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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


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BFCSA: Business leaders urge RBA to resist rushed cuts

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Business leaders urge RBA to resist rushed cuts

Australian Financial Review May 1, 2019 4.53pm

Vesna Poljak, William McInnes, Angela Macdonald-Smith, Carrie LaFrenz


Business leaders from the utilities sector to car parts and insurance are unified in their view that the Reserve Bank of Australia should not cut interest rates, and definitely not before the federal election, because the cash rate is already so low that further easing seems pointless.

"I don’t think it’s going to make any difference," NIB Holdings chief executive Mark Fitzgibbon said on the sidelines of the Macquarie Australia conference in Sydney on Wednesday.

"The cost of money is clearly not the issue for investment or growth anymore."

Mick McCormack, the CEO of gas pipeline owner APA Group, warned a pre-election interest rate reduction ran the risk of "tainting" the political messages in the run-up to the poll.

The Reserve Bank's next meeting is on Tuesday and there is a 34 per cent probability the cash rate is lowered to a record 1.25 per cent according to the futures market. Even if a cut does not arrive following the May meeting, financial markets are still convinced the Reserve Bank will have to cut twice over the next 12 months.

"A federal election is a very serious matter. Let the people understand what the politicians of all persuasions are saying without having that message potentially tainted by interest rate movements," Mr McCormack said.

By acting amid an election campaign, the APA boss was convinced the Reserve Bank's conduct would become politicised.

"I don't think it's an unreasonable request. Not much is going to happen in two or three weeks. But the downside in my view is that you have independent bodies like the RBA being seen to be getting caught up in the political system."

The Reserve Bank has only cut once during a federal election, in 2013. But speculation of a May cut surged when the March quarter headline inflationresult came in flat, putting even more distance between the Reserve Bank and its inflation target.

"I think the real question is, if the RBA cuts or maintains rates, will it make a difference?" Mr Fitzgibbon asked. "Probably not. I think it’s got to the point where people are indifferent."

a2 Milk CEO Jayne Hrdlicka said any RBA rate cut would have little impact on the milk and infant formula business, but may be good for consumer sentiment.

"But the confidence it builds from consumers believing they are in a low-cost debt environment, and they can behave in a way which incorporates that into their decision making, is a healthy thing for the economy," she said.

The chairman of 4x4 accessories maker ARB, Roger Brown, advocated for a fiscal-forward approach.

"I don't think [easing] will make any difference, they're already pretty low. I'd rather spend a lot more money on other things and build up the economy," he said. "We're certainly feeling the effects of the slowing economy within Australia and we're very fortunate in that our market is still pretty strong."

The Reserve Bank declared in March that the "wealth effect" linked to the housing downturn was limited to household furnishings and new car sales. The effect on other types of spending is limited or insignificant.

Growth had slackened

While new car sales have fallen, to 1.15 million in 2018 from 1.19 million in 2017, four-wheel-drive and sports utility vehicle sales have increased, to 530,000 from 514,000 (excluding small SUVs).

Several CEOs observed how growth had slackened or become patchy.

"Here in Australia, there are some signs of the economy slowing and we've seen different parts of our business strong and others not so strong," Nigel Garrard, managing director of packaging company Orora, said.

Bingo CEO Daniel Tartak was hopeful that the clarity of a federal election outcome would eliminate any uncertainty holding back investment decisions. "Like it did with the [NSW] state election, infrastructure projects were moved back on-train, same with the federal election. All businesses will be better for it when the election's over, regardless of who wins."

The Bingo boss, whose skip bins are ubiquitous on inner-city construction sites around Sydney, also said: "I don't think residential construction is as bad as the market's factored in."


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