions of taxpayers' dollars for research into what we already know - that the Japanese whale research program is a sham. It's research into sham research," shadow Environment Minister Greg Hunt said in a statement on Tuesday.

Mr Garrett fired back, warning the federal opposition to be "very cautious" in its criticism of the government's measures.

"Over a period of 10-and-a-half years, they created a lot of sound and fury, didn't produce any substantial reform and saw a doubling of the targets for the whaling operations by Japanese whalers in the Southern Ocean," Mr Garrett said on Tuesday.

"The opposition has very little credibility on this issue."

Mr Garrett said he was also disappointed at reports the Japanese fleet had set sail, but he reiterated that the government would make a decision "reasonably soon" on whale monitoring.

He added he was confident the $4 million research program would achieve results, despite its lofty aim of forcing Japan eventually to stop hunting whales under the guise of "lethal research".

"I'm not under any delusions as to how difficult and challenging this task is, but... we need to continue through with a proactive, deliberative and policy-strong approach to both reform of the IWC (International Whaling Commission) and to non-lethal whale research."

SOURCE : AAP

Mon, 24 November 2008
Mortgage Choice expects profit slump
November 18, 2008

HOUSING finance broker Mortgage Choice says profit in fiscal 2009 is likely to fall by up to 45 per cent on the previous year, in line with analysts' forecasts.

Managing director Paul Lahiff said Mortgage Choice's profit for this financial year would likely drop by 40 to 45 per cent under Australian equivalents to International Financial Reporting Standards (AIFRS).

For the year to June 30, 2008, net profit under AIFRS was $19.3 million.

"The key factors impacting the guidance relate to slowing housing finance approval levels and the change in commission structures announced by lenders during the course of 2008,'' Mr Lahiff said.

The Mortgage Choice board was confident that the company could meet current market challenges, taking advantage of lower interest rates and enhanced incentives for first home buyers from both Federal and New South Wales governments, he said.

Mortgage Choice did not offer profit guidance at its results announcement in August due to significant uncertainty relating to settlement volumes, lender commissions, the spread of business amongst lenders, and the economy.

Mr Lahiff told shareholders at the company's annual general meeting it faces headwinds such as reduced housing credit growth, credit and equity market volatility and a slowing economy.

But he said credit markets will return to "normal'' at some stage, and the Australian economy remains sound.

"Mortgage Choice is looking to a solid financial and operational performance in the 2008/09 financial year,'' Mr Lahiff said.

Mortgage Choice shares were down half a cent to 80 cents at 11.16am (AEDT).

SOURCE: NEWS.COM

Wed, 10 December 2008
Digital billboard to promote Earth Hour
Wed Dec 10 2008

Australia's largest electronic billboard on Wednesday will urge everyone to 'switch off the lights' as part of the global launch of Earth Hour 2009.

The climate change campaign - which began in Sydney last year - aims to encourage millions of Australians to flick the switch for one hour from 8.30pm on Saturday, March 29.

Andrew Rouse, of WWF, which is spearheading the Earth Hour campaign, said Victorians were being called on to play a leading role in uniting one billion people in 1,000 cities around the world in the largest-ever global call to action on climate change.

"Melbourne will join other Australian capitals and major cities around the world to flick the switch in a strong visual message that tells our leaders: 'We want strong action on climate change now'," Mr Rouse said.

"But we not only need Melbourne's commercial and landmark structures to participate, we also need households to come on board as well."

WWF says Earth Hour 2009 will also be aimed at world leaders attending the United Nations Climate Change Conference in Copenhagen next December, encouraging them to strike a new global deal to combat climate change.

Since its inception in Sydney last year, Earth Hour has been taken up by more than 70 countries worldwide and 2009 participating cities will include Los Angeles, Las Vegas, London, Rome, Manila, Mexico City, Dubai, Copenhagen, Hong Kong and Cape Town as well as all Australian capital cities.

"WWF will build a strong case for major international intervention in Copenhagen and Earth Hour will kick off a year-long campaign to garner widespread public support," Mr Rouse said.

"This UN climate change conference will be vital to the future of our planet."

Earth Hour 2009 will be launched via Australia's largest digital billboard overlooking Federation Square in Melbourne later on Wednesday morning.

Source: NINE NEWS

Mon, 29 December 2008
Builders face challenging 2009
29/12/2008

Australia's construction giants face a challenging 2009 despite falling interest rates, government infrastructure spending and a boost to home buyer grants.

Most builders and materials manufacturers have scaled back their profit forecasts for this financial year because of the economic downturn and sluggish housing market.

An easing in monetary policy has provided some hope for a housing turnaround after the Reserve Bank of Australia (RBA) undertook aggressive interest cuts each month since September.

The RBA has made home ownership more affordable with its four consecutive rate cuts, bringing the official cash rate down by three basis points to 4.25 per cent.

Further cuts are tipped for the new year, with some economists forecasting the cash rate to reach 3.50 per cent by the end of June.

The federal government also stepped in with a raft of measures to boost the economy.

It has doubled the first home owners grant to $14,000 and raised it to $21,000 for those buying or building a newly constructed home.

But it will take time for these measures to translate to a boost in housing activity, experts say.

And they also say nothing will save builders and suppliers for a dismal 2009.

"This financial year is a write-off for the construction industry," one analyst told AAP.

"The focus is now on the second half of calendar 2009."

Australia's peak housing body, the Housing Industry Association (HIA), predicts housing starts in 2008/09 to fall by seven per cent compared with the previous year.

The HIA also says consumers are likely to remain cautious, given the economic downturn.

"We will be into 2009, possibly some months through, before these lower interest rates translate into a significant stimulus to housing sector expenditure," HIA chief economist Harley Dale said.

Major building products companies have factored the lag into their results, with Boral Ltd and CSR Ltd both cutting back earnings forecasts on first quarter results.

Each company expects similar or slightly weaker annual results compared with the previous year.

CSR, which supplies building products to the local market, has already cut about 400 jobs at its building products division, and management continues to review the structure of the company.

Managing director Jerry Maycock has hinted a restructure could be on the cards, although the economic conditions will play a significant role in the timing.

While Australia's housing market is in a downturn, other construction companies, particularly James Hardie Industries NV, have a bigger headache to deal with.

The US housing market is in the doldrums, with starts tumbling by 18.9 per cent in November from a month earlier to a fresh record low.

US housing starts are down 47 per cent on the previous year and the data suggests the bottom has not yet been reached.

"The US market faces a longer-term issue of oversupply, and their economy is going backwards at a rate of knots, so the situation there is much worse than the domestic market," an analyst, who declined to be named, said.

James Hardie, which derives about 80 per cent of its earnings from the US, has so far shut down two of its production plants there.

Chief executive Louis Gries told the market in November the company was bracing for further lean times in the US.

"It's going to be a very quiet (northern hemisphere) winter in our view," he said.

James Hardie's ongoing legal stoushes are also taking their toll, with legal fees soaring since the Australian Investments and Securities Commission (ASIC) began civil action against former executives and directors of the company in the NSW Supreme Court.

The ASIC action began in September and is likely to run well into 2009.

Also feeling the pinch in the US is Boral, which has mothballed several of its US brickworks and cut its American workforce by 40 per cent throughout 2008.

However, chief executive Rod Pearse remains optimistic, telling AAP in November the US market usually bounced back from downturns.

"It may go lower, but it normally would bounce back pretty quickly," Mr Pearse said at the time.

One builder apparently doing better than most is Leighton Holdings Ltd, the country's largest developer and contractor.

Chief executive Wal King has been talking up the company's ability to ride out the economic storm due to its diversity and record level of work on its $36.1 billion order book.

A major contributor for Leighton is the construction boom, which got a further kick along with the Rudd government's proposed national infrastructure work.

Prime Minister Kevin Rudd has pledged $4.7 billion for work on railways, roads and education infrastructure, $2.5 billion of which is new spending.

The investment is touted as the latest bid by the government to jump-start the economy and prevent rising unemployment.

And more spending has been flagged for 2009.

Such moves provide a glimmer of light for the nation's builders, ensuring the record level of infrastructure building continues well into the future.

Source : MONEY

Sun, 11 January 2009

January 11, 2009

Is it the best or worst of times for real estate?

MANY property fanatics are proclaiming 2009 as the best year in decades to buy a new home. But others vehemently disagree, arguing that house prices are due for a sharp correction.

At the beginning of 2008, 68.9 per cent of respondents for the Mortgage and Finance Association of Australia/Bankwest Home Finance Index believe property prices would rise in the coming quarter.

The latest figures, out this week, show only 14.6 per cent of respondents retained this optimism in the first three months of 2009, with 60 per cent believing we're heading for a decline in property values.

Can 60 per cent of Australians be wrong?

Many property experts say: yes.

They say Sydney's 50 best suburbs will continue to enjoy sustained growth, while other areas will see flat to mild growth. But those forecasts come with clear caveats.

Residex property analyst John Edwards said the biggest factor weighing on property prices is unemployment.

Currently sitting at 4.4 per cent, unemployment has been tipped to rise as high as eight per cent in 2009 as the global financial crisis starts to hit home.

If those levels of unemployment become reality, house prices could slide.

"The key to what happens in western Sydney is employment," Mr Edwards said. "If unemployment doesn't rise significantly, then those suburbs will have already bottomed out.

"The areas that are in close proximity to industry/manufacturing areas or small business - probably have some more suffering to do."

Despite job uncertainty, Mr Edwards is positive on house values in Sydney.

He's an analyst who swears by a simple motto: "As long as you pay the right price for property, it's never the wrong time to buy."

"In every year, no matter what, there will be areas of the city that will grow well and there will be, even in boom times, areas that do fairly poorly," Mr Edwards said.

"So it's not the wrong time to buy property in Sydney; in fact, it's a good time, because now is the time when you're going to find bargains.

"If you've selected properly and in the right areas, you won't see a fall in value. They may stagnate, but not fall."

Others, however, dismiss such optimism as naive. Mr Edwards' argument certainly doesn't sit well with notorious bears Steve Keen and Gerard Minack.

Both men - a professor at Western Sydney University and a Morgan Stanley economist, respectively - have predicted the sky to collapse on housing prices.

Their conservative estimate is an across-the-board fall of 30 per cent.

But Shane Oliver, chief economist at AMP Capital, says the severe downturn in housing construction - marked by a whopping 34 per cent fall in residential building approvals in 2008 - should ensure any falls aren't quite so steep.

"I've been forecasting 10 per cent falls throughout the year," Mr Oliver said.

"I don't think we're going to see the 30 to 40 per cent falls some have been predicting, because Australia isn't going into a depression and we have an under-supply of housing in Australia.

"Interest rates have made a mortgage more affordable, and the first-home buyers' grant is helping, but the flipside is that unemployment has only just begun to rise and the rise will be substantial. Normally, when unemployment rises, it puts a big dampener on the housing market."

Oliver says the period of high unemployment during the 1990s put significant downward pressure on housing prices.

Frighteningly, he now predicts 2009 will bring even bigger decreases because the household debt, relative to income levels, is now four times higher than in the 1990s.

Property guru John McGrath is, predictably, much more bullish.

By Mr McGrath's own admission, asking a real-estate agent whether it's a good time to buy is akin to asking your barber whether you need a haircut.

So it's perhaps no surprise to hear him utter the phrase "best buying opportunities for almost 20 years".

In his synopsis of the summer of 2008-09, McGrath believes there will be a fundamental shift in the psychology of buyers - many of whom, he believes, are sitting on the sidelines, waiting for the hammer to come down on a dire 2008.

"Economic uncertainty has caused a decline in consumer confidence," he said.

"In the past 12 months, the average days-on-market in the Sydney metro region has increased from 40 to 60 days.

"This indicates that buyer psychology is changing, as they have a more considered approach to transactions. But I believe this buyer sentiment will shift in coming months, as property once again becomes the preferred asset to creating wealth."

Mr McGrath believes straying too far from the CBD heightens risk.

"For buyers, there will continue to be a flight to quality, so don't stray far from the top 50 suburbs of Sydney, most of which are located on the coastal belt or within 15km ofm the CBD," he said.

There are, without doubt, risks to house prices. They are more expensive, relative to incomes, than in Britain and the US, and British prices have fallen, despite a massive under-supply of properties and huge demand - so it's possible for house prices to fall, even if there's demand for properties.

SOURCE: NEWS.COM

Wed, 28 January 2009
Homeowners struggling to pay rates
January 25, 2009

THE number of homeowners not paying their household rates has reached a six-year high as the global economic crisis begins to bite.

Councils in Queensland, which has Australia's fastest growing economy, have reported a spike in the number of defaults in the fourth quarter last year compared with the same period in 2007.

A Brisbane City Council spokesman said an audit of accounts revealed about 1400 homeowners were being pursued for unpaid rates – the highest number in six years.

The Local Government Association of Queensland expects the number of defaulters will escalate as unemployment worsens.

LGAQ executive director Greg Hallam said homeowners, not councils, would be feeling the pain, with councils ultimately able to sell homes to recoup money they were owed.

"It's commonplace (for defaults to rise)," he said. "In the last recession in '91 and '92 those figures hiked up.

"It mirrors unemployment, so if unemployment rises it (rate defaulting) will rise at a commensurate level.

"This is a credit-crunch recession. The last time we had a credit-crunch recession was in 1961.

We've not seen the likes of this for close to 50 years."

Mr Hallam said the number of defaulters then had jumped from the usual 4 or 5 per cent to 8 or 9 per cent.

"At this stage we are hoping it doesn't deteriorate much further," he said.

Local government amalgamation meant many councils were unable to give a clear figure of defaulters for the final quarter last year, but a Toowoomba Regional Council spokesman said there had been an increase in the number of Toowoomba City residents who had defaulted.

Logan City Council had a rise in defaults, from 4.17 per cent in 2007 to 5.6 per cent last year.

SOURCE: NEWS.COM

Sat, 14 February 2009
Fires destroyed 1831 homes
FEB 13 2009

THE number of homes destroyed in Victoria's bushfires has jumped to 1831, in what poses a significant challenge for the state, Emergency Services Commissioner Bruce Esplin says.

Data released today showed a massive rise in the number of homes lost - up from 1069 reported yesterday.

"That's as a result of more onground resources, more aerial resources provided by the ADF (Australian Defence Force) to assist in the understanding and the analysis of the damages caused,'' Mr Esplin said.

"The number has jumped from 1069 yesterday to 1831 properties today," he said.

According to Red Cross figures, more than 7000 people have been displaced as a result of the fires.

SOURCE: NEWS.COM

Sun, 08 March 2009
Worlds Greatest Shave Event
40FM.NET and Queensland Lions Football Club

Announce a Worlds Greatest Shave Event for Sunday 15th March at Qld Lions FC 133 Pine Rd Richlands

Come Along and join in the Fun

Shave your Head

Colour your hair for those not so brave.

"We will bring out the 40FM.NET team

to create an event to raise funds

for the Leukaemia Foundations

Worlds Greatest Shave" Said Webmaster of www.40fm.net site. A Truck driver based site for the transport community.

Other Events included raffles with Prizes and Auctions to raise much needed funds, visit

http://40fm.net/forum/index.php/topic,391.0.html for more details.

PLACE

Queensland Lions Football Club

133 Pine Road

Richlands

DATE

Sunday 15th March 2009

TIME

2.30 pm to 6.00 pm.

Join the 40FM Team afterwards for a chat.

www.qldlions.com.au

CONTACTS

Webmaster on webmaster@40fm.net

or phone the Club on 3271 3636

Visit the team online or make a donation online.

http://my.imisfriendraising.com.au/personalPage.aspx?registrationID=283191

Visit www.worldsgreatestshave.com.au for more details

To see more about Queensland Lions Football Club visit www.qldlions.com.au

All Donations over $2 are Tax Deductible.



Mon, 23 March 2009
Recession? Let's say negative growth
March 23, 2009

FEDERAL Treasurer Wayne Swan has baulked at saying Australia is heading into recession, preferring to say a period of negative growth will be virtually impossible to avoid.

Mr Swan backed up Prime Minister Kevin Rudd who, yesterday, said the worsening economic global recession would make it virtually impossible for Australia to sustain economic growth.

"I do agree with him that it will be virtually impossible to avoid a period of negative growth,'' Mr Swan told ABC Radio.

Mr Rudd's was based on "very gloomy'' International Monetary Fund forecasts for the global economy.

"I think he was being frank about the impact of that on the Australian economy,'' Mr Swan told ABC Radio.

"They forecast ... negative growth of three per cent (for developed economies)... on top of a (annualised) seven per cent contraction in the December quarter."

SOURCE:NEWS.COM

Tue, 31 March 2009
Mortgage delinquencies rise
March 31, 2009

MORTGAGE delinquencies in Australia on full-documentation loans deteriorated during the December quarter, while delinquencies on non-conforming low-documentation loans reached a record high, according to global ratings agency Fitch Ratings.

Delinquencies on full-documentation home loans that are past 30 days due increased to 1.75 per cent for the December quarter from 1.5 per cent during the June 2008 quarter, Fitch said in a statement.

But delinquencies on non-conforming, low-documentation loans that are past 30 days due now stands at a new record high of 19.73 per cent, reflecting the sector's inability to refinance since the virtual closure of the low-documentation origination market, Fitch said.

Fitch expects delinquencies to deteriorate further during the March quarter and a gulf to develop throughout 2009 between struggling borrowers and those feeling relief from the Reserve Bank of Australia's five interest rate cuts since September.

The key factor will be each borrower's ability to retain full employment during the economic downturn, Fitch said.

Source: NEWS.COM

Mon, 13 April 2009
Easter's national road toll rises to 14
Apr 13 2009

The national holiday road toll has risen to 14, following two more deaths on Monday.

Tasmania has recorded its first fatality after a 22-year-old man died in a single car crash in Launceston.

He was killed instantly in the accident.

Meanwhile, a Queensland woman was killed in a single-vehicle accident west of Brisbane.

Police say the woman believed to be in her 30s was killed on the Warrego Highway at Haigslea after her sedan collided with a power pole at around 1pm (AEST) on Monday.

Her death brings Queensland level with NSW in the nation's road toll. Both states have recorded five deaths.

Victoria, Western Australia, the ACT and Tasmania all have one death each.

South Australia, Tasmania and the Northern Territory are so far fatality-free.

SOURCE: NINENEWS



Sat, 25 April 2009
Sacked for Facebook surfing while sick
April 25, 2009

AN insurance worker lost her job after surfing popular social network site Facebook while off sick, her employer said.

The Swiss woman said she could not work in front of a computer as she needed to lie in the dark, but was then seen to be active on Facebook.

Her employer, insurer Nationale Suisse, said in a statement the action had destroyed its trust in the employee.

"This abuse of trust, rather than the activity on Facebook, led to the ending of the work contract," it said.

The unnamed woman told the 20 Minuten daily she had been surfing Facebook in bed on her iPhone and accused her employer of spying on her and other employees by sending a mysterious friend request which allows access to personal online activity.

Nationale Suisse rejected the accusation of spying and said the employee's Facebook activity had been stumbled across by a colleague in November, before use of the social network site was blocked in the company.

SOURCE; NEWS.COM

Wed, 13 May 2009
Swine flu


13/05/2009 5:52:00 PM

Northern Tasmanian woman all clear.

A Northern Tasmanian woman tested for swine flu has been given the all-clear.

The woman, 41, returned from a trip to Hawaii last week and reported flu symptoms but tests ruled out the potentially fatal human swine flu.

She was the 20th Tasmanian tested for the virus. All have been cleared of swine flu.

There are no new cases of influenza-like illness reported by Tasmanians who have travelled to countries with a swine flu risk.

SOURCE: THE EXAMINER



Tue, 26 May 2009
Honestly, does this look like a recession?
April 8 2009

Housing finance; Consumer sentiment

􀂠 The number of new housing loans is at 11-month highs, lifting by 0.4 per cent in February.

􀂠 First home-buyers account for almost 27 per cent of home loans taken out – the highest on record. Banks account for over 92 per cent of all loans – a 33-year high.

􀂠 Consumer confidence surged to 13-month highs in April.

What does it all mean?

• Honestly, does this look like an economy in recession – confidence levels are soaring and home lending is again on track to record highs.

• The raft of stimulus packages and rate cuts are working, with the extra dollars lifting spending power and boosting spirits. Aussie consumers have been hit by all manner of bad news over the past year but its amazing how a splash of cash can put smiles back on the dials. A combination of stable petrol prices, a firmer share market, super-low interest rates and government handouts are serving to soothe jangled nerves and making consumers more positive about life.

• An average wage earner paying off a $300,000 home loan is saving $770 a month of repayments compared with September last year – equivalent to a 20 per cent pay rise. Many Australians are substantially better off than a year ago.

• There is a lot of talk about job losses, but at most 2-3 per cent of Australians are affected. More important is what is happening to interest rates, the housing market and fuel prices. In 2001 when unemployment rose, consumer sentiment rose by over 20 per cent.

• The sharp improvement in consumer sentiment validates the Reserve Bank decision to cut rates only 25 basis points. Clearly the RBA is more in touch than market economists, many of whom never travel outside city centres.

• The main problem for first home buyers is that there are so many people in the market at present competing for the limited supply of houses and land. Super-low interest rates and the government grant have substantially boosted purchasing power, but the only problem is that the strong demand is pushing up prices.

• What the housing market needs at present is more investors and developers. Unless more houses and apartments are built, the surge in buying interest by owner-occupiers may only result in higher prices.

• A record $43 billion in home loan commitments have been made by lenders but the dollars haven’t gone out the door. A wall of money is on the sidelines ready to flood into the housing market.

Source: CommSec

Mon, 29 June 2009
40FM Launches New Site
29th June 2009

Australian based Truck Driver site 40FM is a community based support network for not just truck drivers, but help by offering support to other community based charity groups.

40FM launched their new site a few weeks ago, we spoke with the Webmaster to find out some of the new features.

" We had our members asking for some new features like instant chat and a photo gallery, so we upgraded the site to include some of these thing, but we added a few more, classifieds are also now included, as is the ability for us to display videos or music."

Its apparent when looking at the site that its designed for ease of use, with one page per feature, this keeps the site very uncluttered.

"This was one thing we wanted to maintain" , said the webmaster.

Check out their new site by visiting www.40fm.net.au



Mon, 20 July 2009
Lockyer Vallet Sound & Noise Spectacular
20th July 2009

The Annual Lockyer Valley Sound & Noise Spectacular is on again for 2009.

Aiding The Cancer Council, Queensland, the event is an all round motoring enthusiasts treat, whether your into Motorbikes, Cars of all ages, Trucks, Utes or even models of any type of transportation, this event has it all.

Organisers, Murphy's Creek Progress Association spokesperson Murray tells us, "this year will be bigger than ever, with a massive line up of entertainment all day, side show alley for the kids, and shows for all vehicle classes with trophies for each section. We have tried to make the event cater to the whole family.

With the focus on helping those affected by cancer, we simply want the attitude left outside the gate, and everyone in the family to have a great, fun filled weekend here."

For details on the Lockyer Valley Sound & Noise Spectacular to be held at Murhpys Ck Cricket grounds, August 22 2009, visit www.40fm.net.au and see the subject in their forum.

Contact details for the organisers can be found with that site.

Help find a cure for cancer, bring the whole Family to a great day out, or book now for FREE Camping.

Supporting 'The Cancer Council Qld"

Source: 40fm.net.au

Mon, 17 August 2009
Commonwealth Bank raises fixed mortgage rates
August 11, 2009

COMMONWEALTH Bank customers will be charged up to $116 more in monthly repayments on the average home loan if they fix their mortgage interest rate.

Commonwealth customers who fixed their loans for four years will feel the full impact, with rates rising 0.6 percentage points to 7.59 per cent, the Herald Sun reports.

The bank's rate for a mortgage with a redraw option, fixed for one year, rose the least, climbing 0.15 points to 5.54 per cent.



Yesterday's fixed interest rate rises came as the Senate heard a finance expert's evidence that the big four banks' growing power made it more likely consumers would be "price gouged"

In a submission to the Senate inquiry into bank mergers, University of NSW Professor Frank Zumba said bank mergers had harmed competition and should be unwound.

"It is far easier for the remaining firms to act as a cosy club for their self-interested advantage rather than to aggressively attack one another on price or other terms and conditions," he said.

Fixed interest rates have become less popular as hopes of locking in low rates recede. Data released by mortgage broker Mortgage Choice show demand for fixed loans fell 1 percentage point last month to 4 per cent of loan approvals.

The ANZ is the only big four bank not to have raised fixed rates in the past fortnight but is not ruling it out.

"There is upward pressure on longer-term fixed rates as a result of market expectations that there will be official rate increases later this year or early next year," an ANZ spokeswoman said.

A CBA spokesman said the rise was due to the rising cost of bank funding.

Escalating funding costs are set to drive variable rate loans up ahead of any Reserve Bank move on official rates, a mortgage broker said.

"While it is tempting to be using the reduced home loan commitments now to boost the household's spending power, people repaying home loans are better off paying as much as they possibly can in mortgage repayments," said Loan Market Group executive director John Kolenda.

CBA's rate rises coincide with signs the housing market continues to grow, with official statistics released yesterday showing house loans were up 0.3 per cent in June.

The amount of the rise varies depending on the length of time for which the home loan is fixed.

Fixing for 15 years now costs the most, with the rate rising 0.25 per cent to 8.44 per cent.

Source: news.com

Mon, 07 September 2009
Adolf Hitler used as face of AIDS in German ad
7TH September 2009

A STEAMY new AIDS awareness advert shows an Adolf Hitler lookalike having sex.

The controversial footage - to be shown on TV and in cinemas - is aimed at shocking the public out of complacency over unprotected sex.

"We asked ourselves what face we could give to the virus, and it couldn't be a pretty face," said Dirk Silz, creative director for the advertising agency behind the "AIDS is a mass murderer" campaign.

"The campaign is designed to shake people up, to bring the topic of AIDS back to centre stage, and to reverse the trend of unprotected sexual intercourse."

The ad, made for German audiences, shows blurred clips of a couple having sex and it is only at the end that the man is revealed as Hitler.

A tag line then reads: "AIDS is a mass murderer."

The campaign, which also features posters of Joseph Stalin and Saddam Hussein lookalikes en flagrante, was organised with AIDS awareness group Regenbogen e.V. ahead of World AIDS Day on December 1.

Created by the Das Commitee advertising agency, it is backed by a website www.aids-is-a-mass-murderer.com.

SOURCE: news.com

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