Embed Size (px)
Citation preview
The global economic crisis
WHO PAYS?
What happened to this phrase?What happened to this phrase?
Caveat
Emptor
Where it all beganWhere it all began
September 30, 1999
“In a move that could help increase home ownership among minorities and low –income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.”
Economic Stimulus PackagesEconomic Stimulus Packages
$1,730,000,000,000… so far
Too big to fail?Too big to fail?
Fannie Mae, Freddie Mac, AIG, Merrill Lynch, Citigroup, Wachovia, Washington Mutual, Goldman Sachs, Wells Fargo, Bank of America, Northern Rock, Royal Bank of Scotland, Lloyds TSB, HBOS, Barclays, Bradfrod & Bingley, Fortis, Dexia, Hypo Real Estate, UBS, ING, Commerzbank, Iceland, Ukraine, Pakistan, GM, Ford, Chrysler, GMAC
More debtMore debt==
higher taxes?higher taxes?
The blame game. The blame game. Who can we sue?Who can we sue?
The boom industry of 21 C?The boom industry of 21 C?
CLASS ACTIONS
$1 BILLION OF CLAIMS IN AUSTRALIA
RIGHT NOW …
WITHOUT THE BIG ONES!!!
ABC Learning Centres Air Cargo (inc Qantas)Allco Finance Group
AM CorporationAWB Ltd
BeconwoodCentaur Mining
CentroChallenger
Octavier (formerly MFS)Opes Prime (ANZ Bank)
OzMineralsPan Pharmaceuticals
Reynolds WinesSons of Gwalia
Westpoint
Who would do that job?Who would do that job?
In 2007, the average base fee for chairmen of the ASX top 50
companies rose to $409,000 a year.
Would you want that job?Would you want that job?
Source: The Age
Who would do that job?Who would do that job?
Directors' fees in ASX top 50 companies rose 12 per cent to a median of $140,000.
That job?That job?
Directors in the top 51-100 companies, on average, earned $106,300 … the average male salary is now around $60,000
Who would do that job?Who would do that job?
This job?This job?
Source SMH
… two years ago just 10% of FTSE 250 companies were buying
directors’ insurance to protect the personal assets of their directors …
Defensive BoardsDefensive Boards
Defensive BoardsDefensive Boards
… today, that number
is closer to 50%
Corporate RiskCorporate Risk
While much attention is paid to corporate salaries … the financial risk of being a CEO or director has
increased exponentially
Insurers, shareholders, Insurers, shareholders, government, taxpayers government, taxpayers … all share the liability … all share the liability
burdenburden
pendingpendingonon umerumerSSCC
05
10152025303540
Percent
WHERE THE MONEY WENT 1982
Food Retailing
DepartmentStoresClothing
Recreation
HouseholdGoodsHospitality
Other
05
10152025303540
Percent
WHAT WE SPEND TODAY 2007
Food Retailing
DepartmentStoresClothing
Recreation
HouseholdGoodsHospitality
Other
20092009ustraliaustraliaAA
$5 billion
$26.3 billion
$82.9 billion
source: Federal Budget
THE PROJECT PIPELINETHE PROJECT PIPELINE
THE FUTURE FUNDS …THE FUTURE FUNDS …JAM JARS, STICKY FINGERSJAM JARS, STICKY FINGERS
$60bn
$4bn
$6bn
$5bn $20bn$10bn
Govt unfundedsuper
EducationInvestment
Fund
BAF -Infrastructure
Health
SwanCostello
$40bn from 07/08 and 08/09 surpluses
Future Fund managing $105bn….
Red bars not quite the same as blue as can spend capital
More of a macro stabilisation fund rather than inter-
generational device
source: nabCapital
TODAY’S BABY BOOMTODAY’S BABY BOOM
source: ABS
0
50000
100000
150000
200000
250000
300000
350000
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101
BABY BOOM - 2028BABY BOOM - 2028
source: ABS
0
50000
100000
150000
200000
250000
300000
350000
400000
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101
100 YEARS YOUNG100 YEARS YOUNG
source: ABS
twice as many women compared with men !!
0
100000
200000
300000
400000
500000
600000
