Bill Blogs

[Bill Blogs @blogs412338]

@PeteWargent Speculation ending

[Bill Blogs @blogs412338]

@GeoffWilsonWAM Hand me a violin for the Banking industry as borrowing capacity contracts

[Bill Blogs @blogs412338]

@ausstockchick Was he concerned about the younger generations before the budget? I saw nothing from him. Always back self interest.

[Bill Blogs @blogs412338]

@PeterMO71244371 @ausstockchick Situation normal.

[Bill Blogs @blogs412338]

@Waychinicuprd @ausstockchick The vast majority of cafe's fail anyway. Woeful business model.

[Bill Blogs @blogs412338]

@ausstockchick We could do without 50% of them. Poor businesses at the best of times.

[Bill Blogs @blogs412338]

@bowtiedstocks It is highly leveraged (70 -80%) with thin Interest cover ratio covenants (1.5x). Yield shift, higher interest rates and the resulting default cycle will make the adjustments needed over time

[Bill Blogs @blogs412338]

@SimonCotter62 Who claims taxing shares directly makes houses cheaper? The argument is that tax concessions distort investment decisions and cost the budget billions that could be used elsewhere.

[Bill Blogs @blogs412338]

@AvidCommentator Slumdog millionaire!

[Bill Blogs @blogs412338]

@FranMooMoo Good luck with the currency risk there.

[Bill Blogs @blogs412338]

@Crashman_X The property they bought was overpriced and that should have been obvious to anyone with their eyes open. This is the most conspicuous bubble.

[Bill Blogs @blogs412338]

@OMGTheMess A highly leveraged property marketing business collapsing after investor sentiment weakens isn’t proof the reforms failed. It’s proof how dependent parts of the industry became on tax concessions. If the business model was that fragile demise probably started before the Budget

[Bill Blogs @blogs412338]

@MadsMelbourne Owning a business never meant owning a permanent taxpayer funded concession. The government isn’t claiming “47% of their business” it’s reducing preferential tax treatment on gains, something every investor and business owner always knew could change

[Bill Blogs @blogs412338]

@Ryandally08 Yep all theatre pretending they are not 2 sides of the same coin.

[Bill Blogs @blogs412338]

@ComradeFat Load up on currency risk instead.

[Bill Blogs @blogs412338]

@PeterOfPerth @GeoffWilsonWAM Australia built mining, biotech and tech sectors long before ultra-generous CGT discounts. Capital still flows to good opportunities with real returns.

[Bill Blogs @blogs412338]

@GeoffWilsonWAM Funny how “taxes change behaviour” suddenly becomes a revelation only when high earners lose a concession they benefited from for years. If after-tax returns matter so much, then the old concessions were obviously distorting investment decisions in the first place

[Bill Blogs @blogs412338]

@daryljwilson @NoelWhittaker I did say if they can't service the debt they will walk away (negative equity an added incentive to do so). Lenders won't identify negative equity until there is a reason to update the valuation e.g. loan arrears > 90 days, borrower seeks hardship terms.

[Bill Blogs @blogs412338]

@deepfriedWA @daryljwilson @NoelWhittaker Yes bankrupted too but that's academic. You can't get blood from a stone. Being prevented from borrowing again for at least 7 years will serve them well.

[Bill Blogs @blogs412338]

@taxinator If a system is seen as unfair, the issue isn’t “who loses in this Budget,” but whether the concessions were ever appropriately targeted in the first place.