Don’t take our word for it, but a coordinated, multi-front attack against western, and specifically Israeli, interests appears imminent. Today or tonight.
Certain.
This will be an epic social and economic disaster of the highest order.
The declines in equity markets late last week look like little more than the taster for a monumental blowoff.
Wars, or some wars, can be good for business. This one won’t be.
Consumer and business confidence will be slaughtered in short order. In Australia. Around the world.
Credit quality. Impairments. Provisions. Arrears. These will all be somewhere soon in a range from awful to appalling for banks.
In Australian banking it’s profit season and the board meetings coming up over the next days and weeks will be harried affairs, with budgets and forecasts and strategic messaging bound to be in disarray.
Let’s do our best to see that most of us live through this.
The Reserve Bank of Australia needs to and will be sounding retreat on two years of restrictive monetary policy at its board meeting today and tomorrow.
The cash rate is bound to be cut tomorrow. By 50bps with a bit of luck.
Somehow we are all going to have to learn to live with wartime inflation.